ISLAMABAD: The government is considering suggesting debit instead of credit card solutions to address petty cash and imprest money for public sector entities, sources in Finance Ministry told Business Recorder.
The issue was discussed at a high-level meeting wherein different issues related to the economy came under discussion.
The sources said a Committee has already been formed led by Finance Division, to evaluate possibility of integrating card payment system in government services by analysing existing payment procedures, proposed debit card payment processes, pro and cons and regulatory requirements, and to suggest a way forward which will be submitted in the next Executive Committee of the SIFC.
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According to sources, on process of cash counter transaction through NBP branches/booths at border crossings, Finance Division will form a working group by taking Ministry of Commerce, State Bank of Pakistan (SBP) and Federal Board of Revenue (FBR) on board to discuss the matter, including identification of underlying issues.
The SBP will be taken on board on P3A (Public Private Partnership) (through third party) for conducting a study to: (i) evaluate the present scenario of inflow and outflow of Forex through both formal and informal channels; (ii) explore effective mechanisms for securitization of remittances; (iii) generate viable recommendations for incentivizing formal banking channels for inflow and outflow of Forex/remittances; and (iv) recommend a feasible future framework for currency stabilization.
The sources further stated that Finance Division is tasked to hold a working group meeting by taking SECP and concerned stakeholders on board for identifying structural and other impending issues in SOEs Act 2023 to align it with international best practices. Firmed up plan of action will be presented in the next EC meeting.
Finance Division will share a concept note on the matter with SIFC and P3A (through 3rd party) to facilitate a thorough review of the anomalies in SOEs Act 2023, in comparison to international best practices. P3A will share recommendations in next EC meeting.
Copyright Business Recorder, 2024
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