Karachi, July 1, 2025 – In a major policy shift, the State Bank of Pakistan (SBP) has announced the discontinuation of existing marketing and promotion schemes related to home remittances, effective from July 1, 2025.
The decision marks a significant transition in the central bank’s strategy to streamline remittance inflows through formal channels.
According to multiple SBP circulars issued on June 30, 2025, addressed to all Authorized Dealers, Microfinance Banks, and Exchange Companies, the Incentive Scheme for Marketing of Home Remittances and the Exchange Companies Incentive Scheme (ECIS) will both cease to operate starting July. These schemes were earlier aimed at encouraging financial institutions to promote remittance inflows by offering marketing-based incentives.
The SBP stated that while marketing and promotional schemes are being withdrawn, the central bank remains committed to facilitating remittances. To that end, the Reimbursement of Telegraphic Transfer (T.T.) Charges Scheme has been retained but with significant revisions to its structure.
Under the updated guidelines, the minimum eligible transaction amount has now been increased to USD 200, up from earlier thresholds. Additionally, the rebate structure has been standardized to a flat rate of SAR 20 per eligible transaction, replacing the earlier variable slabs. Importantly, Exchange Companies have now been brought into the fold of this reimbursement scheme, ensuring wider participation from remittance service providers.
The SBP emphasized that these changes are part of an effort to rationalize expenditures and optimize the effectiveness of support mechanisms for home remittances. The central bank has urged all concerned institutions to inform their respective branches and constituents about the revised policies and ensure smooth implementation starting July 1.
While the withdrawal of promotional schemes may reduce marketing-driven inflows in the short term, the continuation and revision of the reimbursement scheme reflects the SBP’s focus on sustainability and efficiency. By prioritizing structured incentives over broad promotional campaigns, the SBP aims to strengthen formal remittance channels and enhance transparency in Pakistan’s financial system.