02-07-2025
- Business
- Business Recorder
Exchange cos welcome their inclusion in PRI
KARACHI: In a major boost to the country's foreign exchange inflows, exchange companies have welcomed their inclusion in the Pakistan Remittance Initiative's (PRI) TT Charges Reimbursement Scheme, terming it a game-changer move that could potentially double home remittances from $4 billion to $8 billion during the current fiscal year.
Chairman of the Exchange Companies Association of Pakistan (ECAP), Malik Muhammad Bostan, lauded the government's decision, calling it a step in the right direction and pledged that exchange companies would fully honour the trust reposed in them.
He said this decision will bring significant benefits to the country and assured that the exchange companies will fully justify the trust placed in them. 'The government has shown its trust by including exchange companies in the PRI and while exchange companies have surrendered $4 billion during the last fiscal year (FY25), they will provide $8 to $10 billion through interbank in this fiscal year (FY26)', he added.
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This is because ECs now have a fair and level playing field, and they will perform outstandingly in this environment, delivering consistent monthly results, he mentioned.
Bostan said that it was a long-standing demand of exchange companies and has finally been fulfilled by the ministry of finance and the State Bank of Pakistan (SBP). He thanked Prime Minister Mian Shahbaz Sharif, Finance Minister Muhammad Aurangzeb, Field Marshal Asim Munir and Governor SBP Jameel Ahmed for their efforts in making this inclusion possible, which will greatly benefit the country. He reiterated that the exchange companies will live up to the trust placed in them.
He highlighted that last year exchange companies surrendered nearly $4 billion into the interbank market through their 1,500 locations, averaging approximately $2.5 million per location annually. This amount included inward remittances and foreign currency exports. In comparison, banks operating 15,000 locations surrendered around $33 billion, which comes to an average of $1 million per location. Banks were given a rebate of 33 Saudi Riyals per $100 (equivalent to PKR 20-22 per dollar), while exchange companies were only given PKR 2 per dollar and were not provided with a level playing field.
As per SBP's fresh directives, no sending fee will be charged for remittances of $200 or more (previously it was only for $100), which is a very positive decision. As a result, the PRI's marketing budget will be cut by 50 percent.
The ECAP Chairman said that currently there are about 15 million overseas Pakistani workers receives approximately $8 billion in salaries every month. If they send their full earnings to Pakistan, it could greatly strengthen the economy, reserves, and Pakistani rupee.
'Currently, only $3-4 billion is being remitted monthly; the rest is either being kept in foreign banks or invested in places like Dubai, Europe, or the Middle East. The government should build trust with these overseas Pakistanis, as the remittances they send can also be used to repay Pakistan's debts,' he suggested.
Bostan praised overseas Pakistanis for always standing by their country in difficult times, whether during the 1998 nuclear tests or recent conflicts. He acknowledged the important role played by the Chairman of the Overseas Foundation, Syed Qamar Raza, and requested the government to honour overseas Pakistanis and address their demands.
He said that exchange companies will demonstrate their performance, making both the government of Pakistan and the SBP's proud.
Copyright Business Recorder, 2025
