TL;DR – Quick Summary
Pakistan receives approximately USD 27 billion in annual remittances, making it the fifth-largest remittance recipient globally. The largest sending corridors are Saudi Arabia, UAE, UK, USA, and other Gulf states. The most cost-effective methods for sending money to Pakistan in 2024 are online remittance platforms Wise, Remitly, WorldRemit, and Ria Money Transfer which offer substantially better PKR exchange rates and lower fees than traditional bank wire transfers. The Roshan Digital Account (RDA), a State Bank of Pakistan initiative, is an outstanding option for overseas Pakistanis who want to maintain a foreign-currency account in Pakistan with access to investments and full repatriation rights. Cash pickup through JazzCash, Easypaisa, HBL, UBL, and MCB agent networks is essential for recipients without formal bank accounts. Pakistan's PKR has experienced significant volatility in recent years, making rate monitoring and timing particularly important for large transfers.
Pakistan's Remittance Economy and Roshan Digital Accounts
Pakistan's economy is heavily dependent on international remittances, which represent approximately 8% to 9% of GDP and are the country's largest single source of foreign exchange earnings larger than merchandise exports from several key sectors. The State Bank of Pakistan (SBP) tracks remittances meticulously because they are critical to Pakistan's balance of payments, foreign exchange reserve management, and macroeconomic stability.
A landmark development in Pakistan's remittance landscape was the launch of the Roshan Digital Account (RDA) in September 2020. Designed by the SBP in collaboration with major Pakistani banks, RDA allows overseas Pakistanis both Pakistani nationals and Persons of Pakistani Origin (PPOs) to open foreign-currency accounts at Pakistani banks entirely online, without visiting a branch in Pakistan. RDA accounts can hold USD, GBP, EUR, AED, SAR, and other major currencies. They provide access to Pakistan's lucrative Naya Pakistan Certificates (high-yield government bonds in both PKR and foreign currency), Pakistan Stock Exchange investments, and real estate transactions. RDA has been a significant policy success, attracting billions of dollars in foreign currency deposits from the diaspora since its launch.
Regulatory Framework: State Bank of Pakistan and Sending-Country Rules
The State Bank of Pakistan regulates all inward remittances through its Exchange Policy Department. All remittances must flow through authorized dealers licensed banks and exchange companies. The SBP has actively promoted formal channel remittances through the Pakistan Remittance Initiative (PRI), which provides financial incentives including subsidized transfer fees and competitive exchange rates for remittances received through formal banking channels.
Pakistan does not impose a cap on inward personal remittances through formal channels. All inward remittances received through SBP-authorized channels are exempt from Pakistani income tax — a significant incentive for overseas Pakistanis to use formal rather than informal channels. Large transfers may require the recipient's bank to request source of funds documentation as part of standard AML compliance.
Senders must use licensed, regulated operators in their country of residence — FinCEN-registered MSBs in the US, FCA-authorized firms in the UK, CBUAE-licensed exchange houses in the UAE, and so on. The SBP and Pakistan's Financial Intelligence Unit (FMU) actively monitor for informal value transfer (hawala) activity, and both senders and recipients face legal risks if funds are channeled through unlicensed intermediaries.
Method 1 – Online Remittance Platforms
Online remittance platforms are the most accessible, transparent, and typically cost-effective channel for most senders to Pakistan, particularly those in the US, UK, Canada, and Australia. The key providers are as follows.
Wise supports USD-to-PKR and GBP-to-PKR transfers at or near the mid-market exchange rate with a low transparent fee. It delivers to Pakistani bank accounts via SWIFT within one to two business days. Wise does not support cash pickup in Pakistan, making it suitable only for recipients with accounts at Pakistani commercial banks (HBL, UBL, MCB, Allied Bank, Bank Alfalah, and others).
Remitly is well-established in the US-Pakistan and UK-Pakistan corridors, offering bank deposit and cash pickup delivery options. Exchange rates are competitive, and the Economy/Express tier model provides flexibility between cost and speed. Remitly's cash pickup partnerships in Pakistan include several major banks and exchange companies, making it practical for recipients without accounts at Remitly's supported bank partners.
WorldRemit supports the UK-Pakistan corridor strongly, with bank deposit, cash pickup, and mobile money delivery options. WorldRemit's partnership with JazzCash enables direct delivery to JazzCash mobile wallets from the UK, which is a significant advantage for recipients in urban centers with smartphones but without full bank accounts.
Ria Money Transfer has one of the broadest cash pickup networks in Pakistan through its partnerships with Pakistani banks and exchange companies, making it a strong option for recipients in secondary cities and rural areas where other operators have limited agent presence.
Method 2 – Bank Wire Transfers (SWIFT)
Standard SWIFT wire transfers from overseas banks to major Pakistani commercial banks HBL (Habib Bank Limited), UBL (United Bank Limited), MCB Bank, Allied Bank, Bank Alfalah, and Meezan Bank (for Islamic banking) are a reliable option for larger transfers and for senders who prefer the documentation and auditability of a bank-to-bank wire. Most Pakistani commercial banks have well-established SWIFT correspondent relationships with US, UK, UAE, and other international banks.
SWIFT transfers to Pakistan take three to five business days and are subject to the standard bank wire cost structure: outgoing wire fees from the sending bank, an exchange rate margin applied by the sending bank, and potentially an incoming transfer fee from the Pakistani receiving bank. For amounts above USD 25,000, the relative cost advantage of online platforms narrows, and a bank wire or specialist transfer service may be appropriate.
Method 3 – Roshan Digital Account (RDA)
The Roshan Digital Account is the most significant innovation in Pakistan's remittance landscape in recent memory. Overseas Pakistanis and Persons of Pakistani Origin can open an RDA account entirely online — through partner banks' digital onboarding portals with minimal documentation (passport and proof of overseas address). The account can be funded by international wire transfer, and funds are held in the original foreign currency (USD, GBP, EUR, AED, etc.) within Pakistan's banking system.
RDA accounts offer several compelling features beyond simple remittance receipt. The Naya Pakistan Certificates available through RDA offer high PKR-denominated and foreign-currency-denominated yields that are typically far above what the overseas Pakistani could earn on savings accounts in the UK or US at equivalent risk levels. RDA account holders can invest in the Pakistan Stock Exchange, make real estate purchases in Pakistan (including under the SBP's property investment facilitation framework), and pay Pakistani utility bills and taxes directly. Crucially, all funds in RDA accounts principal and profit are fully repatriable in foreign currency, with no restrictions on sending the money back abroad.
For overseas Pakistanis with a medium-to-long-term connection to Pakistan who want to maintain financial assets and make investments in the country, RDA is arguably the single best financial product available in the Pakistan remittance market. It combines the security of a regulated bank account, attractive investment returns, and full repatriation flexibility.
Method 4 – Cash Pickup Networks
Cash pickup remains essential in Pakistan given the country's large unbanked population and the prevalence of recipients in smaller cities, towns, and rural areas where bank branch access is limited. Pakistan has a broad cash pickup infrastructure built on the networks of major banks, exchange companies, and financial institutions.
HBL (Habib Bank) and UBL (United Bank Limited) have the most extensive branch networks in Pakistan, with thousands of locations including rural areas. Both serve as cash pickup agents for multiple international remittance operators. Western Union's Pakistan cash pickup network includes HBL branches, Tez Financial Services, and independent exchange houses. MoneyGram partners with MCB Bank and other institutions. Ria Money Transfer has a growing independent agent network.
JazzCash agents associated with Jazz (Veon's Pakistani subsidiary) mobile money service also provide cash-out functionality for JazzCash wallet recipients, blurring the line between mobile wallet delivery and cash access. This hybrid model is particularly useful in areas with mobile phone penetration but limited formal banking infrastructure.
Method 5 – Mobile Wallets: JazzCash and Easypaisa
Pakistan has two dominant mobile financial services platforms JazzCash (operated by Jazz, formerly Mobilink) and Easypaisa (operated by Telenor Pakistan, with Ant Group's technology partnership). Together, they have tens of millions of registered mobile wallet users in Pakistan and have been central to the SBP's financial inclusion agenda.
Both platforms can receive international remittances from overseas. WorldRemit supports direct JazzCash wallet top-up from the UK and several other countries. Several Gulf-based exchange houses and remittance platforms also support Easypaisa delivery. The recipient receives an SMS notification when funds arrive and can use the mobile wallet balance for merchant payments, bill payments, peer-to-peer transfers, or cash-out at any JazzCash or Easypaisa agent (which include millions of mobile top-up outlets across Pakistan).
The SBP has been actively expanding the international inward remittance capability of both platforms as part of its digital financial inclusion strategy. Mobile wallet delivery is particularly attractive for urban and peri-urban recipients who use their smartphones as their primary financial management tool.
Method 6 – Pakistan Remittance Initiative (PRI) Banks
The Pakistan Remittance Initiative (PRI), a joint project of the Ministry of Finance, Ministry of Overseas Pakistanis, and the SBP, provides cost subsidies and operational support to incentivize remittances through formal banking channels. Under PRI arrangements, certain banks charge reduced or zero transfer fees for inward remittances, and some offer preferential exchange rates above the standard interbank rate.
PRI-associated banks include HBL, UBL, MCB, Allied Bank, and Bank Alfalah. Senders should ask their overseas bank or remittance platform whether they have a PRI-linked arrangement that could reduce the cost of their Pakistan transfer. The PRI benefit is most commonly available for SWIFT wire transfers initiated through the partner banks' own channels, rather than through third-party online platforms.
Understanding the PKR Exchange Rate
The Pakistani rupee (PKR) has experienced significant depreciation over the past several years, driven by chronic current account deficits, inflation differentials with trading partners, IMF program conditionalities, and periods of acute balance of payments stress. From approximately PKR 200 per USD in early 2022, the rate moved to PKR 300 per USD by mid-2023 a 50% depreciation in 18 months before partial stabilization.
For senders, PKR volatility means that the exchange rate at the time of transfer significantly affects the purchasing power of the remittance in Pakistan. Transferring when the USD/PKR rate is high (more rupees per dollar) benefits recipients, while periods of rupee recovery (fewer rupees per dollar) reduce the INR value of transfers. Senders who transfer regularly should set rate alerts and transact when the rate is relatively favorable. For very large transfers, forward contracts from specialist FX brokers can lock in a favorable rate for future delivery. Monitoring the official interbank rate published by the SBP daily is the appropriate benchmark, as Pakistan eliminated the dual exchange rate system in early 2023, converging the open market and interbank rates.
Frequently Asked Questions
What is the best way to send money to Pakistan from the US?
For most US-based senders, online remittance platforms particularly Wise (for bank-to-bank transfers at near-mid-market rates) and Remitly (for flexible delivery options including cash pickup) offer the best combination of rate, fee, and convenience for the US-Pakistan corridor. For overseas Pakistanis who want to maintain a Pakistani bank account and make investments, the Roshan Digital Account through HBL, UBL, or MCB is the most financially sophisticated option, combining competitive returns with full repatriation rights. For large amounts above USD 25,000, a specialist FX broker or bank wire through a PRI-affiliated bank may be worth considering.
How long does a money transfer to Pakistan take?
Online remittance platforms typically deliver to Pakistani bank accounts within one to two business days. Mobile wallet delivery (JazzCash, Easypaisa) from supported platforms is typically same-day or next-day. Cash pickup is usually available within hours of the sender completing the transfer. SWIFT bank wire transfers take three to five business days. Roshan Digital Account credits via SWIFT typically arrive within two to three business days. All timelines may be extended by Pakistani bank holidays, SBP compliance review for larger amounts, or discrepancies in recipient details.
Are remittances to Pakistan taxable?
Inward remittances received in Pakistan through formal banking channels authorized dealer banks and regulated exchange companies are fully exempt from Pakistani income tax, regardless of the amount. This exemption is a deliberate policy incentive by the SBP and federal government to encourage use of formal channels over informal ones. From the sender's perspective, remittances made from after-tax income in the sending country are not subject to additional income tax in that country. U.S. senders making gifts above USD 14,000 (2024 annual exclusion) to any individual must file IRS Form 709, though no tax is owed below the lifetime exemption threshold. UK senders face no gift tax on outbound transfers.
What is a Roshan Digital Account and how do I open one?
A Roshan Digital Account (RDA) is a foreign-currency bank account offered by major Pakistani commercial banks including HBL, UBL, MCB, Allied Bank, and Meezan Bank exclusively to overseas Pakistanis (Pakistani nationals living abroad) and Persons of Pakistani Origin. It can be opened entirely online through the bank's digital onboarding portal, without any in-person visit to a Pakistani branch. Required documents are typically a valid Pakistani passport (or NICOP for overseas Pakistanis without a regular passport) and proof of overseas address. Funds deposited in RDA can be held in USD, GBP, EUR, AED, or other major currencies, invested in Naya Pakistan Certificates or Pakistani equities, and are fully repatriable in foreign currency at any time.
Can I send money to a JazzCash or Easypaisa account in Pakistan from abroad?
Yes. Several international remittance platforms support direct delivery to JazzCash and Easypaisa mobile wallets in Pakistan. WorldRemit supports JazzCash delivery from the UK and other countries. Several Gulf-based exchange houses support Easypaisa delivery directly. The recipient's JazzCash or Easypaisa account must be active and KYC-verified. Wallet limits apply the SBP sets maximum balances and transaction limits for mobile wallets that constrain the maximum receivable per transaction. For large remittances, bank account delivery via SWIFT or NEFT remains the appropriate channel. For regular monthly support transfers in the PKR 20,000 to PKR 100,000 range, mobile wallet delivery offers speed and convenience that bank transfer cannot match.
