Islamabad August 30 2024: Pakistan’s Economic Coordination Committee increases the incentives for exchange companies by 100 percent and increase rewards for commercial banks to boost remittances.
Summary of Finance Division regarding “Proposal for Revision in Home Remittances Incentive Schemes” considered by ECC yesterday.
After detailed discussion and deliberation, as per the proposal of SBP, the ECC approved revisions to the two Remittances Incentive Schemes as under:
Reimbursement of Telegraphic Transfer (TT) Charges Scheme:
a. The flat reimbursement rate of SAR 30 per eligible transaction will be divided into Fixed (SAR 20) and Variable (SAR 08-15) components.
b. The variable component will be linked to the incremental growth in remittances.
c. Banks will receive higher rewards based on their performance in increasing remittances inflows.
Incentive Scheme for Exchange Companies (ECS):
a. The base rate for the fixed component will be increased from PKR 1 to PKR 2 per USD surrendered.
b. The variable component will be linked to the incremental growth in remittances.
c. ECSs will receive higher rewards based on their performance in mobilizing remittances. These revisions are expected to further incentivize banks and exchange companies to increase remittance inflows, thereby boosting the country’s foreign exchange reserves.
