Banks, MTOs Earn Rs130 Billion by Hiking Remittance Charges, Senate Committee Told

Islamabad: A startling revelation was made in the Senate Standing Committee on Finance, where it was disclosed that **banks and money transfer operators (MTOs) pocketed Rs130 billion** by sharply increasing charges on overseas remittances.

During the meeting chaired by **Senator Saleem Mandviwalla**, it was revealed that under the **Pakistan Remittance Initiative (PRI)**, remittances reached a record **$38 billion**, but the fee per transaction was raised from **Rs1 to Rs4.5**, while the government also increased average per-transaction charges from **20 Saudi riyals to 35 riyals**.

Senator **Faisal Vawda** termed the excessive deductions a “scandal,” saying overseas Pakistanis were being burdened without justification.

The **State Bank of Pakistan’s Executive Director Inayat Hussain**, however, defended the banks and MTOs, stating that the average transaction cost in Pakistan was **$8.2**, compared to **$10.2 in India** and **$13.9 in Bangladesh**.

The committee was informed that the government would spend **Rs80–100 billion** on the incentive scheme this fiscal year.

Senator Mandviwalla urged the central bank to **restore transaction charges back to Re1**, arguing that overseas Pakistanis gain no benefit from the steep hike.

Would you like me to also create a **short summary version** of this news for social media posting (2–3 lines only)?