ECC backs gradual phase-out of Home Remittance Incentive Schemes

November 07, 2025 (MLN): The Economic Coordination Committee (ECC) has endorsed a phased and data-driven strategy to gradually rationalize the Home Remittance Incentive Schemes (HRIS), following recommendations from the State Bank of Pakistan (SBP).

The ECC emphasized that a sudden withdrawal of the incentive programs could disrupt inflows and undermine remitter confidence, directing that the process be implemented gradually to preserve the stability of remittances.

Under the revised plan, the phase-out of HRIS may extend beyond FY27, with progress reviews scheduled after FY26 to assess the impact on inflows, banking channel usage, and exchange rate stability.

Introduced to encourage overseas Pakistanis to send money through formal banking channels, the HRIS currently supports transactions handled by major banks including HBL, UBL, Meezan Bank, and others. 

These incentives have played a vital role in sustaining monthly remittance inflows of over $2 billion, strengthening Pakistan’s external account position.

The ECC’s decision seeks to balance fiscal discipline with remittance continuity, ensuring that the withdrawal of subsidies does not jeopardize foreign exchange reserves or market confidence. 

The SBP has been tasked with monitoring data trends and providing quarterly updates to guide future adjustments in the policy.

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