SBP offers up to Rs6 per USD to ECs on remittances

October 08, 2024 (MLN): To incentivize Exchange Companies (ECs) in enhancing their home remittance mobilization efforts, the central bank has decided to offer payments of up to PKR 6 per USD for remittances surrendered to designated banks, depending on growth levels achieved.

According to a circular issued by the State Bank of Pakistan (SBP), ECs will be provided a base rate of PKR 2 for each USD of home remittances surrendered to SBP designated banks.

Moreover, a variable component will be provided, with PKR 3 to be paid for each incremental USD surrendered to SBP designated banks, for growth in home remittances up to 5% or $25 million (whichever is lower), in comparison to previous year.

Further, PKR 4 per USD will be paid against incremental remittances above 5% or over $25m, in comparison to previous year.

The performance of ECs will be evaluated by SBP on a monthly basis and payments would be reimbursed accordingly, the central bank said.

Any required adjustment in payments, on a consolidated basis, would be made in the last quarter of the fiscal year.

The above revisions will take effect from October 01, 2024.

"The operational instructions related to implementation of the incentive scheme for ECs will be communicated separately," the circular further reads.

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