Pakistan reintroduces incentive for banks, exchange firms to boost remittances

KARACHI: The State Bank of Pakistan (SBP) on Monday reintroduced an incentive scheme for banks and exchange companies for promoting inflows of home remittances through legal channels during the fiscal year 2021/22.

The cash reimbursement scheme for showing growth in processing home remittances by the banks and exchange companies was applicable for the last many years.

The central bank said to further encourage the promotion of home remittances through formal channels, the government of Pakistan has approved reintroduction of a subject scheme with effect from July 1, 2021 to June 30, 2022 to cover home remittance performance for FY2021/22, compared with that of FY2020/21.

The State Bank said home remittances exceeding 5 per cent growth in FY22 (July 1, 2021 to June 30, 2022), compared with the levels achieved in FY21 (July 1, 2020 to June 30, 2021), the incentive would be 50 paisas/incremental dollar mobilised over 5 per cent growth.

Similarly, 75 paisas and Re1 to be awarded as incentives for showing growth of 10 per cent and 15 per cent, respectively.

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