Amid the dwindling remittance inflow situation the government has enhanced the rate of incentives for remittance senders to 2.5 per cent from 2.0 per cent.
The new rate is effective from Saturday, a new year gift for the remitters from the Prime Minister, says a finance ministry statement.
The government introduced incentives in 2019 to encourage expatriates to send remittance through the banking channel that helped to raise the inflow.
Following the incentive introduction, in the fiscal year 2019-20 expatriates sent US$18.20 billion, which was 13 per cent higher than that of the previous year.
And remittance inflow rose to $24.80 billion in the fiscal year 2020-21, up by 36 per cent compared to the fiscal year 2019-20.
However, remittance inflow saw a significant fall during the last couple of months prompting the government to hike the rate of incentive in efforts to raise the remitance inflow.