ISLAMABAD – Economic Coordination Committee (ECC) directed State Bank of Pakistan (SBP) and the Finance Division to chalkout new framework for revising home remittance incentive programs.
The plan include detailed assessment of the expected outcomes along with a strategy for a smooth implementation. ECC also given preliminary approval for a risk coverage scheme tailored for smallholder farmers and underserved regions to promote rural economic inclusion.
The program set to launch on August 14, 2025 will help extend formal banking services to rural communities.
Finance Division estimates scheme will draw around 750,000 new agricultural borrowers into the formal credit system, potentially enabling Rs300 billion in new lending between fiscal years 2026 and 2028. To make this possible, the government has earmarked Rs37.5 billion to offset banks’ operational and risk-handling costs between FY2027 and FY2031.
Both initiatives fall under the government’s broader agenda to improve remittance channels and enhance access to credit in rural Pakistan, contributing to more inclusive and sustainable economic growth.
