The State Bank of Pakistan Governor, Jameel Ahmad, unveiled the ‘Pasban Remittance Reward Scheme’ on Friday, designed to award more than 10,000 overseas Pakistani remittance senders with cash prizes totaling Rs16 billion annually. This initiative encourages sending money through formal banking channels.
Developed by the Pakistan Banks’ Association under the guidance of the State Bank, the market-based scheme will be fully funded by the banking sector, imposing no financial burden on the national treasury. Its primary objective is to motivate overseas Pakistanis to remit funds through official banking routes, thereby bolstering the country’s external account by increasing inflows via the banking system.
Eligibility for participation requires a remittance recipient to receive at least the equivalent of $100 monthly for three consecutive months within a quarter. Each $100 remitted monthly earns the recipient one digital, non-transferable entry or ticket. Higher amounts result in proportionally more entries. For instance, a recipient receiving $100, $200, and $300 in October, November, and December respectively will accumulate six entries for that quarter.
Quarterly, 2,521 cash prizes worth Rs4 billion will be distributed. These prizes include one grand prize of Rs100 million, 20 second prizes of Rs25 million each, 100 third prizes at Rs10 million each, and 2,400 fourth prizes of Rs1 million each. Over four quarterly draws, more than 10,000 winners will share the Rs16 billion annual prize pool.
Prize distribution will reflect major remittance source regions: 50 percent for the Gulf Cooperation Council (GCC), 15 percent for the United Kingdom, 15 percent for Europe, 10 percent for North America, and 10 percent for other countries. The grand prize is open to recipients from all regions. The inaugural draw is scheduled for January 15, 2027, covering remittances received between October 1 and December 31, 2026.
The draws will be conducted through a secure, fully digital, and auditable process. Participation is free of charge, with no fees, ticket purchases, minimum balance requirements, or other conditions imposed by banks.
Governor Jameel Ahmad emphasized that the Pasban scheme, developed in collaboration with the Pakistan Banks’ Association over several months, operates on a market-based model aligned with the broader goal of self-reliance. It aims to simplify and incentivize overseas Pakistanis to use formal banking channels for remittances.
He highlighted that remittances are a vital income source for millions of Pakistani families, supporting household expenses, education, healthcare, and investment opportunities. Ahmad noted that Pakistan’s external account had stabilized after facing unsustainable deficits in fiscal year 2022, which led to a steep decline in foreign exchange reserves.
He pointed out that foreign exchange reserves, which had dwindled to $3 billion in February 2023, have since increased to $21.4 billion. This growth is notable because it stems from foreign exchange market purchases rather than external debt accumulation. Remittances reached a record $41.6 billion in fiscal year 2026, up from $21.7 billion in fiscal year 2019, reflecting economic stability and resilience that could help smooth economic cycles and promote sustainable growth.
In a significant development, the government and the State Bank have implemented various policies and reforms to support this positive shift. These include tax incentives for exports introduced in the recent budget, targeted long-term financing, and performance-based rebate schemes developed by the SBP in consultation with stakeholders.
The Roshan Digital Account (RDA) has been expanded to offer investment opportunities not only for overseas Pakistanis but also for foreign investors and Pakistani residents with declared foreign assets. Additionally, the SBP has improved access by organizing awareness sessions in the UK and facilitating IT companies and freelancers to open foreign currency accounts and retain export proceeds in those accounts.
Governor Ahmad also noted that previous government schemes encouraging formal remittance channels helped develop the market, broaden the financial institution network, and enhance infrastructure for handling increasing remittance flows. However, rising costs led to the collaboration between the government, SBP, and banking industry to create a more sustainable market-based model, culminating in the launch of Pasban.
Munir Kamal, CEO and Secretary General of the Pakistan Banks’ Association, briefed participants on the scheme, describing it as part of coordinated efforts by the government, SBP, and banking sector to support the external sector. He stated that banks have absorbed around Rs100 billion in costs since July 2026 to provide free remittance receipt services year-round.
Kamal further shared that banks voluntarily lowered the Export Refinance Facility (ERF) markup by three percentage points to 4.50 percent for new loans and renewals in 2026, with an ERF limit of Rs1,052 billion. This is intended to bolster the government’s export-led growth agenda and enhance financing for exports and imports, including those by small and medium-sized enterprises.
Pakistan Banks’ Association Chairman Zafar Masud highlighted the banking sector’s continued support for the economy by absorbing Rs80 billion in incentives for remittance senders, reducing export refinance rates, and increasing lending to private, agriculture, and SME sectors to record levels. He emphasized the importance of overseas Pakistanis to the nation’s economic progress and described the Pasban scheme as a tribute to their contribution.
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