Senate body informed: Banks may remit USD800m to money transfer operators

Business Recorder reported that Senator Saleem Mandviwalla told a Senate Standing Committee on Finance and Revenue meeting that banks could remit about USD 800 million to money transfer operators abroad after the government discontinued the Pakistan Remittance Initiative (PRI). State Bank of Pakistan Deputy Governor Dr Inayat Hussain rejected that claim and said no such plan was under consideration. He told the committee that Rs120 billion had earlier been provided as a PRI subsidy, which was curtailed last year and could not be continued under the current budget.

Hussain said banks had chosen to cover the remaining costs from their own resources so remittances could keep flowing. Committee members heard that USD 257 million went out last year to bring in remittances of about USD 41.6 billion. The committee praised the initiative and decided to invite selected banks to its next meeting to report on their performance.

On currency, the SBP said a new note series is being prepared amid rising counterfeit circulation of Rs1,000 and Rs5,000 notes, and printing each note costs about Rs14. The Rs10 note is set to be withdrawn, and a consulting firm won the design contract after a tender drew four bidders. Senators questioned the two-year timeline and asked the SBP for full tender details.