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KARACHI: Banks have expressed disappointment over the State Bank of Pakistan’s decision to abolish two incentive schemes meant to attract remittances, but financial sector experts believe the move is unlikely to significantly affect the profitability of the banking sector.
The State Bank on July 2 discontinued incentives being paid to banks to attract higher remittance inflows. The amount paid under the schemes had become so large that the International Monetary Fund reportedly criticised the incentives.
The SBP issued a circular on Thursday announcing that the Sohni Dharti Remittance Programme had been discontinued from July 1. At the same time, the State Bank also discontinued the Telegraphic Transfer Charges Incentive Scheme (TTCIS), another incentive for banks.
“It is informed that the TTCIS is discontinued with effect from July 1, 2026. However, the Authorised Dealers will continue to implement the scheme at their end while preserving its key features,” an SBP circular said.
