Hajj quota slashed to save forex.
Due to a lack of dollars, over 90 000 Pakistanis might not perform the Hajj.
ISLAMABAD: The government has, in theory, agreed to provide half of the Hajj quota of its residents to Pakistanis overseas in order to prevent an outflow of almost $400 million. This decision highlights the effects of the economic crisis on people from all walks of life.
According to government sources, overseas Pakistanis can use the quota that the government is offering owing to a shortage of foreign currency to undertake the Hajj personally or to pay for someone residing in Pakistan’s costs.
The choice was made during a meeting between Minister for Religious Affairs Mufti Abdul Shakoor and Finance Minister Ishaq Dar. According to representatives who were present, the issue will now be brought before the federal cabinet for approval, along with the Hajj expenses, which this year may range from Rs1.2 million to Rs1.3 million per individual.
According to Umar Butt, Assistant Director of Media for the Ministry of Religious Affairs, “it has been proposed that half of Pakistan’s Hajj quota may be assigned to overseas Pakistanis due to foreign exchange-related difficulties.
According to the Ministry of Finance, the meeting was informed of the Hajj-2023 policy and the anticipated number of Pakistanis applying to undertake the Hajj.
According to a finance ministry official, Pakistan received a Hajj quota from Saudi Arabia of 179,210 pilgrims this year, but due to severe economic restrictions, the government cannot afford to permit a major capital flight.
In light of this, it was decided during the meeting that 89,605 non-resident Pakistanis would receive the equivalent of half of the quota. According to the official, non-resident Pakistanis might either use their own quota or sponsor a Pakistani citizen.
Savings and Hajj expenses cannot be determined precisely at this time because they are based on the official exchange rate. According to representatives from the Religious Affairs Ministry, the cost may exceed Rs1.2 million per person, which is at least 71%, or Rs500,000, more than the previous year.
They stated that giving the non-resident Pakistanis half of the quota was thought to save the government almost $400 million.
But, the government requires funding to make pilgrimage easier for the other half. In the meeting, it was discussed that a minimum of $284 million was required right away.
The government has long denied the depth of the economic crisis, but it is also taking steps to stop the flow of funds abroad, such as giving up half of the Hajj quota and limiting imports and dividend payments.
Even if foreign currency inflows start after the restart of the International Monetary Fund (IMF) loan programme, this has caused a significant backlog that will take months to clear.
Due to the lack of goods brought on by the restrictions on the outflow of dollars, Pakistan is also at risk of experiencing increased inflation.
In a statement issued by the finance ministry, it was stated that Mufti Abdul Shakoor, the federal minister for religious affairs, had notified the finance minister about several concerns with foreign exchange and requested his support.
The Hajj is a fundamental religious duty that every Muslim must fulfil, and we must do our part to earn Allah’s favour, according to Dar.
According to the ministry, the finance minister promised to provide all the assistance and cooperation necessary to help the pilgrims make the religious ceremony blessed and pleasant.
According to the Express News, Pakistan International Airlines (PIA) has published its Hajj rates, which range from $870 to $1,220.
Ishaq Dar was visited by Turkiye Ambassador Dr. Mehmet Pacaci on Saturday at the Finance Division.
The government’s restrictions on the movement of dollars abroad had an impact on Turkish Airlines, therefore the ambassador asked the minister to make it easier for payments to be made to them.
One of the reasons cited for the British airline’s decision to stop operating to and from Pakistan was the non-repatriation of profits made there.
Due to issues with currency, certain foreign airlines no longer directly sell airline tickets to Pakistan.
As a result of the import limitations, one of its electrical product manufacturers had to scale back operations. The ambassador pushed the finance minister to release the goods that manufacturer had imported.
The IMF has already requested Pakistan to revoke the instructions given to commercial banks for restricting foreign currency, citing a breach of the IMF charter in doing so.
If commerce is permitted to proceed normally, the global lender believes that the current suppression of imports is artificial, which has kept the price of the rupee above the market price.
