Senate body informed: Banks may remit USD800m to money transfer operators

Senator Saleem Mandviwalla informed the Senate Standing Committee on Finance and Revenue that Pakistani banks are expected to transfer approximately $800 million to money transfer operators overseas, following the suspension of the Pakistan Remittance Initiative (PRI) scheme by the government. Deputy Governor of the State Bank of Pakistan (SBP), Dr. Inayat Hussain, disputed this claim, stating that no such plan is currently being considered.

Dr. Hussain informed the Committee that Pakistan is preparing to release a new series of currency notes to address the proliferation of counterfeit Rs1,000 and Rs5,000 notes. Each new note costs around Rs14 to produce, while the Rs10 note is set to be phased out. The Committee discussed concerns over counterfeit notes being dispensed by bank ATMs and the process of designing the new currency notes, which involves a tender process overseen by a ministerial committee headed by the Finance Minister.

Senator Mandviwalla raised questions about the appointment of consultants for the new currency notes and their involvement in the printing process. The SBP Deputy Governor explained that the existing Rs5,000 banknote was introduced in 2005 and that advancements in technology have made counterfeiting more feasible. The Committee was informed that it would take approximately one year to introduce the new notes into circulation, with the printing cost of the Rs5,000 note estimated at around Rs14.

Senator Anusha Rahman Ahmad Khan emphasized the need for streamlining the approval process for currency designs to prevent delays and proposed the use of AI to expedite the procedure.