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Home »Money and Banking » Pakistan » FY19 Budget: Rs 20 million earmarked to pick up cost of remittances
The government allocated Rs 20 million in the budget for 2018-19 to pick up the transaction cost of remittances with the objective of facilitating overseas Pakistanis to remit money through formal channels under Pakistan Remittance Imitative (PRI).

This was stated by sources in the finance ministry and State Bank of Pakistan. Specific cost of the remitter or an institution remitting money to Pakistan was picked up by the government under PRI, sources said, adding that any increase from the budgeted amount is sought through a supplementary grant while unutilized amount is surrendered.

PRI was initiated in 2009 with the objective of facilitating cheaper and efficient flow of remittances; and all necessary steps are being taken to enhance the flow of home remittances through formal channels.

PRI is a joint initiative of State Bank of Pakistan, Ministry of Overseas Pakistanis and Ministry of Finance to create an ownership structure in Pakistan for remittance facilitation and to achieve the desired results under various incentive schemes for overseas Pakistanis, domestic commercial banks and foreign entities.

Sources added that the remittance initiative had made a 'very positively' contribution that led to an increase in the inflow of remittances through formal channels. Realizing this positive output Pakistan Tehreek-e-Insaf government has also approved incentives to facilitate remittances from overseas Pakistanis.

Copyright Business Recorder, 2019


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