The federal government has decided to give one percent rebate on each dollar remitted by money exchangers to the country. This was announced by Governor State Bank of Pakistan (SBP) Shahid H Kardar during a high level meeting chaired by President Asif Ali Zardari with a delegation of local money exchange companies in Islamabad.
The SBP governor said that money exchangers would initially be provided with the incentives that are already being enjoyed by international money transfer companies who get one percent per dollar ‘incentive’ on worker remittance from the state bank. “Those money exchangers who bring more worker remittances into Pakistan will be granted the incentive,” a statement of Exchange Companies Association of Pakistan (ECAP) quoted Kardar as saying.
The move would be carried out as a first stage of the moneychangers’ demand for inclusion in the Pakistan Remittance Initiative (PRI). The SBP governor also noted that the incentive would encourage the money exchange companies to bring more home remittances to the cash-strapped country. On the occasion, the president lauded the role of money exchangers in increasing the country’s foreign exchange reserves and the resultant appreciation of rupee in the money market.
According to ECAP statement, the president directed the SBP governor, the secretary finance and the FBR chairman to resolve on a priority basis all issues which money exchangers identify and are faced with. The SBP governor told the president about the formation of a four-member committee to look into the problems of the ECAP. The committee was preparing its recommendations in the light of which the central bank would act.
