Pakistan’s banking industry, the State Bank of Pakistan (SBP) and the government have joined hands to encourage overseas Pakistanis to send more money through formal banking channels under a new nationwide incentive initiative.

The Pasban Remittance Rewards scheme was launched at an event held at the State Bank of Pakistan, with SBP Governor Jameel Ahmad, senior banking executives and government officials in attendance.

The initiative aims to recognise the contribution of overseas Pakistanis while encouraging workers’ remittances through official financial institutions. Under the scheme, eligible remittance transactions will provide beneficiaries with an opportunity to participate in quarterly prize draws.

SBP Governor Jameel Ahmad said the central bank and government had worked with the Pakistan Banks Association (PBA) to develop a market-oriented and self-sustaining remittance programme.

He highlighted the important role of remittances in supporting millions of Pakistani households. Funds sent by overseas workers help families cover everyday expenses while also supporting education, healthcare, investment and other economic activities.

The State Bank governor also pointed to the improvement in Pakistan’s external account position. He noted that the country’s external current account deficit had reached unsustainable levels in FY22, putting significant pressure on foreign exchange reserves.

According to the figures shared at the launch, SBP foreign exchange reserves have increased from below $3 billion in February 2023 to $21.4 billion. The governor said the recent strengthening of foreign exchange buffers has largely been supported by purchases from the market rather than increased external borrowing.

Workers’ remittances have also recorded substantial growth over recent years. Remittance inflows reached a record $41.6 billion in FY26, compared with $21.7 billion in FY19, representing a significant increase over the period.

Under the Pasban Remittance Rewards scheme, qualifying remittance recipients will automatically become eligible for quarterly prize draws beginning in January 2027.

Pakistan Banks Association CEO and Secretary General Muneer Kamal said the scheme will offer a prize pool of Rs. 4 billion every quarter. This translates into Rs. 16 billion annually, with the cost being funded by the banking industry.

The new initiative follows another major commitment by banks toward remittance promotion. Since July 2026, the banking sector has been funding the remitter incentive that was previously financed by the federal government.

The annual cost of that incentive is estimated at around Rs. 80 billion, taking the banking industry’s combined annual commitment toward remittance-related incentives close to Rs. 100 billion.

The Pasban scheme is part of wider cooperation between the government, SBP and Pakistan’s banking sector aimed at strengthening the country’s external sector and expanding access to formal financial services.

The banking industry has also supported other economic initiatives, including export financing. Earlier this year, banks voluntarily reduced the markup on the Export Refinance Facility by three percentage points to 4.50% for new loans and rollovers within the PKR 1.052 trillion facility limit.

Financing to several priority sectors has also expanded. Private-sector credit reached PKR 1.46 trillion in FY26, while agricultural financing climbed to a record PKR 3.23 trillion.

SME financing reached PKR 1.07 trillion, while housing finance crossed PKR 300 billion. The banking industry has also set financing targets of PKR 1.5 trillion each for agriculture and SMEs by June 2027, increasing those targets to PKR 2 trillion each by June 2028.

PBA Chairman Zafar Masud said the banking industry had continued to contribute toward the government’s economic objectives, including remittance incentives, export financing, private-sector lending and efforts to address circular debt.

The Pasban Remittance Rewards scheme therefore represents another step in the broader effort to increase formal remittance inflows and strengthen the connection between overseas Pakistanis and Pakistan’s formal financial system.

With quarterly rewards scheduled to begin in January 2027, the initiative is expected to provide an additional incentive for eligible remittance recipients while supporting the banking sector’s role in Pakistan’s foreign exchange and economic framework.