Having all other heads rested in the red zone on the current account list, the federal government seems currently to have focused more on the ever-burgeoning worker remittances that are peaking to record highs recently. Having crossed the historic $ 12 billion mark during FY11, the remittances sent back home by overseas Pakistanis marked another month-on-month record last month in October (2012) by seeing record dollar inflows worth $1.365 billion in a single month. National Bank of Pakistan (NBP), one of the major contributors in the remittance basket with 11 percent share, is all out to materialize the real $ 20-25 billion potential of Pakistan in terms of foreign remittances.
Tuesday saw the bank officials meeting K. Abdul Baiz, Chairman Puttalam Urban Council of Sri Lanka, here at a local hotel. Baiz along with a delegation visited Pakistan on the invitation of KMC Administrator for deliberation on proposed Karachi-Puttalam Sister City Arrangements. Led by Khalid Bin Shaheen, Senior Executive Vice President and Group Chief and Chairman of NBP’s Exchange Companies Wing, the NBP side was represented among others by Farooq Ahmed, senior vice president/wing head, Ahmed Naseem, vice president, and Shahbaz Ahmed Khan, wing head assistant VP.
According to NBP officials, in last month’s record remittances the bank’s contribution stood at $ 136 million. And that during January-October (CY2012), the NBP had counted its remittance receipts at $ 1.1 billion with the figure moving further northward. “Remittances have been the second lifeline after export proceeds, but since the exports are now subdued the remittances have clinched almost the Number 1 position,” said Shaheen.
It was since 2009 with the formation of Pakistan Remittance Initiative (PRI), he said, the government was focusing more on this head. Without elaborating, Shaheen said the government was facing many challenges in this regard.
“NBP has increased its remittance contribution from 5-6 percent in 2007-08 to the current 11 percent,” said the NBP official.
He said the NBP had made the largest number of tie-ups with international entities for the receipt of remittances through formal channels. “We have done 30 to 35 tie-ups with organizations across the globe,” he said adding that “Improved services have brought a sort of cultural change at the NBP which is visited by over 2 million people every year for carrying out some 2.2 million transactions.” Shaheen said the bank had placed stickers in its branches prompting and enabling the customers to lodge their complaints with the NBP or even the State Bank in case they are poor-served.
Another NBP official Ahmed Naseem lauded the Ministry of Overseas Pakistan for sending abroad last year the highest number of Pakistanis, some 0.7 million, who, he said, would increase the volume of remittances by sending back home foreign exchange.
Farooq Ahmed, senior vice president, said the total official number of Pakistanis working overseas was 7 million, but the number was much more than what was undocumented by the government. “It may be around 20 million Pakistanis working legally and illegally abroad,” he opined.
On the occasion, Puttalam Urban Council Chairman K. Abdul Baiz said his side was keen to promote bilateral trade on provincial and local level. Pakistani textile, he said, had a great appeal for the female Sri Lankan Muslims. Abdul Baiz said Islamic banking had become very popular among the Muslim population of his country. “The Muslim businessmen in Sri Lanka are very religious,” he said.
Baiz pledged to convey the message to his higher ups, when Shaheen expressed the will to explore new avenues on the trade and remittances front. The NBP also plans to open its branch in Colombo, the federal capital of Sri Lanka. Baiz, however, urged the Pakistani side to think beyond Colombo while setting up such ventures as there was a huge potential in other cities also to be tapped in banking sector.
