Remittances to top $41.5 billion in FY26, set to rise further in FY27

Workers’ remittances are expected to perform even better in fiscal year 2026-27, with detailed projections to be shared in the State Bank of Pakistan’s next monetary policy statement, SBP Governor Jameel Ahmad said on Friday.

Addressing a media briefing in Karachi, Ahmad said workers’ remittances remain Pakistan’s “lifeline” and are projected to exceed USD 41.5 billion in FY2025-26, reflecting continued strong inflows from overseas Pakistanis.

No burden on overseas Pakistanis after remittance incentive changes

The SBP governor said the discontinuation of the existing remittance incentive scheme would not create any difficulties for overseas Pakistanis.

He said the government has not allocated any budget for the scheme, adding that the central bank has been reviewing subsidy-related arrangements over the past two years.

According to Ahmad, overseas Pakistanis will not be required to pay any charges on remittances, including transactions exceeding Rs200. Instead, commercial banks will continue to provide remittance services at their own expense rather than through the SBP.

New scheme to replace Sohni Dharti Programme

Ahmad announced that the Sohni Dharti Programme will be replaced by a new incentive scheme, which is expected to be introduced within the next few weeks.

He said the revised initiative aims to continue encouraging overseas Pakistanis to send money home while adopting a more sustainable framework.

Exports expected to recover

The SBP governor expressed optimism that Pakistan’s exports would improve significantly during the current fiscal year.

He acknowledged that Pakistan’s rice exports declined by about USD 1 billion previously, partly because of geopolitical tensions in the Middle East that affected agricultural exports. However, he said rice exports are expected to recover and perform better this year than last year.

Roshan Digital Account inflows continue to rise

Ahmad said inflows into the Roshan Digital Account have increased steadily over the past four months, providing important support to the country’s external accounts.

He added that deposits under the Roshan Digital Account have reached around USD 3 billion, strengthening Pakistan’s foreign exchange position.

The SBP governor also said the final remittance figures for June will be compiled in the coming days, but preliminary estimates indicate that workers’ remittances for FY2025-26 will exceed USD 41.5 billion, underscoring the resilience of overseas Pakistanis' contributions to the economy.