IMF Urges PRI Funding Fix Amid Rs100B Debt

IMF Urges PRI Funding Fix Amid Rs100B Debt

| 17-Jul-2025

Islamabad, July 17, 2025, 09:05 PM PKT — The International Monetary Fund (IMF) has issued a stern directive, compelling the Ministry of Finance and State Bank of Pakistan (SBP) to jointly devise a financing solution for the Pakistan Remittances Initiative (PRI), a scheme to boost formal remittance channels, as revealed by the finance secretary during a Wednesday briefing to the National Assembly Standing Committee on Finance and Revenue, chaired by Syed Naveed Qamar. The committee raised alarms over the escalating circular debt, tied to Rs100 billion in reward payments to banks and exchange companies, dwarfing the Rs89 billion allocated last year, with no funds set aside in the current fiscal year due to fiscal constraints.

The finance secretary warned that SBP funding would indirectly burden the Finance Ministry, prompting ongoing talks to revise the scheme, including a flat 20 riyal reward rate (down from 20-30 riyals) and a minimum transaction hike from $100 to $200. The committee also tackled the “Parliamentary Budget Office Bill 2025”, aiming to enhance fiscal oversight, but the secretary questioned its necessity, advocating a lean structure if approved. A sub-committee under Dr. Nafisa Shah will report in 30 days, while discussions on the electric vehicle policy, minimum wages, and Islamic banking were deferred. Web context shows remittance funding debates, while posts found on X reflect concern—some urge reform, others doubt fiscal discipline. Critically, the narrative of “remittance support” may mask financial strain—web data hints at past overspending, and X sentiment suggests distrust in sustainable fixes, pointing to deepening challenges.

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