Prime Minister Shehbaz Sharif on Saturday ordered the continuation of Pakistan’s remittance incentive programme, instructing the Ministry of Finance to urgently disburse funds under the Workers’ Remittances Incentive Scheme, according to a statement from the Prime Minister’s Office (PMO).
The move comes weeks after the State Bank of Pakistan (SBP)’s Deputy Governor Dr. Inayat Hussain reportedly warned that rolling back subsidies aimed at encouraging remittance inflows could discourage overseas Pakistanis from using formal banking channels.
“Overseas Pakistanis are our strength and a valuable asset,” the PM said, according to the PMO. “Their hard-earned remittances play a vital role in Pakistan’s development. These inflows have helped reduce the burden of the import bill and boosted our foreign exchange reserves.”
Shehbaz Sharif added that the government is actively working to streamline remittance procedures and make the system more efficient, transparent, and user-friendly.
SBP data shows that remittances reached a historic high of $38.3 billion in the fiscal year 2024–25 — a 27% increase from $30.25 billion in the previous year.
These home remittances continue to play a crucial role in bolstering Pakistan’s external account, supporting economic activity, and supplementing household incomes across the country.
Pakistani living abroad are sending remittances to Pakistan that is vital source to balance difference between higher imports and lower exports. Giving subsidy to encourage Pakistani workers to send more remittance is very nice.
It is also very important that source of remittances that Pakistani’S living abroad might not get dry. Foreign countries have also started different schemes under which workers can bring their parents and even their grand parents with them .But they will not be allowed to do any job. Purpose of this is that foreign workers instead of sending their money abroad should spend their money in country which they are working. Secondly once the workers get nationality of foreign country , they move their families to their country they are working and stop sending money back to Pakistan. It is therefore very important that embassies of the country should explore possibilities of sending workers to countries where ageing population is problem and advice govt of Pakistan to impart training that skill is required in different countries rather than wasting their resources and time and getting degrees of MBA, B.com, LLB and wasting their parents money to so called institutions who don’t give any proper education.
It will be good idea to teach Pakistani foreign languages like Japanese, German, French etc. to prepare workers to easily communicate in foreign countries in getting jobs.