Finance Minister Shaukat Aziz said on Thursday that the government would introduce a law in the coming budget with a view to protecting the Foreign Currency Accounts (FCAs) of the overseas Pakistanis.

"Our incentive package is ready which will be announced at the time of my budget speech on June 16 for overseas Pakistanis to invest in the country," the minister told a roundtable conference organized by the representatives of the overseas Pakistanis. Assuring full protection to foreign investment, he said there was no question of freezing foreign currency deposits in future. "And that is why we are bringing a law that would provide all necessary protection against any freezing of accounts."

Mr Aziz stated that a decision had been taken to expedite remittances by the overseas Pakistanis through banking channels. He observed that situation had considerably improved as overseas Pakistanis were now sending their remittances through banks. However, he said, the government would announce incentives in the budget to discourage hundi.

Announcing that special packages would be offered to overseas Pakistanis to invest in various fields, the minister said that the Board of Investment had finalized various new sectors which would attract foreign investment. He said the business of the moneychangers was being regularized by converting them into 'exchange committees'. In his speech, Privatization Minister Altaf Saleem said the interested overseas Pakistanis would be given special offer for buying state units on kerb rate instead of the official rate.

In another meeting he directed the heads of banking institutions to intensify efforts to enhance foreign exchange remittances by non-resident Pakistanis through regular banking channels. He said the gulf between the total foreign remittances coming into Pakistan and the amount coming through regular banking channels was too wide. There is a need, he said, to create both awareness and motivation amongst Pakistanis living abroad to send remittances to their families through banking channels which is as much in the interest of the country as in their own personal interest.

He said the purpose was to attract foreign investment, particularly the one by the overseas Pakistanis. He said there existed a great potential for the expatriates to take part in the privatization process. He advised the overseas Pakistanis to contact the Privatization Commission in this regard.