Islamabad: The Economic Coordination Committee (ECC) on Wednesday approved an incentive package worth PKR 9.6 billion for banks and foreign exchange firms to boost remittances in the current fiscal year (FY 2019-20), a news source reported. As per the publication, a cabinet committee approved the grant to finance a number of steps aimed at facilitating and encouraging overseas Pakistanis to transfer their remittances through official channels.
Reportedly, Adviser to the Prime Minister on Finance and Revenue Hafeez Sheikh presided over the cabinet meeting. During the session, it was revealed that in the first eight months of FY 2019-20, the remittances had increased by 12 percent to USD 14.3 billion. The scheme to incentivise exchange companies and banks was launched in 2018-2019, and would continue for the growth of foreign remittances. The scheme incentivised the financial institutions with PKR 0.50/per USD on five percent growth, PKR 0.75/per USD on ten percent growth, and PKR 1/per USD on fifteen percent growth.
Also, starting from July 1, the remittances transferred into official
bank accounts will be exempt from the withholding tax. The meeting was further informed
that from September 1, the national remittance loyalty programme will be
launched to incentivise remitters through mobile applications and cards. The said
programme will be conducted with the assistance of banks and relevant
government agencies.
