The State Bank of Pakistan (SBP) on Thursday announced an end to the incentives paid to banks for increasing remittances, reportedly due to opposition against the policy from the International Monetary Fund (IMF).
In its circular, the central bank said the Sohni Dharti Remittance Program (SDRP) had ended. “No further reward points under SDRP will be awarded from the start of FY27, from July 1, 2026,” it said, adding eligible transactions processed up to June 30 would be reported to 1LINK for the awarding of points under the scheme.
Reward points already awarded and accumulated until June 30, 2026, would remain redeemable until the end of FY27, or June 30, 2027. “Thereafter, SDRP will become completely non-functional effective from July 1, 2027,” it added.
The SBP also announced the discontinuation of the Telegraphic Transfer Charges Incentive Scheme, another scheme aimed at boosting the use of formal channels for remittances. “It is informed that the TTCIS is discontinued with effect from July 1, 2026. However, the Authorized Dealers will continue to implement the scheme at their end while preserving its key features,” read a separate circular.
According to the central bank, Authorized Dealers would ensure that home remittance transactions meeting the criteria laid down in the circular remained free of cost for senders and beneficiaries of home remittances.
Last year, multiple reports had emerged of the amount under the TTCIS rising to Rs. 100-120 billion annually. Opponents of the scheme had noted the scheme had continued despite the availability of newer money transfer technologies.
Remittances have become a major source of revenue for Pakistan, with rising labor exports helping them reach $40 billion in FY25.