PM Sharif orders swift release of funds for remittance scheme after record $38.3 billion inflows

Prime Minister Shehbaz Sharif (center) chairs a meeting to review progress on Federal Board of Revenue (FBR) reforms, in Islamabad, Pakistan, on July 26, 2025. (PID)
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Updated 26 July 2025
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PM Sharif orders swift release of funds for remittance scheme after record $38.3 billion inflows

  • Workers’ Remittances Incentive Scheme encourages overseas Pakistanis to use official banking channels
  • The scheme offers priority processing, fee waivers and reward points for frequent or high-volume senders

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.


Pakistan graft survey echoes IMF warning on weak governance, public dissatisfaction

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Pakistan graft survey echoes IMF warning on weak governance, public dissatisfaction

  • Most Pakistanis say they were not compelled to pay bribes, but distrust remains high in anti-corruption efforts
  • PM Shahbaz Sharif calls report a recognition of his government’s efforts to fight corruption, promote transparency

ISLAMABAD: Governance weaknesses flagged by the International Monetary Fund (IMF) appeared to align with findings from Pakistan’s latest corruption perception survey, analysts said on Tuesday, as Transparency International Pakistan (TI-Pakistan) reported widespread public dissatisfaction with the state’s accountability mechanisms.

TI-Pakistan’s National Corruption Perception Survey (NCPS) 2025 found that 58 percent of respondents fully or partly agreed that the IMF program and Pakistan’s removal from the Financial Action Task Force’s grey list had helped stabilize the economy.

“Encouragingly, a majority of Pakistanis (66 percent) nationwide reported that they did not experience a situation where they felt compelled to offer a bribe to access any public service,” said the survey. “Sindh recorded the highest proportion of respondents paying a bribe to access public service (46 percent), followed by Punjab (39 percent), Balochistan (31 percent) and Khyber Pakhtunkhwa (20 percent).”

In this context, 77 percent said they were unhappy with the government’s anti-corruption performance.

However, Prime Minister Muhammad Shehbaz Sharif expressed satisfaction over the report in a statement, saying “a large majority of citizens said they did not face corruption during our government’s tenure” which is “recognition of our efforts to fight corruption and promote transparency.”

“It is highly encouraging that most citizens considered the government’s measures for economic recovery to be successful,” he said.

“We worked on a priority basis to establish a system grounded in merit and transparency across all sectors of government, and we are continuing to build on these efforts,” he added.

Economist and former finance ministry adviser Dr. Khaqan Najeeb said the survey highlighted the same structural weaknesses identified by the IMF’s Governance and Corruption Diagnostic, published on Nov. 20 at the international lender’s request, which said Pakistan suffers from “persistent and widespread corruption vulnerabilities” rooted in a state-dominated economy, weak regulatory capacity, and inconsistent enforcement.

“Transparency International Pakistan’s National Corruption Perception Survey does suggest progress in reducing low-level, day-to-day bribery, but it does not contradict the IMF’s governance findings,” he told Arab News. “Instead, it highlights that Pakistan’s real challenge lies in deeper, systemic weaknesses in transparency, oversight and institutional accountability.”

“While public perception has improved, it does not mean the underlying governance issues identified by the IMF have been resolved,” he argued, adding that addressing those will require sustained reforms, stronger institutions and consistent enforcement.

Political analyst Mazhar Abbas said the report was going to be used by the government to bolster its economic narrative.

“Survey reports have usually been tilted in favor of the government, and this report is no different,” he told Arab News. “The government will certainly use it to support its narrative of an improved economy, as the report states that a majority of respondents partially or fully agree that the government has successfully stabilized the economy through the IMF agreement and by exiting the FATF grey list.”

Abbas added it was difficult to either challenge or endorse the findings of the report without knowing who was interviewed and who the respondents were.

“The police have consistently been at the top of Transparency International’s corruption perception reports, whereas there may be other organizations where the frequency and volume of corruption are even higher,” he continued, adding that since the police are a public-dealing organization and consistently top the corruption perception index, it suggested that most respondents are from the general public, who may either lack access to or knowledge of corrupt practices in other organizations.

Islamabad-based social-sector development consultant Muhammad Qasim Jan said the survey should be seen as a barometer of public sentiment rather than an empirical measure of corruption.

“The National Corruption Perception Survey 2025 offers a sobering snapshot of how Pakistanis view corruption and accountability,” he told Arab News. “At the same time, the absence of basic methodological detail means the results should be interpreted with caution, especially when citing national percentages or making population-wide claims.”