On Wednesday, the Economic Coordination Committee (ECC) of Cabinet, presided by Finance Minister, has approved the National Remittance Loyalty Programme (NRLP) of around Rs14 billion for the current fiscal year.
In the meeting, there was a consensus that as the economy is going to open, and growth activity is increased in the country, the CAD is likely to increase, and thus the increased remittances could counter it.
The purpose is to incentivize the Pakistanis abroad to use formal channels to send their money to Pakistan. This will aid the government in maintaining the increasing current account deficit.
According to the report, the NRLP envisages 1pc reward points on annual remittance of up to $10,000 equivalent, 1.25pc reward on up to $30,000 of annual remittance, and 1.5pc reward points on above $30,000.
Reportedly, the process will be done through the mobile app, which has already been developed to achieve the objective by 1-Link. The development cost of the app has been borne by the banks.
