In response to the extreme shortage of US dollars and the collapsing economy, the Ministry of Religious Affairs and Interfaith Harmony has reportedly increased the special allocation for Dollar-paying pilgrims in the Government Hajj Scheme 2023 to 50 percent. This special quota is intended for pilgrims who will make their payments in US dollars. Banks have been unable to provide fresh letters of credit (LCs) to importers due to the shortfall of US dollars, further affecting the economy that is already dealing with skyrocketing inflation.
Initially, the government had allocated a 25 percent Hajj quota for individuals who would pay in US dollars last week. However, because the Finance Ministry was unable to provide $2 billion for Hajj expenses, the authorities had to reconsider their plan. Ministry officials intend to speak with Finance Minister Ishaq Dar to persuade him to release the funds.
As per reports, each visitor under the government plan would be billed Rs. 1.1 million, but this fee might rise to Rs. 1.3 million if the currency continues to fall in value. Additionally, the Saudi government intends to raise the Hajj tax rate from 18 percent to 20 percent.
The Hajj Policy 2023 will be submitted to the federal cabinet next week for finalization, which is expected to take between 8 to 10 days. In anticipation of a prolonged foreign exchange liquidity shortage, the Ministry has already boosted the Hajj quota for private entities from 40 percent to 50 percent, with the possibility of future increases.
The Hajj pilgrimage to Mecca is one of the five pillars of Islam and is considered a sacred obligation for all Muslims who can afford it. Every year, millions of Muslims from around the world gather in Mecca for the Hajj pilgrimage. The Government Hajj Scheme offers an affordable and subsidized option for Pakistani pilgrims who wish to undertake the journey.