Pakistan Banks Target Cheaper Remittances as Overseas Pakistanis Send Billions Home
Sending money to Pakistan from abroad could become more affordable as Pakistani banks explore new partnerships with international fintech companies to offer cheaper money transfer services.
The initiative aims to attract overseas Pakistanis who currently rely on international money transfer operators, reduce intermediary costs and allow local banks to retain a larger share of remittance-related revenue.
According to a report by TechJuice, several Pakistani banks are exploring a direct-to-customer (D2C) model through partnerships with licensed fintech companies. The development comes as remittances from Europe continue to grow, making the region an important market for Pakistan’s financial sector.
Pakistan Received $5.22 Billion in Remittances From Europe
Data from the State Bank of Pakistan (SBP), cited in the report, shows that remittances from European countries reached $5.22 billion in FY2026.
This represents an increase from $4.54 billion in FY2025 and $3.85 billion in FY2024.
Germany, France, the Netherlands, Italy, Spain, Sweden, Greece, Denmark, Belgium and Ireland are among the major European sources of these transfers. An estimated 1.2 million to 1.5 million Pakistanis live across these countries, creating a substantial market for international money transfer services.
Overseas remittances are an important source of foreign exchange for Pakistan. They also support millions of households by helping families cover everyday expenses, education, healthcare and other financial needs.
Pakistan’s overall workers’ remittances reached a record $41.6 billion in FY2026, according to figures shared by the State Bank.
How Pakistani Banks Plan to Offer Cheaper Transfers
Speaking to ProPakistani, Belmoney Founder and CEO Bruno Pedras said Pakistani banks were preparing to adopt a direct-to-customer model through partnerships with licensed fintech companies.
Under this approach, local banks could work with fintech partners that already have the regulatory approvals, technical infrastructure and market access needed to serve customers in European countries.
The objective is to reduce reliance on international intermediaries and help Pakistani banks reach overseas customers directly.
Currently, international money transfer operators such as Western Union, Ria, Wise, Remitly and MoneyGram serve customers sending money to Pakistan.
According to Pedras, international providers retain a significant share of transaction fees, while Pakistani partner banks receive comparatively smaller margins for delivering funds to beneficiaries.
Through direct partnerships, banks could potentially reduce these intermediary costs and offer more competitive transfer services.
Several Pakistani banks have reportedly signed agreements with Belmoney. The company is also integrating its services with one of Pakistan’s major digital wallets, with the integration expected to go live soon.
However, the proposed model is still being developed, and the report does not provide a confirmed nationwide launch date or specific transfer fees.
Government Reduces Remittance Subsidy Allocation
The move also comes as Pakistan adjusts its financial support for remittance channels.
The government allocated Rs120 billion for remittance-related subsidies in FY2026. However, the allocation was reduced to Rs16 billion for FY2027.
Pakistan has also introduced the Pasban Remittance Reward Scheme, an industry-funded initiative designed to encourage overseas Pakistanis to use formal banking channels.
Under the scheme, eligible beneficiaries can participate in quarterly cash prize draws when they receive qualifying remittances through bank accounts. The programme offers Rs4 billion in prizes each quarter, amounting to Rs16 billion annually, and is funded by the banking industry.
The broader objective is to keep remittances flowing through regulated financial channels instead of informal networks such as Hawala and Hundi.
Pakistan Exploring Digital Wallets and Regional Payment Systems
Alongside fintech partnerships, Pakistan is exploring other technology-based solutions to make international transfers more convenient.
One of these initiatives involves BUNA, a regional payment platform. Financial expert Ibrahim Amin told ProPakistani that the State Bank was working with the platform to facilitate remittances from Gulf Cooperation Council (GCC) countries.
Such payment systems could improve the way money moves between participating countries and potentially reduce dependence on traditional correspondent banking arrangements.
However, successful implementation will require coordination between the central bank, commercial banks, fintech companies and international payment networks.
Industry estimates suggest that using multiple low-cost remittance channels could generate annual savings of around $410 million. These savings are estimates, not guaranteed outcomes, and would depend on how widely the new services are adopted.
What Cheaper Remittances Could Mean for Overseas Pakistanis
For overseas Pakistanis, the biggest potential benefit is straightforward: more affordable ways to send money home.
Transfer fees, exchange-rate margins and intermediary charges can affect how much money ultimately reaches families in Pakistan. A more competitive market could give customers additional choices and encourage service providers to improve their offerings.
For Pakistani banks, direct fintech partnerships could open access to overseas customers and help retain more revenue within the domestic financial system.
The challenge will be delivering services that are genuinely cheaper, reliable, secure and easy to use. Banks will also need to compete with established international providers that already have strong customer networks.
If these partnerships and payment initiatives succeed, overseas Pakistanis could have more options when sending money to their families.
Would you trust a Pakistani bank or digital wallet over international services such as Western Union, Wise or MoneyGram if it offered cheaper transfers? Share your thoughts in the comments.
Sending money to Pakistan from abroad could become more affordable as Pakistani banks explore new partnerships with international fintech companies to offer cheaper money transfer services.
The initiative aims to attract overseas Pakistanis who currently rely on international money transfer operators, reduce intermediary costs and allow local banks to retain a larger share of remittance-related revenue.
According to a report by TechJuice, several Pakistani banks are exploring a direct-to-customer (D2C) model through partnerships with licensed fintech companies. The development comes as remittances from Europe continue to grow, making the region an important market for Pakistan’s financial sector.
Pakistan Received $5.22 Billion in Remittances From Europe
Data from the State Bank of Pakistan (SBP), cited in the report, shows that remittances from European countries reached $5.22 billion in FY2026.
This represents an increase from $4.54 billion in FY2025 and $3.85 billion in FY2024.
Germany, France, the Netherlands, Italy, Spain, Sweden, Greece, Denmark, Belgium and Ireland are among the major European sources of these transfers. An estimated 1.2 million to 1.5 million Pakistanis live across these countries, creating a substantial market for international money transfer services.
Overseas remittances are an important source of foreign exchange for Pakistan. They also support millions of households by helping families cover everyday expenses, education, healthcare and other financial needs.
Pakistan’s overall workers’ remittances reached a record $41.6 billion in FY2026, according to figures shared by the State Bank.
How Pakistani Banks Plan to Offer Cheaper Transfers
Speaking to ProPakistani, Belmoney Founder and CEO Bruno Pedras said Pakistani banks were preparing to adopt a direct-to-customer model through partnerships with licensed fintech companies.
Under this approach, local banks could work with fintech partners that already have the regulatory approvals, technical infrastructure and market access needed to serve customers in European countries.
The objective is to reduce reliance on international intermediaries and help Pakistani banks reach overseas customers directly.
Currently, international money transfer operators such as Western Union, Ria, Wise, Remitly and MoneyGram serve customers sending money to Pakistan.
According to Pedras, international providers retain a significant share of transaction fees, while Pakistani partner banks receive comparatively smaller margins for delivering funds to beneficiaries.
Through direct partnerships, banks could potentially reduce these intermediary costs and offer more competitive transfer services.
Several Pakistani banks have reportedly signed agreements with Belmoney. The company is also integrating its services with one of Pakistan’s major digital wallets, with the integration expected to go live soon.
However, the proposed model is still being developed, and the report does not provide a confirmed nationwide launch date or specific transfer fees.
Government Reduces Remittance Subsidy Allocation
The move also comes as Pakistan adjusts its financial support for remittance channels.
The government allocated Rs120 billion for remittance-related subsidies in FY2026. However, the allocation was reduced to Rs16 billion for FY2027.
Pakistan has also introduced the Pasban Remittance Reward Scheme, an industry-funded initiative designed to encourage overseas Pakistanis to use formal banking channels.
Under the scheme, eligible beneficiaries can participate in quarterly cash prize draws when they receive qualifying remittances through bank accounts. The programme offers Rs4 billion in prizes each quarter, amounting to Rs16 billion annually, and is funded by the banking industry.
The broader objective is to keep remittances flowing through regulated financial channels instead of informal networks such as Hawala and Hundi.
Pakistan Exploring Digital Wallets and Regional Payment Systems
Alongside fintech partnerships, Pakistan is exploring other technology-based solutions to make international transfers more convenient.
One of these initiatives involves BUNA, a regional payment platform. Financial expert Ibrahim Amin told ProPakistani that the State Bank was working with the platform to facilitate remittances from Gulf Cooperation Council (GCC) countries.
Such payment systems could improve the way money moves between participating countries and potentially reduce dependence on traditional correspondent banking arrangements.
However, successful implementation will require coordination between the central bank, commercial banks, fintech companies and international payment networks.
Industry estimates suggest that using multiple low-cost remittance channels could generate annual savings of around $410 million. These savings are estimates, not guaranteed outcomes, and would depend on how widely the new services are adopted.
What Cheaper Remittances Could Mean for Overseas Pakistanis
For overseas Pakistanis, the biggest potential benefit is straightforward: more affordable ways to send money home.
Transfer fees, exchange-rate margins and intermediary charges can affect how much money ultimately reaches families in Pakistan. A more competitive market could give customers additional choices and encourage service providers to improve their offerings.
For Pakistani banks, direct fintech partnerships could open access to overseas customers and help retain more revenue within the domestic financial system.
The challenge will be delivering services that are genuinely cheaper, reliable, secure and easy to use. Banks will also need to compete with established international providers that already have strong customer networks.
If these partnerships and payment initiatives succeed, overseas Pakistanis could have more options when sending money to their families.
Would you trust a Pakistani bank or digital wallet over international services such as Western Union, Wise or MoneyGram if it offered cheaper transfers? Share your thoughts in the comments.
