Bank of Khyber (BoK) and KASB Bank Wednesday signed a memorandum of understanding (MoU) for facilitation of overseas Pakistanis in cash transfers through regular channels in the province. The signing ceremony was held in a local hotel with Chairman, BoK, Board of Directors, Ghulam Dastagir Akhtar in the chair.
Shabir Ahmad Sheikh, Senior Vice President (SVP) Operations, BoK and Shehryar Khan, Head Group, KASB Bank, signed the memorandum on behalf of their respective banks. Managing Director, BoK, Bilal Mustafa and chairman, KASB Bank Nasir Ali Shah Bokhari were also present on the occasion.
Under the arrangements made between both banks the 26 branches of the BoK in the province would deliver the remittances arriving Foreign Exchange Companies through KASB Bank. KASB is carrying foreign exchange business through 20 forex companies. Speaking on the occasion, Managing Director, BoK, Bilal Mustafa, said that foreign exchange to the tone of $23 billion is transferring to Pakistan annually, But only a meagre amount of $7 billion has been transferred through regular channels and the remaining transferred illegally, inflicting a trade deficit of $9 to 10 billion.
He said that the arrangement between both banks would make positive impact on the economy of the country. The bank, he said would play a key role in the speedy and timely transfer of the cash to the people. The Managing Director, BoK said that the bank during 2008 had handled foreign remittances of $1 billion while in the year 2009 it had handled foreign exchange worth Rs 6 billion, which were made through 1,65,000 transactions.
He said that the arrangement would not only encourage the transfer of remittances, but would also expand it. The arrangement, he said had opened another window of 20 forex companies to the people of the province. For the current calendar, Bilal Mustafa said that the target of the BoK is set to handle 0.4 million transactions and remittances worth 12 billion rupees.
Expressing satisfaction over the signing of memorandum, he said that in future the number of transactions and value of remittances would increase, and besides facilitating customers in the transfer of cash it would helped strengthen national economy and national exchequer.
Chairman, KASB Bank, Nasir Ali Shah Bokhari, expressed happiness and satisfaction over the agreement and said that the bank had started operation in remittances in October last year as the State Bank of Pakistan (SBP) is also taking keen interest in it and has initiated a special scheme in the name of Remittances Initiative. He said that the bank playing full role in the transfer of remittances and had established affiliation with 20 foreign exchange companies.
He said that the arrangements with BoK would help add 41 more branches into our network. KASB Bank, itself, he said 100 branches in the country while similar agreement with Punjab Co-operative Bank would be signed soon. He said that the finalisation of agreement with Punjab Co-operative Bank would climb the tally of the cash transfer delivery branches to 250.
In next phase, he said they would also provide facility of the payment of remittances through credit cards, ATMs and visa cards. He said that under Pakistan Remittances Initiative (PRI) policy of the Central Bank Pakistan would achieve a target of $12 billion in remittances by year 2012.
Chairman, BoK, Board of Directors, Ghulam Dastagir Akhtar, in his brief address, said that the network of BoK is not limited to NWFP only, saying its branches have been operating across the country. He said that the network of the branches of BoK would reach to 54 in the current year. He was thankful to central bank for extending co-operation in awarding licences for opening of branches.
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