The International Monetary Fund (IMF) has urged Pakistan’s Ministry of Finance and the State Bank of Pakistan (SBP) to develop a viable funding plan for the Pakistan Remittances Initiative (PRI). This scheme incentivizes banks and exchange companies to route remittances through formal channels. However, concerns have grown due to escalating unpaid liabilities tied to the scheme. Despite spending over Rs. 100 billion last year, no allocation has been made in the current budget. The IMF emphasized that continued financing through indirect methods like SBP profits is unsustainable. A transparent and fiscally responsible strategy is now demanded to ensure the program’s future viability.
Pakistan must create a fiscally responsible plan for its remittance reward scheme after costs exceeded Rs. 100 billion with no budget allocated this year. The IMF urged the government and SBP to collaborate on a sustainable solution.
remittance policy, IMF recommendations, Pakistan economy
