Karachi: The State of Pakistan (SBP) on Friday (February 4) has launched an incentive scheme to boost home remittances through improving foreign exchange liquidity and formal channels in the interbank market, according to news sources.
Under the said incentive, the exchange companies will have to surrender 100% of home remittances mobilised in the interbank market. In return, they will get PKR 1 against every US dollar surrendered. It is important to note that the exchange companies were, previously, required to surrender 15% of the home remittances.
Moreover, the incentive of PKR 1 for every US dollar surrendered will be fixed irrespective of the exchange rate. According to the circular issued by the SBP, the incentive will not exceed 1% of the exchange rate in case the rupee appreciates.
Chairman Exchange Companies Association of Pakistan Malik Bostan stated that slowing the demand for the dollar is a good step. He went on to say that they have been waiting for such incentives for a long time.
Reportedly, the chairman mentioned that they have asked SBP to provide 100 Money Transfer Operators (MTOs) to boost remittances. The said scheme will help improve foreign exchange liquidity in the interbank market. The incentive provided is expected to encourage exchange companies to bring more home remittances by reaching out to a wide set of remitters and beneficiaries in the country.
Iqra holds BS in International Relations and is passionate about writing engaging content on trending real estate topics. When not working, she is either spending time with family, shopping, or discussing shows & movies.
