The State Bank of Pakistan (SBP) has discontinued two major incentive schemes related to home remittances after concerns raised by the International Monetary Fund (IMF) over their rising cost. The decision marks a significant change in Pakistan’s remittance policy.
In separate circulars issued on Thursday, the central bank announced that both the Sohni Dharti Remittance Programme (SDRP) and the Telegraphic Transfer Charges Incentive Scheme (TTCIS) have been abolished with effect from July 1, 2026.
Under the SDRP, overseas Pakistanis earned reward points for sending money to Pakistan through formal banking channels. The SBP clarified that no new reward points will be issued for remittances sent on or after July 1, 2026. However, reward points accumulated until June 30, 2026, can still be redeemed until June 30, 2027, after which the program will be permanently closed.
The central bank has also ended the TTCIS, a scheme under which banks received incentives for processing eligible remittance transactions. Despite the scheme’s discontinuation, banks will continue to offer qualifying remittance services free of charge to both senders and recipients.
According to sources, the TTCIS had grown into a costly program, with annual payments ranging between Rs. 100 billion and Rs. 120 billion. The IMF reportedly questioned the continuation of the incentive, arguing that advances in digital payment technologies had reduced the need for performance-based subsidies to banks.
The decision does not affect the Pakistan Remittance Initiative (PRI), which remains operational. Industry officials say banks continue to generate substantial income through the PRI, although the exact figures have not been made public.
Pakistan has recorded strong growth in overseas workers’ remittances in recent years, supported by increased overseas employment and higher inflows from Gulf countries. Remittances reached approximately $40 billion during FY2024-25 and are projected to rise further to $41–42 billion in FY2025-26, reinforcing their role as one of the country’s largest sources of foreign exchange.
