Cheaper Money Transfers Announced for Overseas Pakistanis

Pakistani banks are exploring cheaper ways to receive remittances from Europe and other international markets as they seek to attract overseas Pakistanis, reduce reliance on foreign funds transfer businesses, and earn more from cross-border transactions.

Key points

• Germany, France, the Netherlands, Italy, Spain, Sweden, Greece, Denmark, Belgium, and Ireland are among the major sources of these inflows.
• Major international operators serving Pakistan include Western Union, Ria, Wise, Remitly, and MoneyGram.
• When inflows reached a record of approximately $40 billion, it allocated Rs120 billion in subsidies for remittances in FY26.
• Speaking exclusively to ProPakistani, Bruno Pedras, Founder and CEO of Belmoney, remarked Pakistani banks were preparing to adopt a direct-to-customer (D2C) model through partnerships with licensed fintech businesses.
• Financial expert Ibrahim Amin remarked the SBP was working with the BUNA regional payment platform to facilitate remittances from Gulf Cooperation Council (GCC) countries.

Remittances from European countries reached $5.22 billion in FY26, up from $4.54 billion in FY25 and $3.85 billion in FY24, according to the State Bank of Pakistan (SBP). SBP Reserves Rise Above $21.5 Billion.

Germany, France, the Netherlands, Italy, Spain, Sweden, Greece, Denmark, Belgium, and Ireland are among the major sources of these inflows. An estimated 1.2 million to 1.5 million Pakistanis live throughout these countries.

He remarked local banks and capital transfer operators often earn relatively low margins under existing arrangements with international remittance providers. Their ability to reach European customers directly is additionally limited by a lack of technical infrastructure and local market presence.

Pedras remarked international capital transfer firms retain a significant share of transaction fees, leaving Pakistani partner banks with a smaller portion for delivering funds to beneficiaries.

He believes technology-based alternatives could support local banks reduce their dependence on foreign intermediaries and retain a larger share of remittance revenue.

Pedras remarked Belmoney provides regulatory compliance and market access services to banks, capital transfer operators, and digital wallets. The firm is integrating its services with one of Pakistan's largest digital wallets, with the integration anticipated to go live shortly.

He continued that a number of Pakistani banks had additionally signed agreements with Belmoney. These partnerships could support them attract customers who at present send funds through international operators such as Western Union, Ria, MoneyGram, and Wise.

Notably, the objective, he remarked, is to ensure that more remittance-related revenue stays within Pakistan's banking system instead of going to foreign intermediaries. Administration Cuts Remittance Incentives.

In practice, the administration has additionally been spending billions of rupees to encourage overseas Pakistanis to employ formal channels for sending capital home.

Nevertheless, the allocation was reduced to Rs16 billion for FY27. The administration additionally introduced the Pasban Remittances Cash Reward Scheme to encourage overseas Pakistanis to employ regulated capital transfer channels.

Meanwhile, Pakistan is exploring technology-based payment systems, digital wallets, and regional payment platforms to create international transfers cheaper and easier.

Although the actual savings would depend on the scale of implementation, industry estimates suggest that using multiple low-cost remittance channels could generate annual savings of around $410 million.

He remarked the initiative could produce it easier for overseas workers and other members of the Pakistani diaspora in Gulf countries to send funds home. SBP Hikes Interest Rate First Time Since June 2026.

Amin remarked the SBP, commercial banks, and fintech businesses needed to work together to develop affordable digital remittance services. He additionally stressed the need for greater coordination between banks, Pakistani embassies, and consulates to reach overseas communities.

He remarked banks must offer convenient services, competitive charges, and incentives to compete with informal Hawala and Hundi networks and encourage more overseas Pakistanis to apply regulated channels. Stay Connected with ProPakistani.

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Muhammad Yasir is a Karachi based journalist with over 7 years of experience.

For now, cheaper Money Transfers Announced for Overseas Pakistanis remains the part of the story worth watching, and further updates are likely as more details are confirmed.