ISLAMABAD: The International Monetary Fund (IMF) has asked the Ministry of Finance and the State Bank of Pakistan (SBP) to sit together and find a way forward for financing the Pakistan Remittances Initiative (PRI) - a scheme for facilitating remittances through formal channels.
This was revealed by the finance secretary, while briefing the National Assembly Standing Committee on Finance and Revenue, which met with Syed Naveed Qamar in the chair, here on Wednesday.
The committee observed that the remittances’ reward paid to banks and exchange companies facilitating overseas inflows through official channels is turning to be a new circular debt. The finance secretary informed the committee that due to fiscal constrain no amount has been allocated for the scheme for the current fiscal year against Rs89 billion earmarked last fiscal year, however, it crossed Rs100 billion. Even if it is paid from the SBP profit, would means indirect payment by the Finance Ministry. “We are engaged with SBP to find a solution for financing PRI as it has already been decided to revise the scheme,” he added.
Govt decides to review Pakistan Remittances Initiative
The committee was informed that the reward structure — previously set between 20 to 30 riyals per incremental transaction — has now been revised to a flat rate of 20 riyals across all transaction sizes. The minimum eligible transaction threshold is being raised from $100 to $200.
The committee further deliberated upon “the parliamentary budget office bill 2025,” moved by Rana Iradat Sharif Khan envisaging to establish parliamentary budget office to enhance fiscal oversight, transparency and parliamentary security of budgetary matters.
The finance secretary said there is no need of legislation for establishing budget office. Even if it is established, the office should be a lean, he added. The committee constituted a sub-committee under the convenorship of Dr Nafisa Shah for detailed deliberation on the bill and submission of its report within 30 days. Ali Zahid, Arshad Abdullah Vohra, and Muhammad Mobeen Arif, MNAs, will be the members of the newly appointed sub-committee.
The committee expressed serious concern over the absence of the Industries and Production secretary, and deferred the agenda item relating to the new electric vehicle policy.
The committee deferred discussion on “The Starred Question No 40”, moved by Sharmila Faruqui, MNA, “The Starred Question No 38”, moved by Aliya Kamran, MNA, “Non-Implementation of Minimum Wages, as announced by the Federal Government in its departments’’ matter raised by Syed Rafiullah, MNA, and “Islamic Banking” matter received from Syed Iftikhar Hussain Naqvi, member Council of Islamic ideology, for the next meeting of the committee.
Copyright Business Recorder, 2025
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