IMF calls on Finance Ministry, SBP to to develop a sustainable financing plan for remittances
The International Monetary Fund (IMF) has called on Pakistan’s Ministry of
Finance and the State Bank of Pakistan (SBP) to develop a sustainable financing
plan for the Pakistan Remittances Initiative (PRI)—a program aimed at promoting
remittance inflows through formal channels.
This directive was revealed during a briefing by the finance secretary to
the National Assembly Standing Committee on Finance and Revenue, chaired by
Syed Naveed Qamar.
The committee voiced serious concerns over the rising fiscal burden linked
to the incentives paid to banks and exchange companies under the PRI. According
to the finance secretary, the government did not allocate any funds for the PRI
in the current fiscal year, despite having allocated Rs89 billion last year.
Actual expenditure on the initiative has already surpassed Rs100 billion.
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to review Pakistan Remittances Initiative amid rising costs
He further clarified that any financial support extended by the SBP would ultimately be an indirect fiscal liability for the Ministry of Finance. Talks are underway between the ministry and the central bank to restructure the program, with revisions to the reward system already in motion.
Among the changes introduced is a flat reward of 20 Saudi riyals per
transaction, regardless of amount. Additionally, the minimum qualifying
transaction has been raised from $100 to $200.
The committee also reviewed the Parliamentary
Budget Office Bill 2025, a proposed law aimed at improving
fiscal oversight by creating an independent budget office. While some lawmakers
supported the initiative, the finance secretary questioned the necessity of the
bill, advocating for a lean structure if implemented. A sub-committee, led by
Dr. Nafisa Shah, has been tasked with evaluating the bill and presenting
recommendations within 30 days.
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Other agenda items—such as the federal electric vehicle policy, enforcement of minimum wage standards in federal departments, and issues related to Islamic banking—were deferred to future meetings.
Source: Profit Pakistan