Digital Challenger bank to serve as one-click facility :Zulfi Bukhari

ISLAMABAD, Feb 27 (APP):The Federal Cabinet in a recent meeting has given go ahead to the idea of setting up a ‘Digital Challenger bank’ at national level to encourage/incentivize Overseas Pakistanis for transferring their remittances via legal channels, offering one click ease.

The Prime Minister has approved the prototype of the One-window Digital Wallet and directed to create a holistic system for facilitating digital transfer of remittance from all over the world, said Special Assistant to Prime Minister on Overseas Pakistanis and Human Resource Development, Syed Zulfikar Abbas Bukhari on Wednesday.He said the ministry in its presentation to the cabinet highlighted the bank’s advantages to the country and Pakistani Diaspora and their families. Terming the approval of the bank’s pilot project a first step to materialize the idea, he said that it would be established in the current year.
Bukhari informed that the challenger bank an entity backed by the government of Pakistan would be connected with those public and private banks offering better encashment rate of the remittances to the Overseas Pakistanis as compared to the open market.
“We are moving towards automation to ensure swift service delivery by creating user-friendly banking environment for expatriates, who are enduring tough working schedules overseas and contribution significantly to the country’s economy,” Bukhari said.
He said over 10 billion US dollars were being remitted through illegal ways like Hawala and Hundi and the new digital platform would be a classic example of a one-window digital wallet which would turn the traditional way of remittance into a single-click operation.
Bukhari went on to say that a user residing and working anywhere in the world could upload funds and send them to Pakistan anytime through this digital wallet.
Sharing the benefits of this initiative, the ministry spokesperson said it would provide best encashment rate and round the clock connectivity to the country, besides easy and convenient process for remitting money back home.
He said the Pakistani Diaspora would also get reward against official remittance and access to home country marketplace to help them make payments in Pakistan with convenience.
It would also give them access to host country marketplace offering opportunity to overseas Pakistanis to make local payments with ease, he added.
Through this project, the spokesperson said the direct involvement of overseas Pakistanis in the national development could be ensured.
State Bank of Pakistan (SBP) Governor Tariq Bajwa in the federal cabinet meeting, held last Tuesday, also briefed about the other initiatives taken to deter illegal means of transferring remittances.
“Incentives to banks, promotion of mobile wallet scheme and withholding tax concession on remittances noticeably improved the inflows into the country,” Bajwa said.
Pointing out the recent surge in the remittances came in backdrop of such initiatives he said remittances had gone by 12.5 percent in the first quarter of the ongoing fiscal year of 2018-19.
He also believed that remittance target of $22 billion for current fiscal year would easily be achieved.
Bajwa also informed the meeting that central bank was utilising block chain technology to curb use of unofficial channels, adding that the government’s plan to hold second Pakistan remittance summit in UAE in April would also encourage use of official channels for remittance transfer.
The meeting was informed that National Bank of Pakistan (NBP) and Pakistan Post would also be taken on board to increase foreign remittances.