State Bank of Pakistan introduces initiatives to promote legal remittance, offering rewards for overseas Pakistanis
The State Bank of Pakistan has launched various initiatives to encourage Pakistani expatriates in the UAE to use official channels to remit funds to their home country. By doing so, they have the opportunity to earn rewards that can be redeemed for benefits such as discounts on airline tickets, extra luggage fees, passport renewals, and more.
Among the prominent initiatives is the “Roshan Digital Account,” which has gained popularity among overseas Pakistanis. Additionally, the “Sohni Dharti” initiative is a point-based loyalty scheme designed for remitters working abroad who send money to their loved ones in Pakistan through official banking channels or exchange companies.
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Faisal Niaz Tirmizi, Ambassador of Pakistan to the UAE, emphasized that these initiatives aim to discourage the use of the hundi/hawala system, an informal channel used to send remittances. He noted that the UAE is a significant market for remittances, housing the second-largest Pakistani diaspora after Saudi Arabia.
With around 1.7 million Pakistani expatriates residing in the UAE, the country serves as a major source of remittances, contributing billions of dirhams annually. In September 2023, total workers’ remittances to Pakistan reached $2.2 billion, with the highest contributions coming from Saudi Arabia ($538.2 million), the UAE ($400 million), the UK ($311.1 million), and the US ($263.4 million).
Faisal Niaz Tirmizi expressed optimism about the potential to substantially increase remittances, thanks to the initiatives aimed at promoting legal channels for sending money. The “Sohni Dharti” mobile app, available in English and Urdu, allows remitters to track and update their remittances and view reward points, which can be redeemed for various free-of-cost services at public service entities.
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The rewards for remitting funds legally include:
- PIA tickets
- Extra luggage charges
- Duty payment for imported mobiles and vehicles
- Renewal fees for CNIC (Computerized National Identity Card) and NICOP (National Identity Card for Overseas Pakistanis)
- Life insurance and Takaful premium payment
- School fees at overseas foundation schools
- Utility store purchases
- Renewal fees for passports
Remitters can earn reward points based on a certain percentage of each remittance sent, with four rewarding tiers: Green, Gold, Platinum, and Diamond, depending on the annual remittance amount.
- Green: Up to $10,000 with a 1.0% reward
- Gold: From $10,000 to $30,000 with a 1.25% reward
- Platinum: From $30,000 to $50,000 with a 1.50% reward
- Diamond: More than $50,000 with a 1.75% reward
These initiatives are expected to incentivize Pakistani expatriates to use official channels for their remittances, contributing to the country’s economic stability and fostering a sense of loyalty among the diaspora.
