Pakistan: a remittance market in motion

A major destination for money sent home

Remittances are money that people working abroad send home. Pakistan received about US$41.6 billion in workers' remittances from July 2025 to June 2026, up 8.6% on the previous fiscal year. These are State Bank of Pakistan figures reported by the Associated Press of Pakistan. About US$5.2 billion came from EU countries.

The World Bank's estimates for calendar 2024 ranked Pakistan fifth worldwide by total inflows. For payment businesses, that scale represents recurring demand from people supporting households across borders. The service matters well beyond the transfer itself, because families use the money for everyday expenses.

Sources: APP reporting SBP figures: FY2025/26 remittances, 9 July 2026 · World Bank: Calendar 2024 remittance estimates

Domestic payments are becoming easier

The State Bank of Pakistan launched the first phase of Raast in 2021. It provides shared infrastructure for instant domestic payments through participating institutions. A person can send money between accounts at different providers, with the provider's app giving them access to the service.

Pakistan also has national identity and biometric verification through NADRA. Providers can use these tools to establish who a customer is when opening an account. Together, digital identity and connected payment systems make it easier to move money into an account and use it locally.

Reaching more people also requires affordable access and the confidence to use those accounts. SBP's financial inclusion strategy addresses these barriers. For a remittance provider, this means checking how its intended recipients actually receive money and helping them complete the steps needed to use the service.

Sources: State Bank of Pakistan: Raast · NADRA: Identity and biometric verification · SBP: National Financial Inclusion Strategy 2024–2028

Adoption is changing the opportunity

Digital channels accounted for 88% of recorded retail-payment volume in SBP's FY2024/25 review, compared with 78% in FY2022/23. The measure covers the payment activity captured in that report, while cash purchases outside those channels remain part of everyday commerce.

The rise matters because a transfer into an account becomes more useful as recipients gain ways to spend or move the balance digitally. Providers should assess local acceptance and customer habits alongside payment speed when choosing how to deliver remittances.

Sources: SBP: Annual Payment Systems Review FY2024/25

A stronger response to financial crime

Pakistan's earlier weaknesses in controls against money laundering and terrorist financing led FATF to place it under increased monitoring in 2018. That history helps explain concern about the market. A current assessment also needs to account for the reforms that followed.

In October 2022, FATF removed Pakistan from increased monitoring after it completed two action plans covering 34 items. FATF credited sustained political commitment and reported improvements in investigations and prosecutions, including action against senior figures in UN-designated terrorist groups. These were assessed changes in enforcement, alongside improvements to the rules.

The 2022 follow-up assessment rated Pakistan compliant or largely compliant with 38 of FATF's 40 recommendations. This measures how closely the legal and institutional framework meets the standards. Ongoing follow-up examines further implementation, so the rating gives international partners a basis for assessing progress alongside evidence from the institutions they use.

SBP supervises customer checks, sanctions screening and transaction monitoring, with greater attention to higher-risk institutions. It can require corrective action and impose penalties. For an overseas payment provider, this creates a domestic supervisory counterpart with responsibilities for the integrity of the receiving system.

These developments support a more informed view of Pakistan as a payment destination. Local authorities have a direct interest in preventing financial crime and maintaining access to international finance. A provider should assess today's partner controls and payment route using that evidence, so that legitimate transfers can reach families through supervised channels.

Sources: FATF: October 2022 plenary outcomes · FATF: Annual report 2022–2023, Pakistan enforcement progress · FATF/APG: Pakistan follow-up assessment 2022 · SBP: Banking regulation, supervision and enforcement

New services bring new regulatory work

The Virtual Assets Act, 2026 gives PVARA a federal regulatory role and a licensing framework for virtual-asset service providers. A firm considering this route must establish which providers and activities are permitted, and how payment and foreign-exchange rules apply. The framework puts permissions and oversight at the centre of product design.

Sources: PVARA: Virtual Assets Act and licensing framework

Connecting the international and local journey

Consider someone sending euros from Europe to a relative in Pakistan. The service needs to check the sender, convert the money and deliver rupees through a suitable local partner. Raast can support the domestic payment leg. The international stages each have their own processing and review requirements.

A useful service brings those stages together so the sender understands the cost and the recipient knows when funds are available. If a transfer needs review, someone must own the case and explain the next step where permitted. This combination of recurring demand and improving local infrastructure makes Pakistan an important market for Single Control to examine.