Senate Slams Excessive Fees On Overseas Remittances

Abdullah Hussain (@Abdulla99267510) Published September 25, 2025 | 11:01 AM

Senator Faisal Vawda called the hike in remittance fees a “scandal,” as MTOs raised charges from Rs. 1 to Rs. 4.5 per transaction. The Senate finance panel urged the State Bank to restore the original fee to ease the burden on overseas Pakistanis.

ISLAMABAD: (UrduPoint/UrduPoint / UrduPoint / Pakistan Point News-Sept 25, 2025) Senator Faisal Vawda has termed the excessive fees charged on overseas remittances a “scandal,” revealing that Money Transfer Operators (MTOs) have raised per-transaction charges from Rs. 1 to Rs. 4.5. The disclosure left the Senate Standing Committee on Finance astonished.

During the meeting, chaired by Senator Saleem Mandviwalla, it was informed that under the Pakistan Remittance Initiative (PRI), remittances surged to a record $38 billion, generating as much as Rs. 130 billion in fees for banks and MTOs. The hike was attributed to the government’s earlier decision to increase per-transaction charges from 20 Saudi Riyals to 35.

The committee was told that while this incentive package boosted inflows, the rate has now been reduced again to 20 Riyals per transaction.

State Bank of Pakistan (SBP) Executive Director Inayat Hussain defended banks and MTOs, noting that the average transaction cost in Pakistan is $8.2, compared to $10.2 in India and $13.9 in Bangladesh. He further informed the committee that the government is expected to spend Rs. 80–100 billion on the incentive scheme during the current fiscal year.

Senator Mandviwalla recommended the central bank roll back the increase and restore fees to Rs. 1 per transaction, arguing that overseas Pakistanis see no benefit from the higher charges.