KARACHI: Prime Minister Shehbaz Sharif on Saturday directed the finance ministry to release funds on a priority basis for the Workers’ Remittances Incentive Scheme, reaffirming his administration’s commitment to facilitating formal remittance flows after overseas Pakistanis sent a record $38.3 billion in the last fiscal year.

The scheme, introduced in 2023, aims to encourage Pakistanis living abroad to use official banking channels instead of informal networks such as hawala or hundi. It offers benefits including simplified digital transfers, priority processing, fee waivers and reward points for frequent or high-volume senders.

The program is also integrated with Roshan Digital Accounts (RDAs), which allow non-resident Pakistanis to invest in domestic stocks, real estate and government securities.

“Overseas Pakistanis are our strength and a national asset,” Sharif said in a statement issued by the Prime Minister’s Office. “Their hard-earned remittances play a vital role in Pakistan’s development, and the entire nation, including myself, holds them in the highest regard.”

The prime minister noted that remittances have not only helped meet Pakistan’s rising import bill but have also contributed to strengthening foreign exchange reserves.

“From laborers to entrepreneurs, every overseas Pakistani is playing a part in the country’s progress,” he added.

Sharif said the surge in remittances during FY2025 was key to achieving Pakistan’s first current account surplus in 14 years.

He also pledged to remove administrative and procedural bottlenecks in the remittance system, calling for it to be made “simpler, more transparent and more efficient.”

Remittances form the backbone of Pakistan’s economy, providing a vital source of foreign exchange that eases pressure on the current account and supports millions of households through spending on education, health care and daily needs.

In times of crisis, they have served as a financial lifeline, helping stabilize reserves and maintain macroeconomic balance.