In mid-2009, the State Bank of Pakistan (the central bank), the Ministry of Overseas Pakistanis, and the Ministry of Finance launched a joint program named the Pakistan Remittance Initiative (PRI) to establish a corporate structure in Pakistan for overseas sending money to Pakistan. This initiative was taken to achieve the goals of (a) promoting and supporting the efficient flow of remittances from overseas Pakistanis and their families and loved ones and (b) responding to other financial services needs of foreign nationals and their families.
Remittances, or money transfer to Pakistan by migrants, account for a large portion of our foreign exchange reserves and are critical to Pakistan’s financial resilience. In the fiscal year 2018-2019, remittances totaled $21 billion, equivalent to the country’s overall export receipts. This contribution has dramatically aided the nation by reducing the current account deficit by more than half.
What Is the Objective of the Pakistani Remittance Initiative?
Over the years, the average cost per remittance transaction has decreased. For example, the price fell from 5.29 per cent in 2018 to 4.81 per cent in the first two quarters of 2019, a 9 per cent decrease. This expense, however, was estimated for a $200 transaction with equivalent weights (unweighted).
Similarly, the transaction’s weighted average cost has dropped from 4.76 per cent in 2018 to 3.64 per cent in the first half of 2019 – a 24 per cent drop. Surprisingly, the weighted cost reduction is more significant than the unweighted cost reduction. It demonstrates that equal-weighted averages overestimate the actual cost of sending money to Pakistan online & offline.
The activity has been taken to accomplish the goal of:
- Encouraging, supporting, quicker, less expensive, helpful and productive money transfer to Pakistan online and offline.
- To advance venture open doors in Pakistan for abroad Pakistanis.
Will The PRI Affect My Family or Recipient of Money Transfer??
No, PRI will not impact your recipient. They will receive their funds in the very same manner and will not be required to pay anything upon receiving money.
What Are the Countries to Transfer Money from to Qualify for PRI?
No, all money transfer to Pakistan over $100 (or alternative in sender currency) is eligible for a refund from the Central Bank of Pakistan. The consumer is not charged a fee.