Pakistan Set to Hit Record Remittance Levels in FY2025-26 with New Incentives
Pakistan is on track to receive record-breaking remittance inflows in the fiscal year 2025-26, thanks to a revamped incentive structure aimed at strengthening formal foreign exchange channels, according to the Exchange Companies Association of Pakistan (ECAP).
📈 Formal Channels Drive Growth
The foreign exchange sector is confident that recent policy changes will significantly increase remittance volumes through legal and regulated channels, reducing reliance on informal systems like hundi and hawala.
In FY2024-25, exchange companies contributed approximately $5 billion to Pakistan’s total remittance figures, with $450 million transferred to banks in June 2025 alone, according to ECAP Secretary General Zafar Paracha.
💵 Remittance Milestones
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🇵🇰 $35 billion received in the first 11 months of FY25
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📊 Final figure expected to surpass the revised $38 billion target
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🔄 Boost driven by inflows via exchange companies and improved formal mechanisms
✅ Major Policy Shift: Rs. 22 per Dollar Incentive
One of the most significant changes has been the State Bank of Pakistan’s (SBP) decision to include exchange companies in the Pakistan Remittance Initiative (PRI).
Under the new structure:
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Exchange companies will now receive Rs. 22 per dollar sent through formal channels
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This is a massive jump from the previous Rs. 2 per dollar incentive
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The new rate is designed to encourage overseas Pakistanis and exporters to use legal remittance systems
🌍 What This Means for the Economy
This move is expected to:
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🛡️ Enhance foreign exchange reserves
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💼 Create better tracking and transparency
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📉 Reduce pressure on the grey market
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🚀 Strengthen Pakistan’s external account stability
📣 Final Word
With Pakistan expecting to cross historic remittance thresholds in FY2025-26, the enhanced incentive model could prove to be a game-changer for the economy, offering much-needed financial support and boosting investor confidence.
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