The State Bank of Pakistan (SBP) allows reimbursement charges to cover donations and contributions made by overseas Pakistanis for the ‘Prime Minister and Chief Justice of Pakistan Fund for Diamer Bhasha and Mohmand Dam.’
This initiative aims to encourage contributions from the Pakistani diaspora while ensuring that processing charges do not deter potential donors.
The decision to expand the scope of the scheme is a significant step toward facilitating the collection of funds for the dam projects, which are crucial for addressing Pakistan’s water scarcity, energy generation, and sustainable development.
Under the newly announced guidelines:
Funds received by domestic banks from overseas Pakistanis for the ‘Prime Minister and Chief Justice of Pakistan Fund for Diamer Bhasha and Mohmand Dam’ through the home remittance channel are eligible to be claimed by domestic banks under the ‘Reimbursement of TT Charges Scheme’ during the fiscal year 2018-19.
Each transaction should include the name and/or a unique reference number of the originator or sender.
Banks must ensure that each transaction is processed on the same day and that transactions are not artificially split to take advantage of the scheme.
This extension of the scheme is expected to encourage a greater flow of contributions from overseas Pakistanis. These donations are considered a valuable source of funding for the construction of dams, a high-priority initiative in Pakistan aimed at addressing water scarcity, generating clean energy, and promoting sustainable development.
The construction of Diamer Bhasha and Mohmand Dams is of great significance for Pakistan’s water and energy needs. These projects are expected to address water shortages, provide clean energy, and stimulate economic growth, making the involvement of both domestic and overseas Pakistanis crucial for their success.
The SBP’s decision to allow banks to claim reimbursement charges demonstrates the government’s commitment to facilitating the collection of funds for the Dam fund while removing any potential financial burden on donors. By making it more convenient for overseas Pakistanis to contribute, the government aims to enhance the success of the Dam fund campaign and expedite the construction of these vital infrastructure projects.
The notification from the SBP also emphasizes the importance of adhering to the provided instructions. Non-compliance with the guidelines may result in penal action under the relevant provisions of the Foreign Exchange Regulation Act, 1947. This underscores the need to maintain transparency and integrity in the collection of funds.
In conclusion, the SBP’s decision to permit banks to claim reimbursement charges for processing donations from overseas Pakistanis is a significant development in the campaign to fund the ‘Prime Minister and Chief Justice of Pakistan Fund for Diamer Bhasha and Mohmand Dam.’ This move aims to encourage contributions from the Pakistani diaspora and facilitate the flow of funds for critical infrastructure projects in Pakistan. By reducing any financial barriers for donors, the government seeks to expedite the construction of these essential dams, benefiting the country’s water and energy needs.
