ECC approves revision in home remittances incentive schemes

Minister for Finance and Revenue Senator Muhammad Aurangzeb on Thursday chaired a meeting of the Economic Coordination Committee (ECC) of the Cabinet.

The meeting was attended by Minister for Privatization Abdul Aleem Khan, Minister for Petroleum Musadik Masood Malik, Minister for Power Sardar Awais Khan Leghari, Minister of State for Finance & Revenue Ali Parvez Malik.

Governor State Bank of Pakistan (SBP), Chairman SECP, federal secretaries, and other senior officers of the relevant ministries also attended the meeting.

The ECC considered a summary of Ministry of Communications regarding “Execution of Frame-work Agreement between China and Pakistan on Realignment of KKH (Thakot-Raikot) under CPEC”.

After detailed discussions and deliberations, and in order to comply with the codal requirements, the ECC allowed the Ministry of Communications/National Highway Authority to proceed with provisions of the framework agreement in accordance with provisions of Rule-5 of Public Procurement Rules, 2004 for procurement of construction of realignment of KKH (Thakot Raikot Section 241 KM) project under CPEC (Phase-II).

The ECC considered another Summary of Ministry of Communications regarding “Chakdara-Timergara, 39 km Road Project (N-45)”. It was discussed that Rule-5 of Public Procurement Rules-2004 PPRA can be invoked after the authorization of ECC and consultations with relevant stakeholders.

Foregoing in view, the ECC authorized the Ministry of Communications/National Highway Authority to proceed in accordance with Public Procurement Rule-5 in Procurement of Consultancy Services required for Section-1 (Chakdara-Timergara, 39km) under Chakdara-Chitral Road Project (N-45).

Lastly, a Summary of Finance Division regarding “Proposal for Revision in Home Remittances Incentive Schemes” was also considered.

After detailed discussion and deliberation, as per the proposal of SBP, the ECC approved the following revisions to the two Remittances Incentive Schemes including Reimbursement of Telegraphic Transfer (TT) Charges Scheme. The flat reimbursement rate of SAR 30 per eligible transaction will be divided into Fixed (SAR 20) and Variable (SAR 08-15) components.

The variable component will be linked to the incremental growth in remittances and banks will receive higher rewards based on their performance in increasing remittances inflows.

Incentive Scheme for Exchange Companies (ECS) and the base rate for the fixed component will be increased from Rs 1 to Rs 2 per USD surrendered.

The variable component will be linked to the incremental growth in remittances and ECSs will receive higher rewards based on their performance in mobilizing remittances.

These revisions are expected to further incentivize banks and exchange companies to increase remittance inflows, thereby boosting the country’s foreign exchange reserves.