RemittancesGateway.org

SBP sees $8bn remittances this year

Tuesday, 02 February 2010 10:19

Source: The News International
By: Irfan Siddiqui

KARACHI: Overseas Pakistanis are a major financial asset of the country and this year the State Bank of Pakistan is expecting more than $8 billion in remittances from them, SBP Governor Salim Raza told The News on board a flight to Islamabad recently.

He said people still relied on Hundi/Hawala (illegal money transfer) but the State Bank’s new system called Pakistan Remittance Initiative would encourage transfer of money through legal channels and minimise illegal transactions.

The new plan would speed up money transfer from all over the world as the money could reach Pakistan within hours. He said legal action against major foreign exchange companies by the Federal Investigation Agency was based on evidence against them.

The SBP governor affirmed the national economy was recovering and foreign reserves were increasing which reached around $15 billion. He said economy of any country depended on political stability, good law and order situation and strong economic relations with other countries.