SBP launches Pasban Remittance Reward Scheme, rollout from Oct 1
The State Bank of Pakistan (SBP) on Friday introduced the Pasban Remittance Reward Scheme aimed at encouraging overseas Pakistanis to send more money through formal banking channels, with implementation set to begin from Oct. 1.
SBP Governor Jameel Ahmad, heads of commercial banks and representatives of the banking industry attended the launch ceremony at the central bank.
Addressing the event, Ahmad said the scheme was a banking industry initiative and would replace earlier incentive programmes, including the Sohni Dharti Remittance Programme, under which remitters earned reward points.
He said banks had committed Rs16 billion to the scheme, which would offer rewards to people sending remittances through formal channels.
“The more remittances you send, the more opportunities you will get to participate in the scheme,” the governor said.
He said implementation would begin in October, while the first draw was planned for January.
Ahmad said remittances remained an important source of foreign exchange for Pakistan and that the SBP had worked with banks to improve incentives and bring flows previously passing through informal channels into the formal financial system.
He said remittances had increased significantly in recent years, while the Pakistan Banks Association said banks received a record $41.6 billion in remittances during FY26.
The governor said remittances were expected to rise further and cross $44 billion as measures to strengthen formal inflows continued.
He said Pakistan had faced severe external-sector pressures in 2022, when inflation rose to 38% and the gap between foreign exchange inflows and outflows reached about $18 billion.
According to Ahmad, annual foreign exchange outflows had at one stage reached around $90 billion against inflows of about $72 billion.
He said the authorities responded by reducing imports and taking measures to improve exports, remittances and other foreign exchange inflows.
The SBP governor said Pakistan had since brought annual outflows down significantly and gradually eased import restrictions as the external position improved.
He said the country's current account deficit was expected to remain between zero and 1% during the current fiscal year.
Ahmad said Pakistan's combined foreign exchange reserves held by the SBP and commercial banks had risen to around $27 billion, equivalent to approximately three months of imports, with efforts underway to increase the coverage to four months.
He said the central bank had purchased substantial foreign exchange from the market over the past three years as external inflows improved.
The governor also highlighted the Roshan Digital Account initiative, saying steps had been taken to increase foreign exchange inflows through the programme and broaden participation.
He said improved external and current account indicators had helped restore confidence among foreign investors, while two international rating agencies had upgraded Pakistan's credit rating.
Ahmad also referred to measures aimed at supporting exporters, saying financing and incentive schemes had been introduced to facilitate businesses and encourage new ventures.
Pakistan Banks Association Secretary General Munir Kamal said the banking sector had recorded strong performance during FY26, including a 35% increase in private-sector lending and 24.7% growth in agricultural credit.
Officials said the Pasban Remittance Reward Scheme would be jointly implemented by the SBP and Pakistan Banks Association with measures to ensure transparency.
Reporter: Baseem Iftikhar