April 16, 2020 (MLN): Amid qualms of low inflows of remittances due to the impact of global Covid-19 pandemic, the State Bank of Pakistan (SBP) announced incentives for banks and exchange companies on Wednesday to enhance the inflow of remittances in the country.
As per the announcement through an official circular, the SBP increased the rate of telegraphic transfer (TT) to Saudi Riyal (SAR) 20 on remitting $100-$200 to Pakistan. The central Bank has reduced the minimum amount limit as previously, it was SAR 10, paid on a minimum amount of $200.
In addition to this, the SBP has also increased incentives for the banks and currency dealers engaged in marketing of home remittances as the notification reveals that the existing incentive scheme for marketing of home remittances i.e. PKR 01 against USD 01 of remittance amount beyond 15% growth over last year may now be based on tiered growth i.e. Rs. 0.50 on 5% growth, Rs. 0.75 on 10% growth and Rs. 1.00 on 15% growth.
As the recent media reports suggest that thousands of Pakistanis have lost their jobs in GCC countries and many are facing salary cut due to prevailing dynamic of Covid-19 crisis, therefore, a significant drop in remittances is being expected. The step taken by SBP is likely to mitigate the risk of a drop in workers’ remittances in this crucial time.
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