Pakistani banks to absorb $256 million in remittance processing fees

Pakistani banks are expected to pay approximately $256 million to overseas banks during the current fiscal year to cover costs for processing workers’ remittances. While historical annual payments to foreign banks for these services have reached around $800 million, the current year's projected cost is lower.

During a Senate Standing Committee on Finance meeting, State Bank of Pakistan Deputy Governor Dr. Inayat Hussain explained that the government has discontinued its financial support scheme for remittance-related services. Previously, the government provided significant subsidies, including Rs124 billion in fiscal year 2025 and Rs72 billion in the following year, to help banks manage international processing and transfer charges.

Because no funds have been allocated for this program in the current fiscal year, local banks must now absorb these overseas banking charges from their own resources. Lawmakers expressed concern that if banks cannot cover these costs, the financial burden may eventually be passed on to overseas Pakistanis sending money home.