Money Exchanges Given a Free Hand to Attract More Remittances

The State Bank of Pakistan (SBP) has asked the foreign exchange companies to take necessary measures to attract direct remittances from the countries where the inflow is minimal.

A delegation of exchange companies association led by Malik Bostan held a meeting with the SBP Executive Director Syed Irfan Ali Shah on Thursday.

During the meeting, the matter of lower remittances from various European and Asian countries came into discussion.


ALSO READ

Pakistanis Remitted $21 Billion in FY 2018-19: SBP


Briefing about the meeting, Bostan told media that the central bank has given them a freehand to increase the remittances from such countries where a large number of Pakistanis were living and working, but the remittance inflow (through official channels) was nominal.

“Spain, for instance, is a country where a large number of Pakistanis reside. However, the remittances from Spain were around $11 million in June 2019,” he said.

He named Japan, Switzerland, Belgium, Sweden, and Italy among the countries where Pakistani expats were in large numbers, but they did not use official channels to send remittances.


ALSO READ

Public Can Now Buy & Sell Foreign Currencies from Bank Branches


“The remittances from such countries came in the range of $1.16-12 million each in June,” he added.

It was also highlighted that the exchange companies in Pakistan are allowed to collaborate with only five international money transfer companies like MoneyGram and XpressMoney. In contrast, the banking channels attract remittances through 170 of such companies.

Resultantly, the SBP has allowed the money exchanges to sign contracts with other international money transfer companies in those countries.

“The State Bank will instantly approve the agreements,” he said.


ALSO READ

Govt’s Current Account Deficit Reduction in FY19 Was More Than the IMF Bailout Package


He said that the exchange firms intend to offer ‘cash’ incentives to the workers in such countries to attract remittances.

Bostan said that they have compelled the central bank to consider their old demand of paying a rebate of Rs. 6 per dollar to attract workers’ remittances.

He hoped that the two initiatives will increase the remittances from $2 billion to $6-7 billion a year.


  • people from australia facing issues from their govt side for sending money to their home. usually concern person hold their payment for weeks. and they also applied the limit on amount to send.

  • Please allow free and easy means of send and receiving money from Pakistan.
    This will all business and private companies confidence to invest.
    Allow for easy online transfer and payment facilities

  • Strange! The State Bank of Pakistan I. e., the Central Bank and Regulator of the country is playing in the hands of Money Changers by allowing them free hand, who have been responsible for bringing national currency, Pak Rupee to this fiasco every facing free massive falls and known for self serving their own vested interests and not caring for serving larger interests of Pakistan.

    The people have not forgotten the fate which then Money Changers of repute, Khanani & Kalia, met in Pakistan as well as in USA on playing havoc by laundering money and committing other serious financial crimes whereon prosecuted and sentenced.

    The SBP hardly fortnight ago announced allowing country’s commercial to deal in sale and purchase of foreign currency on their counters which caused corrupt Money Changers sleepless night. The next morning after night long play and working by money Changers on central bankers, the SBP taking 180 degree turn surprisingly came out with an announcement disowning any such move.

    The SBP by such cowardly compromising attitude towards destructors of worth of national currency be extending unprecedented favors appears to be plagued by corruption and incompetence when incapable to run the show of Central Bank independently and freely at its own by taking affairs exclusively in its own hands.


  • close
    >