IMF Asks Pakistan to Develop Sustainable Funding Plan for Remittances Initiative
The International Monetary Fund (IMF) has urged the Ministry of Finance and the State Bank of Pakistan (SBP) to collaborate on creating a sustainable funding mechanism for the Pakistan Remittances Initiative (PRI). The directive was revealed during a recent session of the National Assembly Standing Committee on Finance.
💸 No PRI Funds Allocated for Current Fiscal Year
According to the finance secretary, no budget has been allocated for the PRI this fiscal year. In contrast, the previous fiscal year saw a budget of Rs. 89 billion, which ultimately exceeded Rs. 100 billion in actual disbursements. The sharp increase in expenditures has raised concerns among committee members, with some suggesting the PRI payouts are starting to resemble a new form of circular debt.
🔁 Revised Remittance Reward Structure
Under the updated framework, the incentive per transaction has been reduced to a flat 20 Saudi riyals, regardless of the remittance amount. In addition, the minimum qualifying remittance has been raised from $100 to $200, which could affect smaller transactions sent by overseas workers.
🏛️ Parliamentary Budget Office Bill Reviewed
The committee also reviewed the proposed Parliamentary Budget Office Bill 2025, which aims to enhance fiscal transparency and oversight through a dedicated office within Parliament. The finance secretary noted that no new legislation is required to establish such an office and advised that the initiative be kept efficient and minimal in structure. A subcommittee was formed to review the bill and is expected to submit its findings within 30 days.
🚗 EV Policy Discussion Deferred
Lastly, the committee postponed the discussion on the new electric vehicle (EV) policy, with the item to be addressed in a future session.
The evolving dynamics around the Pakistan Remittances Initiative and fiscal reforms highlight the government’s ongoing efforts to align with IMF guidelines while maintaining economic stability.
