Joshua Hoey Saudi Gazette RIYADH — The National Bank of Pakistan (NBP) is providing ATM cards that will allow the families of Pakistani expatriates working in Saudi Arabia to access remittances instantly at any time, according to a senior executive from the bank. The group chief of NBP's global home remittance management, Khalid Bin Shaheen, said the bank is now providing fee-free access to remittances transferred through it's Foree Remittance Account. “(Transfers) will go directly, and the National Bank will issue a card which will be free of charge.This will help you get remittances from any ATM machine, whether the National Bank's or any other,” Shaheen said. The remittance group chief said that remittance transfers would be available immediately, and that families and others in Pakistan could then use the card provided with the account to withdraw funds from any ATM. “Beneficiaries won't have to visit the branches, they won't have to stand in queues. If they want to get money at 6 p.m., they can just go to any ATM.” The bank has entered into agreements with a number of Saudi exchange houses and banks to provide the service, including Al Rajhi, Arab National Bank, Al Amoudi Exchange Company, Bank Albilad, and Bank Aljazira. Shaheen said that once they had a few thousand customers on board, they would launch a number of incentives, including airline tickets and discounted interest rates on loans in Pakistan. Asked why the bank was providing the service with no fees, Shaheen said remittances are second only to exports in terms of importance to Pakistan's national economy. Remittances from Saudi Arabia make up between 45 to 50 percent of total annual remittances sent to Pakistan, generating between $6-7 billion (US). The NBP executive said the new account would also help to further reduce the transfer of remittances via informal transfer networks known as Hundi or Hawala. “A lot of people don't want to use (Hundi/Hawala). Why were they doing that? Because the banks were taking three to 15 days to send their remittances to the beneficiary,” he said. The networks use informal avenues to transfer funds without documentation and outside of official banking avenues. The use of such transfer networks is illegal in Saudi Arabia, Pakistan, and India. According to the NBP remittance group chief, transfers via such networks between Saudi Arabia and Pakistan still make up around 15 percent, or $1 billion, of total remittance transfers.
