The government, under the National Remittance Loyalty Program (NRLP) which will be launched on 1st October, has decided to allow redemption of reward points in cash earned by the overseas Pakistanis for sending remittances back home through the official channels.
The NRLP is a reward system based on points that are designed to incentivize overseas Pakistanis to send more money back home.
According to Finance Minister Shaukat Tarin, the NRLP will help in the maintenance of the “positive trajectory of remittances.”
The program will begin on October 1 and will cost Rs. 13.11 billion in the fiscal year 2022. The budget is based on whether remitters representing 25% of remittances in the fiscal year 2021 register for the program.
This program will assign reward points of up to:
- 1 % reward points for yearly remittances of up to $10,000,
- 1.25 % for remittances of up to $30,000.
- 1.5 % for amounts greater than $30,000.
If $25,000 a year is being sent by an overseas Pakistani, then he will receive Rs. 46,575. For the first $10,000, he would be given the reward points worth 1% and 1.25% for the following $15,000.
All forms of transmissions sent via the official channel will be eligible for the program.
Remitters can also benefit from the reward points by using them to pay taxes on imported cars as well as domestic cars. They can also use it to:
- Pay for the renewal of national identification cards and passports.
- Utility store purchases.
- Premium payments for the State Life Insurance Corporation of Pakistan.
In addition to this, the remitters will be able to buy tickets for the Pakistani International Airlines (PIA) and extra luggage space. They will also be able to qualify for priority clearance at airports.
The government has also developed an application (android and iOS both in English and Urdu) for the ease of the remitters which will track all the submitted remittances. The participants have been categorized into three tiers:
- Green.
- Gold.
- Platinum.
Worker remittances are a significant part of the economy of Pakistan, and the COVID-19 outbreak has resulted in an increase in inflows. In July 2021, the country received $2.71 billion in remittances, surpassing the $2 billion milestones for the 14th month in a row.
Remittances have long been regarded as the backbone of the economy, and they have received special attention since the launch of the Pakistan Remittance Initiative and other subsequent initiatives to encourage overseas Pakistanis to transfer remittances through legitimate channels.
