Banks to Spend Rs. 100 Billion on Overseas Remittances

Commercial banks in Pakistan are prepared to spend Rs. 100 billion from their own resources during fiscal year 2026-27 to attract more remittances and reduce the cost of sending funds to Pakistan, Pakistan Banks Association (PBA) Chairman Zafar Masud has stated.

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• He remarked overseas Pakistanis at present pay between 18 and 20 riyals to send every $200 to Pakistan.
• PBA Chief Executive Officer Munir Kamal remarked the scheme seeks to support maintain annual remittance inflows at around $41 billion.
• Muhammad Yasir is a Karachi based journalist with over 7 years of experience.

Speaking at a media meetup at the Karachi Press Club, Masud remarked banks had decided to fund the initiative after the administration halted providing subsidies for remittance transactions.

He remarked overseas Pakistanis at present pay between 18 and 20 riyals to send every $200 to Pakistan. Banks are now covering this cost from their own profits to create formal capital transfers cheaper and encourage more individuals to apply banking channels.

Banks have additionally allocated Rs. 16 billion for the Pasban Remittance Reward Scheme. The program encourages overseas Pakistanis to send funds through formal channels and offers rewards for their families in Pakistan.

PBA Chief Executive Officer Munir Kamal remarked the scheme seeks to support maintain annual remittance inflows at around $41 billion. Its first balloting is scheduled for January, with an audit planned to ensure transparency.

Masud additionally shared details of banks' financing activities in other sectors. He remarked the number of residents benefiting from bank financing for housing had rose to more than 350, 000 from 65, 000. The housing loan portfolio has grown to Rs. 455 billion from Rs. 200 billion over the past two years.

Banks have additionally maintained a 4 percent refinancing rate for exporters despite higher interest rates, providing almost Rs. 100 billion in subsidies from their own resources, he remarked.

In the energy sector, banks are restructuring Rs. 1.3 trillion in debt over the next two years to support address circular debt. The process is projected to reduce electricity bills by almost Rs. 3 per unit once completed.

Masud remarked banks had additionally committed to increasing annual agricultural financing from Rs. 1.3 trillion to Rs. 3.3 trillion and expanding lending to farmers.

Meanwhile, Kamal remarked bank financing to small and medium-sized enterprises (SMEs) had climbed to Rs. 1.2 trillion from Rs. 490 billion over the past couple of years.

Masud additionally called on reducing cash transactions and expanding digital payment methods, including QR codes, to limit the undocumented economy. Stay Connected with ProPakistani.

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For now, banks to Spend Rs. 100 Billion on Overseas Remittances remains the part of the story worth watching, and further updates are likely as more details are confirmed.