ISLAMABAD: Pakistan is looking at relaunching its Foreign Exchange Remittance Card (FERC) with fresh incentives, including a tax-free import of luxury hybrid vehicles, to facilitate overseas workers and attract more remittances through legal channels, Sayed Zulifkar Bukhari, prime minister’s special assistant for overseas Pakistanis, told Arab News on Friday.
“In recognition of our overseas Pakistanis who utilize banking channels to send money back home, my ministry has proposed to reward them for their contribution to the national exchequer through duty-free import of a hybrid car of up to 3,000cc engine capacity provided that an expatriate remits a minimum of $100,000 in two years,” Bukhari said during a phone interview, adding that the incentives will be offered on a “hybrid vehicle as it is environment friendly.”
Ministry of Overseas Pakistanis (MOP) has sought feedback from its commerce division for this purpose, he said.
Overseas workers in GCC countries are the primary contributors of remittances to Pakistan, with Saudi Arabia and the UAE forming the chunk.
“We are going to relaunch the FERC by the end of January 2020 which will have many advantages for overseas Pakistanis. It would be in tiers of platinum, gold and bronze depending on the amount of remittances,” Bukhari said, adding that the card will have other features, such as hotel discounts, free access to airport lounges, discount on PIA tickets, various restaurants, to name a few.
He said that, through the move, the government is trying to encourage overseas Pakistanis to make optimal use of the remittance card and the facilities on offer.
“We are trying to get discounts for our card holders and will include more items in the card. We have also asked many departments to send us information about proposed privileges to be extended by their organizations and departments to overseas Pakistanis,” he said.
Bukhari added that these initiatives will also help reduce the use of illegal channels to remit money from abroad. “I will be backing this initiative with full force so in time we can kill the menace of hundi/havala,” he said.
The Ministry of Finance introduced the FERC in September 2001 before assigning the Overseas Pakistanis Foundation (OPF) to oversee the implementation process.
It is estimated that remittances from eight million overseas Pakistan will rise 5 percent to a record $23 billion during the ongoing fiscal year. Additionally, latest data from the State Bank of Pakistan shows remittances in the third quarter of 2019 declined to $5.478 billion from $5.747 billion in the preceding quarter.
Country-wise details showed that inflows from Saudi Arabia amounted to $468.18 million in October 2019, compared to $494.53 million in the same month of the previous year.
Meanwhile, Pakistanis living in the UAE remitted $398.96 million last month compared to $419.41 million in the same period of the previous year.
Pakistani businessman, Faisal Altaf, who has been residing in the UAE from the past 30 years, welcomed the initiative but expressed skepticism on the success of the project citing pressure from the local automobile industry.
“It is a very good move and will improve countries foreign revenue dramatically because this incentive will encourage a lot of overseas Pakistanis to use proper channels to send their money to get a chance to bring in a duty-free car,” Altaf told Arab News from Dubai via phone, adding that the government has to stop the misuse of this facility by limiting it from being used for commercial purposes.
“If the government can withstand the pressure from local auto manufacturers and ensure non-commercial usage of the scheme, then it can sustain and can be very beneficial both for the country as well as overseas Pakistanis,” Altaf said.
Pakistani expats to enjoy duty-free import of cars soon — Zulfi Bukhari
Pakistani expats to enjoy duty-free import of cars soon — Zulfi Bukhari
- Move to facilitate expatriates remitting $100,000 in two years from host nations
- Overseas workers in GCC countries are the primary contributors of remittances to Pakistan
Pakistan says repaid over $13.06 billion domestic debt early in last 14 months
- Finance adviser says repayment shows “decisive shift” toward fiscal discipline, responsible economic management
- Says Pakistan’s total public debt has declined from over $286.6 billion in June 2025 to $284.7 billion in November 2025
KARACHI: Pakistan has repaid Rs3,650 billion [$13.06 billion] in domestic debt before time during the last 14 months, Adviser to the Finance Minister Khurram Schehzad said on Thursday, adding that the achievement reflected a shift in the country’s approach toward fiscal discipline.
Schehzad said Pakistan has been repaying its debt before maturity, owed to the market as well as the State Bank of Pakistan (SBP), since December 2024. He said the government had repaid the central bank Rs300 billion [$1.08 billion] in its latest repayment on Thursday.
“This landmark achievement reflects a decisive shift toward fiscal discipline, credibility, and responsible economic management,” Schehzad wrote on social media platform X.
Giving a breakdown of what he said was Pakistan’s “early debt retirement journey,” the finance official said Pakistan retired Rs1,000 billion [$3.576 billion] in December 2024, Rs500 billion [$1.78 billion] in June 2025, Rs1,160 billion [$4.150 billion] in August 2025, Rs200 billion [$715 million] in October 2025, Rs494 billion [$1.76 billion] in December 2025 and $1.08 billion in January 2026.
He said with the latest debt repaid today, the July to January period of fiscal year 2026 alone recorded Rs2,150 billion [$7.69 billion] in early retirement, which was 44 percent higher than the debt retired in FY25.
He said of the total early repayments, the government has repaid 65 percent of the central bank’s debt, 30 percent of the treasury bills debt and five percent of the Pakistan Investment Bonds (PIBs) debt.
The official said Pakistan’s total public debt has declined from over Rs 80.5 trillion [$286.6 billion] in June 2025 to Rs80 trillion [$284.7 billion] in November 2025.
“Crucially, Pakistan’s debt-to-GDP ratio, around 74 percent in FY22, has declined to around 70 percent, reflecting a broader strengthening of fiscal fundamentals alongside disciplined debt management,” Schehzad wrote.
Pakistan’s government has said the country’s fragile economy is on an upward trajectory. The South Asian country has been trying to navigate a tricky path to economic recovery under a $7 billion loan from the International Monetary Fund.
