18 Sep 2023
In times of intense economic inflation, your money transfer to Pakistan from UK and other countries can play a significant role in a portion of Pakistan’s annual GDP. This country is heavily dependent on financial support from its expat community. In the fiscal year 2021-22, remittances to Pakistan reached a staggering 31.43 billion US dollars, but they plummeted to a mere $27 billion in FY23, creating an alarming situation.
After exports, remittances from Pakistanis living abroad are the single biggest source of foreign reserves for the nation. The country's trade imbalance is constantly financed by remittances, which also help build foreign exchange reserves. The 181-thousand-strong Pakistani community in the UK can help their relatives back in Pakistan live a financially stable life. However, the complexities of online money transfers should be handled with caution, research, and mindfulness. Keep reading this blog to learn how to seamlessly send remittances to Pakistan for your family in need.
You will find numerous remittance service providers online, and your seamless remittance journey is dependent on the choice that you make. Before choosing your preferred remittance provider, always consider important factors like reputation, reliability, and credibility. Remember, paying a greater fee is always better than losing all your funds in the scam. It is recommended to choose a remittance provider that is authorised and regulated by the appropriate financial authorities in both countries.
Additionally, keep the following factors in mind to ensure that you get an affordable and convenient service.
Banks often charge hefty amounts, and they may also have receiving fees or other hidden charges that you might not have anticipated. So, look for transfer providers with upfront fees and competitive exchange rates. The transfer fees will vary depending on the mode of payment, such as online transfer, wire transfer, or credit card. Sometimes, it can also be a flat fee or a percentage of your transfer amount. Usually, an online money transfer to Pakistan from UK will charge a flat fee up to a certain amount.
You must convert one currency for another in order to make cross-border currency transactions. The exchange rate is the value of one currency in relation to another, such as the current value of GBP in PKR. To understand it simply, “the greater the exchange rate, the more Pakistani rupees your recipient receives for each pound you send”.
Different money transfer firms offer different exchange rates. Compare the exchange rates offered by various money transfer firms at all times to ensure you get the best bang for your buck.
Oftentimes, quicker transfers are costlier. One example is that transfers to a bank account, where deposits can take several days, are more expensive than rapid cash pickups. Credit card transfers are speedier, but they could cost more. Therefore, when evaluating the offers from the various money transfer options, go for a less expensive choice if you are not in haste. However, you can use ACE Money Transfer as it offers both speed and affordability.
It is essential to stay informed regarding regulations or restrictions on sending money from the UK to Pakistan. Whichever service you use, make sure it is complying with anti-money laundering (AML)and know your customer (KYC) regulations. Regulatory requirements also keep varying from time to time, so it is important to stay up to date on any news that can affect your money transfers.
One of the wisest things to do as an expat is to keep a record of your transactions through receipts and transaction reference numbers. These records can help you track and resolve any problems during or after the transfer process.
Scammers have found a new obsession with expats who regularly conduct international money transfers. Always stay cautious of suspicious emails or messages that request you to send personal or financial information. To minimise the risk of fraud, only use regulated and established services like ACE to send money to Pakistan from UK.
Understanding the complexities of tax implications might be difficult, but it is a significant step in securing yourself financially. You may need to report your money transfers to tax authorities in both Pakistan and the UK, depending on the amount that you are sending and the purpose of it. It is recommended to consult a tax professional to gain specific guidance according to your situation if you are not adept in this knowledge.
ACE Money Transfer is a UK-based remittance company that offers quick online money transfers to more than 100 countries from the UK, Europe, Canada, Switzerland, and Australia. Using the ACE website or mobile app, you can transfer money to an account at any established Pakistani bank or a mobile wallet. Alternatively, you can also choose from numerous pick-up locations to receive cash.
Read more here on how you can seamlessly send remittances through the easy-to-use service of ACE.
By choosing a reputed money transfer service and adhering to the tips mentioned in the blog, you can ensure financial security while sending remittances to Pakistan. ACE Money Transfer is a well-reputed service operating for almost two decades. Additionally, you can send money to Pakistan online from UK at absolutely ZERO cost when you sign up for the first time with ACE. Sign up on ACE for free to enjoy seamless remittance transfers that are quick, secure, and affordable.
FAQs
Can I transfer money to Pakistan using my UK bank account?
Yes, all banks in the UK offer international transfer services, but they may be charged a higher fee in comparison to online money transfer firms.
How long can I expect my transfer to reach the recipient from the UK?
It usually depends on the type of transfer that you opt for. However, through ACE, you can expect your funds to reach your loved ones within one day.
Do I need to pay taxes on remittances that I send to Pakistan from the UK?
There may be tax implications on certain amounts in both countries that you can check through official websites.
Can I send money to someone in Pakistan without a bank account?
Yes, ACE Money Transfer offers the option of cash pickup in Pakistan. Ensure that the recipient can access the designated pickup location before initiating the transfer.
Is it possible to cancel or modify a transfer after it's been initiated?
Once a transfer is initiated, it is not possible to modify it. However, cancellation might be possible if you contact the service provider immediately.
Resources
https://www.statista.com/statistics/1241595/pakistani-population-in-united-kingdom/
