Pakistan is likely to witness record-breaking remittance inflows in FY2025-26, driven by a new incentive structure for foreign exchange companies, according to the Exchange Companies Association of Pakistan (ECAP).
The sector is optimistic that the revamped support mechanisms will significantly boost formal remittance channels in the coming year.
In FY25, exchange companies contributed an estimated $5 billion to total remittances. ECAP Secretary General Zafar Paracha revealed that $450 million was sold to banks in June alone.
Pakistan received $35 billion in remittances during the first 11 months of FY25, with the final figure expected to exceed the revised target of $38 billion, bolstered by exchange company inflows.
A key development in this space has been the inclusion of exchange companies in the Pakistan Remittance Initiative (PRI) by the State Bank of Pakistan (SBP).
Under the new structure, exchange companies will now receive Rs. 22 per dollar transaction, up from the earlier Rs. 2, making the formal channel more attractive for overseas Pakistanis and traders as well.
