Islamabad, July 3, 2025: The federal government has decided to gradually phase out remittance incentives in Pakistan starting July 1, 2025, aiming to cut annual costs from Rs. 206 billion in FY25 to Rs. 88 billion by FY26.
On June 27, the State Bank of Pakistan (SBP) briefed the Economic Coordination Committee (ECC) that five active remittance schemes are in place, with the TT Charges Scheme alone costing Rs. 170 billion this fiscal year. Under this program, remitters earn SAR 20 per transaction of $100 or more, with additional bonuses for higher annual growth.
To streamline operations and reduce fiscal pressure, SBP proposed increasing the minimum eligible remittance from $100 to $200. It also suggested replacing the current variable bonus system with a flat SAR 20 per transaction, and merging the Exchange Companies Incentive Scheme (ECIS) into the TT Charges Scheme.
Moreover, the Marketing Incentive Scheme (MIS) will be discontinued from FY26. The ECC approved all proposals and directed SBP and the Finance Division to conduct a detailed impact analysis and develop a robust transition plan.
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Officials emphasized that the rollback must be gradual to avoid disrupting remittance flows, which remain a vital source of foreign exchange for Pakistan.
