Foreign Remittances in Pakistan: SBP announces incentive scheme

Foreign Remittances in Pakistan: SBP announces incentive scheme

ISLAMABAD - The State Bank of Pakistan (SBP) has taken a new initiative for the promotion of foreign remittances in Pakistan.

As per media report, SBP announced an incentive scheme for the promotion of home remittances.

According to a circular issued by the central bank, in order to encourage domestic banks/microfinance banks/exchange companies providing home remittance disbursement services, a performance-based scheme has been developed to enhance their marketing/promotional/awareness efforts for home remittance products and services. The government will reimburse these expenses through SBP.

As per the scheme, Re1 per each incremental US Dollar will be paid if home remittances exceed 15 percent growth in FY19 as compared to the levels achieved in FY18.

According to scheme’s terms and conditions, the scheme will be applicable to all banks, microfinance banks and exchange companies that offer home remittance disbursement services as per the rules and regulations issued by the SBP.

The banks/microfinance banks/exchange companies will have to surpass the aforesaid criteria to qualify for the subject scheme. They will be required to submit details of execution of marketing/promotional/awareness activities once they qualify for the subject scheme.