Islamabad: The federal government has announced a comprehensive incentive package to boost remittances, a news source reported. The package incentivises remittances sent by overseas Pakistanis through legal channels. The package was announced in a meeting chaired by Prime Minister Imran Khan.
Under the new package, the State Bank of Pakistan (SBP) and commercial banks are allowed to carry out Business-to-Customer (B2C) and Customer-to-Business (C2B) transactions through correspondent foreign entities under their existing home remittance agency arrangements.
Under the package, B2C transactions, freelance and information systems services have been allowed to transact up to USD 1,500 per individual per month; transaction services other than computer and information services have also been allowed to transact up to USD 1,500 per individual per month; and pensioners can now receive up to PKR 250,000 per individual per month.
Similarly in C2B transactions, residents can easily receive direct payments from overseas Pakistanis to pay for utility bills, education fees of HEC-accredited institutions, superstores, insurance companies, credit card bills, among other things.
Besides, remittances received by “reputed” real estate developers and housing societies from overseas Pakistanis on account of purchase of property such as residential and commercial houses, plots, flats and buildings, etc have also been allowed except remittances for equity or participation in an enterprise.
The Prime Minister also approved a proposal for the government to pay an incentive or PKR 2 – as opposed to PKR 1 previously – for the use of mobile wallet on each transaction of USD 1 remittance as airtime.
For foreign exchange companies and banks bringing in 15 per cent more remittances than the previous financial year, an incentive of PKR 1 will also be granted against each USD 1 incremental remittance transaction.
The PM also allowed a survey of Pakistani workers employed abroad, especially in the Middle Eastern countries, to offer their feedback on how to further improve the home remittance processes.
