Prime Minister Reaffirms Remittance Incentive Scheme as Inflows Reach All-Time High

Download IPFS

In light of unprecedented foreign remittance inflows, Prime Minister Shehbaz Sharif has announced the continuation of the government’s remittance incentive scheme aimed at overseas Pakistanis. With inflows touching a record $38.3 billion, this initiative is being positioned as a cornerstone of Pakistan’s foreign exchange stability. The Prime Minister’s commitment reinforces the critical role the overseas Pakistani community plays in sustaining the national economy.

The remittance incentive program, originally introduced to promote legal money transfers, offers financial bonuses and streamlined services to those who remit funds through official banking channels. The decision to extend the scheme reflects a broader strategy to reduce reliance on external loans and promote self-sufficiency through consistent inflows. With remittances now outpacing foreign direct investment and exports in some quarters, the continuation of this scheme signals a shift towards pragmatic, result-driven economic planning rather than politically expedient quick fixes.

Officials from the State Bank of Pakistan (SBP) have credited the rise in remittances to enhanced digital infrastructure, partnerships with global money transfer operators, and improvements in transaction security. By offering incentives and expanding the digital ecosystem, the government hopes to further curb illegal hundi systems that undermine both transparency and the banking sector. Financial experts have praised the initiative as one of the few effective economic policies in recent years, attributing the surge to proactive outreach and improved trust between expatriates and institutions.

While remittances have long been a vital economic lifeline, the Prime Minister’s renewed commitment sends a strong message: that responsibility and fiscal discipline must take precedence over unsustainable populist policies. The contribution of overseas Pakistanis must be matched with efficient services, reduced bureaucratic barriers, and greater transparency in fund utilisation. As Pakistan navigates a complex global economic environment, it is initiatives like these, driven by performance, not politics, that will help restore fiscal balance and economic confidence. With the right focus, the remittance incentive scheme could not only boost reserves but also strengthen national pride in contributing to a more stable and self-reliant Pakistan.