[Pakistan] Key remittance incentive schemes discontinued

In Pakistan, a significant change to the overseas remittance framework has been made with the discontinuation of key incentive schemes that have supported the processing of billions of dollars in remittances from expatriate workers in recent years, Times of India reports.

The move has raised concern for Pakistanis overseas across the Gulf, particularly in Oman, the UAE and Saudi Arabia, where remittances are a critical source of income for millions of families in Pakistan. 

However, the policy change does not mean that remitters will immediately face charges when sending money home through formal channels.

As of July 1, 2026, the State Bank of Pakistan (SBP) has reportedly discontinued the Telegraphic Transfer Charges Incentive Scheme (TTCIS), which saw participating financial institutions reimbursed for eligible remittance-processing costs.

In addition, the central bank ended the Sohni Dharti Remittance Program, which rewarded overseas Pakistanis with loyalty points for using formal remittance channels. Both initiatives were intended to encourage remittances through regulated banking and exchange company networks and to reduce reliance on informal transfer systems.

Despite these schemes being discontinued, Pakistan’s authorities reportedly reiterated that its fundamental objective remains unchanged: promoting remittances through formal and transparent channels.

Source: Times of India

In Pakistan, a significant change to the overseas remittance framework has been made with the discontinuation of key incentive schemes that have supported the processing of billions of dollars in remittances from expatriate workers in recent years, Times of India reports.

The move has raised concern for Pakistanis overseas across the Gulf, particularly in Oman, the UAE and Saudi Arabia, where remittances are a critical source of income for millions of families in Pakistan. 

However, the policy change does not mean that remitters will immediately face charges when sending money home through formal channels.

As of July 1, 2026, the State Bank of Pakistan (SBP) has reportedly discontinued the Telegraphic Transfer Charges Incentive Scheme (TTCIS), which saw participating financial institutions reimbursed for eligible remittance-processing costs.

In addition, the central bank ended the Sohni Dharti Remittance Program, which rewarded overseas Pakistanis with loyalty points for using formal remittance channels. Both initiatives were intended to encourage remittances through regulated banking and exchange company networks and to reduce reliance on informal transfer systems.

Despite these schemes being discontinued, Pakistan’s authorities reportedly reiterated that its fundamental objective remains unchanged: promoting remittances through formal and transparent channels.

Source: Times of India