In an important development for Pakistanis living abroad, especially in countries like Saudi Arabia and the United Arab Emirates, the State Bank of Pakistan is set to introduce a faster and more cost-effective remittance system.
According to Deputy Governor Salimullah, the remittance system ‘Raast’ will soon be linked to the Arab Monetary Fund, enabling over 5 million Pakistanis to send money directly to their loved ones’ accounts in just a few minutes. This initiative not only promises instant transfers but also aims to reduce the cost of sending money.
Speaking at the Digital Supply Chain Financing Conference in Karachi, Salimullah emphasized the vital role that overseas Pakistanis play in the national economy, particularly those working in the Gulf countries.
He assured that the State Bank is committed to making the remittance process as smooth and affordable as possible. The new system is expected to be operational within a year.
According to recent data from the State Bank of Pakistan, remittances in June 2024 amounted to $3.20 billion, marking a 44.4% year-on-year increase. For the fiscal year 2024, total remittances were $30.3 billion, up 10.7% from the previous year. The highest remittances in June 2024 came from Saudi Arabia ($808.6 million), followed by the UAE ($654.3 million), the UK ($487.4 million), and the US ($322.1 million).
How Overseas Pakistanis Can Send Money Home
Currently, overseas Pakistanis have several methods to transfer money to their home country:
- Roshan Digital Account (RDA): An initiative by the State Bank in collaboration with Pakistani commercial banks, RDA offers advanced banking options for Non-Resident Pakistanis (NRPs) and those with Pakistan Origin Cards (POCs). It facilitates money transfers, investments, bill payments, property transactions, and more.
- Normal Banking Channels: A traditional method used for many years, allowing overseas Pakistanis to send money through regular banking services.
- Raast Account: Recently introduced by the Pakistani government, this system allows easy and affordable money transfers within the country, complementing the Roshan Digital Account.
- Western Union: With numerous branches in Pakistan, Western Union offers quick and secure international money transfers.
- Registered Exchange Companies: Reliable for sending money, these companies are registered with the State Bank. Verification of the company’s registration with the State Bank is recommended before making transfers.
- Money Orders: Despite being less common today, money orders can still be used. Pakistan Post’s electronic money order service offers minimal charges and is available in 83 General Post Offices across the country.
Why Introduce a New System?
The introduction of the ‘Raast’ system aims to enhance the efficiency and effectiveness of direct remittance transfers, particularly benefiting Pakistanis in the Gulf countries. This initiative will reduce service charges on remittances and provide a dedicated service for Gulf-based expatriates, making the transfer process faster and more affordable.
