ISLAMABAD – The State Bank of Pakistan (SBP) has asked the foreign exchangecompanies to take necessary measures to attract direct remittances from thecountries where the inflow is minimal.

A delegation of exchange companies association led by Malik Bostan held ameeting with the SBP Executive Director Syed Irfan Ali Shah on Thursday.

During the meeting, the matter of lower remittances from various Europeanand Asian countries came into discussion.——————————

Briefing about the meeting, Bostan told media that the central bank hasgiven them a freehand to increase the remittances from such countries wherea large number of Pakistanis were living and working, but the remittanceinflow (through official channels) was nominal.

“Spain, for instance, is a country where a large number of Pakistanisreside. However, the remittances from Spain were around $11 million in June2019,” he said.

He named Japan, Switzerland, Belgium, Sweden, and Italy among the countrieswhere Pakistani expats were in large numbers, but they did not use officialchannels to send remittances.——————————

“The remittances from such countries came in the range of $1.16-12 millioneach in June,” he added.

It was also highlighted that the exchange companies in Pakistan are allowedto collaborate with only five international money transfer companies likeMoneyGram and XpressMoney. In contrast, the banking channels attractremittances through 170 of such companies.

Resultantly, the SBP has allowed the money exchanges to sign contracts withother international money transfer companies in those countries.

“The State Bank will instantly approve the agreements,” he said.