PTI government launches new initiative for $24 billion foreign remittances

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PTI government launches new initiative for $24 billion foreign remittances

ISLAMABAD - PTI government launches new initiative for $24 billion foreign remittances.

The growth in foreign remittances that soared to $ 11.4 billion link during the July-December period of FY 2020 link is likely to continue for the rest of the year due to a host government link measures that may link help achieve the target of $ 24 billion link set for the financial year 2020 link."

Due to this increasing trend in remittances, the target of $ 24.0 billion link at the end of FY2020 islikely to be achieved as the data of last five years suggests that the workers remitted more in thelast six months as compared to the first six months of the fiscal year," said a statement issued bythe Ministry of Finance.

The Ministry said that seasonal effect was also a leading factor in boosting remittances and it wasexpected that with the start of Ramadan link and the following Eid, the flow of remittances wouldincrease as the workers generally sent more money link during the holy events and activities.Giving a break-up of the remittances received during the Jul-Dec 2019 link, the statement said thatthe remittances reached $ 11.394 billion link as compared to $ 11.030 billion link in the correspondingperiod last year, showing a growth of 3.3 percent.

Overseas Pakistani link workers remitted $ 2.097billion in December link 2019 link as compared to $ 1.819 billion link during November link 2019 link month-to-month basis, the remittances increased by $277.56 million link in December link, with agrowth of 15.25per cent, the highest recorded remittances in a month since May link 2019 link.

Similarly,on year-to-year basis, remittances witnessed a growth of 20 per cent in December link 2019 link ascompared to 0.14 per cent in the corresponding period last year. The share link of remittances fromSaudi Arabia was at 23.0 per cent ($ 2618.0 mn), U.A.E 20.6 percent ($ 2349.3mn), USA link 16. 6per cent ($ 1889.8 mn), U.K 15.4 ($ 1753.0 mn), other GCC countries 9.6 per cent ($ 1089.20mn), Malaysia link 7.0 per cent ($ 798.0 mn), EU 3.0 per cent ($ 339.2 mn) and other countries 4.8per cent.The statement by the Ministry of Finance further said that increased efforts by the PakistanRemittance Initiative (PRI) helped to attract higher remittances from link the Pakistani link diasporathrough Enhancing outreach, Reimbursement of T.T.

Charges Scheme (Free-send Model) andImprovements in Payment System Infrastructure etc. Similarly, visa link fee reduction from link theKingdom of Saudi Arabia link is likely to boost up the inflows while export of manpower had alsobeen increased from link 382,000 to 625,000 during January-December 2019 link, with an increase of243,000 as compared to the corresponding period last years.

The statement further said that the government link had improved its diplomatic relations with theGulf States which had helped restored the confidence of foreign employers in Pakistaniworkforce.

Similarly, reimbursement of T.T. Charges Scheme had also been revised in December2019. Accordingly, the amount of home remittance transaction equal to and above USD link 100/-but less than USD link 200/- (or equivalent in other currencies) would be reimbursed at SAR link 10/while the amount of home remittance transaction equal to and above USD link 200/- (or equivalent inother currencies) would continue to be reimbursed at SAR link 20/-.In order to further encourage promotion of home remittances through formal channels, theGovernment of Pakistan link had re-launched the performance based scheme effective from link January01, 2020 link in which, Rs.

1 per each incremental USD link mobilized over 15% growth in remittances incalendar year 2020 link compared with the levels achieved in Calendar link year 2019 link.

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