Inclusion of Exchange Companies in Pakistan Remittance Initiative Poised to Boost Economy

Karachi: The chairman of the Exchange Companies Association of Pakistan (ECAP), Malik Muhammad Bostan, has commended the government’s decision to incorporate exchange companies into the Pakistan Remittance Initiative (PRI), predicting substantial economic benefits. He expressed confidence that exchange companies, which have contributed $4 billion this year, will increase their contributions to between $8 billion and $10 billion through the interbank market next year.

The inclusion, facilitated by a recent circular from the State Bank of Pakistan, addresses a long-standing demand from exchange companies and offers a level playing field. Malik Bostan thanked key figures, including State Bank Governor Dr. Jameel Ahmed and Prime Minister Mian Shahbaz Sharif, for their roles in this development.

He noted the disparity in rebates between banks and exchange companies, highlighting that while banks operate more locations, exchange companies have been more efficient in their contributions per location. Bostan emphasized the positive changes in the State Bank’s policies, such as the removal of sending fees for remittances of $200 or more, which will reduce marketing costs and attract more remittances.

Bostan called on the government to build trust with the 15 million overseas Pakistani workers who collectively earn approximately $8 billion monthly. He suggested that if these workers were to send their entire earnings to Pakistan, it could significantly boost the economy and strengthen the currency.

He praised the commitment of overseas Pakistanis to their homeland and urged the government to honor their contributions and address their concerns. Bostan concluded with confidence in the exchange companies’ potential to uphold the government’s trust and enhance Pakistan’s economic standing.