ISLAMABAD - Economic experts have termed the rise in remittances as a strong cushion for the country’s ailing economy, providing a bailout package at a much needed time to bring about stabilization.

“Being the one of most important positive indicators, the record increase in remittances is very good for the economy of the country,” former Finance Minister Dr Salman Shah told APP.

He said that the boost in remittances would also help ease the pressure of balance of payment of the country.

Dr Salman was of the view that overseas Pakistanis were the one of the biggest resources to boost economy of the country, adding that overseas Chinese and Indians have made huge investment in their respective countries.

“If Pakistani government serves its overseas Pakistanis and take initiatives by providing them incentives then they can play a vital role in boosting Pakistan’s economy through their remittances and investments for the socio-economic prosperity of Pakistan”, he remarked.

Citing another reason for increase in remittances, he said due to the recovery in various economies including USA, Saudi Arabia where overseas Pakistanis live, the remittances have increased considerably.

It is pertinent to mention here that The Pakistan Remittance Initiative (PRI) launched by the government to facilitate overseas Pakistanis has been bearing fruits as the remittances have touched record high during the seven months of the current fiscal year.

The government had launched PRI in April 2009 through the joint cooperation of State Bank of Pakistan, Ministry of Overseas Pakistanis and the Ministry of Finance in order to provide an ownership structure in Pakistan for remittance facilitation.

This initiative facilitated and supported faster, cheaper, convenient and efficient flow of remittances.