Commercial banks in Pakistan will spend Rs. 100 billion from their own resources during FY2026-27 to attract more overseas remittances and reduce the cost of sending money to the country, Pakistan Banks Association (PBA) Chairman Zafar Masud has said.
Speaking at a media meetup at the Karachi Press Club, Masud said banks had decided to fund the initiative after the government discontinued subsidies for remittance transactions. Overseas Pakistanis currently pay between 18 and 20 riyals to send every $200 to Pakistan, but banks will now cover these costs from their profits to encourage transfers through formal channels.
Banks have also allocated Rs. 16 billion for the Pasban Remittance Reward Scheme, which offers incentives to families receiving money from overseas Pakistanis. PBA CEO Munir Kamal said the initiative aims to help maintain annual remittance inflows at around $41 billion. The first balloting is scheduled for January, followed by an audit to ensure transparency.
Masud also highlighted banks’ growing role in housing finance. The number of beneficiaries has increased from 65,000 to more than 350,000, while the housing loan portfolio has expanded from Rs. 200 billion to Rs. 455 billion over the past two years.
He said banks were also maintaining a 4% refinancing rate for exporters despite higher interest rates, providing nearly Rs. 100 billion in subsidies from their own resources.
In the energy sector, banks are restructuring Rs. 1.3 trillion in debt over the next two years to help address circular debt. The process is expected to reduce electricity bills by nearly Rs. 3 per unit once completed.
Masud added that banks had committed to increasing annual agricultural financing from Rs. 1.3 trillion to Rs. 3.3 trillion to expand lending opportunities for farmers.
