Karachi, July 3, 2025 – The State Bank of Pakistan (SBP) has implemented major changes to the remittance rebate scheme for overseas Pakistanis. Under the new policy, effective from July 1, 2025, only remittances of USD 200 or more will be eligible for the TT charges reimbursement, a shift from the previous threshold of USD 100.
As per the updated scheme, SAR 20 will be reimbursed for each qualifying remittance, regardless of the legal channel used for sending the funds. Moreover, the scope of this facility has been expanded to include exchange companies along with banks. However, these companies are now required to convert remitted amounts into US dollars within the banking system on the same day of receipt.
The State Bank has strictly instructed that no additional fees or commissions can be charged by financial institutions or their foreign partners to either the sender or the receiver. This clause must be explicitly included in all contractual agreements.
To prevent misuse, multiple transactions sent by the same remitter to the same recipient on the same day will be considered a single transaction. Furthermore, a remitter is allowed to send up to five free transactions per month to the same recipient, provided complete identification of both parties is ensured.
SBP has also discontinued two earlier schemes — the Remittance Promotion Scheme and the Incentive Scheme for Exchange Companies — effective July 1, 2025.
Additionally, the central bank has announced stringent anti-fraud measures. Financial institutions attempting to split remittances into smaller parts to gain undue advantage will face strict action, including contract termination and recovery of unjustified reimbursements.
Malik Muhammad Bostan, Chairman of the Exchange Companies Association of Pakistan, welcomed the policy, noting that the inclusion of exchange companies will bring in billions of dollars in additional foreign exchange. He added that this move will strengthen Pakistan’s foreign reserves and boost the confidence of overseas Pakistanis.
