The State Bank of Pakistan (SBP) has launched the home remittances incentive scheme for banks to encourage the institutions that facilitate overseas Pakistanis to use banking channels to send remittances back home.
According to the circular issued, the scheme has been renewed for the starting financial year to provide incentives to banks and financial institutions for the marketing of home remittances.
Banks and exchange companies will be rewarded PKR 0.50 per each incremental USD mobilized over five percent growth in the current financial year as compared to the previous financial year.
Banks and exchange companies will be rewarded Rs. 0.75 per each incremental USD mobilized over 10 percent growth in the current financial year as compared to the previous financial year. The institutions will be paid Re. 1 each incremental USD mobilized over 15 percent growth in the current financial year as compared to the previous financial year.
Pakistan has received record-high inflows in the closing financial year as the remittances are likely to receive between $28 billion and $29 billion mainly due to the use of banking channels by the overseas Pakistanis instead of Hawala/Hundi and different non-banking ways. The growth in remittances has been also given an impetus by the introduction of the Roshan Digital Accounts.
In the next financial year, various challenges are projected about the growth of remittances inflows in Pakistan, considering the return of old channels by expatriate Pakistanis for sending money to Pakistan with normalization.
The government is working hard to attract remittances through banking channels via banks and exchange companies.