ECC approves measures to boost remittances through formal channels
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved a host of measures to encourage and facilitate the overseas Pakistanis to send their remittances through official banking channels. The approval was granted at an ECC meeting chaired by Adviser to the Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh.
Under the decision several measures were approved for the enhancement of home remittances through banking channels.
The measures include the rebate of reimbursement of T.T. Charges transactions between USD 100 and USD 200 will be increased from SAR- 10 to SAR-20.
It approved continuation of the New Scheme of incentives launched in 2018-19 for banks and exchange companies during the current calendar year from January 2020.
As per scheme, financial institutions would be incentivized Rs. 0.50 per 1 USD on 5% growth, Rs. 0.75 per 1USD on 10% growth and Re1 per 1USD on 15% growth.
The committee also approved that the amount of the remittances transferred into bank accounts will be exempted from withholding tax with effect from July 1, 2020 whereas a “National Remittance Loyalty Program” will be launched from September 1, 2020 with collaboration of major commercial banks and government agencies through which various incentives will be given to remitters through mobile apps and cards. – APP