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?