PM approves major incentives to facilitate remittances

ISLAMABAD: Prime Minister Imran Khan on Monday chaired a follow-up meeting regarding facilitating overseas Pakistanis particularly for easing and providing incentives on home remittances through legal channels.

In order to further facilitate overseas Pakistanis, the prime minister allowed State Bank of Pakistan and authorised 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 US $1500 per individual per month, while 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 Rs. 250,000 per individual per month.

For C2B transactions, direct payments from overseas Pakistanis abroad can be received to pay for utility bills, education fees of universities, superstores, insurance companies, and credit card payments.

Furthermore, remittances received by real estate builders, developers and housing societies from overseas Pakistanis on purchase of property such as residential and commercial houses, plots, flats and building are also allowed except remittances for equity and participation in an enterprise.

Moreover, the prime minister approved incentive payment by the government on Mobile Wallet use to the tune of Rs2 on each transaction of one dollar remittance as airtime that was previously one rupee.

Exchange companies and banks who bring in 15pct more remittances than the previous financial year will also have the incentive of one rupee against each one dollar incremental remittance transaction. These incentives will have a significant impact towards increasing remittances.

The prime minister also approved to initiate a survey of overseas Pakistani workers, particularly based in Middle Eastern countries, to get their feedback on further facilitating the home remittance processes.

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