# Cheapest way to send money to Pakistan in 2026: fees, rates and the rules that changed

Source: Searchable (https://searchable.pk/guides/banking/send-money-to-pakistan-cheapest-way)
Type: Guide
Author: Searchable Editorial
Published: 19 Sept 2026
Updated: 19 Sept 2026
Retrieved: 30 Sept 2026

> SBP ended the Sohni Dharti reward points and the bank reimbursement scheme on 1 July 2026, but your transfer is still free. The cost is in the exchange rate. Here is how to compare properly.

**Short answer:** for most people the cheapest way to send money to Pakistan is a **bank or exchange company transfer through the Pakistan Remittance Initiative**, where the transfer itself is free to both sender and receiver. What you actually pay is hidden in the exchange rate, not the fee line, so the only comparison that matters is **how many rupees land in the account**.

Two things changed on **1 July 2026**, and most guides online have not caught up.

## What changed on 1 July 2026

The State Bank of Pakistan ended two long-running schemes:

- **Sohni Dharti Remittance Programme (SDRP).** No new reward points have been awarded on remittances sent since 1 July 2026. Points already earned up to 30 June 2026 can still be redeemed until **30 June 2027**, after which the programme is completely non-functional. If you have points sitting in an SDRP account, redeem them this year.
- **Telegraphic Transfer Charges Incentive Scheme (TTCIS).** This was the scheme that reimbursed banks for processing your transfer. The IMF flagged it as fiscally unsustainable; it had grown to an annual cost of roughly **Rs 100 billion to Rs 120 billion**.

The important part for you: **banks must still provide qualifying remittance services free of charge to both the sender and the beneficiary**. The subsidy to the banks ended. The free service to you did not.

The **Pakistan Remittance Initiative (PRI)**, launched in 2009 and run jointly by the SBP, the Ministry of Finance and the Ministry of Overseas Pakistanis, is unaffected and still operating.

## The rate is the real fee

A transfer with a "zero fee" banner can cost you more than one charging $4.

Say the interbank rate is **Rs 277.42 to the dollar** (that is today's rate on our [dollar rate page](/data/usd-pkr)). A provider quoting you Rs 274.00 on a $1,000 transfer is keeping **Rs 3,420** on the exchange rate. A provider charging a $4 fee but quoting Rs 277.00 costs you about **Rs 1,530**. The second one is less than half the price, and it is the one with a visible fee.

So the test is one number: **PKR received**. Open two apps, enter the same send amount, and compare the rupee figure each one shows the recipient getting. Ignore everything else on the screen.

## Your options, and what each is good for

| Channel | Transfer fee | Speed | Best for |
|---|---|---|---|
| Bank or exchange company via PRI | Free to sender and beneficiary on qualifying transactions | Same day to 2 working days | Regular support to family, larger amounts |
| Money transfer operators (Ria, WorldRemit, Western Union, MoneyGram) | Often zero above a threshold, for example Ria charges no fee above **USD 200** from eligible countries | Minutes to same day | Cash pickup, urgent transfers |
| App-based remitters (Wise, Remitly) | Small visible fee, tighter rate | Minutes to 2 days | Small and mid-size transfers where the rate matters |
| Roshan Digital Account | Free inward transfer | Same day | Overseas Pakistanis who also want to invest in Naya Pakistan Certificates or property |
| Hundi or hawala | Unregulated | Fast | Nothing. It is illegal, unrecoverable if it goes wrong, and it keeps the money out of the formal economy |

Ria's PRI arrangement is a useful concrete example of how these thresholds work: no fee above **USD 200** or local equivalent, from Australia, Brunei, Italy, Japan, Malaysia, the Middle East, South Africa, the UK and the USA, with payout at **14 partner banks** in Pakistan including HBL, MCB, Allied Bank and National Bank of Pakistan. Payment is restricted to international passport holders for compliance reasons, though foreign nationals can receive using a NADRA Proof of Registration card.

Other operators set their own thresholds. Check the one you use rather than assuming $200 is universal.

## How to send, step by step

1. **Pick the payout method first.** Direct credit to a Pakistani bank account is cheaper and safer than cash pickup almost every time. Cash pickup is for emergencies and for recipients without an account.
2. **Get the beneficiary's details exactly right.** Full name **as printed on the CNIC**, the **IBAN** (24 characters, starts with PK), the bank name and branch. A name that does not match the account is the single most common reason a transfer is held.
3. **Compare on PKR received, not on fee.** Enter the same amount in two or three apps within the same ten minutes, because quotes move.
4. **Check the threshold.** If a provider waives the fee above USD 200 and you are sending USD 180, sending USD 200 can leave more rupees in the account than sending 180.
5. **Send through a formal channel and keep the receipt.** The transaction reference is what you need if the money does not arrive, and it is also the proof of a legitimate foreign source if the recipient is ever asked about the credit.
6. **Confirm arrival before sending again.** Do not resend on the assumption the first one failed.

## Timelines

- **Bank to bank through PRI:** usually same working day, up to two working days across a weekend or a Pakistani public holiday.
- **Cash pickup through a major operator:** minutes, subject to the agent's cash availability.
- **First transfer to a new beneficiary:** expect a delay for compliance checks. This is normal and is not a sign of a problem.

Pakistani banks do not process inward remittance credits on Sundays or gazetted holidays. A Friday evening transfer from the Gulf commonly lands on Monday.

## Tax: what the recipient pays

Foreign remittances received through normal banking channels are **not** taxed as income in the recipient's hands. The receiving bank does not deduct income tax on an inward home remittance.

What the recipient can still face is the ordinary transaction tax regime once the money is in the account: cash withdrawal tax for non-filers, for example. Work that out with the [cash withdrawal tax calculator](/tools/tax/cash-withdrawal-tax-calculator). If the recipient is a non-filer, becoming a filer is usually worth more than any remittance promotion, and our [income tax slabs guide](/guides/taxes/income-tax-slabs-2026-27) explains where the thresholds sit.

## The mistakes that cost people money

- **Comparing fees instead of the rupee amount.** The biggest single loss, and the easiest to avoid.
- **Using hundi or hawala for a better rate.** No receipt, no recourse, and it is a criminal offence. The gap against a formal rate is rarely worth the risk.
- **Sending just under a fee-waiver threshold.** Sending USD 199 when the waiver starts at USD 200 is the worst amount to send.
- **Name mismatch with the CNIC.** Short forms, missing middle names and spelling variations all trigger holds.
- **Leaving SDRP points unredeemed.** They die on 30 June 2027.
- **Assuming the 1 percent style incentives still exist.** They do not. The reward point programme has ended; the free transfer has not.

## Work out what you are actually getting

Convert your send amount at today's interbank rate with the [currency converter](/tools/finance/currency-converter), then compare that with the rupee figure your app is quoting. The difference is the true price of the transfer. Our live [dollar](/data/usd-pkr), [riyal](/data/sar-pkr), [dirham](/data/aed-pkr) and [pound](/data/gbp-pkr) pages give you the benchmark to measure against.

## Frequently asked questions

**What is the cheapest way to send money to Pakistan?**

A transfer through a bank or exchange company under the Pakistan Remittance Initiative, which is free to both sender and beneficiary on qualifying transactions. Because the transfer fee is zero across several channels, compare providers on the rupee amount the recipient receives, not on the advertised fee.

**Is the Sohni Dharti Remittance Programme still running?**

No. No new reward points have been awarded on remittances sent since 1 July 2026. Points earned up to 30 June 2026 can be redeemed until 30 June 2027, after which the programme is completely non-functional.

**Do I pay tax on money sent from abroad to Pakistan?**

Foreign remittances received through normal banking channels are not taxed as income in the recipient's hands and the receiving bank does not deduct income tax on them. Ordinary transaction taxes, such as cash withdrawal tax for non-filers, still apply once the money is in the account.

**How long does a transfer to Pakistan take?**

Bank to bank through PRI is usually same working day and up to two working days over a weekend or public holiday. Cash pickup through a major operator is minutes. A first transfer to a new beneficiary is often delayed for compliance checks.

## Sources

- Remittance incentives to banks abolished as IMF steps in (July 2026) (Dawn): https://www.dawn.com/news/2012606/remittance-incentives-to-banks-abolished-as-imf-steps-in
- SBP Ends Remittance Incentive Schemes for Banks After IMF Pressure (3 July 2026) (ProPakistani): https://propakistani.pk/2026/07/03/sbp-ends-remittance-incentive-schemes-for-banks-after-imf-pressure/
- Home Remittance and the Pakistan Remittance Initiative (State Bank of Pakistan): https://www.sbp.org.pk/our-operations/home-remittance
- SBP ends reimbursement scheme for remittance transfer fees (Business Recorder): https://www.brecorder.com/news/40428194
- The Pakistan Remittance Initiative (PRI): fee waiver above USD 200 and partner banks (Ria Money Transfer): https://help.riamoneytransfer.com/hc/en-us/articles/38735548972433-The-Pakistan-Remittance-Initiative-PRI
- SBP scraps remittance fee incentive scheme (The Express Tribune): https://tribune.com.pk/story/2616212/sbp-scraps-remittance-fee-incentive-scheme

How to cite: "Cheapest way to send money to Pakistan in 2026: fees, rates and the rules that changed", Searchable, 19 Sept 2026, https://searchable.pk/guides/banking/send-money-to-pakistan-cheapest-way