The overseas Pakistanis sending money home in US dollars will no longer receive reward points after the State Bank of Pakistan (SBP) ended the Sohni Dharti Remittance Programme.
The central bank issued a circular to banks and exchange companies announcing the closure of the scheme after four and a half years.
Scheme boosts remittances through banking channels
Under the programme, overseas Pakistanis received reward points for remitting funds to Pakistan through formal banking channels.
Reward points scheme for overseas Pakistanis ended after IMF pressure
Experts said the scheme had contributed to an increase in remittances by encouraging overseas Pakistanis to use banking channels instead of informal methods.
They said millions of overseas Pakistanis benefited by using the reward points to offset taxes and government fees. Sources said the programme was discontinued following pressure from the International Monetary Fund (IMF).
The Exchange Companies Association of Pakistan (ECAP) general secretary said the Sohni Dharti Remittance Program (SDRP) should not have been discontinued. Experts said the financial impact of the reward points amounted to only one to one-and-a-half per cent of the value of remittances sent under the scheme.
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