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Islamabad: The government has stopped providing the Pakistan Remittance Initiative subsidy, which reached Rs120 billion, saying the country’s financial difficulties make it impossible to continue the support under the current budget. Banks have agreed to absorb the related costs themselves to keep overseas Pakistanis sending money through official channels. The development puts the spotlight on the future of Pakistan’s remittance system, which depends heavily on money sent home by Pakistanis working abroad. The government had previously used subsidies to help banks facilitate these transfers, but curtailed that support last year. The Governor of the State Bank of Pakistan informed the Senate Standing Committee on Finance and Revenue that the government had initially provided subsidies to banks under the Pakistan Remittance Initiative to facilitate remittances from overseas Pakistanis. The total subsidy provided by the government reached Rs120 billion. However, the financial pressure on the government has now made it difficult to continue paying this amount. The subsidy could not be continued in the current budget because of prevailing fiscal constraints. Instead, banks have decided to bear the costs linked to facilitating remittances from their own resources. The decision means that banks will continue providing the service to overseas Pakistanis even though the government can no longer provide the previous level of financial support. The Pakistan Remittance Initiative was discussed by the committee during its meeting at Parliament House in Islamabad on August 25, 2026, under the chairmanship of Senator Saleem Mandviwalla. The committee considered the government’s decision important because remittances sent by Pakistanis living and working abroad are a major source of foreign currency for the country. The State Bank told the committee that banks decided to continue bearing the associated costs so that the flow of remittances would not be disrupted. The committee appreciated the banks’ decision but also decided to examine their actual performance. Selected banks will therefore be invited to the committee’s next meeting to explain their performance and contribution to the remittance sector. The move comes at a time when the government is facing tight financial conditions and has been forced to reduce or reconsider spending commitments. The end of the Rs120 billion subsidy raises an important question about how the remittance system will operate in the longer term if banks continue to carry the costs without government support. For millions of Pakistanis working overseas, remittances are an important way of supporting families at home. These transfers help families pay for everyday needs and also bring foreign currency into Pakistan. The government’s decision does not mean that the remittance service has stopped. Instead, banks have agreed to continue facilitating transfers while paying the related costs themselves. The Senate committee has now moved to check whether banks are fulfilling this responsibility effectively and whether overseas Pakistanis are receiving proper services. The next meeting is expected to provide the committee with a clearer picture of how banks are handling the change after the withdrawal of the government subsidy. The key issue remains whether banks can continue carrying the financial burden while maintaining an efficient and reliable remittance system for overseas Pakistanis. The Rs120 billion figure also shows the scale of government support previously used to encourage and facilitate remittances through the formal banking system.

Prime Minister Shehbaz Sharif has directed the government to take coordinated and effective steps to expand employment opportunities for young Pakistanis under the National Youth Employment Policy. Chairing a meeting in Islamabad on Tuesday to review progress on the policy, the prime minister said providing decent jobs to the country’s skilled and talented youth remained a key priority of the government. He called for a comprehensive strategy involving relevant ministries and institutions to ensure the policy delivers practical employment opportunities. He also stressed the need to focus on skills development, particularly for young women, so they can compete for emerging jobs in both Pakistan and international markets. The prime minister directed authorities to give special attention to employment opportunities for young people in Balochistan and Khyber-Pakhtunkhwa. Officials briefed the meeting on reforms introduced in the National Vocational and Technical Training Commission (NAVTTC) and the Small and Medium Enterprises Development Authority (SMEDA). The reforms are aimed at connecting Pakistan’s skilled workforce with the changing requirements of local industries and international employers. NAVTTC is working to help Pakistani workers obtain internationally recognised certifications and improve their language skills for overseas employment. Training programmes are also being aligned with market demand to increase the chances of young people securing jobs abroad. The meeting was informed that the Digital Youth Hub is providing information about employment opportunities in Pakistan and overseas through a single platform. Youth Development Cells are also being established in educational institutions to offer career counselling, guidance and information about skills and employment opportunities. Shehbaz Sharif ordered the launch of an awareness campaign so that young people can better understand the benefits and opportunities available under the National Youth Employment Policy. Chairman of the Prime Minister’s Youth Programme Rana Mashhood briefed the meeting on progress made under the government’s directives. Deputy Prime Minister Ishaq Dar, Planning Minister Ahsan Iqbal, Economic Affairs Minister Ahad Khan Cheema, Information Minister Attaullah Tarar, Climate Change Minister Musadik Malik, IT Minister Shaza Fatima Khawaja and other senior officials also attended. The government has recently increased its focus on preparing young Pakistanis for a changing labour market through technical education, information technology, artificial intelligence and entrepreneurship. The prime minister has also stressed greater access to quality education and skills training, particularly for disadvantaged youth. Under the youth employment policy, the government has set a target for women to make up 35 per cent of the labour force, while at least 10 per cent of the allocation is intended for startups.

An Islamabad District and Sessions Court has ruled in favour of Federal Minister Ahsan Iqbal in a long-running defamation case against PTI leader Murad Saeed. The court ordered Murad Saeed to pay Rs2.5 million in damages for making allegations that were not proven during the proceedings. Additional Sessions Judge Hakim Khan announced the verdict after hearing the case. The court held that Murad Saeed’s statements had damaged Ahsan Iqbal’s reputation and public image. It directed the PTI leader to compensate the federal minister with Rs2.5 million. According to the judgment, Murad Saeed accused Ahsan Iqbal of being involved in corruption worth Rs70 billion. However, the court found that he failed to provide any evidence to support the allegations. The court ruled that the accusations of corruption, misuse of authority, and receiving illegal commissions were defamatory because they remained unsubstantiated. The judgment stated that Ahsan Iqbal had initially sought Rs10 billion in damages for the alleged harm caused to his reputation. However, the court observed that the amount claimed was excessive in view of the evidence presented during the trial. It therefore awarded Rs2.5 million as reasonable compensation. The court further observed that Murad Saeed’s controversial statements had harmed Ahsan Iqbal’s reputation, dignity, and credibility. It said the allegations created a negative impression of the minister among the public and directly targeted his honesty, integrity, and professional standing. The judgment also noted that Murad Saeed neither appeared before the court during the proceedings nor submitted evidence to substantiate the corruption claims. The absence of supporting material, the court said, weakened his defence and left the allegations unproven. The case originated from statements made by Murad Saeed in 2019 regarding the Multan-Sukkur Motorway project. At the time, he alleged that Ahsan Iqbal had committed corruption in connection with the project. After reviewing the evidence and hearing the arguments, the court concluded that the accusations were not established and therefore amounted to defamation. The verdict marks the conclusion of the defamation proceedings, with the court reaffirming that public allegations of corruption must be backed by credible evidence.