Govt approves major incentives for facilitating remittances: PM chairs meeting

ISLAMABAD: The government has approved major incentives for facilitating remittances as Prime Minister Imran Khan chaired a follow-up meeting regarding facilitating overseas Pakistanis particularly for easing and incentivising home remittances through legal channels.

It has been officially stated that in order to further facilitate overseas Pakistanis, the prime minister allowed State Bank of Pakistan (SBP) and its authorised dealers (Banks) to implement Business to Customer (B2C) and Customer to Business (C2B) transactions through foreign correspondent entities under their existing home remittance agency arrangements.

As regard B2C transactions, freelance and Information Systems Services are allowed up to $1500 per individual per month. Transaction services other than computer and information services are also allowed to transact up to $1500 per individual per month. Pensioners can now receive up to Rs250,000 per individual per month. For C2B transactions, direct payments from overseas Pakistanis abroad can be received to pay for utility bills, education fees of Higher Education Commission’s accredited institutions, superstores, insurance companies, credit card payments etc. Remittances received by reputed real estate builders/developers and housing societies from overseas Pakistani individuals on account of purchase of property such as residential and commercial houses, plots, flats and building etc. are also allowed except remittances for equity/participation in an enterprise.

Moreover, the prime minister accorded approval for incentive payment by the government on mobile wallet use to the tune of Rs2 on each transaction of $1 remittance as airtime that was previously Rs1. Exchange companies and authorized dealers i.e. banks who bring in 15% more remittances than the previous Financial Year will also have the incentive of Rs1 against each $1 incremental remittance transaction. These incentives will have a significant impact towards increasing remittances. The prime minister also approved initiation of a survey of overseas Pakistani workers, particularly based in Middle Eastern countries, to get their feedback on further facilitating and incentivising the home remittance processes.

The premier emphasised that overseas Pakistanis are our greatest asset and the government will facilitate them in every respect. He also directed concerned ministries/departments to work out further incentives for Pakistanis abroad so as to attract remittances through legal channels.

The meeting was attended by Finance Minister Asad Umar, Adviser on Institutional Reforms and Austerity Dr Ishrat Hussain, Special Assistant to the Prime Minister on Overseas Pakistanis & Human Resource Development, Sayed Zulfiqar Abbas Bukhari (Zulfi Bukhari), Special Assistant to the Prime Minister on Media Iftikhar Durrani, Governor State Bank of Pakistan Tariq Bajwa, Secretary to PM Azam Khan, Secretary Finance, Secretary Overseas Pakistanis & Human Resource Development, chairman FBR, chairman Nadra and other senior officers.