Overseas workers' remittances to Pakistan in September this year jumped to $806.12 million, a 22 percent increase over the same month in 2008. This took the third quarter (July-September 2009) figures to $2.33 billion, due to the launch of Pakistan Remittance Initiative (PRI), said a top executive of National Bank of Pakistan (NBP).

Remittances from Saudi Arabia also made an impressive record. Pakistani nationals living in the Kingdom sent $430.75 million in the third quarter, an increase of $32.73 million or 8.22 percent over the same period in 2008.

"This is the direct result of the launch of PRI and other measures taken by the government of Pakistan," senior executive vice president of NBP Khalid bin Shaheen, told Arab News on Wednesday.

PRI is a joint initiative of the Ministry of Finance, Ministry for Overseas Pakistanis and State Bank of Pakistan, which is the country's central bank. Launched in August this year, it aims to double the flow of remittances within three years. "We are aiming to take remittances up to $13-14 billion by 2011," said Shaheen, who is currently touring Saudi Arabia as a representative of PRI, of which his bank is a member. His itinerary includes meeting top executives of Saudi banks. He arrived after visiting Kuwait, the United Arab Emirates and Bahrain.

Saudi Arabia hosts 1.7 million Pakistanis. According to Shaheen, the Kingdom is the number one remitter in the Gulf and number two in the world, second only to the United States. "I expect a tremendous increase in remittances from Saudi Arabia and other Gulf countries in view of the steps taken by PRI," added Shaheen, who has spent more than a decade in the Gulf region as a senior executive of Habib Bank of Pakistan.

The basic idea behind PRI is to enable overseas Pakistanis to easily conduct remittance transactions through quick, transparent, reliable and efficient banking services. Five major banks of Pakistan have been included in the plan. They are: National Bank of Pakistan, Habib Bank, Muslim Commercial Bank, United Bank of Pakistan and Allied Bank of Pakistan. These banks have a combined strength of around 5,000 branches all over Pakistan. "Through PRI we are ensuring that Pakistani nationals living anywhere in the world do not face any difficulty in sending money home in any corner of his country," Shaheen said.

PRI has two main features: quick cash payment over the counter in Pakistan and immediate account-to-account transfer. "With this new initiative money transfers have become hassle-free unlike time-consuming transactions of the past," he added.

Another feature of the PRI is that the service charge on the remittances has been waived. The money received is also tax-free. Another important feature is Real Time Gross Settlement (RTGS), which resolves the third bank payment and increases the efficiency of payment.

Explaining the RTGS, Shaheen said that each Saudi bank has an arrangement with one or two banks in Pakistan. If the remitter has an account in a bank outside the arrangement, the transfer of money takes time as the money first goes to the bank with which the Saudi bank has an agreement with, then said bank sends the amount to the intended bank. RTGS, on the other hand, ensures quick payment through an internal arrangement with the Pakistani bank.

Shaheen said that remittances sent by overseas Pakistanis are the country's economic "life-line". "It's second only to exports," he added. The worsening security situation in Pakistan is affecting the country's economy. "Exports have declined when compared with previous year's figures. It is the national duty of each and every Pakistani to support his country in every possible way. Money that is sent to Pakistan through legal channels strengthens the nation's economy. It is inevitable for the survival and the well-being of our nation," Shaheen said.

Brokers operating transnational networks of off-the-book payments, known as hundi or hawala are a threat. Shaheen said that his country was strict in dealing with such operations. Recently, the State Bank of Pakistan canceled the licenses of two major exchange companies for handling illegal transactions. It had the desired results in curtailing the Hundi business. Press comments in Pakistani newspapers say this was one of the reasons for increase in remittances in the third quarter.

Shaheen made a passionate appeal to his countrymen not to use Hundi for remitting money. "It's a risky business. The money may be used for terrorism with far-reaching consequences to you, your family, your country and the country of your residence," he said.

According to Shaheen, there was no difference in hundi or bank rates. "In fact, in some cases bank rates are much better and safe as well. So why take the chance?"

A 24-hour call center has been set up at PRI where overseas Pakistanis and their families can enquire about the remittance services of banks and lodge their complaints. Shaheen said people speaking the various languages of Pakistan have been recruited at the call center.