What can be done to significantly increase remittance inflows into Pakistan?
Cross-Border Payments
Asked by Question Bot08/Dec/20151 answer
1 Answer
F
Faisal Khan
Answered 08/Dec/2015
Remittances for Pakistan represent a life line. 100,000s of diaspora send money every month to Pakistan, which this year would most likely be between the $14-$15 Billion mark.
As per the last filing at State Bank of Pakistan, remittances stand as follows:
The progress being made by Pakistan has been nothing short of fantastic, as depicted in the graph below:
A bit about the background. PRI is a joint-venture between the State Bank of Pakistan and Ministry of Finance. It also has associatino with Overseas Pakistan Foundation. All of this success can literally be attributed to the hard work of four people in Pakistan Remittance Initiative:
These four people have worked tirelessly an fought many battles, political and office-nay-sayers, to keep the program on track.
Today, PRI is in a sad state of affairs. The one department that is doing something right is now being bulldozed by people who can best be described as incompetent, starting with the current head of PRI Mr. Moinuddin. A man who is hell bent that PRI should be broken away and things should be done his way.
It is easy to say and do this, once the entire infrastructure was made from nothing by the four gentlemen. PRI has been the project of envy of a lot many people, and in so, suffers the daily showers of wrath and hatred by others.
Systematically, chokeholds have been placed. Money that was due as salaries, was not paid. Money spent was not released, the immensely successful scheme for Free-Send in which Saudi Riyals 25 are offered to the MTOs/Banks has piled up.
Ever since Moinuddin came on-board the has played politics and moved Najmus Saqib out (the brains behind PRI), he has then done everything in his power to remove everyone associated with Najmus - that includes Naushad Imdad (who eventually resigned) and did not renew contracts for Arshad Sattar and Nadeem Bhurgri.
Now this man is help bent on learning on the job and screwing up things.
If Pakistan is to substantially increase remittances, here is what needs to be done:
It is estimated that if the famous four team were allowed to continue, the remittances figures would most likely cross the US$ 20 Billion mark easily.
The goals are very much achievable, but when you have donkeys as Head of PRI, even sustaining the hard work done right now becomes a miracle.
As per the last filing at State Bank of Pakistan, remittances stand as follows:
The progress being made by Pakistan has been nothing short of fantastic, as depicted in the graph below:
A bit about the background. PRI is a joint-venture between the State Bank of Pakistan and Ministry of Finance. It also has associatino with Overseas Pakistan Foundation. All of this success can literally be attributed to the hard work of four people in Pakistan Remittance Initiative:
- Najmus Saqib (former Head of PRI)
- Nadeem Bhurgri (Business Development Head)
- Arshad Sattar (Technology/Support), and
- Naushad Imdad (former Internal Control/Finance Manager)
These four people have worked tirelessly an fought many battles, political and office-nay-sayers, to keep the program on track.
Today, PRI is in a sad state of affairs. The one department that is doing something right is now being bulldozed by people who can best be described as incompetent, starting with the current head of PRI Mr. Moinuddin. A man who is hell bent that PRI should be broken away and things should be done his way.
It is easy to say and do this, once the entire infrastructure was made from nothing by the four gentlemen. PRI has been the project of envy of a lot many people, and in so, suffers the daily showers of wrath and hatred by others.
Systematically, chokeholds have been placed. Money that was due as salaries, was not paid. Money spent was not released, the immensely successful scheme for Free-Send in which Saudi Riyals 25 are offered to the MTOs/Banks has piled up.
Ever since Moinuddin came on-board the has played politics and moved Najmus Saqib out (the brains behind PRI), he has then done everything in his power to remove everyone associated with Najmus - that includes Naushad Imdad (who eventually resigned) and did not renew contracts for Arshad Sattar and Nadeem Bhurgri.
Now this man is help bent on learning on the job and screwing up things.
If Pakistan is to substantially increase remittances, here is what needs to be done:
- Boot out Mr. Moinuddin from which ever hole he crept out of.
- Restore the famous four team of PRI
- Give them the money/finances as and when they need it (Billions are allocated, but nothing is released to them). So much so, even tea money is paid by these folks from their own pocket.
- Install the golden plan of having a Remittance Hub in Pakistan, one that ties in and correlates all the remittances.
- Provide better marketing budget for PRI
- Allow expansion of PRI and make it truly autonomous as it was meant to be (this still has not happened and is very much required)
- Expand on loyalty and rewards program for overseas Pakistanis who send remittances into Pakistan.
- Introduce enhanced products like car financing, land ownership, semi-commercial payments based on the credit history and financials of the Pakistanis overseas.
- Introduce PRI on all platforms and forums abroad from where Pakistan can showcase its super super product.
- SBP and Ministry of Finance to support this team.
It is estimated that if the famous four team were allowed to continue, the remittances figures would most likely cross the US$ 20 Billion mark easily.
The goals are very much achievable, but when you have donkeys as Head of PRI, even sustaining the hard work done right now becomes a miracle.