Initiative launched to boost remittances to $1 billion per month

[Naveed Yaseen]

By Sajid Chaudhry
ISLAMABAD: To enhance the remittances inflows from an average of $750 million to up to $1 billion per month, the Ministry of Finance and the Ministry for Overseas Pakistanis are launching an initiative with the support of State bank of Pakistan.

The phase one of Pakistan Remittances Initiative (PRI) is being launched from today, with the target to streamline the inflow of amount forwarded by the overseas Pakistanis.

The PRI would be headed by Najum-us-Saqib, senior Joint Director of State bank and the sources said that Western Union has consented to utilise its distribution network for disbursements of remittances in the country.

“The target of PRI was to discourage hundi-hawala business and channel the inflows through the formal channel,” Dr Farooq Sattar, minister for overseas Pakistanis told Daily Times.

He said that the first phase of PRI would be launched in countries which have strong presence of Pakistani banks and the scheme would be completed within six months to one year.

Meanwhile, official of the finance ministry has confirmed that the discussions have been made with the entire leading banks operating in the country including the foreign banks for an integrated disbursements of remittances.

“The main target of the scheme is to bring in all the inflows through the official channel,” finance minister Shaukat Tareen said adding that with the development of technology it was possible to interlink transfers from the banks and exchange companies.

“The scheme is expected to increase the remittances gradually by $5 billion annually to $12 billion,” Mr Tareen said.

During the year 2008-09 the remittances sent by the overseas Pakistanis was $7.6 billion.

Official of Finance Ministry said that one reason for the growth of hundi-hawala was that it facilitated both the sender and the receiver.

“The banking charges would be further lowered, while efforts are been made to link the banking sector and exchange companies with the telecom sector and the receiver of amount would be informed at their mobile numbers,” the official said.

The new scheme would also avoid hassle and lengthy procedures by the banks.

The government with the help of private sector has conducted a study, which revealed have revealed that the un-official channels used for transfer of money to Pakistan were more facilitating than the official channels of banking sector. Keeping in view the results of the study the government intends to give incentives to encourage the overseas Pakistanis to use official channel of banking.

http://www.dailytimes.com.pk/default.asp...2009_pg5_8