According to Malik Muhammad Bostan, Chairman of the Exchange Companies Association of Pakistan (ECAP), Pakistan’s exchange companies expect an increase of $8 to $10 billion in remittances next year after joining the Pakistan Remittance Initiative (PRI). This is a significant increase compared to the current $4 billion. Bostan attributed this expected growth to the provision of “fair and equal opportunities” in the remittance market.
This inclusion was made possible by State Bank Circular No. 4, 2025, issued on June 30, 2025, a long-standing request of exchange companies. Bostan thanked key government figures including State Bank Governor Dr. Jameel Ahmed, Prime Minister Mian Shehbaz Sharif, Finance Minister Ishaq Dar and Field Marshal Asim Munir for their role in this development.
Comparing the performance of exchange firms and traditional banks, Bostan said that last year, 1,500 exchange company locations handled approximately $4 billion in remittances and foreign currency exports, averaging $2.5 million per location. In contrast, 15,000 bank branches managed approximately $33 billion, averaging $1 million per location. He pointed to the difference in rebates, with banks receiving 33 Saudi Riyals (equivalent to 20-22 Pakistani Rupees per dollar) for every $100, while exchange firms receive only 2 Rupees per dollar.
The new State Bank circular has eliminated the sender charge on remittances of $200 and above, previously capped at $100. According to Bostan, this change, along with a reduction in the 15 Riyal marketing fee, will halve PRI’s marketing expenses.
Pakistan’s approximately 15 million overseas workers earn approximately $8 billion monthly. Bostan believes that if this income is fully repatriated, it will significantly boost Pakistan’s economy, reserves, and currency. Currently, only $3-4 billion is sent back, with the remaining amount held in foreign accounts or invested elsewhere.
Bostan acknowledged the continued support of overseas Pakistanis, praised the work of Overseas Foundation Chairman Syed Qamar Raza, and urged the government to address the needs of these expatriates. He expressed confidence in the future prosperity of the exchange business.