Removal subsidies: Time for priority in exports
Karachi: Recently, the government has provided nearly 200 billion Rs (about $ 700 million) as a subsidy to banks to attract remittances through official channels and to care for illegal Hawala and Hundi networks. Politics have provided immediate results, as remittances increased by 27% annually to $ 38 billion. However, much of this increase reflected a natural recovery. As financial stability returned and the spread between foreign exchange rates and open exchange rates were limited, remittances previously diverted to informal channels were simply repeated through the banking system. In other words, the increase was not exclusively for the subsidy, but
