Remittances from Overseas Pakistanis - Updates

[hydrabadi_arab]

Banks say shift in cost of remittances to burden them, dent profitability​

• SBP reports remittances cost at Rs76bn in FY26, projects cost to grow to Rs85-90bn in FY27

July 4, 2026

Reacting to a government decision to have shifted its cost of bringing workers’ remittances over to banks in the country, Pakistan Banks Association (PBA) said on Saturday the move had placed an additional financial burden on the financial institutions that would dent their profitability.

Banks in Pakistan have been directed to bear the cost of bringing the remittances with effect from July 1, 2026. Earlier, the government was giving a subsidy to banks to keep the transaction cost at zero for remittances senders and beneficiaries.

State Bank of Pakistan (SBP) reported on Friday the cost of attracting remittances from overseas Pakistanis into the country was recorded at Rs76 billion in the fiscal year ended June 30, 2026.

The country is projected to record over $41.5 billion workers remittances in the year (FY26), as the remittance numbers for June 2026 are in the finalisation stage at present.

SBP Governor Jameel Ahmad has estimated the cost of bringing the remittances would rise to Rs85-90 billion in the fiscal year 2026-27 (FY27), as the country anticipated the inflows of workers’ remittances growing to $44 billion in FY27.

Poor banks, how they will survive with bit less of profits?

 

[hydrabadi_arab]

Pakistan receives record $41.6 billion workers’ remittances in FY26​

Inflows rise 8.6% year-on-year as June remittances reach $3.5 billion, led by Saudi Arabia and United Arab Emirates


News Desk

July 9, 2026
2 min read

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Pakistan received $41.6 billion in workers’ remittances during fiscal year 2025-26, up 8.6% from $38.3 billion in the previous fiscal year, according to data released by the State Bank of Pakistan (SBP) on Thursday.

In June 2026, workers’ remittances stood at $3.5 billion. The inflows increased 2.0% on a year-on-year basis but fell 18.3% compared with the previous month.

Saudi Arabia remained the largest source of remittances in June, with inflows of $829.6 million. The United Arab Emirates followed with $792.2 million, while remittances from the United Kingdom stood at $514.9 million.


Inflows from the United States were recorded at $296.8 million during the month.

The full-year increase in remittances provides support to Pakistan’s external account at a time when the country continues to manage import payments, debt obligations and foreign exchange reserve targets.

Read This: SBP phases out Sohni Dharti remittance programme, ends new rewards from July 1

Workers’ remittances are a key source of foreign exchange for Pakistan and help support household consumption, the current account and overall balance of payments.


The record annual remittances come as the SBP has started withdrawing two remittance-related incentive schemes.

The central bank has begun winding down the Sohni Dharti Remittance Programme, ending the award of new reward points on remittance transactions from July 1, 2026. Eligible remittances received through formal banking channels up to June 30, 2026, will still earn points under the existing mechanism, with banks submitting transaction details to 1LINK for crediting rewards.

Users will have until June 30, 2027, to redeem reward points accumulated by June 30, 2026. The programme will become non-functional from July 1, 2027.

The Sohni Dharti Remittance Programme was launched to encourage overseas Pakistanis to send money through SBP-regulated financial institutions instead of informal channels.


Separately, banks and other authorised institutions will no longer receive reimbursement from the SBP for processing eligible workers’ remittances after the central bank discontinued the Telegraphic Transfer Charges Incentive Scheme. The decision took effect on July 1, 2026.

 

[hydrabadi_arab]

For first time ever Pakistan remittances beat exports which will be around $40.5bn for FY2025-26.

 

[Owaiz]

For first time ever Pakistan remittances beat exports which will be around $40.5bn for FY2025-26.

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That is actually a matter of great concern and shame, but braindead patwaris will celebrate this "brain gain" as some great achievement.

 

[maxpane]

i wish we can proudly say about export

 

[bafxet]

Sure, they give you a good breather and support. But the fact is that the country's economy is in shambles.

Remittances from 1 billion in 2001 hwve grown to 42 billion (expected) in 2026, they have outperformed our exports.

The country's heavy reliance on the remittance should be cause of fidgety for our economic managers.