ECC Approves Measures to Boost Remittances Through Official Channels

The Economic Coordination Committee (ECC) of the Cabinet has approved a host of measures to encourage and facilitate the overseas Pakistanis to send their remittances through official banking channels.

The approval was granted at a meeting of the ECC held here on Wednesday with Adviser to the Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh in the chair.

Under the decision, following measures for the enhancement of home remittances through banking channels were approved:

  1. The rebate of reimbursement of T.T. Charges transactions between USD 100 and USD 200 will be increased from SAR- 10/- to SAR-20/-
  2. Continuation of the New Scheme of incentives launched in 2018-19 for banks and exchange companies during the current calendar year from January 2020. As per Scheme financial institutions would be incentivized Rs. 0.50 per 1 USD on 5% growth, Rs. 0.75 per 1USD on 10% growth and Rs. 1/- per 1USD on 15% growth.
  3. The amount of the remittances transferred into bank accounts will be exempted from withholding tax with effect from July 1, 2020.
  4. A “National Remittance Loyalty Program” will be launched from September 1, 2020 with collaboration of major commercial banks and government agencies through which various incentives will be given to remitters through mobile apps and cards.
  5. ECC approved a technical supplementary grant of Rs.9.6 billion during the current financial year to finance the above mentioned initiatives.