P a k i s t a nH o m e R e m i t t a n c e s

CONTENTS

• Home Remittances – Characteristics & Importance

• Infrastructure of Home Remittances – Pakistan and International

• Benefits to Remitters

• Home Remittances over the years

• Future Initiatives

• Contact Details

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HOME REMITTANCES: CHARACTERISTICS/ IMPORTANCE

Characteristic of Home Remittance• Cross Border Transaction• From an Individual to an Individual• Mostly for Family Maintenance

Social Impact

• Skill Set Development

• Global Exposure

Economic Impact

• Enable families to access bettereducation/housing/medical

• Easing pressure in domestic jobmarket

• Financial Inclusion (Sender/receiver)– 1/3rd remittances through accounts

• Poverty Alleviation

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REMITTANCES’ CONTRIBUTION TO PAKISTAN ECONOMY

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Source: Pakistan Bureau of Statistics, State Bank of Pakistanhttps://tdap.gov.pk/wp-content/uploads/2020/10/EMAIL-4-PR-J-SEPT.-2020-21-PROV..xlsx

Billion USD

FY21(Jul - Sep)

FY20 FY19 FY18

Exports 5.47 21.39 22. 96 23.21

Imports 11.31 44.57 54.76 60. 79

Balance -5.83 -23.18 -31.8 -37.58

Remittances 7.14 23.12 21.74 19.91

Remittances Contribution 122% 99.7% 68% 53%

REMITTANCES INFRASTRUCTURE/SUPPORT

Within Pakistan

• Government of Pakistan

• State Bank of Pakistan

• Pakistan Remittance Initiative

• Banks

• Exchange Companies

• Branchless Banking Operators

• Pakistan Post

Outside Pakistan

• Non-Resident Pakistanis

• Pakistan Embassies / Consulates

• Money Transfer Companies

• Foreign Banks

• Pakistani Banks

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MODE OF REMITTANCES

Transaction Type of Home Remittance

PRI Mode (Account Credit and Cash

Pick-up)

SWIFT mode

Bank/Exchange Companies to Bank/ Exchange Companies

Bank to Bank (Account Credit ONLY)

Bulk Transactions Single Transaction

Less costly / Free in most of the cases for Pakistan

Costly ($30 - $80)

PKR ONLY PKR and Foreign currency accounts

Instant / within 24 hours if everything in order

1-3 days processing time in general if everything in order

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BENEFITS FOR REMITTERS/BENIFICIARIES• Free of Cost Remittances: Reimbursement of TT Charges to financial institutions so that

remitters can send money home free of cost• Credit in beneficiary accounts (PKR) in any bank in Pakistan• Cash-Over-Counter (COC) payments to beneficiary from banks and exchange companies

across Pakistan

• Free Air Time on Home Remittance through M-Wallet:• Credit in beneficiary’s M Wallet of any branchless banking operator in Pakistan• Airtime of Rs. 2 against each USD received through M Wallet to beneficiary; paid by GoP.

• SMS facility for remitter/beneficiary as applicable

• Penalty on banks to pay 65 paisa per 1,000 PKR per day for the number of days credit/payment on account of remittance is delayed (Account credit is required instantly in samebank and within 24 hours in other bank)

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BENEFITS FOR REMITTERS/BENIFICIARIES

• Marketing Incentive Scheme• For Banks & Exchange Companies by GoP for carrying out marketing activities and

offering incentives/rewards to beneficiaries. Paid against growth in remittances over pastyear.

• Freelancers Services’ transactions through PRI mode

• Proceed Realization Certificate (PRC)

• Foreign Exchange Remittance Card (FERC) issued by Overseas Pakistanis Foundation (OPF).

• Call Centre• PRI In-House• Banks’ Call Centers

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HOME REMITTANCES OVER THE YEARS

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Pakistan’s performance is far better than other regional countries in recent years

10Source: https://www.knomad.org/publication/migration-and-development-brief-32-covid-19-crisis-through-migration-lens

Inflow of Remittances in Million US DollarsPhilippines Bangladesh Sri Lanka India Pakistan

2010 21,557 10,850 4,123 53,480 9,690

2011 23,054 12,071 5,153 62,499 12,263

2012 24,610 14,120 6,000 68,821 14,007

2013 26,717 13,867 6,422 69,970 14,629

2014 28,691 14,988 7,036 70,389 17,244

2015 29,799 15,296 7,000 68,910 19,306

2016 31,142 13,574 7,262 62,744 19,808

2017 32,810 13,502 7,190 68,967 19,807

2018 33,809 15,562 7,043 78,790 21,193

2019 est. 35,167 18,348 6,747 83,131 22,507

Average Percent Growth

2011-2019 5.60% 6.40% 6.00% 5.30% 10.10%

USA1,742.83

7%

U.K.2,569.02

11%

Saudi Arabia6,613.45

29%

U.A.E.5,611.79

24%

Other GCC Countries2,910.20

13%

EU Countries1,778.49

8%

Others Countries1906.53

8%

Corridor wise Market ShareFY20 (Million USD)

PAKISTAN REMITTANCE

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REMITTANCES FROM NORWAY

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FY 11 FY 13 FY15 FY16 FY17 FY18 FY19 FY20

USD (Million) 36.99 38.49 37.84 30.77 27.58 34.87 41.31 47.75

Growth 7% 4% -2% -19% -10% 26% 18% 16%

36.99 38.49 37.84

30.7727.58

34.87

41.31

47.7543.47

35.42

FY 11 FY 12 FY 13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

Mill

ion

USD

REMITTANCES FROM SWEDEN

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FY 11 FY 13 FY15 FY16 FY17 FY18 FY19 FY20

USD (Million) 9.90 11.38 13.68 14.89 11.61 15.46 18.91 19.36

Growth 53% 15% 20% 9% -22% 33% 22% 2%

9.9011.38

13.6814.89

11.61

15.46

18.91 19.36

16.9515.94

FY 11 FY 12 FY 13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

Mill

ion

USD

MONEY TRANSFER COMPANIES (MTCS) NORWAY AND SWEDEN -PAKISTAN CORRIDOR

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PRI has direct relationships with below MTOs who are registered in other jurisdictions (UK, US) and also have presence

in Norway and Sweden either through online platforms or have agent network to send money to Pakistan. Customer

may search these companies online for more details.

NORWAY

AFTAB CURRENCY EXCHANGE

Free-Send

Model

BFC BANK

CROSSPAY LIMITED, UK

DOLLAR EAST UK

IME

TRANSFAST

U REMIT INTERNATIONAL

WORLD REMIT

XPRESS MONEY

HOMESEND

Fee-Send

Model

LCC TRANS-SENDING (SMALL WORLD)

MONEY GRAM

PAYPAL INC (XOOM)

REMITLY INC

RIA FINANCIALS

TRANSFERWISE

WESTERN UNION

SWEDEN

AFTAB CURRENCY EXCHANGE

Free-Send

Model

IME

U REMIT INTERNATIONAL

WORLD REMIT

XPRESS MONEY

HOMESEND

Fee-Send

Model

LCC TRANS-SENDING (SMALL WORLD)

MONEY GRAM

PAYPAL INC (XOOM)

REMITLY INC

RIA FINANCIALS

TRANSFERWISE

WESTERN UNION

BRANCHLESS BANKING OPERATORS

Rs. 2 Air Time (mobile phone balance) is given against each USD (Other EquivalentCurrency) if home remittances are received in beneficiary’s Mobile-Wallet account.

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Name of 10 Active Branchless OperatorsTelenor Microfinance Bank Askari BankUBL Bank JS BankAlfalah Bank MCB BankMobilink Microfinance Bank Meezan BankHBL Bank U Microfinance Bank

• Beneficiary can open Mobile Wallet account from his/her mobile number (lower limits)• Beneficiary can also approach branches of the above banks or their branchless banking

agents for opening Mobile Wallet accounts (higher limits)

FUTURE INITIATIVES

• Enhanced international engagement with Pakistan diaspora through PakistanEmbassies and Consulates

• National Remittances Loyalty Program

• Comprehensive research study/survey of Pakistan remittances corridors

• Development of non traditional remittances corridors for Pakistan

• Use of latest technology to make remittances, faster, cheaper, accessible andtransparent.

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Remitters and beneficiaries can lodge their complaints to PRI through thefollowing methods:

Call center: (021) 111-727-774 (111-SBP-PRI) PRI web-site: www.pri.gov.pk E-mail: complaints@pri.gov.pk

PRI CONTACTS

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Thank You

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