ISLAMABAD – Important revelations have emerged during a meeting of the Senate Standing Committee regarding the system for receiving remittances sent to Pakistan from abroad.
The committee was informed that Pakistani banks pay around $800 million annually to overseas banks for receiving remittances.
Senator Saleem Mandviwalla said local banks have to pay hefty charges to foreign banks to receive remittances.
The briefing revealed that around $256 million will be paid during the current fiscal year as charges for receiving remittances.
The committee chairman said the government had provided banks with Rs120 billion last fiscal year, but no funds had been allocated for this purpose in the current fiscal year’s budget.
Meanwhile, the deputy governor said the government provided banks with Rs124 billion in fiscal year 2025 and Rs72 billion in the previous fiscal year. Since no funds have been allocated in the current fiscal year, banks will have to bear the charges themselves for receiving remittances through overseas banks.
Dr Inayat Hussain said the government had abolished the financial scheme for remittances from fiscal year 2026-27. If banks fail to make payments to overseas banks, people sending remittances to Pakistan may have to pay the charges themselves.
The meeting also expressed concern that rising costs associated with receiving remittances could place an additional financial burden on overseas Pakistanis.
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