Govt Okays Plan to Gradually Phase Out Remittance Incentive Schemes

The Economic Coordination Committee (ECC) has approved a gradual, data-driven phase-out of the Home Remittance Incentive Schemes (HRIS) to avoid disruptions in foreign exchange inflows. The decision stresses that any withdrawal of incentives must be guided by empirical evidence to maintain remittance stability. The State Bank of Pakistan recommended this. The ECC agreed that a sudden termination could risk remittance continuity. The committee noted that the complete phase-out may extend beyond FY27, depending on remittance performance and the outcomes of the FY26 review. The HRIS was introduced to encourage the inflow of remittances through formal banking channels, which are a vital source of foreign exchange for Pakistan’s economy.