What a home remittance is
A home remittance is money sent from abroad to a person in Pakistan. A worker in the Gulf, the UK or elsewhere sends foreign currency, and the family receives rupees, or foreign currency if they hold a foreign currency account.
For the country, these inflows are a major source of foreign exchange. For the family, the main questions are which channel is safe, how fast the money arrives, and what exchange rate is applied.
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Official channels
Official, or formal, channels are the routes regulated under the State Bank of Pakistan (SBP) framework. The main ones are:
- Banks. Transfers from a bank or exchange house abroad to a bank account in Pakistan, or for cash collection at a branch.
- Money transfer operators. International transfer companies that work with Pakistani banks for payout.
- Exchange companies in Pakistan. Licensed companies that pay out incoming transfers.
- Digital channels. Mobile banking apps and branchless banking wallets that receive international transfers through partner institutions.
- Roshan Digital Account. Non-resident Pakistanis can open an account remotely and move money into it. See Roshan Digital Account.
Informal routes, known as hawala or hundi, move money outside the banking system. They are not legal channels. The sender and receiver have no regulatory protection if something goes wrong, and these routes reduce the foreign exchange that reaches the country's reserves.
Pakistan Remittance Initiative (PRI)
The Pakistan Remittance Initiative is a programme run with the State Bank of Pakistan. It encourages overseas Pakistanis to use formal channels instead of informal ones. It works with banks and transfer companies on cost, speed and access to payout points. From time to time it also runs incentive schemes for senders and for the institutions that handle remittances.
The details of PRI incentives change. Which schemes are active, who qualifies and what reward applies are not fixed. Check the current terms on the official PRI pages or the State Bank of Pakistan website before you rely on any scheme. Note the date you checked. Ask your bank which schemes it currently takes part in.
The home remittance rate
The home remittance rate is the exchange rate at which your foreign currency is converted into rupees. It is not one official number set by the SBP.
- The interbank rate is the rate at which banks trade currency with each other. It is the market reference.
- Each bank, exchange company or transfer operator sets its own buying rate, usually somewhat away from the interbank level.
- The open market rate is the rate at exchange company counters for cash. It can differ from the interbank rate. See Interbank vs open market.
- The transfer provider may also charge a fee, on top of any margin built into the rate.
To compare providers, look at the total rupees the receiver gets for the same amount sent, after fees. Reference rates published by the central bank are covered on SBP exchange rates and Exchange rates.
How remittances affect the rupee
Remittances bring foreign currency into Pakistan. This supply of dollars and other currencies helps pay for imports and supports the SBP's foreign exchange reserves. Strong inflows through formal channels support the rupee. Weak inflows, or a shift to informal routes, put more pressure on it.
Remittances are only one factor. Import bills, debt payments, the IMF programme and interest rates also matter. The SBP's latest policy decision: SBP policy rate raised by 50 bps to 12% with effect from 27.10.2026 (MPC). For the wider picture, see What moves the rupee, IMF and Pakistan and SBP policy rate.
Monthly remittance figures are published by the State Bank of Pakistan. Check the SBP website for the latest data and the date it was released.
Outward payments to trading platforms
A home remittance is money coming in. Sending money out is a different matter. For traders, one rule is important: per the SBP, remitting foreign exchange to overseas forex/margin/CFD platforms is not allowed through any payment channel (FERA s.5(1)).
Also, per the SBP, the purchase of offshore forex/margin/CFD products by Pakistani residents violates section 4(1) of FERA 1947. On protection, per the SECP, offshore platforms have no Pakistani licence or oversight and offer no legal protection or recourse.
Leveraged forex and CFD trading can lose money fast, including the full amount deposited. Read Law and regulators and Risk management before you make any decision.
Frequent questions
What is the safest way to send remittances to Pakistan?
Use formal channels: banks, licensed exchange companies, regulated transfer operators and bank-linked digital channels. Avoid hawala and hundi.
What is PRI remittance?
It means a remittance sent through the formal channels supported by the Pakistan Remittance Initiative. Check the current incentive schemes on the official PRI or SBP pages.
Who sets the home remittance rate?
Each bank or transfer provider sets its own rate, based on the interbank market. Compare the final rupee amount received after fees.
Is the open market rate the same as the remittance rate?
Not always. The open market rate applies to cash at exchange counters and can differ from the rates banks apply to incoming transfers.
Can I receive a remittance in foreign currency?
That depends on the account the receiver holds and the bank's current rules. Ask your bank or check its official website.
Do remittances change the rupee rate?
They add foreign currency supply and support reserves, which helps the rupee. Many other factors also move the rate, so remittances alone do not decide its direction.