State bank of Pakistan new plan for economy of Pakistan and FATF



State bank of Pakistan new plan for economy of Pakistan and FATF

According to the United Nations Department of Economic and Social Affairs, Pakistan is the sixth largest diaspora in the world.  Pakistan remittances will reach 8 21.84 billion by 2019-20 while overseas Pakistani,s mostly from Gulf countries, will continue to rebound.  Receiving all remittances through banking channels like JS Bank will help change the fortunes of the country.  The State Bank of Pakistan (SBP) has partnered with banks in this regard.
   Pakistan produces 93 chicks from 10 countries, including Saudi Arabia, the United Arab Emirates, the United States, and the United Kingdom.
   Following the exports, remittances are the major source of foreign exchange in Pakistan.  It helped boost Pakistan's economy by partially plugging the growing trade deficit.

A new plan by state bank of Pakistan

Launched in Pakistan to facilitate safe, affordable, and fast payments to foreign countries, the Pakistan Remittance Initiative (PRI) is a joint initiative of the State Bank of Pakistan, the Ministry of Overseas Pakistanis, and the Ministry of Finance

 

How does it help in FATF?

It is important to document this cash flow, as it will help promote the data at the official level.  It will then be able to address the perennial problem of Pakistan’s foreign account deficit.  This official shipment will also help in the net expansion of taxes as the tax office will be able to better understand the traces of money and the source of income.  All of these efforts will also increase tax collection.
   Moreover, the use of informal methods helps create and support the channels used to finance money laundering and terrorism.  Such measures will definitely improve Pakistan's position during the FATF's green ranking.

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