Banks permitted to open special remittance booths

KARACHI – The State Bank of Pakistan (SBP) has permitted banks to immediately open dedicated and permanent booths to facilitate the flow of foreign remittances to the country through formal channels.
The decision to open Home Remittance Payment Centers (HRPC) has been taken by the central bank keeping in view the rising trend in the home remittances and their importance for the country’s ailing economy.
According to State Bank estimates, in the last six months of the current fiscal year the country’s foreign remittances continued to mark an upward trend with overseas Pakistanis remitting over $5.291 billion during July-Dec 2010-11.
The foreign exchange remitted during the said period witnessed an upsurge of 16.80 percent or $761.23 million over the last corresponding months when over $4.530 billion were sent home by the compatriots.
The central bank attributes the rising trend in foreign remittances to a joint initiative called ‘Pakistan Remittance Initiative (PRI)’ which, the regulator believes, was facilitating the flow of remittances through formal channels.
The State Bank, through issuing a circular (BPRD Circular No 2) on Saturday, notified the banks to open dedicated centers to further facilitate the transfer of foreign exchange through formal channels,
The central bank has already done spadework for the purpose through enhancing the scope of “permanent booths” and inducting sub-Para (iv) in Para-22 (Chapter-2) of the Branch Licensing Policy with immediate effect.
“The State Bank has decided to enhance the scope of Permanent Booths as given in Para-22 (Chapter-2) of the Branch Licensing Policy (BLP) which was revised in terms of BPRD Circular No.15 of 12th October, 2007,” the SBP circular said.
The newly-added para provides that: “Payment to home remittance beneficiaries via cash, demand draft and pay orders. In addition, such Home Remittance Payment Centers (permanent booths) would also be allowed to perform the functions of Sales and Service Centers as mentioned in Para- 19 of the BLP.” All other instructions on the BLP would remain unchanged, the circular concluded.