ISLAMABAD – The State Bank of Pakistan (SBP) has taken a new initiative forthe promotion of foreign remittances in Pakistan.
As per media report, SBP announced an incentive scheme for the promotion ofhome remittances.
According to a circular issued by the central bank, in order to encouragedomestic banks/microfinance banks/exchange companies providing homeremittance disbursement services, a performance-based scheme has beendeveloped to enhance their marketing/promotional/awareness efforts for homeremittance products and services. The government will reimburse theseexpenses through SBP.
As per the scheme, Re1 per each incremental US Dollar will be paid if homeremittances exceed 15 percent growth in FY19 as compared to the levelsachieved in FY18.
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According to scheme’s terms and conditions, the scheme will be applicableto all banks, microfinance banks and exchange companies that offer homeremittance disbursement services as per the rules and regulations issued bythe SBP.
The banks/microfinance banks/exchange companies will have to surpass theaforesaid criteria to qualify for the subject scheme. They will be requiredto submit details of execution of marketing/promotional/awarenessactivities once they qualify for the subject scheme.
