SBP jacks up incentives to boost remittances

The State Bank of Pakistan (SBP) on Tuesday announced a three-time increase in monetary incentives for exchange companies to bring more remittances into the country. The remittances increased to $30.25 billion in FY24. Most of the inflows were received through the banking channels, but the exchange companies’ participation was not insignificant as they deposited around $5bn. “We have been negotiating with the government for years to provide more incentives for the growth of home remittances,” said Exchange Companies Association of Pakistan General Secretary Zafar Paracha. Finally, last month, the government decided to increase the monetary incentives, which is an appreciable move, he added. The SBP circular issued on Tuesday said that the current incentive structure has been revised to further incentivise exchange companies (ECs) in enhancing their home remittance mobilisation efforts.