Scheme launched to incentivize legal remittances business

February 29, 2020: Additional Director State Bank of Pakistan, Moinuddin said Saturday that in order to promote legal remittances business, a scheme has been launched to provide Rs1 on every one dollar to all those exchange companies that witness 15 percent growth in remittances.

Addressing the launching ceremony of Western Union services at Sky Exchange Company here, he said that the companies showing less growth in remittances would be encouraged to promote these.

On the occasion, both the companies signed an agreement to enhance cooperation in remittances’ exchange business in the country.

According to press statement issued by Sky Exchange Company, this partnership between Western Union and Sky Exchange Company would facilitate home remittance services in Pakistan, adding that the company had launched incentive scheme of wining Rs 2 per Dollar for overseas Pakistanis who send their Remittances through Western Union.

Additional Director SBP Moinuddin said that the remittances were an important for the economic development of the country.

He appreciated the role of Exchange Companies in mobilizing of home remittances, adding the exchange companies were a major source of increasing foreign reserves.

He said that the Overseas Pakistanis had remitted $21.80 billion during last year and it was expected that overseas remittances would further increase during this year. He said that overseas Pakistanis remittances contribute 6.9% in the national GDP.

He said that remittance exchange companies in the country had witnessed 9.3% growth, adding that the banks in remittances sector recorded 3.8 % growth during the period under review.

During last year, the business of exchange companies were recorded at $1.2 billion, he said adding that it was expected to reach by $1.4 billion during this year.

Sparking on the occasion Chairman Sky Exchange Company Qaisar Abbas Shaikh said that exchange companies were working like commercial banks in the country for ensuring their services for overseas Pakistanis.

He said the company was playing its role to increasing foreign reserves through Home remittance services.

APP