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The government has approved a gradual phase-out of the Home Remittance Incentive Schemes (HRIS) to ensure foreign exchange inflows remain stable and unaffected. The Economic Coordination Committee (ECC) made this decision on the State Bank of Pakistan’s recommendation, emphasizing that the process will be data-driven and implemented cautiously.
The ECC highlighted that a sudden end to the scheme could disrupt remittance flows, which are a key source of Pakistan’s foreign reserves. Officials noted that the complete phase-out could extend beyond FY27, depending on the results of the FY26 remittance review.
Introduced to encourage overseas Pakistanis to send money through formal banking channels, the HRIS has been crucial for maintaining remittance growth. The new approach aims to ensure a smooth transition without risking economic stability.
