Daily Times

ISLAMABAD: National Bank of Pakistan Global Home Remittance head Irtiza Kazmi on Thursday said that inflow of remittances could be doubled by elimination of hundi system, besides adopting different strategies.

Speaking at the recently held 5the Corporate Ambassador Awards ceremony in Karachi, Kazmi said there was a huge potential of growth in the inflow of remittances that could be raised to over $40 billion per annum in upcoming years, said a NBP statement.

In 2015-16, for the first time the remittances surged to $20 billion, showing a $2 billion growth over $18 billion remittances received in 2014-15. Kazmi said the NBP was adopting innovative approach and technology to attract maximum amount of foreign exchange in the shape of remittances.

He said the NBP was the only bank in Pakistan having a network of branches in rural and far-flung, and the bank was now endeavouring to take benefit of its strength of network by motivating overseas Pakistanis to send money to Pakistan through legal means.

Kazmi was recently promoted to the position of head of the Global Home Remittance the bank. After his appointment, the NBP is taking solid measures to enhance inflow of remittances. Two banks including the NBP have attracted highest amount of remittances in 2015-16.

The Pakistani Diaspora, he said, remitted around $ 20 billion back home during July 2015 to June 2016. However, there is still a huge amount of money being transacted through unorganised and illegal channels (hundi/hawala), he said, adding some estimates suggested that money transferred through illegal means was equal to the money remitted legally. He pointed out that lack of awareness and ill-gotten wealth fuel such illegal businesses.

Remitters, he said, were usually enticed by the convenience and better rates offered by hundi/hawala operators. Most of the time such remitters are totally unaware of the negative effects of such operations, he maintained.

“Although the average size of remittance in Pakistan is on the lower side mainly due to the bulk being sent back home by blue collared workers having modest salaries, Pakistan is still the 8th largest country in the world in terms of home remittances volume,” he highlighted.

To enable a sustainable growth in home remittance, optimisation of technology platform backed by awareness creation is the key, he mentioned. “The government, through the apex regulator – SBP – has taken various positive measures including the Pakistan Remittance Initiative (PRI) to promote home remittance through legal means.”

He said that promoting home remittance through legal channels was a collective responsibility of both the government as well as the masses. Pakistan’s influential and robust media can play a critical role in highlighting the perils of illegal remittance channels and promoting the benefits of formal channels, he added.