Reward points earned for sending remittances under the National Remittance Loyalty Program (NRLP) will be redeemable in cash.
The federal cabinet approved the measure at a meeting, Dawn News reported, citing the minutes of the meeting.
The NRLP is a points-based reward system designed to incentivize overseas Pakistanis to send more money back home.
Finance Minister, Shaukat Tarin, said during the meeting that the NRLP would help maintain this “positive trajectory of remittances.”
The program will start on 1 October and is expected to cost Rs. 13.11 billion in the fiscal year 2022. The budget is based on whether remitters equivalent to 25 percent of remittances in the fiscal year 2021 register for the program.
It will award reward points of 1 percent on a yearly remittance of up to $10,000, 1.25 percent on up to $30,000, and 1.5 percent on amounts more than $30,000.
If an overseas Pakistani sends home $25,000 a year, he would receive a total of Rs. 46,575. He would get reward points worth 1 percent for the first $10,000, and points worth 1.25 percent for the following $15,000.
All forms of remittances sent through official channels will be eligible for the program.
Apart from redeeming cash, remitters can also use the reward points to pay taxes on domestic and imported cars. They can also pay for the renewal of national identification cards and passports, utility store purchases, and premium payments for the State Life Insurance Corporation of Pakistan.
In addition, remitters will be eligible for priority clearance at airports and use points to buy Pakistani International Airlines (PIA) tickets and extra luggage space on flights,
For the remitter’s ease of use, the government developed a mobile application that will track remittances submitted. The program’s participants are categorized along three tiers — green, gold, and platinum.
Worker remittances are a major part of Pakistan’s economy, and the COVID-19 pandemic has seen a surge in inflows. The country recorded $2.71 billion in remittances in July 2021, exceeding the $2 billion mark for the 14th consecutive month.
