KARACHI: National Bank of Pakistan (NBP) has been playing a pivotal role in accelerating home remittances business. Global home remittance significantly contribute to the economic growth, livelihood and prosperity of Pakistanis all around the world.
NBP over a couple of years is equally playing a major role in helping the growth of home remittances to Pakistan through its streamlined and trusted services, said Khalid Bin Shaheen, Senior Executive Vice President and Group Chief, GHRMG and Chairman, NBP Exchange Co. while speaking at an iftar dinner hosted for him by Journalists Group of Riyadh during his visit to Saudi Arabia.
According to NBP press release here on Wednesday, Khalid Bin Shaheen said NBP is working continuously to develop innovative ideas into service features that allow to process and payout remittances even faster resulting in greater customer satisfaction.
NBP has the most penetrated network in Pakistan and provides comprehensive domestic distribution of remittances to beneficiaries across Pakistan. A number of renowned international exchange houses and money transfer companies in the world including the Middle East, Europe, Asia-Pacific and America, have been using our services with utmost trust and satisfaction.
He said remittances as we all know is not a new phenomenon in the world, money was being transferred even before but means and channels were different. In a broader account ‘remittance transfer’ is referred to the transfer of money from an individual, usually a person who has emigrated from his/her country of origin to another individual, usually a relative who remains in the country. Remittances transfers are typically low monetary payments from person-to-person.
Interestingly, the impact of remittance transfers on the economies of developing nations is only beginning to be discovered. He said the remittance transfers have existed for centuries, but have only attracted the attention of economists and international financial institutions during the past two decades.
Remittances constitute one of the largest and constant sources of foreign exchange earnings for developing countries including Pakistan. The flow of workers’ remittances to developing countries has grown steadily over the past three decades.
The developmental impact of remittances is widespread as it affects various sectors of the economy and helps improve living standards.
These are non-debt creating inflows and help in developing the financial sector in recipient countries. Remittances also improve household welfare by uplifting recipient families out of poverty and elevate them out of their miseries.
Annual remittances from non-resident Pakistanis have set a record as crackdown against illegal hundi transfers push people to use the formal banking channel.
Bulk remittances originate from Saudi Arabia, United Arab Emirates, United States of America, United Kingdom and other GCC countries. However, people still prefer to use hundi/hawala as the system provides convenience to them in the shape of door-to-door delivery, reliability (especially in the rural market)and accessibility even in far flung areas with no bank branch for miles around.
Secondly, the exchange rate offered by the banks is less favorable than that offered in the open market, which constitutes an added attraction for both the sender and the recipient. In pursuit of the national cause, NBP is providing free of charge services, which is fast, convenient, secured and reliable.
NBP since long has been encouraging people to send money through proper and legal channels i.e. banks.
NBP’s senior officer said the remittances have been the most stable source of foreign exchange proved remarkably resilient in the face of global economic downturn. Efforts are being made to reduce the cost and time for sending remittances, including removing barriers and impediments in the remittance market.