SBP launches Pasban scheme with Rs16bn annual prizes for remittance senders

ISLAMABAD: State Bank of Pakistan Governor Jameel Ahmad on Friday launched the ‘Pasban Remittance Reward Scheme’, under which more than 10,000 overseas (Pakistani) remittance senders will receive cash prizes worth Rs16 billion every year for sending money through formal banking channels.

The market-based scheme has been launched by the Pakistan Banks’ Association (PBA) under the stewardship of the State Bank of Pakistan, with all costs to be borne by the banking industry and no financial burden on the national exchequer.

The scheme is aimed at encouraging overseas Pakistanis to send remittances to their families through formal banking channels and strengthening the country’s external account by increasing inflows through the banking system.

Under the scheme, a remittance recipient who receives the equivalent of at least $100 every month for three consecutive months in a quarter will be eligible to participate.

For every $100 in eligible monthly remittances, the recipient will receive one digital, non-transferable entry or ticket. Recipients sending higher amounts will receive additional entries in proportion to the amount received.

For example, a recipient receiving the equivalent of $100, $200 and $300 in October, November and December respectively will receive one, two and three entries for the three months, giving them six entries for the quarter.

A total of 2,521 cash prizes worth Rs4 billion will be awarded every quarter. The prizes will include one first prize of Rs100 million, 20 second prizes of Rs25 million each, 100 third prizes of Rs10 million each and 2,400 fourth prizes of Rs1 million each.

The annual prize pool will therefore amount to Rs16 billion, with the prizes distributed among more than 10,000 winners over four quarterly draws.

The prizes will be allocated according to regions that account for significant remittance flows, with 50 per cent allocated to the Gulf Cooperation Council (GCC), 15 per cent to the United Kingdom, 15 per cent to Europe, 10 per cent to North America and 10 per cent to other countries. The first prize will be open to recipients of remittances from all regions.

The first draw will be held on January 15, 2027, and will include eligible remittances received between October 1 and December 31, 2026.

The draws will be conducted through a secure, fully digital and auditable process.

Participation in the scheme will be completely free. Banks will not charge any fee or require recipients to make any payment, purchase a ticket, maintain a minimum balance or provide any other consideration to participate.

Scheme designed to encourage formal remittance channels

Speaking at the launch ceremony, Governor Jameel Ahmad said the State Bank and the government had worked with the PBA over the past several months to develop the scheme.

He said the Pasban scheme would operate on a market-based model under the broader objective of self-reliance, making it easier and more attractive for overseas Pakistanis to send remittances through formal banking channels.

Ahmad said workers’ remittances were a primary source of income for millions of families across Pakistan, helping them meet household expenses, pay for education and healthcare, and provide resources for investment and economic opportunities.

He said the country’s external account had also stabilised after reaching unsustainable levels in fiscal year 2022, when the current account deficit contributed to a sharp decline in foreign exchange reserves.

The SBP’s foreign exchange reserves, which had fallen to $3 billion in February 2023, had now risen to $21.4 billion, he said.

Ahmad said the continued strengthening of foreign exchange reserves was different from previous episodes as it had been driven by purchases of foreign exchange from the market rather than accumulation of external debt.

He also highlighted the performance of workers’ remittances, which reached a record $41.6 billion in fiscal year 2026, compared with $21.7 billion in fiscal year 2019.

He said the improvement reflected not only better economic indicators but also stability and resilience that could help reduce boom-and-bust cycles and put the economy on a more sustainable growth path.

Government, SBP measures to strengthen external sector

The governor said the government and the State Bank had taken several policy and reform measures to support the shift.

He said the government had introduced tax incentives for exports in the latest budget, while the SBP, in consultation with stakeholders, had developed targeted long-term financing and performance-based rebate schemes.

The scope of the Roshan Digital Account (RDA) had also been expanded to provide investment opportunities not only to overseas Pakistanis but also to foreign investors and Pakistani residents with declared foreign assets.

Ahmad said the SBP had also taken measures to improve access, including a recent awareness session in the United Kingdom.

He added that IT companies and freelancers had been facilitated in opening foreign currency accounts and retaining export proceeds in those accounts.

The governor said the government had introduced several schemes over the years to encourage the use of formal channels for remittances. These initiatives had helped develop the market, bring more financial institutions into the ecosystem, expand Pakistan’s domestic and international reach and strengthen the infrastructure needed to process growing remittance flows.

He said the rising cost of such schemes had prompted the government, the SBP and the banking industry to develop and gradually shift towards a more sustainable, market-based model.

Ahmad described the launch of Pasban as another step in that transition and thanked the banking industry for its continued support in strengthening formal remittance channels.

Banks to bear cost of scheme

Briefing participants on the scheme, PBA CEO and Secretary General Munir Kamal said Pasban was the latest in a series of coordinated measures by the government, the State Bank and the banking industry to support the external sector.

He said the scheme had been designed by banks based on the remitter’s bank.

Kamal said the banking industry had incurred around Rs100 billion in costs since July 2026 to provide free remittance receipt services throughout the year.

He added that banks had voluntarily reduced the Export Refinance Facility (ERF) markup by three percentage points to 4.50 per cent for new loans and renewals this year, against an ERF limit of Rs1,052 billion.

He said the measure would support the government’s export-led growth agenda and strengthen bank financing for exports and imports, including exports by small and medium-sized enterprises.

PBA Chairman Zafar Masud said Pakistani banks had continued to support the economy by taking on Rs80 billion in incentives for remittance senders, reducing export refinance rates, increasing lending to the private and agriculture sectors and SMEs to record levels, and supporting efforts to address circular debt.

He said overseas Pakistanis were equally important to the country’s economic story and described the Pasban scheme as recognition of their contribution to Pakistan’s economy.