Mobile wallet-based remittances scheme on the cards

The government is likely to launch a mobile wallet-based remittances scheme under which clients will be given free air time to facilitate channelising remittances through formal channels. Sources said that the wallet-based remittances scheme was discussed during the fifth meeting of the National Financial Inclusion Strategy (NFIS) Steering Committee (SC) held at Karachi.
During the last meeting of the NFIS Steering Committee, it has been shared that a wallet-based remittances scheme is under consideration of the State Bank of Pakistan (SBP). The clients under this scheme will be given free air time that will facilitate in channelising remittances through formal channels.
The joint secretary, Finance Division, apprised the committee that upon the recommendation of the SBP, a bill for amendment in Agricultural Loan Purposes Act, 1973 to allow E-Passbook in agriculture lending is proposed and the same will be presented in the Parliament shortly. Accordingly, the ZTBL would also incorporate E-Passbook in their law.
With regard to implementation of warehouse receipt financing (WHRF), the commissioner SECP informed that the first collateral management company (CMC) is expected to be launched shortly and a session with PBA is planned to be held by end of this month. For development of credit scoring model, the chairman, while sharing an insight on global practices of profiling a credit score, inquired whether credit bureau will be responsible to develop such scoring models.
The executive director SBP responded that ideally credit bureau should undertake such tasks. The deputy governor SBP apprised that development of credit score is one of the services that would be provided by licensed credit bureaus under the new Credit Bureau Act.
The chairman of meeting inquired an update from the Finance Division with respect to creation of electronic collateral registry. The joint secretary, Finance Division, responded that draft rules have been prepared by World Bank experts and are currently being reviewed. The chairman advised the Finance Division to prioritize the appointment of registrar to ensure timely operationalization of the registry.
During the fifth meeting of the NFIS Steering Committee, the SBP officials emphasized that SBP and SECP need to work together to finalize the recommendations for the NFIS Council.
Mukesh Kumar, provincial chief SMEDA highlighted the issue of charges on school fees for online payment transactions which can distort digitization efforts. Director EA-PTA Dr Arif Sargana requested the governor to keep PTA in loop with respect to upcoming remittances' scheme through mobile wallet accounts. The SBP agreed to the suggestion. The SBP governor also advised the joint secretary finance to convene the next NFIS Council meeting by end of this month or early next month.