ISLAMABAD: The Prime Minister’s Youth Programme (PMYP) has decided to launch a digital wallet initiative that will facilitate zero-cost remittances from overseas Pakistanis in the UAE, a leading fintech that will design and manage the initiative said on Thursday. 

Dellsons Associate, a company that specializes in financial technology, digital payments and remittance solutions that has operations in the UAE, said the initiative will be launched under the Digital Youth Hub. 

The Digital Youth Hub is a flagship platform of the government-led PMYP that aims to connect Pakistan’s youth to education, employment, entrepreneurship and engagement opportunities. 

“Through this proposed collaboration, a regulated digital wallet solution will be integrated with the Hub, enabling overseas Pakistanis in the UAE to send remittances instantly and at zero cost through formal channels,” Dellsons Associates said in a press release. 

Dellsons Associates said that as per the proposed framework, it will support the design, development, deployment and management of the digital wallet. 

It will also secure cross-border remittance processing through 1LINK, Pakistan’s prominent payment system operator, United Bank Limited and other relevant partners.

It said the initiative will ensure full compliance with the regulatory requirements of the central banks of both the UAE and Pakistan, as well as anti-money laundering, combating the financing of terrorism, know your customer, (KYC) consumer protection and cybersecurity standards. 

“By leveraging financial technology and digital infrastructure, the collaboration seeks to promote productive employment, financial inclusion, and secure remittance channels for Pakistani youth working abroad,” PYMP Chairman Rana Mashhood said. 

Dellsons Associates said the collaboration is expected to increase formal remittance inflows, reduce reliance on informal transfer channels, enhance digital literacy and contribute to Pakistan’s economic stability and digital transformation. 

Cash-strapped Pakistan considers foreign remittances important as they support the country’s fragile economy, encourage household consumption and reduce reliance on external borrowing. 

Pakistan received $4.089 billion in remittances from the UAE in the first half of the current fiscal year, the Bureau of Emigration & Overseas Employment said in a statement earlier this month. 

The Gulf state is home to more than 1.5 million Pakistani expatriates, one of the largest overseas Pakistani communities in the world.