The State Bank of Pakistan (SBP) has introduced an attractive incentive package for money changers who facilitate the influx of dollars into the country.
This initiative aims to boost remittances and strengthen the country's foreign exchange reserves.
According to a circular released by the SBP, exchange companies will receive varying amounts for each dollar brought into Pakistan based on the volume of remittances. Specifically, companies issuing fixed home remittances will earn Rs2 for every dollar.
If remittances increase by 5% or reach up to $25 million annually, the reward rises to Rs3 per dollar. For money changers bringing in more than $25 million in remittances, the rate will be Rs4 per dollar.
The SBP emphasizes that exchange companies must deposit the dollars they receive into authorized banks to qualify for the incentives.
Zafar Piracha, the chairman of the Exchange Companies Association of Pakistan, expressed gratitude to the government and the army chief for their support in timely payments on every dollar of workers' remittances. He stated that the financial incentives provided to exchange companies for facilitating dollar inflows are likely to lead to an increase in remittance volumes.
He further said that the government had been urged to consider similar financial incentives for exchange companies involved in currency exports. Piracha said they also recommended including exchange companies in the government’s Priority Resilience Initiative (PRI) to further enhance their role in the economy.
