The State Bank of Pakistan (SBP) is preparing to introduce fresh remittance incentives to encourage overseas Pakistanis to send more funds through formal banking channels. The initiative forms part of the central bank’s broader strategy to sustain remittance growth, strengthen foreign exchange reserves, and support Pakistan’s external account.
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According to officials, the proposed incentives will target banks and exchange companies that facilitate home remittances. The SBP also plans to review existing incentive schemes to improve efficiency and ensure greater value for both financial institutions and remitters. Moreover, the central bank aims to expand digital payment solutions that make cross-border transfers faster and more convenient.
Workers’ remittances remain a key source of foreign exchange for Pakistan’s economy. Therefore, policymakers continue to prioritise measures that encourage overseas Pakistanis to use regulated financial channels instead of informal transfer systems. The latest initiative also aligns with broader efforts to enhance financial inclusion and improve payment infrastructure.
The proposed incentives come as Pakistan seeks to maintain strong remittance inflows amid global economic uncertainty. Furthermore, higher remittances can help ease pressure on the country’s external financing needs and support exchange rate stability. The SBP is expected to announce further details once consultations with stakeholders conclude.
