Banks say shift in cost of remittances to burden them, dent profitability

Reacting to a government decision to have shifted its cost of bringing workers’ remittances over to banks in the country, Pakistan Banks Association (PBA) said on Saturday the move had placed an additional financial burden on the financial institutions that would dent their profitability. Banks in Pakistan have been directed to bear the cost of bringing the remittances with effect from July 1, 2026. Earlier, the government was giving a subsidy to banks to keep the transaction cost at zero for remittances senders and beneficiaries. State Bank of Pakistan (SBP) reported on Friday the cost of attracting remittances from overseas Pakistanis into the country was recorded at Rs76 billion in the fiscal year ended June 30, 2026.