SBP launches Rs16bn remittance reward scheme

SBP launches Rs16bn remittance reward scheme

State Bank of Pakistan (SBP) Governor Jameel Ahmad has launched the Pasban Remittance Reward Scheme, an initiative designed to encourage overseas Pakistanis to send their earnings through formal banking and financial channels.

The scheme, launched under the auspices of the Pakistan Banks Association (PBA), will offer cash prizes worth Rs16 billion annually. The banking industry will fully finance the programme, ensuring that it does not place any financial burden on the national exchequer.

Speaking at the launch ceremony on Friday, Governor Jameel Ahmad said the initiative emerged from cooperation between the government and the banking sector. He described the scheme as a sustainable, market-driven mechanism aimed at bringing more workers’ remittances into the formal financial system.

Ahmad said remittances play an important role in the lives of millions of Pakistani households. Families rely on money sent from abroad to meet expenses related to food, education, healthcare, housing and other essential needs. Remittances also contribute to savings, investment and broader economic activity.

The SBP governor also highlighted the improvement in Pakistan’s foreign exchange position over the past few years. He said the central bank’s foreign exchange reserves, which had fallen below $3 billion in February 2023, have now increased to $21.4 billion.

According to Ahmad, the recent rise in reserves has largely resulted from the SBP’s purchases of foreign currency from the domestic market rather than additional external borrowing. He said the development reflected stronger foreign exchange inflows and improved conditions in the external sector.

Workers’ remittances have also recorded substantial growth. Pakistan received a record $41.6 billion in workers’ remittances during fiscal year 2025-26, compared with $21.7 billion in FY2018-19. The inflow has therefore nearly doubled over the period, underlining the growing contribution of overseas Pakistanis to the country’s economy.

The Pasban scheme seeks to build on this momentum by providing an additional incentive for overseas Pakistanis to use official banking channels when transferring funds to Pakistan.