The Senate Standing Committee on Finance, chaired by Senator Saleem Mandowala, held a meeting today in which the committee received a letter from the State Bank of Pakistan about remittance subsidy.
He pointed out that earlier, the government provided a rupee for every dollar which was sent as remittances, but now subsidies have increased to Rs 500. 4.5 dollars.
A representative of the State Bank of Pakistan made it clear that remittances are paid not in the dollars but in Saudi riyals.
According to the representative, 20 Saudi riyals are given to banks for each remittance, the recipient does not have to pay a festival unless they need to pay 16 or 17 riyals.
The deputy governor of the SBP informed the committee that the remittance subsidy scheme, which was launched in 2020, initially provided per transaction to 20 Saudi Rials. In 2024, the subsidy was increased to 30 rials, but in the current year it was re -20 rials.
He explained that the banks are given relief to the banks in Saudi riyals, in which 20 riyals are provided through the transaction, while the transmitter of the remittances does not pay any party unless they receive 16 or 17 rials in some cases.
The last financial year, payments was between 20 and 35 riyals, but this year the amount was cut for 20 riyals. According to the SBP, the scheme participated in a $ 8 billion increase in remittances.
Senator Faisal Wowda strongly criticized the scheme, calling it a “scandal” and demanded an investigation. It argues that banks have taken great advantage of billions of rupees going into their account, and urged the FBR chairman to recover the money. Voda added that the increase in remittances was due to sending large amounts, not because of subsidy. He insisted that the SBP government presented complete data for the last three years.
“This scheme is benefiting more banks than citizens, Woda remarked. Inquiry should be made.”
Finance Minister Finance Minister Bilal Azhar Kayani noted that the scheme has prevented remittance transmitters from paying additional charges, while a SBP representative said that this fiscal year would be introduced which would save 30 % of the costs.