Pakistan Prime Minister Shehbaz Sharif decided on Saturday to continue the remittance incentive scheme, directing the Ministry of Finance to immediately release funds on a priority basis for the Workers’ Remittances Incentive Scheme, a statement from the Prime Minister’s Office (PMO) read.
The development comes a few weeks after State Bank of Pakistan’s (SBP) Dr Inayat Hussain reportedly cautioned that the government’s decision to curtail subsidies for promoting foreign remittances, which hit a record $38 billion in F2024-25, might reduce the flow through banking channels.
“Overseas Pakistanis are our strength and a valuable asset of the country,” PM Shehbaz was quoted as saying the PMO statement on Saturday.
SBP revises Telegraphic Transfer charges scheme, raises limit to $200, includes ECs
“The hard-earned remittances sent by overseas Pakistanis play a vital role in Pakistan’s development, and I, along with the entire nation, deeply value their contribution.
“These remittances not only helped in covering the rising import bill but also contributed to the increase in foreign exchange reserves,” he said.
“We are removing obstacles in the way of remittances sent by hardworking overseas Pakistanis and making the system more effective, efficient, and user-friendly.”
The inflow of overseas workers’ remittances into Pakistan stood at $38.3 billion in fiscal year 2024-25, the highest-ever in the country’s history, the SBP data showed.
Remittances increased by 27% year over year, compared to $30.25 billion recorded in the previous fiscal.
Home remittances play a significant role in supporting the country’s external account, stimulating Pakistan’s economic activity as well as supplementing the disposable incomes of remittance-dependent households.
American Dollar Exchange Rate