An Overview

In order to revisit the Workers’ Remittance system a ‘MOF / SBP Task Force on Home Remittances’ was established in Jan 2009. The Task Force, amongst others, recommended that: An Organization must be formed to take full time ownership of the remittances business

1. This organization should be mandated to increase remittances to Pakistan

2. Must work on an ongoing basis to deliver the results (Phased approach)

3. Should be the central place for Budgets, data, delivery enhancements (partnerships) and marketing for remittances

4. This organization should be resourced with a dynamic team

PRI Background

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• In order to give owner structure to Workers’ Remittances, an MOU was been signed between MOF & SBP on April 13th 2009 and it was decided that:

M/o Finance, M /o Overseas Pakistanis and SBP shall facilitate the follow of remittances to Pakistan by overseas Pakistanis (called Pakistan Remittance Initiative - PRI)

PRI was being undertaken in order to achieve the objective of:

(a) Facilitating, Supporting, Faster, Cheaper, Convenient & Efficient flow of remittances

(b) and to provide investment opportunities in Pakistan for overseas Pakistanis

• As per MOU, PRI will implement and execute the establishment of the organizational structure for the proposed organization.

• Till such time the structure is established PRI will function as per the following: MOF through SBP shall provide all budgetary support to PRI to commence its operations &

take all necessary steps and actions to enhance the flow of remittances and create investment opportunities

SBP shall provide all human recourse and infrastructural support to PRI till such time the proposed organizational structure is established.

Independent organization, once established will formally take the initiative and continue the work that PRI would have already undertaken.

PRI Background

Overview

Total Market Potential • 50% of the recorded flows move through informal channels across the globe.Source: World Bank-Global Economic Prospects 2006 (GEP)

Target• FY10 - Increase remittances from $ 7.8 Bn to $ 9 Bn • Achieved $ 8.9 Bn• FY11 - 20% in year 2 ($ 10.8 Bn )• Achieved so far till March 2011 = 8.06 Bn• Forecasted $ 10.7 – $11.0 Bn

Strategy• To maximize the flow of remittance through formal channels• To make Legal channels a Clear Choice for remitters

– To create awareness and benefits of using legal channels– To educate remitter the disadvantages of using illegal channels

• To bring efficiency in remittance process

Source: IFAD, 2010

Remittance Global Scenario

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Home Remittance Historical Trends

Budget FY10

Allocated Budget 140

Expenses Incurred 40.23

Accrued for ongoing PRI Projects 90 (130.23)

Unutilized Budget 9.76

PRI Budget

Allocated Budget 741.62Expenses Incurred (Till March 2011) 11.10

Budget Available for PRI Projects 730.52

Budget FY11

Rs. In Million

Rs. In Million

SMS Confirmation

Monetary Penalty on Delay

Direct Rewards to Beneficiary Through Air time

Complaint Handling

Call Centre 24/7Call Centre 24/7

Toll free numbers in 12 countriesToll free numbers in 12 countries

Dedicated Call Center for BanksDedicated Call Center for Banks

Beneficiary

*Toll free facility is not available at this number

Remittance TrendsCountry-wise Share – FY10

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