1. An Overview

2. In order to revisit the Workers’ Remittance system a ‘MOF / SBP Task Force on Home Remittances’ was established in Jan 2009. The Task Force, amongst others, recommended that: An Organization must be formed to take full time ownership of the remittances business 1.This organization should be mandated to increase remittances to Pakistan 2.Must work on an ongoing basis to deliver the results (Phased approach) 3.Should be the central place for Budgets, data, delivery enhancements (partnerships) and marketing for remittances 4.This organization should be resourced with a dynamic team PRI Background

3. 3 In order to give owner structure to Workers’ Remittances, an MOU was been signed between MOF & SBP on April 13th 2009 and it was decided that: M/o Finance, M /o Overseas Pakistanis and SBP shall facilitate the follow of remittances to Pakistan by overseas Pakistanis (called Pakistan Remittance Initiative - PRI) PRI was being undertaken in order to achieve the objective of: ( a) Facilitating, Supporting, Faster, Cheaper, Convenient & Efficient flow of remittances (b) and to provide investment opportunities in Pakistan for overseas Pakistanis As per MOU, PRI will implement and execute the establishment of the organizational structure for the proposed organization. Till such time the structure is established PRI will function as per the following: MOF through SBP shall provide all budgetary support to PRI to commence its operations & take all necessary steps and actions to enhance the flow of remittances and create investment opportunities SBP shall provide all human recourse and infrastructural support to PRI till such time the proposed organizational structure is established. Independent organization, once established will formally take the initiative and continue the work that PRI would have already undertaken. PRI Background

4. Overview Total Market Potential 50% of the recorded flows move through informal channels across the globe. Source: World Bank-Global Economic Prospects 2006 (GEP) Target FY10 - Increase remittances from $ 7.8 Bn to $ 9 Bn Achieved $ 8.9 Bn FY11 - 20% in year 2 ($ 10.8 Bn ) Achieved so far till March 2011 = 8.06 Bn Forecasted $ 10.7 – $11.0 Bn Strategy To maximize the flow of remittance through formal channels To make Legal channels a Clear Choice for remitters – To create awareness and benefits of using legal channels – To educate remitter the disadvantages of using illegal channels To bring efficiency in remittance process

5. Source: IFAD, 2010 Remittance Global Scenario

6. 6 Home Remittance Historical Trends

7. Budget FY10 Allocated Budget 140 Expenses Incurred40.23 Accrued for ongoing PRI Projects90 (130.23) Unutilized Budget9.76 PRI Budget Allocated Budget741.62 Expenses Incurred (Till March 2011)11.10 Budget Available for PRI Projects730.52 Budget FY11 Rs. In Million

8. SMS Confirmation Monetary Penalty on Delay Direct Rewards to Beneficiary Through Air time Complaint Handling Call Centre 24/7 Toll free numbers in 12 countries Dedicated Call Center for Banks Beneficiary

9. *Toll free facility is not available at this number

10. Remittance Trends Country-wise Share – FY10

11. Thank You