Scheme launched to incentivize legal remittances business
ISLAMABAD: State Bank of Pakistan (SBP) will provide Re1 on every one dollar to all those exchange companies witnessing 15 percent increase in remittances to encourage legal remittances business as it was playing an important role in economic development of the country.
The Overseas Pakistanis had remitted $21.80 billion during last year and it was expected that overseas remittances would further increase during this year.
This was stated by Additional Director SBP Moheen ud din while addressing a ceremony held.
He said that overseas Pakistanis remittances was comprising 6.9% of the national GDP.
The remittance exchange companies in the country had witnessed 9.3% growth, he said, adding that the banks in remittances sector recorded 3.8 % growth during the period under review.
During last year, the business of exchange companies recorded at $1.2 billion, he said, adding it was expected to reach by $1.4 billion during this year.
He said that a scheme was also launched in order to encourage the legal remittances business, adding that under the scheme companies showing 15% growth would be provide relief of Re1 on each dollar coming into the country.
Meanwhile, the less growing companies would also be encouraged, he added.
On the occasion, Western Union and Sky Exchange Company signed an agreement to enhance cooperation in remittances exchange business in the country.
Speaking 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. – APP