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Business Recorder
7 days ago
- Business
- Business Recorder
PRI financing: IMF asks MoF and SBP to find a way forward
ISLAMABAD: The International Monetary Fund (IMF) has asked the Ministry of Finance and the State Bank of Pakistan (SBP) to sit together and find a way forward for financing the Pakistan Remittances Initiative (PRI) - a scheme for facilitating remittances through formal channels. This was revealed by the finance secretary, while briefing the National Assembly Standing Committee on Finance and Revenue, which met with Syed Naveed Qamar in the chair, here on Wednesday. The committee observed that the remittances' reward paid to banks and exchange companies facilitating overseas inflows through official channels is turning to be a new circular debt. The finance secretary informed the committee that due to fiscal constrain no amount has been allocated for the scheme for the current fiscal year against Rs89 billion earmarked last fiscal year, however, it crossed Rs100 billion. Even if it is paid from the SBP profit, would means indirect payment by the Finance Ministry. 'We are engaged with SBP to find a solution for financing PRI as it has already been decided to revise the scheme,' he added. Govt decides to review Pakistan Remittances Initiative The committee was informed that the reward structure — previously set between 20 to 30 riyals per incremental transaction — has now been revised to a flat rate of 20 riyals across all transaction sizes. The minimum eligible transaction threshold is being raised from $100 to $200. The committee further deliberated upon 'the parliamentary budget office bill 2025,' moved by Rana Iradat Sharif Khan envisaging to establish parliamentary budget office to enhance fiscal oversight, transparency and parliamentary security of budgetary matters. The finance secretary said there is no need of legislation for establishing budget office. Even if it is established, the office should be a lean, he added. The committee constituted a sub-committee under the convenorship of Dr Nafisa Shah for detailed deliberation on the bill and submission of its report within 30 days. Ali Zahid, Arshad Abdullah Vohra, and Muhammad Mobeen Arif, MNAs, will be the members of the newly appointed sub-committee. The committee expressed serious concern over the absence of the Industries and Production secretary, and deferred the agenda item relating to the new electric vehicle policy. The committee deferred discussion on 'The Starred Question No 40', moved by Sharmila Faruqui, MNA, 'The Starred Question No 38', moved by Aliya Kamran, MNA, 'Non-Implementation of Minimum Wages, as announced by the Federal Government in its departments'' matter raised by Syed Rafiullah, MNA, and 'Islamic Banking' matter received from Syed Iftikhar Hussain Naqvi, member Council of Islamic ideology, for the next meeting of the committee. Copyright Business Recorder, 2025
New Indian Express
15-07-2025
- New Indian Express
Koraput couple forced to pull plough for marrying against customs: Police register case, start probe
JEYPORE: A day after a tribal couple was tied to a yoke and paraded like bullocks through the streets of Pedaitiki village in Narayanapatana block, Koraput police suo motu registered a case on Monday and started investigation into the inhuman incident. As part of probe, the Narayanapatana block development officer (BDO), tehsildar and IIC visited Pedaitiki and inquired about the involvement of villagers who forced Narendra Pidika (22) and Asanti Pidika (21) to undergo the 'purification' ritual for marrying in the same tribal clan. Around six villagers were also called to Narayanapatana police station for questioning and later released. Koraput collector V Keerthi Vasan asked all the BDOs of the district to spread awareness among the tribal communities in their respective areas not to adopt such practices in the name of purification rituals. The collector also urged the PRI members to remain alert and prevent such acts by tribal communities. 'The administration has taken the issue very seriously and directed the BDOs and PRI members to prevent such inhuman acts in the tribal villages. No one will be allowed to harm anyone's self respect or rights in such a manner. People found indulging in these practices will face strict action,' he added. Sources said Narendra and Asanti Pidika, both belonging to the Kondh community, fell in love and got married. They eloped to Andhra Pradesh during the Rath Yatra festival and returned to their respective homes three days back. However, their union was not accepted by the tribal community which considered marriage between blood relatives a taboo. On Sunday, a meeting was convened by village elders and family members of the couple following which they decided to carry out the 'purification' ritual before accepting the marriage. As part of the ritual, the couple was tied to a yoke and paraded like bullocks on the streets of Pedaitiki in full public view. Subsequently, they were made to offer prayers before the village deity and finally allowed to stay in Narendra's house.
Business Recorder
10-07-2025
- Business
- Business Recorder
Govt decides to review Pakistan Remittances Initiative
ISLAMABAD: The government has decided to review Pakistan Remittances Initiative (PRI) - a crucial scheme for bringing remittances through formal channels, as payout increased by around four times while remittances by around two times during the last 10 years. Additional Secretary Finance Amjad Mehmood, while briefing the Senate Standing Committee on Finance and Revenue said that Finance Ministry took a summary into the Economic Coordination Committee (ECC) of the Cabinet and sought approval for reviewing PRI scheme. Following ECC's approval, the Cabinet has also directed for reviewing the scheme. The committee which met with Saleem Mandviwalla in the chair was briefed by Dr Inayat Hussain, deputy governor State Bank of Pakistan (SBP) on the PRI including the policy changes in the scheme over the years, including rates or other relevant aspect, along with their financial impact. Remittances: govt set to withdraw some incentives Mandviwalla stated that there is a dire need to review the PRI policy as the number of payouts increased manifold compared to the increase in remittances. Mandviwalla said that remittances were around $19 billion 10 years back, which now reached to over $36 billion; i.e., almost doubled. However, the payout under the scheme was around Rs20 billion which is now reached around Rs130 billion. Hussain said that the scheme was crucial for bringing remittances through the formal channels. He said that eligible transaction limit has been increased from $100 to $200. The committee was informed that since 2009, PRI has been working towards enhancement of home remittances through formal channels in Pakistan. As a result of active engagements with financial institutions (FIs), the number of FIs on PRI network has increased from around 25 in 2009 to more than 50 in 2024. The FIs include conventional banks, Islamic banks, microfinance banks, and Exchange Companies (ECs). Further, the Electronic Money Institutions (EMIs) are also allowed to receive home remittances by working through the banks. The number of international entities has increased from around 45 in 2009 to around 400 at present. In fiscal year 2024 alone, around 33 new international entities joined the home remittance business with the Pakistani FIs under the PRI channel. Through concerted efforts, remittance inflows have grown nearly fourfold, rising from $7.8 billion in fiscal year 2009 to $30.3 billion in fiscal year 2024. Over the past decade alone, remittance inflows have achieved an impressive 65 percent growth, reflecting their increasing significance and steady contributions to Pakistan's economy. While discussing the delay in enforcement of local currency settlement, the Chairman Committee reiterated that commercial banks issue VISA and MasterCard, who earned around $300 million from the country, without providing an option of PayPak. He further opined that all local debit cards should be linked to PayPak. The Committee recommended that commercial banks should give an option of PayPak on the form at the time of issuance of debit cards. The committee was informed that as of March 2025 of the 53 million debit and credit cards in Pakistan; about 10 million are PayPak and 2.5 million co-badged, while the rest are owned by Visa and MasterCard. The SBP informed the committee in writing that Visa/ MasterCard/ Union Pay; etc., are international payment schemes that offer card services all over the world. These schemes were established decades ago and offer many services such as online and shop-based payments. A large global network of merchants is connected with the platforms of VISA/ Master for accepting in-store and online payments. The SBP has undertaken various measures to reduce the country's reliance on these international card schemes and to promote cost-efficient, local currency-based payment instruments. Co-badging arrangements with international networks are also under development to allow broader use cases, including international and e-commerce transactions. While pricing structures of Visa/ MasterCard are governed by bilateral commercial arrangements between banks and payment schemes, SBP continues to provide strategic direction and oversight to promote fair competition and to lower the cost of digital financial services. The dominance of international payment schemes still persists due to several market factors such as (i) Strong brand recognition and global trust in Visa and MasterCard; (ii) their ability to support international and e-commerce transactions; (iii) provision of market development funds by schemes to issuing banks, and allowing discounts and promotional offers for customers. Copyright Business Recorder, 2025
Business Recorder
10-07-2025
- Business
- Business Recorder
Remittance boom fuelling recovery
In fiscal year 2024–25, Pakistan witnessed a historic surge in remittance inflows, which climbed to an all-time high of $38.3 billion, marking a 26–27 percent increase compared to the $30.3 billion received in FY24. This robust growth not only exceeded earlier projections but also provided a critical buffer for the country's balance of payments. On average, monthly remittances reached $3.19 billion, significantly up from $2.52 billion the previous year. These inflows played a vital role in stabilizing Pakistan's external account, contributing to a current account surplus for the first time in over a decade. Moreover, they helped ease inflationary pressures and supported a relatively stable exchange rate. June 2025 capped the fiscal year with inflows totalling $3.406 billion, a year-on-year rise of nearly 8 percent from June 2024. However, this figure represented a month-on-month decline of around 7.5–8 percent from the peak in May 2025. Country-level data shows that Saudi Arabia contributed $823 million, the UAE $717 million, and the UK $538 million in June. Notably, remittances from the United States declined 13 percent year-on-year, while inflows from the European Union rose sharply by 34 percent. While Gulf countries continued to dominate the remittance landscape, the notable rise from EU countries helped diversify the sources. This shift reflects changing diaspora patterns and potentially more effective formal channelling of funds from Europe. The drop from the US may be attributed to softer economic conditions or seasonal variations. Several structural factors underpinned this record-breaking year. The government's Pakistan Remittance Initiative (PRI), coupled with the increased adoption of digital transfer systems like Raast, played a vital role in formalizing flows and reducing reliance on informal channels. A relatively stable rupee, an improved macroeconomic environment, and a continued boom in Gulf labour markets all contributed to the uptick. Additionally, remittance incentives and relaxed regulatory frameworks encouraged overseas Pakistanis to prefer formal routes. With increased demand for Pakistani labour in the Middle East and broader economic recovery, remittance flows remained resilient throughout the year. In regional comparison, countries like Bangladesh, India, and the Philippines have adopted targeted strategies to attract and sustain remittance inflows. Bangladesh, for example, provides a cash incentive on remittances sent through formal banking channels, which has significantly shifted flows away from informal hundi/hawala systems. India leverages its vast, diversified diaspora with proactive consular engagement, digital transfer systems like Unified Payment Interface (UPI), and tax benefits for non resident Indians. The Philippines, through its Overseas Workers Welfare Administration (OWWA), offers structured reintegration programs and savings schemes that encourage Filipino workers abroad to invest back home. These countries also maintain stronger coordination between central banks, labour ministries, and overseas missions to ensure timely resolution of issues faced by their diaspora. Pakistan, while making progress with initiatives like Raast and PRI, still lags in diaspora engagement strategies. Expanding financial literacy among migrant workers, strengthening bilateral labour agreements, and offering more investment-linked remittance products could help address this. For FY26, the target for remittances has been set at $39.4 billion, underscoring the government's expectation to sustain this momentum. However, some risks include including potential slowdowns in Gulf economies, geopolitical shifts, and domestic policy inconsistency. Maintaining remittance growth will require continued facilitation through policy incentives, improved digital infrastructure, and stronger diaspora engagement. More importantly, the challenge lies in channelling these inflows toward long-term investment and development goals rather than mere consumption, thereby transforming remittances from a financial buffer into a catalyst for inclusive economic transformation.
Business Recorder
10-07-2025
- Business
- Business Recorder
Govt decides reviewing PRI
ISLAMABAD: The government has decided to review Pakistan Remittances Initiative (PRI) - a crucial scheme for bringing remittances through formal channels, as payout increased by around four times while remittances by around two times during the last 10 years. Additional Secretary Finance Amjad Mehmood, while briefing the Senate Standing Committee on Finance and Revenue said that Finance Ministry took a summary into the Economic Coordination Committee (ECC) of the Cabinet and sought approval for reviewing PRI scheme. Following ECC's approval, the Cabinet has also directed for reviewing the scheme. The committee which met with Saleem Mandviwalla in the chair was briefed by Dr Inayat Hussain, deputy governor State Bank of Pakistan (SBP) on the PRI including the policy changes in the scheme over the years, including rates or other relevant aspect, along with their financial impact. Remittances: govt set to withdraw some incentives Mandviwalla stated that there is a dire need to review the PRI policy as the number of payouts increased manifold compared to the increase in remittances. Mandviwalla said that remittances were around $19 billion 10 years back, which now reached to over $36 billion; i.e., almost doubled. However, the payout under the scheme was around Rs20 billion which is now reached around Rs130 billion. Hussain said that the scheme was crucial for bringing remittances through the formal channels. He said that eligible transaction limit has been increased from $100 to $200. The committee was informed that since 2009, PRI has been working towards enhancement of home remittances through formal channels in Pakistan. As a result of active engagements with financial institutions (FIs), the number of FIs on PRI network has increased from around 25 in 2009 to more than 50 in 2024. The FIs include conventional banks, Islamic banks, microfinance banks, and Exchange Companies (ECs). Further, the Electronic Money Institutions (EMIs) are also allowed to receive home remittances by working through the banks. The number of international entities has increased from around 45 in 2009 to around 400 at present. In fiscal year 2024 alone, around 33 new international entities joined the home remittance business with the Pakistani FIs under the PRI channel. Through concerted efforts, remittance inflows have grown nearly fourfold, rising from $7.8 billion in fiscal year 2009 to $30.3 billion in fiscal year 2024. Over the past decade alone, remittance inflows have achieved an impressive 65 percent growth, reflecting their increasing significance and steady contributions to Pakistan's economy. While discussing the delay in enforcement of local currency settlement, the Chairman Committee reiterated that commercial banks issue VISA and MasterCard, who earned around $300 million from the country, without providing an option of PayPak. He further opined that all local debit cards should be linked to PayPak. The Committee recommended that commercial banks should give an option of PayPak on the form at the time of issuance of debit cards. The committee was informed that as of March 2025 of the 53 million debit and credit cards in Pakistan; about 10 million are PayPak and 2.5 million co-badged, while the rest are owned by Visa and MasterCard. The SBP informed the committee in writing that Visa/ MasterCard/ Union Pay; etc., are international payment schemes that offer card services all over the world. These schemes were established decades ago and offer many services such as online and shop-based payments. A large global network of merchants is connected with the platforms of VISA/ Master for accepting in-store and online payments. The SBP has undertaken various measures to reduce the country's reliance on these international card schemes and to promote cost-efficient, local currency-based payment instruments. Co-badging arrangements with international networks are also under development to allow broader use cases, including international and e-commerce transactions. While pricing structures of Visa/ MasterCard are governed by bilateral commercial arrangements between banks and payment schemes, SBP continues to provide strategic direction and oversight to promote fair competition and to lower the cost of digital financial services. The dominance of international payment schemes still persists due to several market factors such as (i) Strong brand recognition and global trust in Visa and MasterCard; (ii) their ability to support international and e-commerce transactions; (iii) provision of market development funds by schemes to issuing banks, and allowing discounts and promotional offers for customers. Copyright Business Recorder, 2025
