Overseas Pakistanis may face remittance fees after the government ends the financial scheme.

ISLAMABAD – During the meeting of the Senate Standing Committee, important revelations have come out regarding the system of receiving remittances sent to Pakistan from abroad.

The committee was told that Pakistani banks pay about $800 million a year to foreign banks to collect remittances.

Senator Salim Mandviwala said that local banks have to pay huge fees to foreign banks to receive remittances.

The briefing informed that about $256 million will be paid for remittance collection during the current fiscal year.

The chairman of the committee said that the government had provided 120 billion rupees to the banks in the last financial year, but no funds were allocated for this purpose in the budget of the current financial year.

Meanwhile, the Deputy Governor said the government had provided Rs 124 billion to banks in FY 2025 and Rs 72 billion in the previous fiscal year. As no funds have been allocated in the current financial year, the banks themselves will have to bear the charges for receiving remittances through overseas banks.

Dr. Inayat Hussain said that the government had ended the financial scheme for remittances from the financial year 2026-27. If banks fail to make payments to overseas banks, remittances to Pakistan may incur charges themselves.

The meeting also expressed apprehension that the rising costs associated with remittance collection could put additional financial burden on overseas Pakistanis.

The post Overseas Pakistanis may face remittance fees after the government ends the financial scheme appeared first on Daily Pakistan English News.

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