The State Bank of Pakistan (SBP) has decided to discontinue the Sohni Dharti Remittance Program (SDRP) after 4.5 years.
The central bank has issued a circular to banks and exchange companies directing them to terminate the scheme. According to reports, the program was discontinued under pressure from the International Monetary Fund (IMF). Millions of overseas Pakistanis had benefited from the scheme by using reward points to offset taxes and various government fees.
Under the program, overseas Pakistanis earned reward points for sending money to Pakistan through legal banking channels. These points could be redeemed to pay taxes and other government charges.
The General Secretary of ECAP said that the Sohni Dharti Remittance Program should not have been discontinued. According to experts, the scheme encouraged overseas Pakistanis to send more remittances through formal banking channels. They added that the program’s cost was relatively low, at about 1 to 1.5 per cent of the total value of remittances received.
The SDRP is a loyalty initiative introduced by the SBP to promote the use of formal remittance channels among overseas Pakistanis. Under this program, eligible remitters earn reward points whenever they send money to Pakistan through SBP-regulated financial institutions.
The initiative was designed to strengthen the country’s foreign exchange reserves by encouraging remittances through secure and officially regulated banking channels.
At its launch, the programme featured three membership tiers: Green, Gold, and Platinum. To further recognise and reward high-value remitters, the SBP introduced a fourth tier, Diamond, which became effective on September 22, 2023.
Participants can redeem the reward points they accumulate for a range of complimentary products and services. These benefits are available to both the remitters and their nominated beneficiaries, adding value to every eligible transaction made through the programme.
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