The State Bank of Pakistan (SBP) has officially ended the Sohni Dharti Remittance Scheme after more than four and a half years. The central bank issued a circular to banks and exchange companies confirming the scheme’s closure.
The decision marks the end of an initiative designed to encourage overseas Pakistanis to use legal banking channels.
Malik Bostan Links Decision to IMF Pressure
Exchange Companies Association Chairman Malik Bostan claimed the government closed the scheme because of pressure from the International Monetary Fund (IMF). However, the State Bank has not publicly confirmed this claim.
Consequently, questions remain about the reasons behind the decision.
Bostan said the programme rewarded overseas Pakistanis for sending money through formal financial channels. According to him, these incentives encouraged more workers abroad to avoid informal transfer methods.
As a result, documented remittance inflows increased over the scheme’s duration.
Concerns Raised Over Remittance Incentives
Bostan expressed disappointment over the scheme’s closure and urged authorities to reconsider the decision. He argued that the initiative strengthened confidence in Pakistan’s formal banking system.
Moreover, he said the programme supported transparent financial transactions and promoted legal money transfers.
He maintained that overseas Pakistanis responded positively to incentives offered under the scheme. Therefore, removing those benefits could affect future remittance trends.
Nevertheless, no replacement programme has been announced by the authorities.
Pakistan relies heavily on remittances to support foreign exchange reserves and economic stability. Therefore, any policy affecting overseas transfers attracts close attention from financial experts and expatriate communities.
Market observers will now watch whether the government introduces alternative incentives to encourage remittances through legal banking channels.
