Banks to Pay $256 Million to Receive Foreign Remittances This Year

Pakistani banks are projected to pay around $256 million to foreign banks this fiscal year for processing workers' remittances after the administration concluded its financial backing scheme, the Senate Standing Committee on Finance was informed on Tuesday.

Key points

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• The administration has discontinued the scheme effective July 2026 and has not allocated funds for it in the current fiscal year.
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• Pakistani banks have historically paid around $800 million annually to foreign banks for remittance-related services.
• The committee was specifically informed that banks are projected to pay around $256 million in such charges during the current fiscal year.

For context, the committee was informed that local banks pay charges to overseas banks to receive remittances sent to Pakistan.

Pakistani banks have historically paid around $800 million annually to foreign banks for remittance-related services. SBP Reveals Real Reason Behind Delay in New Currency Notes.

State Bank of Pakistan Deputy Governor Dr. Inayat Hussain remarked the administration had provided Rs. 124 billion in FY2025 and Rs. 72 billion in the after fiscal year under the remittance-related financial scheme.

In practice, the administration has discontinued the scheme effective July 2026 and has not allocated funds for it in the current fiscal year. Consequently, Pakistani banks will now have to bear the charges payable to overseas banks themselves.

For context, the central bank executive cautioned that if banks do not absorb the cost, the charges could eventually be passed on to residents sending remittances to Pakistan.

Meanwhile, the committee was specifically informed that banks are projected to pay around $256 million in such charges during the current fiscal year.

Notably, the matter is significant for Pakistan as workers' remittances remain an significant source of foreign exchange for the country. Stay Connected with ProPakistani.

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For now, banks to Pay $256 Million to Receive Foreign Remittances This Year remains the part of the story worth watching, and further updates are likely as more details are confirmed.