Different Ways to Send Money to Pakistan

Inward Remittances to Pakistan

By the end of FY 2018-19, Pakistan is expected to have an inward remittance of $22 billion. This record amount is a result of the many incentive packages offered to overseas workers by the Pakistan government that attracts more money through official banking channels. Pakistan features as one of the top ten countries in the world in terms of inflow through nationals settled in other countries.

Which countries are the highest sender of remittances to Pakistan?

According to the data by the World Bank, the USA, UK, Saudi Arabia, UAE, and other GCC countries remain the top senders. 

Here is the latest data released by the State Bank of Pakistan

What is The Pakistan Remittance Initiative? 

Pakistan Remittance Initiative (PRI) was launched as an initiative by the Ministry of Overseas Pakistan, State Bank of Pakistan and the Ministry of Finance to provide proper structure in Pakistan for remittance facilitation. This initiative was taken with the objective to facilitate and support a cheaper, faster, convenient and efficient flow of remittance to create more investment opportunities in Pakistan for overseas Pakistanis. 

What is a Foreign Exchange Remittance Card? 

Pakistanis residing overseas send remittances through normal banking channels thereby, supporting the balance of payments. The Foreign Exchange Remittance Card has been introduced to facilitate the overseas Pakistani community. The benefits vary with the type of FERC. The benefits of this Overseas Pakistani Card increase as one moves from silver, silver plus to gold, gold plus and finally to platinum.Below is a summary.

Pakistani Rupee and Remittance 

The pound to Pakistani Rupee rate today stands at1 GBP=195.837 PKR. The USD to PKR rate today is1USD = 159.498 PKR.Of course, this rate keeps changing every day owing to changes in the global market. Now the question that arises is how does the change in USD to PKR andGBP to PKR impact remittances to Pakistan. For example, if you are sending $100 from the USA to Pakistan at $1 = 159 PKR today, your family will receive 15900 PKR. Now, let’s say you are sending the same $100 from the US to Pakistan at $1 = 162 PKR, your family will receive 16200 PKR. Follow us on Twitter to get daily updates on exchange rates. 

Banks versus money transfer companies

There are various safe and secure means of remitting money to Pakistan.The bank route proves to be expensive as it is unlikely that you will receive a more competitive exchange rate on your transaction. Banks are a good option if you are remitting a large amount of money. You can evaluate the best bank accounts for Overseas Pakistanis on CompareRemit.

Wire Transfers

A SWIFT wire transfer can be made from one bank account to another. However, sending wire transfer costs between USD 15 and USD 25. Banks normally do not charge any fees for receiving wire transfers. The currency conversion is another story as that is where they make their profits. The recommended minimum amount for wire transactions is USD 1000. Wire transfers may take between one to four days to be credited to the recipient’s account.

Top Remittance Companies to Send Money Online to Pakistan

• Wise, formerly known as TransferWise - Itcan be used to transfer money internationally at a low cost. Based on local bank account transfers, their transactions work out to be cheaper than what banks or other service providers charge. A small upfront fee ranging between 0.5% and 2% is charged on transactions.
• Xoom - This Paypal company is a favorite for many users. They offer swift and secure money transfers with a seamless process. If you are sending more than $2000, they offer better exchange rates. 
• Payoneer - Itis a very convenient way of remitting money to Pakistan. The receiver receives money on a debit card and can subsequently withdraw it from an ATM. A direct option for credit to the receiver’s bank account is also available. A USD 50 bonus is given by them in case you receive more than USD 100 in the account. 
• WorldRemit - Itpromises easy, safe and fast money transfers to Pakistan using your smartphone. WorldRemit cash pick up transfers collect in an average time of 3 minutes and on average, transfers are completed on the same day.
• Western Union - With Western Union, there are options available for remitting money. You can pay with a credit or debit card, directly from the bank account or with cash at an agent location. Money can also be sent for cash pick up.  The receiver can pick up the money transfer at more than 8,800 agent locations throughout the country. A bank account to bank account wire would qualify for zero fees. 
• MoneyGram - It offers easy pick up from more than 5000 locations in Pakistan. With a simple click of a button, money can be transferred online. Funds can be remitted to cover household expenses, unexpected emergencies or simply a gift. They offer highly competitive exchange rates and fees for money transfer.

How to choose the right service? 

Compare the top remittance service providers side by side before sending money online. The following points should be kept in mind while selecting the option that suits you the best:

• Exchange rate
• Transfer speed
• Transfer fee
• Transfer method
• Minimum amount

Pakistan received a total of $6.5 billion in personal remittances through digital money transfer platforms using a bank account in 2017. Inward remittances play a very important part in the economy of Pakistan and will see a continuous growth over the coming years. Use CompareRemit’s comparison tool to get the best rates for your remittance needs to Pakistan today.