The country’s banking industry, jointly with the State Bank of Pakistan and under the Pakistan Banks Association, has launched the Pasban Remittance Rewards, a nationwide incentive scheme meant to recognize the contribution of overseas Pakistanis and encourage more remittances through formal banking channels. The scheme was announced at a launch event at the SBP, chaired by Governor Jameel Ahmad, with senior bankers and government officials in attendance.
Governor Ahmad said the SBP and the government have worked closely with the PBA over the past few months to develop a self-sustaining, market-oriented remittance scheme that can keep attracting workers’ remittances through formal channels. He described remittances as the backbone of millions of families, helping cover household expenses, education, and healthcare while supplying resources for investment. He also pointed to a marked improvement in the external account, saying the current account deficit, which reached unsustainable levels in FY22 and drained foreign exchange reserves, is now at manageable levels. SBP’s reserves, which fell below 3.0 billion dollars in February 2023, now stand at 21.4 billion dollars, with the recent buildup driven mainly by purchases from the market rather than external debt. Workers’ remittances reached a record 41.6 billion dollars in FY26, nearly double the 21.7 billion dollars recorded in FY19.
Muneer Kamal, CEO and Secretary General of the PBA, explained that qualifying remittances will automatically make beneficiaries eligible for quarterly draws starting January 2027, with a prize pool of Rs. 4 billion per quarter, or Rs. 16 billion a year, funded by the banking industry under governance mechanisms developed in consultation with SBP. The scheme builds on the remitter incentive that banks have funded since July 2026, a cost previously carried by the federal government, which now runs at around Rs. 80 billion a year and brings the industry’s combined annual commitment to close to Rs. 100 billion. The initiative is the latest in a series of coordinated steps by the SBP, the government, and banks to support the external sector, following the decision earlier this year by banks to cut the Export Refinance Facility markup by 3.0 points to 4.50 percent on new loans and rollovers within the Rs. 1,052 billion facility limit.
PBA Chairman Zafar Masud said Pakistan’s banks have consistently stepped up, taking over the Rs. 80 billion remitter incentive, lowering export refinance rates, and taking private, agricultural, and SME lending to record levels, adding that overseas Pakistanis are an equally important part of the story. Private credit rose to Rs. 1.46 trillion in FY26, up 35 percent, while agricultural credit reached a record Rs. 3.23 trillion, SME financing hit Rs. 1.07 trillion, and housing finance crossed Rs. 300 billion, supported by monetary easing and the Prime Minister’s Access to Finance Plan 2026-28. The industry has committed to Rs. 1.5 trillion each in agriculture and SME financing by June 2027 and Rs. 2 trillion each by June 2028, while also working with the SBP and the government on circular debt resolution, PIA’s privatization, digital channels, Islamic banking, and financial inclusion.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
