ISLAMABAD: Minister for Finance, Mohammad Ishaq Dar here on Tuesday said that government has already cleared Rs.6 billion on account of payment of Telegraphic Transfer (TT) charges to the banks and the outstanding dues of Rs.3.46 billion will be cleared by March 21 to further encourage the banks in their efforts.
While chairing a meeting of the Pakistan Remittance Initiative (PRI), the minister said that high levels in remittance flows can have direct bearing on foreign exchange rates, domestic interest rates and balance of payments while having other indirect impact for macro-economic variables.
In this manner, the government will be able to clear another circular debt inherited from the earlier government, he added.
Ishaq Dar directed the banks to identify the major migration networks and communicate with the leaders of these networks.
He said that the migrants will be encouraged to open bank accounts before leaving adding that NADRA would be requested to offer assistance in this regard.
This will assist not only in understanding their preference matrix but also help the authorities in Pakistan to cover their expectations about desired remittance priorities, he added.
Finance Minister said that it is the primary responsibility of the government to consolidate the fiscal and monetary situation.
He said that making Pakistan economically vibrant is doable and we will work together to discourage speculators and hoarders in the interest of the country.
Head of PRI, Moinuddin, gave a presentation to the Chairman regarding various proposals to increase the flow of foreign remittances by Overseas Pakistanis to their homeland.
He suggested that home remittances should be included in the list of core businesses of the banks, home remittance centers should be opened by various banks and placement of banks representatives with overseas entities.
He also suggested that banks should establish dedicated remittance complaint resolution mechanism for improving home remittances through banks.
Ishaq Dar appreciated the efforts of the commercial banks for doubling their efforts for the improvement of flow of foreign remittances in the country.
The meeting was attended by representatives of leading banks and along with the senior officials of the Ministry of Finance.