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Print Print 2023-10-30

Remittance inflows likely to recover

  • Experts say that improvement inflows likely as PKR marked a significant comeback against US dollar in interbank and open market in last few weeks
Published October 30, 2023

KARACHI: Remittances inflows are likely to back on track with a decent growth from Gulf countries, as various incentives from the government and the stability in kerb market will generate sustainable dividends.

Experts said that the improvement inflows will be likely as the local currency marked a significant comeback against the US dollar in the interbank and open market in the last few weeks (less than Rs. 280).

Besides, the caretaker government has announced an incentive scheme of Rs. 80 billion for encouraging overseas Pakistanis to send remittances to their relatives in their homeland without any charges.

SBP expects increase in home remittances

“A major section of overseas Pakistanis mainly in GCC states believes in supporting the economy of their country through the contribution of sending remittances to Pakistan”, said Tufail Ahmed Khan, CEO Dellsons Associates, United Arab Emirates.

He said the uncertainty among the public is being quashed, which was visible during the participation of overseas Pakistanis in the recently held conference in Dubai Remitlink23: Resilience Remittances.

As the commercial banks become readily available to overseas Pakistanis with their outreach and marketing efforts, the overseas Pakistanis will connect to formal banking channels easily in the future, he added.

He also said that the incentive schemes for expatriates and financial institutions will impact positively on flows of remittances on a long-term basis provided such schemes should be retained.

The banking regulator also announced a performance-based incentive will be granted, by the end of this financial year (FY2023-24), to those financial institutions whose home remittance mobilisation efforts result in growth in their home remittances from the previous year (FY2022-23).

The inflows of remittances improved by 5.5% in September 2023 as compared to the proceeding month to stand at $2.2 billion, according to the data released by the State Bank of Pakistan (SBP); however, it stood 11 percent less than the inflows recorded in the same month yesteryear.

In addition, the government has allowed the freelancers and IT exporters to retain 50 percent of their income in dedicated accounts. Previously, they were allowed to retain 35 percent.

The government incentives to overseas Pakistanis through Sohni Dharti program are commendable but it should be extended with tangible benefits to them, monetary and facilities alike, said Noman Said, an IT expert.

He said mobile Apps will empower overseas Pakistanis to remit their hard-earned money in a single click with trust and convenience. “But a majority of the overseas Pakistanis are not tech-savvy; hence, not only they should also taught the use of Mobile App for remittance transfers but also develop an SMS-based simple application in collaboration with Pakistan banks,” he added.

Experts believe that recent measures from the caretaker government will bode well for inflows of remittances, which will also have a positive effect on its contribution to the current account; however, the battle between Israel and Palestine and different states of Middle East could offset the outcomes.

Copyright Business Recorder, 2023

Comments

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uncommon sense Oct 30, 2023 07:42am
Pakistan congratulates Turkiye for crackdown on mullahs, yet becoming increasingly theocratic.
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Prof. Dr. Muhammad Abdul Quddus Oct 30, 2023 11:30am
COST OF PUBLIC SERVANTS A PIDE professional wrote the article. It is a good attempt. Rupees 8 trillion is spent on 1.92 million government servants. Our bureaucracy as it was in the era of the British regime is enjoying the same privileges, perks, and benefits without contributing to any improvement for our country Pakistan. Their power, perks, and privileges must be reduced. The GORs facility must be stopped and the land should be sold at Market rates. Our Judiciary's perks and privileges are at number 10 in 140 countries in the World but the Justice given to the Public is 136. The perks, privileges, and benefits for POL, Utility bills, Air tickets, and free medical to the elite class. The MP I, II, and III scales must be stopped. Promotion not on seniority but on contribution. The PM House, the President House, The Governors, and the CM Houses, the employees must be reduced. The employees of Steel mills, Railways, and PIA must be reduced to International standards. All culprits, and looters (Bharray Choor ur Bharray Dacoo) must be punished as per the Law of Pakistan without any favoritism. Last but not least the protocol at all levels must be stopped and followed at international standards.
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Fazeel Siddiqui (Overseas Pakistani) Oct 30, 2023 02:10pm
I have received not a single penny from these Incentives announced of Rs 80 billion for my 3 remittances past one month. Regarding sending charges, costed as usual as high as 2% for $600 and 1.5% for $3000 and when I asked exchange franchise here that GoP announced incentive in charges he said "nothing like this on table" to their giant exchange company which belongs to UAE. Now even SDRP is not adding points in the App. Overseas Pakistanis have been robbed brutally by GoP & SBP by fixing fake artificial rate defying economic indicators just to buy forced cheap dollars for importers, traders, money launders and terrorists.
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Tariq Qurashi Oct 30, 2023 02:29pm
If the government wants to increase remittances, it must ensure that our forex market is not manipulated. Manipulations cause wild fluctuations in the exchange rate which consequently encourage people to use hundi instead of banking channels. Just let the forex market find its own level through natural supply and demand; this will help stabilize the exchange rate and benefit us in the long run because people will again begin to use banking channels.
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Afaq Ahmed Siddiqui Nov 04, 2023 10:45pm
@Fazeel Siddiqui (Overseas Pakistani), I think this new caretaker goverment is not happy that overseas pakistani a using sohni dharti points, i am also not getting points from last months. when i inquire from their support department then they reply me the below in email Dear Valued Customer This is in reference to your social media complaint. We would like to inform you that, for the convenience of our customers, 1LINK has now enhanced the complaint feature for this category. All you now need to do is: 1. Log on to your SDRP mobile application 2. Choose the complaint category “Unable to Self-award.” 3. Attach a picture for the receipt of the respective transaction 4. Press submit After this the complaint will be received by the 1LINK team we will be able to address and hopefully resolve your complaint in a timely way. We are closing this complaint for now and request you to kindly raise the same complaint using the SDRP mobile application as explained above.
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