The State Bank of Pakistan on Friday launched a market-based remittance rewards scheme offering Rs16 billion in annual cash prizes, funded entirely by the banking industry, as authorities seek to sustain increased inflows from overseas workers without burdening state finances. "Remittances are a key source of inflows for Pakistan, which have increased from $38.3 billion in fiscal year 2025 to $41.6 billion last year and are expected to reach $44 billion this year," State Bank of Pakistan (SBP) Governor Jameel Ahmad said, inaugurating the Pasban Remittance Reward Scheme, developed under central bank patronage and launched by the Pakistan Banks Association (PBA).
Workers' remittances are the backbone of millions of families across Pakistan, Ahmad said. These inflows help meet household expenditures, support education and healthcare, and provide resources for investment and economic opportunity, he added. The governor said the annual cash prizes aim to recognise and reward remittance customers who use banking channels to send money home, and to further encourage overseas Pakistanis to use formal channels to support their families in Pakistan, adding that the scheme does not burden the national exchequer.
Ahmad noted the government has introduced remittance incentive schemes over the years to encourage the use of formal channels, helping develop the market, bring more financial institutions into the ecosystem, expand Pakistan's domestic and global reach, and strengthen the infrastructure needed to process growing remittance volumes. However, the government discontinued two major schemes, the Telegraphic Transfer Charges Incentive Scheme and the Sohni Dharti Remittance Programme, in July, saying it would no longer provide subsidies for the purpose and that banks would instead run such schemes using their own resources.
He said the government and central bank gradually shifted away from costlier state-backed remittance incentive schemes towards a sustainable, industry-funded model, describing Pasban as the next step in that transition. The new scheme comes as Pakistan's external position has improved sharply from crisis levels.Ahmad said the external current account deficit, which reached unsustainable levels in FY22, has now been brought to manageable levels, supporting a sustained buildup in FX buffers.
The State Bank of Pakistan (SBP)'s foreign exchange reserves, which had fallen below $3 billion in February 2023, now stand at $21.4 billion, with the buildup driven mainly by market purchases rather than accumulation of external debt, according to Ahmad. The State Bank of Pakistan (SBP) reserves now cover more than three months of imports, Ahmad said, with the central bank targeting four months of import cover, which he said will send a positive signal to sovereign rating agencies.
He added that portfolio investment inflows have also improved, helped by currency stability, reduced risks and recent rating upgrades. To promote exports, the government provided tax incentives in the current year's budget, while the State Bank of Pakistan (SBP), in coordination with stakeholders, designed targeted long-term financing and performance-based rebate schemes, he said. The scope of the Roshan Digital Account (RDA) scheme has also been expanded to allow foreign investors and Pakistani residents with declared foreign assets, besides overseas Pakistanis, to invest through RDA channels, he added.
Muneer Kamal, CEO and Secretary General at the PBA, said that the new scheme is the latest in a series of coordinated steps by State Bank of Pakistan (SBP), the government and the industry to support the external sector. He explained that this scheme builds on the remitter incentive banks have funded since July 2026, bringing the industry's annual commitment to close to Rs100 billion. He further added that this year, banks voluntarily cut the Export Refinance Facility markup by three points to 4.5 per cent on new loans and rollovers, within the Rs1,052 billion ERF limit, supporting the government's export-led growth agenda alongside the Export-Import Bank's financing for exports of the SME sector.
KEY FEATURES OF THE SCHEME Under the scheme's rules, a beneficiary must receive $100 or more in remittances each month for three consecutive months within a quarter into a bank account to qualify. A remittance transaction equivalent to $100 earns one digital, non-transferable entry ticket, provided the beneficiary receives eligible remittances for three consecutive months; a beneficiary receiving $100 a month for three straight months would earn three entries for the quarter.
Higher-value remittances earn proportionally more entries -- for example, a beneficiary receiving $100 in October, $200 in November and $300 in December will earn one, two and three entries respectively, for a total of six entries that quarter. A total of 2,521 cash prizes worth Rs4 billion will be awarded each quarter: one first prize of Rs100 million, 20 second prizes of Rs25 million each, 100 third prizes of Rs10 million each, and 2,400 fourth prizes of Rs1 million each, bringing the annual total to Rs16 billion for more than 10,000 winners.
Prizes will be distributed across major remittance regions to ensure broad participation, with 50 per cent allocated to the Gulf Cooperation Council, 15 per cent to the United Kingdom, 15 per cent to Europe, 10 per cent to North America and 10 per cent to other countries, though the first prize will be open to beneficiaries from all regions. Draws will be held quarterly through a secure, fully digital, and auditable process, with the first draw scheduled for Jan.
15, 2027, covering remittances received from October 1 to December 31, 2026. Participation is free, and banks are barred from charging fees or requiring any payment, ticket purchase or minimum balance to take part.