Pakistan Ends Remittance Incentives: Impact on UAE Expats

Jul 7, 2026

59 min

Jul 7, 2026 03:30

Pakistan ends some remittance perks, but can UAE expats still send money for free?

## Policy Changes

The State Bank of Pakistan (SBP) has ended two incentive schemes that previously supported remittance providers. These changes, effective from July 1, 2026, involve the discontinuation of the Sohni Dharti Remittance Programme (SDRP) and the Telegraphic Transfer Charges Incentive Scheme (TTCIS).

## Impact on Remittance Costs

Despite the policy shift, the SBP has instructed participating institutions to maintain free remittance services for eligible transactions. This means that Pakistanis in the UAE can continue sending money home without incurring additional costs.

## Reasons for Ending Schemes

The SBP did not provide a detailed explanation for the policy change. However, reports suggest that the rising costs of maintaining these schemes, coupled with discussions with the International Monetary Fund (IMF), influenced the decision.

## Banking Sector Response

Pakistan's banking sector is concerned about absorbing costs previously covered by the central bank. However, experts believe the withdrawal of TTCIS will not significantly impact the banking sector or remittance inflows.

## Future of Remittances

The SBP expects remittance growth to continue despite the discontinuation of these programmes. Workers' remittances remain a crucial source of foreign exchange for Pakistan, with inflows projected to increase in the coming fiscal years.

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