ISLAMABAD: An amount of Rs 10.46 billion has been paid to banks for making Telegraphic Transfer (TT) of remittances to Pakistan from abroad in 2013.
This initiative was taken to promote inflow of remittances by overseas Pakistanis through legal channels as well as to control illegal transactions of money through Hundi and Hawala. Total amount of remittances made by overseas Pakistanis during financial yare 2013-14 was $ 15.83 billion whish was 13.7 billion increase over 2012-13 figures.
A well-placed source at Finance Ministry told this scribe here on Tuesday that the Finance Division (FD), State Bank of Pakistan (SBP) and Ministry of Overseas Pakistanis and Human Resource Development (MOP& HRD) launched a joint initiative titled as Pakistan Remittances Initiative (PRI) for mobilizing of faster, cheaper, convenient and efficient flow of remittances to the country.
“PRI made efforts to bring commercial banks in the business of home remittance by providing assistance and training as result, 22 banks and their branches are now disbursing remittances,” the source added saying that the Banks had introduced direct account credit facility to recipient of home remittances which initially reduced dime from 7/10 days to 24 hours.
“Furthermore, the rime of receiving home remittance in the account has been reduced to only 10 to 30 minutes after system integration with inter-bank fund transfer facility (IBFT) in 2013,” the source said adding, “A cell is being established to look into any difficulties being faced by remitters and receivers”.
Similarly the source said that government was also facilitating remitters through bearing the cost of sending money to Pakistan under the scheme Reimbursement of Telegraphic Transfer (TT) charged on Home Remittances. “Under this Scheme, overseas Pakistanis can remit their funds free of charge and beneficiaries also receive these remittances without incurring any cost. During the preceding fiscal year (2013-14), government paid an amount of Rs 10.46 billion on account of claims by banks under TT charges scheme” the source observed.
Source said that government was trying to control the illegal transaction of money particularly through Hundi/ Hawala/. Network of banks under PRI has expanded from 5 to 22 as banks were being encouraged to enhance their outreach worldwide through new remittance-specific arrangements including focus on Bilateral Arrangements and Global Money Transfer Operator (MTOs) like Western Union and Money Gram.
“Hence commercial banks are marketing their remittance products through TV Radio and print media in Pakistan and Overseas,” the source said, adding that new Home Remittance products like automated delivery into beneficial, bank accounts (within 24 hours), instant cash-Over-Counter (COC), and payments from banks, Instant Account Credit Facility for Remitters through various banks in Pakistan and Online settlement through Real Time Gross Settlement (RTGS).
