SBP Governor Jameel Ahmad says the Pasban Remittance Reward Scheme will be fully financed by banks to encourage overseas Pakistanis to use formal financial channels.
ISLAMABAD: State Bank of Pakistan (SBP) Governor Jameel Ahmad has launched the Pasban Remittance Reward Scheme, offering cash prizes worth Rs16 billion annually to encourage overseas Pakistanis to send money through formal banking and financial channels.
The scheme has been introduced under the auspices of the Pakistan Banks Association (PBA) and will be fully financed by the banking industry, ensuring that it does not create any financial burden for the national exchequer.
Speaking at the launch ceremony Friday, Ahmad said the initiative was developed through cooperation between the government and the banking sector. He described it as a sustainable, market-driven mechanism designed to increase workers’ remittances through the formal financial system.
The SBP governor highlighted the importance of remittances for millions of Pakistani households. Funds sent by overseas Pakistanis help families meet essential expenses, including food, education, healthcare and housing. Remittances also contribute to household savings, investment and wider economic activity.
Ahmad also pointed to an improvement in Pakistan’s foreign exchange position in recent years. He said the SBP’s foreign exchange reserves, which had fallen below $3 billion in February 2023, have now risen to $21.4 billion.
According to the governor, the increase in reserves has largely been driven by SBP 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 registered 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 increase represents nearly a doubling of remittance inflows over the period and highlights the growing contribution of overseas Pakistanis to Pakistan’s economy.
The Pasban scheme seeks to build on that growth by providing an additional incentive for overseas Pakistanis to use official banking and financial channels when transferring funds to Pakistan.
About The Author
