ECC approves remittance loyalty programme
ISLAMABAD: The Economic Coordination Committee (ECC) of the federal cabinet approved the structure and estimated financial impact of the National Remittance Loyalty Program (NRLP), a mobile application scheduled to be launched in October 2021.
The NRLP programme is being introduced with a view to incentivise remitters to transfer funds through formal channels, thus further strengthening the inflow of remittances.
Chairing the ECC meeting, Federal Minister for Finance Shaukat Tarin directed to exercise due diligence before the launch for seamless integration with all service providers to ensure smooth working of NRLP.
Secretary Finance gave a detailed presentation on NRLP, stating that remittances form the backbone of the economy. He said the proactive policy measures by the government and the State Bank of Pakistan (SBP) have incentivised the overseas Pakistanis and encouraged them to remit their hard-earned money through formal channels.
The use of formal channels has contributed in achieving record remittance of $29.4 billion in the last fiscal year, the secretary said, adding that it was a clear reflection of confidence in Pakistan’s economy by overseas Pakistanis.
In order to continue the positive trajectory of remittances, the State Bank of Pakistan would introduce a mobile application, NRLP, which would offer incentives/rewards to overseas Pakistani against each remittance transaction in accordance with a set criteria. The application would be formally launched towards the end of October 2021.
The scheme envisages 1 percent reward points on annual remittance of up to $10,000 equivalent, 1.25 percent reward on up to $30,000 of annual remittance and 1.5 percent reward points on above $30,000.
A mobile app (both in English and Urdu) has already been developed whose development cost has been borne by the banks. The operating costalso 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.
