ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved the National Remittance Loyalty Programme (NRLP) envisaging incentives for overseas Pakistanis to sustain positive trajectory of remittances.
“The NRLP will offer incentives/rewards to overseas Pakistanis for sending remittances to Pakistan based on point’s accumulation structure,” said a summary presented by Incharge Secretary Finance Yousaf Khan to the ECC on the basis of a proposal already approved by the prime minister on July 2, 2021. The scheme would cost the exchequer about Rs13.1 billion this year.
The ECC meeting, presided over by Finance Minister Shaukat Tarin, approved the structure and estimated financial impact of the NRLP with a view to incentivise remitters to transfer funds through formal channels thus further strengthening the inflow of remittances, said an official announcement after the meeting.
The finance minister directed to exercise due diligence before the launch for seamless integration with all service providers to ensure smooth working of NRLP, it added.
Scheme envisages reward points for overseas Pakistanis on sending $10,000 and above annually
Under the scheme that is being planned for formal launch with effect from October 1, envisages 1pc reward points on annual remittance of up to $10,000 equivalent, 1.25pc reward on up to $30,000 of annual remittance and 1.5pc reward points on above $30,000.
For example, a remitter of $25,000 a year would be entitled to a reward of about Rs46,575 on the basis of points accumulation structure. This means the first $10,000 remittance would get reward points at the rate of 1pc, followed by 1.25pc on next $15,000.
An Android and iOS based Mobile App (both in English and Urdu) has already been developed from the objective by 1-Link whose development cost has been borne by the banks. The operating cost of this Mobile App shall also be taken up by financial institutions. The remitters will be awarded points against each remittance transaction in accordance with the NRLP criteria above. The incentives shall be availed through redemption of points.
The NRLP will have three tiers — Green, Gold and Platinum — having added feature of “Virtual Loyalty Card” as a built-in feature. The remitters shall register as primary users and would be able to add one supplementary user as a beneficiary. All home remittances via formal channels are eligible to the scheme including funds received through Roshan Digital Accounts (RDAs) and used and consumed in Pakistan.
Under the initiative, overseas Pakistanis shall be qualified to avail a number of services equivalent to the amount of the awarded points under NRLP against redemption of the accumulated points. For example, the reward points would be available for use against the PIA tickers or payment for extra luggage on its international flights.
Published in Dawn, August 12th, 2021