SBP Launches Rs16bn Annual Remittance Prize Scheme

The State Bank of Pakistan (SBP) has launched the Pasban Remittance Reward Scheme, a banking industry-funded initiative offering Rs16 billion in annual cash prizes to customers receiving home remittances through formal banking channels.

SBP Governor Jameel Ahmad inaugurated the scheme on Friday. The initiative has been introduced under the Pakistan Banks Association (PBA), with funding provided entirely by the banking industry, meaning there will be no burden on the national exchequer.

Developed with SBP's support, the scheme is designed to encourage overseas Pakistanis to continue sending remittances to their families through formal banking channels.

Under the scheme, a beneficiary will qualify for participation by receiving a home remittance equivalent to at least $100 per month for three consecutive months within a quarter into a bank account.

Each eligible $100 remittance will earn one digital, non-transferable entry number, provided the beneficiary receives qualifying remittances in three consecutive months.

For instance, a beneficiary receiving $100 each month for three consecutive months would receive three entries for that quarter.

Those receiving larger remittances will receive additional entries according to the amount received. A beneficiary receiving $100 in October, $200 in November and $300 in December would receive one, two and three entries respectively, giving them six entries in total for the quarter.

The scheme will distribute 2,521 cash prizes worth Rs4 billion every quarter.

The quarterly prize pool includes 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.

Over the course of a year, Rs16 billion will be distributed among more than 10,000 winners.

To ensure regional representation, prizes will be distributed according to major remittance corridors, with 50% allocated to the Gulf Cooperation Council (GCC), 15% to the UK, 15% to Europe, 10% to North America and 10% to other countries.

The first prize will be open to eligible beneficiaries receiving remittances from any region.

Quarterly draws will be held through a secure, fully digital and auditable process. The first draw is scheduled for January 15, 2027, covering qualifying remittances received between October 1 and December 31, 2026.

Participation in Pasban will be completely free. Banks will not charge eligible beneficiaries any fee or demand a payment, ticket purchase, minimum balance or any other consideration to enter the scheme.

The initiative is part of Pakistan's broader shift towards market-based incentives for remittances sent through formal channels.

Over the years, the government introduced various Home Remittance Incentive Schemes to promote formal remittance channels. These programmes helped expand the market, bring more financial institutions into the remittance ecosystem, improve domestic and international reach and strengthen infrastructure for handling growing remittance volumes.

As the market expanded and the cost of such programmes increased, the government and SBP gradually moved towards a more sustainable and market-oriented model in coordination with the banking sector.

According to the SBP, the Pasban scheme is another step in that transition and is intended to preserve the attractiveness of formal channels while recognising the role of overseas Pakistanis in the country's economy.

The scheme builds on the remitter incentive being financed by banks since July 2026, taking the banking industry's annual commitment to nearly Rs100 billion.

Banks have also voluntarily reduced the Export Refinance Facility (ERF) markup by three percentage points to 4.50% on new loans and rollovers, within the Rs1.052 trillion ERF limit. The move is intended to support the government's export-led growth strategy alongside Export-Import Bank financing for SME exports.

The scheme comes as Pakistan's external account position has strengthened considerably.

The country's external current account deficit had reached unsustainable levels in FY22, leading to a rapid decline in foreign exchange reserves. The situation has since improved, allowing foreign exchange buffers to build up.

SBP's foreign exchange reserves, which dropped below $3 billion in February 2023, have now reached $21.4 billion.

Governor Jameel Ahmad said that, unlike previous periods, the continued increase in foreign exchange buffers has primarily been supported by foreign exchange purchases from the market rather than additional external debt accumulation.

Workers' remittances also reached a record $41.6 billion in FY26, compared with $21.7 billion in FY19, almost doubling over the period.

The government and SBP have introduced several policy and reform measures alongside these developments. The government provided export-related tax incentives in the latest budget, while SBP worked with stakeholders to introduce targeted long-term financing and performance-based rebate programmes.

The Roshan Digital Account (RDA) framework has also been expanded to allow foreign investors and Pakistani residents with declared foreign assets, in addition to overseas Pakistanis, to invest through RDA channels.

SBP has also carried out awareness initiatives, including a recent session in the UK. IT companies and freelancers have been facilitated in opening foreign currency accounts and retaining export earnings in those accounts.

Speaking at the launch, Governor Jameel Ahmad said SBP and the government had worked closely with the PBA over recent months to develop a self-sustaining and market-oriented remittance scheme capable of continuing to attract and encourage workers' remittances through formal channels.

He said remittances were essential for millions of Pakistani families, helping them meet household expenses, fund education and healthcare and provide resources for investment and economic opportunities.

Ahmad said improvements in key economic indicators reflected stability and resilience that could help Pakistan avoid repeated boom-and-bust cycles and move towards a more sustainable growth path.

He also appreciated the banking industry's support for formal remittance channels and praised the PBA and banking sector for their role in developing and launching Pasban.

PBA CEO and Secretary General Muneer Kamal briefed participants on the scheme and its features, describing it as the latest in a series of coordinated measures by the SBP, government and banking industry to strengthen the external sector.

He also highlighted the bank-funded remitter incentive introduced in July 2026, the industry's nearly Rs100 billion annual commitment and the reduction in the ERF markup.

PBA Chairman Zafar Masud said banks had continued to support the economy by taking over the Rs80 billion remitter incentive, reducing export refinance rates, increasing private, agricultural and SME lending and contributing to efforts aimed at resolving circular debt.

He said overseas Pakistanis were another important part of this effort and that the Pasban scheme recognised their contribution through cooperation between the banking industry, SBP and government.

The results of each draw will be made public through the scheme's dedicated webpage as well as the websites and official social media accounts of participating banks and the PBA.