Karachi: The State Bank of Pakistan (SBP) has discontinued the government-backed reimbursement scheme for telegraphic transfer charges on workers’ remittances, effective July 1, 2026.
In a circular issued on Thursday, the central bank announced the withdrawal of the Telegraphic Transfer Charges Incentive Scheme (TTCIS), under which banks and other authorised dealers were reimbursed for the cost of qualifying remittance transfers.
Despite the discontinuation of the reimbursement programme, the SBP has directed authorised dealers to continue providing eligible home remittance services free of charge to both senders and beneficiaries, while maintaining the scheme’s key features.
The move means banks and other authorised institutions will no longer receive reimbursement from the government and will instead absorb the cost of qualifying remittance transactions.
The central bank also instructed authorised dealers to inform customers about the change.
The Telegraphic Transfer Charges Incentive Scheme was introduced to encourage workers’ remittances through formal banking channels by ensuring that eligible remittance transactions incurred no charges for either the sender or the recipient.
The scheme was last revised in July 2025, when the SBP increased the minimum eligible transaction amount from USD 100 to USD 200 and extended its coverage to include exchange companies.
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