The electronic payment system will discourage the illegal means of money transfer as the remittance will reach the beneficiary immediately to receiver without need to physically go and collect the cash from an agent location, this was stated by Rizwan Ali Hamdani, Country Manager AFPak Xpress Money in an exclusive interview to The Nation.
The unauthorised channels like hundi involve huge risks as practices like these can pose a threat to the security of the nation because of fraudulent activities.The State Bank of Pakistan has an active agenda to continuously analyze the global scenario related to remittances and take necessary steps to remove barriers to the flow of remittances, and improve access to banking facilities to overseas Pakistanis and their families.
It was noted that one of the major impediments to the flow of remittances through formal channels was insufficient marketing efforts in the overseas markets that aim to provide information about legal channels of remittance to overseas Pakistanis. PRI strived to encourage overseas entities to propagate the use of legal channels and made specific arrangements with banks across Pakistan to ensure the same.
The Pakistani regulatory framework has been proactive in setting up efficient systems to facilitate remittances in a secure and convenient manner. A step in that direction was setting-up Pakistan Remittance Initiative in association with State Bank of Pakistan in 2009.
SBP has been playing a vital role to adopt formal channels for remittances. With the implementation of such initiatives, money transfer operators have grown exponentially and are continuously innovating new ways for money transfer to Pakistan. PRI’s continuous efforts have seen a steady rise in the acceptance of IMTO’s with the Pakistani community, which has led to the decline in usage of Hundi.
The growth of inward remittances to the country depends on a number of factors such as the political & economic stability of the country, investment opportunities and attractive foreign exchange rates. PRI is continually taking measures and implementing initiatives to promote the overall remittances of Pakistan and I believe the country shall see considerable growth in terms of remittances, over the next few years, he added.
Xpress Money has been in Pakistan for a decade now and in this short span of time has emerged as the leader in the remittance industry. Our key focus now is the Punjab region, which sums up over 60pc of the total remittances received in the country through Xpress Money. We have a robust expansion plan in place for Pakistan and are currently in talks with a few more banks that will further help expand our network.
Since the year 2009, we have grown 20pc year on year and currently Xpress Money’s share is around 10pc of the organised market.
Xpress Money believes in innovating services for a substantial growth. Apart from conventional services like cash payout and account credit, we offer mobile account credit and free door delivery service across the country.
Source: The Nation