Business Desk 
Nov 08, 2025
In a move seeming to discourage remittances into Pakistan, the government has approved a gradual phase-out of the Home Remittance Incentive Schemes (HRIS) to keep foreign exchange inflows steady and secure.
On the directives of the State Bank of Pakistan (SBP), the Economic Coordination Committee (ECC) decided the shift would be data-driven and introduced with care.
Officials warned that abruptly discontinuing the incentives could impact the flow of remittances, a vital lifeline for Pakistan’s foreign reserves.
In light of this risk, the withdrawal will take place in stages, and a full phase-out is expected to go beyond the 2026-27 fiscal year, depending on the findings of a detailed remittance review in FY26.
The remittance scheme was originally launched to encourage overseas Pakistanis to use formal banking channels, playing a key role in boosting remittance inflows and supporting the national economy.
This careful approach is designed to ensure that the transition keeps the economy stable, and overseas Pakistanis continue to send money home confidently through legitimate means, reinforcing trust in Pakistan’s financial system despite the incentive schemes winding down.
