Islamabad: The International Monetary Fund (IMF) has urged the Ministry of Finance and the State Bank of Pakistan (SBP) to collaborate on finding a sustainable financing mechanism for the Pakistan Remittances Initiative (PRI), amid growing fiscal constraints and rising costs associated with the scheme. The matter was disclosed during a briefing to the National Assembly Standing Committee on Finance and Revenue on Wednesday. Finance Secretary Imdad Ullah Bosal informed the committee, chaired by MNA Syed Naveed Qamar, that no funds had been allocated for the PRI in the current fiscal year, despite the scheme costing the government over PKR 100 billion last year — exceeding its allocated budget of PKR 89 billion.
Read: IMF turns down subsidized power proposal for crypto mining The PRI, launched to incentivize overseas Pakistanis to send remittances through official channels, offers rewards to commercial banks and exchange companies for facilitating these transactions. However, the rising expenditure has raised alarms over fiscal sustainability, prompting the IMF to intervene. The finance secretary explained that due to ongoing budgetary constraints, funding the PRI through the Ministry would result in indirect support from the SBP, which is not sustainable. Discussions are underway between the Ministry and the central bank to revise and rationalize the scheme. As part of the revisions, a new flat reward rate of 20 Saudi riyals per transaction has been introduced, regardless of transaction size. Additionally, the minimum transaction amount eligible for the reward has been increased from USD 100 to USD 200, a move aimed at curbing excessive payouts for small-value remittances. The committee also voiced concerns about the circular debt building up due to unpaid dues under the reward system and emphasized the need for transparency and accountability in handling such schemes.
Read: IMF opposes tax on wealth, backs digital services, middle-income relief Separately, the committee reviewed the proposed “Parliamentary Budget Office Bill 2025,” which seeks to establish a dedicated office for independent fiscal analysis. While the finance secretary questioned the necessity of such an institution, a sub-committee headed by MNA Dr. Nafisa Shah was formed to study the bill further and present its findings within 30 days. Other agenda items, including the electric vehicle policy, implementation of minimum wage in federal institutions, and issues related to Islamic banking, were deferred for later discussion.
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