Pakistan extends incentive scheme for workers as remittances hit $38.3bn

ISLAMABAD: Prime Minister Shehbaz Sharif has decided to continue the incentive scheme aimed at encouraging overseas Pakistanis to send remittances through official channels.

The prime minister directed the ministry of finance to immediately release funds for the Workers’ Remittances Incentive Scheme.

He said overseas Pakistanis are a vital asset and strength of the country. “Their hard-earned remittances play a significant role in Pakistan’s development — a contribution valued not just by the nation, but by myself as well,” he said.

The premier noted that overseas Pakistanis sent a record-high $38.3 billion in remittances during the fiscal year 2025, contributing to the country’s first current account surplus in 14 years.

These inflows not only helped manage the rising import bill but also boosted foreign exchange reserves.

He said that from labourers to business professionals, overseas Pakistanis play a crucial role in the country’s economic progress by consistently sending remittances.

Efforts, he said, are under way to remove obstacles hindering remittance flows and to make the system more efficient, transparent, and user-friendly.

Pakistan witnessed a surge in overseas workers’ remittances in February 2025, with inflows reaching $3.1 billion, a 3.8 per cent rise from $3 billion in January, according to data released by the State Bank of Pakistan (SBP) 

Earlier, the Federal Board of Revenue (FBR) clarified that overseas Pakistanis can avail the lower, filer-level advance income tax rate on buying or selling property in Pakistan, even if they are technically classified as non-filers. 

The FBR said that the filer rate under Sections 236C and 236K of the Income Tax Ordinance will apply to overseas Pakistanis, provided they meet two key conditions: they must hold a Pakistan Origin Card (POC) or National Identity Card for Overseas Pakistanis (NICOP), and they must be non-resident, meaning their stay in Pakistan during a financial year is less than 183 days.

Typically, the advance tax collected at the time of a property transaction varies based on the market value of the property and whether the buyer or seller is a filer, late filer, or non-filer. Non-filers are usually charged a significantly higher rate.