Prime Comment #40

Who Pays for Free Remittances? The Economics Behind Pakistan’s New Policy

The State Bank of Pakistan (SBP) has discontinued the government-backed Telegraphic Transfer Charges Incentives Scheme (TTCIS) for remittances and has mandated the banks to cover the cost of facilitating remittance inflows from July 1, 2026. The SBP estimates the cost of attracting remittances at Rs 76 billion in FY2026 and is expected to increase to Rs 85-90 billion in FY2027....