NBP's pivotal role in accelerating home remittances, business global home remittance is playing a significant role in contributing to the economic growth, livelihood and prosperity of Pakistanis all around the world.
NBP now over a couple of years is equally playing a major role in helping the growth of home remittances to Pakistan through its streamlined and trusted services. It is working continuously to develop innovative ideas into service features that allow to process and payout remittances even faster resulting in greater customer satisfaction.
NBP having the most penetrated network in Pakistan, providing comprehensive domestic distribution of remittances to beneficiaries across Pakistan. A number of renowned international exchange houses and money transfer companies from across the world, including the Middle East, Europe, Asia-Pacific and America, have been using our services with utmost trust and satisfaction.
Remittances as we all know is not a new phenomenon in the world, money was being transferred even before but means and channels were different. In a broader account 'remittance transfer' is referred to the transfer of money from an individual, usually a person who has emigrated from his/her country of origin to another individual, usually a relative who remains in the country. Remittances transfers are typically low monetary payments from person to person.
Interestingly, the impact of remittance transfers on the economies of developing nations is only beginning to be discovered. Remittance transfers have existed for centuries, but have only attracted the attention of economists and international financial institutions during the past two decades. Remittances constitute one of the largest and constant sources of foreign exchange earnings for developing countries including Pakistan. The flow of workers' remittances to developing countries has grown steadily over the past three decades.
The developmental impact of remittances is widespread as it affects various sectors of the economy and helps improve living standards; these are non-debt creating inflows and help in developing the financial sector in recipient countries. Remittances also improve household welfare by uplifting recipient families out of poverty and elevate them out of their miseries.
Annual remittances from non-resident Pakistanis have set a record as crackdown against illegal Hundi transfers push people to use the formal banking channel. Bulk remittances originate from Saudi Arabia, United Arab Emirates, United States of America, United Kingdom and other GCC countries.
However, people still prefer to use Hundi/Hawala as the system provides convenience to them in the shape of door-to-door delivery, reliability (especially in the rural market) and accessibility even in far flung areas with no bank branch for miles around. Secondly, the exchange rate offered by the banks is less favourable than that offered in the open market, which constitutes an added attraction for both the sender and the recipient. In pursuit of the national cause NBP is providing free of charge services, which is fast, convenient, secured and reliable. NBP since long has been encouraging people to send money through proper and legal channels ie banks. Remittances have been the most stable source of foreign exchange proved remarkably resilient in the face of global economic downturn. Efforts are being made to reduce the cost and time for sending remittances, including removing barriers and impediments in the remittance market.
Money sent through official channels contributes 50 percent whereas Hundi/ Hawala Channel has a 50 percent market share in home remittance due to customer unawareness to use formal channels. The people in that business do not provide competitive exchange rates for their fast services. Our remittance mechanism is on charge free mode with competitive exchange rates, which is the biggest incentive for both remitter and beneficiary and now we are also at par in terms of speedy cash payments. Moreover, we are advertising our products by visiting labour camps and by other marketing activities so that everyone should know what nation's bank is doing. The current settlement mechanism in vogue for home Remittances for all currencies is settled in US Dollar. While home remittances are always in PKR but they are settled in Pakistan against USD/FCY currency as standard practice. Dollar remittances are not taken as Home Remittances unless converted into PKR.
Currently home remittances customers are offered three products. NBP Foree Cash is cash over the counter service at all 1,348 branches, NBP Foree Transfer is account credit facilities at all NBP branches and to other banks too and NBP Foree Home Remittance Account/Card for its Home Remittance Customers which has been introduced recently. It is a new and advanced product and customers applying for this product will experience hassle free banking. Whenever remittance is sent to their account, the customer will receive sms alert and only then he/she can withdraw cash from any ATM across Pakistan.
NBP also has the fastest growing overseas correspondent base for home remittances and in a very short time the Bank has made alliance with almost all leading financial institutions/money service business providing remittance services, for facilitation of overseas Pakistani across the globe. Positively, NBP enjoys 10 percent of the volume coming from formal channels around the world and bulk remittances to NBP is from Saudi Arabia, United Arab Emirates, Kuwait and other GCC countries. However, the key destinations in Pakistan are Sialkot, Gujranwala, Mardan, Gujrat and Rawalpindi. It wouldn't be wrong to say that our coverage of branch network is widest and effective in rural areas.-PR
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