Business
Remittance subsidies: time to prioritise exports | The Express Tribune
KARACHI:
Last fiscal year, the government allocated nearly Rs200 billion (around $700 million) as a subsidy to banks for attracting remittances through formal channels and curbing illegal Hawala and Hundi networks. The policy delivered immediate results as remittances surged 27% year-on-year to $38 billion.
However, much of this increase reflected a natural rebound. As economic stability returned and the spread between inter-bank and open market exchange rates narrowed, the remittances that had previously diverted to informal channels simply resumed through the banking system. In other words, the surge was not solely a function of the subsidy but also of macroeconomic normalisation.
When the scheme was withdrawn this year, banks quickly raised alarm over declining inflows. Their lobbying prompted the prime minister to reintroduce the programme — though at reduced incentive levels — aiming for $40 billion in remittances. While the stability of inflows is important, the sustainability of such a costly policy deserves scrutiny.
A $700 million annual subsidy is significant, especially when comparable peers such as Vietnam, the Philippines, Bangladesh, Sri Lanka and India do not provide such generous incentives. Instead of subsidising remittances indefinitely, Pakistan should consider redirecting these funds towards making exports regionally competitive.
Unlike remittances, which plateau once migrants’ incomes stabilise, exports can expand through productivity, innovation and market access.
Smarter use of subsidy: building export engine
Reallocating the subsidy to export support can deliver far greater long-term value. Possible interventions include:
1- Rebates for value addition in textiles, food, and agriculture.
2- Incentives for IT, gaming, and digital service exports.
3- Processing and beneficiation of minerals before export.
4- Training and subsidising manpower for overseas markets.
5- Expanding low-cost SBP export financing facilities.
6- Tax breaks and duty reductions on export machinery and raw materials.
7- Lower income tax rates for employees in export industries.
8- Incentives for joint ventures that promote exports and import substitution.
9- Streamlined corporate tax regimes tailored to exporters.
10- Skills development programmes for freelancers and high-end digital workers.
Such targeted measures could potentially raise exports by $4-6 billion annually, far more than the incremental benefit derived from subsidising remittances.
The bottom line
Remittances remain vital for Pakistan’s economy, but subsidising them at such a high cost is inefficient and unsustainable. Exports, not remittances, are the true engine of long-term growth. Redirecting the $700 million subsidy towards export competitiveness would deliver higher returns, greater resilience and sustainable prosperity.
It is time for policymakers to use capital wisely. Pakistan does not need to buy temporary comfort with expensive remittance subsidies. It needs to build lasting capacity to compete and grow in global markets.
The writer is an independent economic analyst
Business
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By Sheera Frenkel, Christina Thornell, Valentina Caval, Thomas Vollkommer, Jon Hazell and June Kim
February 14, 2026
Business
52 reforms in 52 weeks: Ashwini Vaishnaw outlines massive railway overhaul for 2026
Indian Railways has reached a global milestone in freight operations, securing its position as a premier international logistics hub. Union Minister for Railways, Ashwini Vaishnaw, announced today that the national carrier has achieved an unprecedented scale in its logistics division. Highlighting this achievement, the Minister stated, “Indian Railways has become the second-largest cargo carrier in the world.”
Building on this momentum, the Ministry has prepared a rigorous roadmap for the upcoming year aimed at systemic transformation. The government plans to roll out a series of weekly initiatives to modernise every facet of rail travel and transport. Vaishnaw explained the structured timeline, saying, “For 2026, Railways has resolved to implement 52 reforms in 52 weeks.”
The initial phase of this plan will prioritise the passenger experience, with a focus on improving the quality of onboard facilities. The Minister identified the primary starting point for this year-long agenda, noting, “The first reform is better onboard services in Railways.”
In addition to passenger amenities, the government is placing strong emphasis on the “Gati Shakti” initiative to streamline the nationwide movement of goods. This strategic focus is designed to strengthen the country’s supply chain. Vaishnaw confirmed the freight sector’s priority, adding, “The second concerns ‘Gati Shakti Cargo.’”
A cornerstone of the 2026 agenda is a comprehensive overhaul of sanitation and hygiene standards. The Ministry has developed a new blueprint to ensure that the rail network’s cleanliness meets global benchmarks. Detailing the specifics of the first major initiative, the Minister remarked, “Reform number one for 2026 will ensure proper end-to-end cleaning of the Railways… The concept of a clean rail station has been established.”
This cleanliness drive is not a short-term measure but a multi-year commitment to cover the entire Indian Railways fleet. The implementation will be phased to ensure thoroughness and consistency. Vaishnaw clarified the timeline, stating, “Over three years, this reform will be implemented across all trains.”
To ensure the success of these reforms, the Ministry is introducing a robust accountability framework. These measures will include performance-based contracts and the integration of modern digital tools to monitor progress in real time. Emphasising the shift towards professional and technology-driven management, the Minister concluded, “There will be clearly defined service-level agreements… There will be extensive use of technology.”
Business
BrewDog owners say craft beer company could be sold off
Craft beer brand BrewDog could be sold off after the company started the process to find new investors.
The Scottish beer brand recently announced plans to close all of its distilling brands, meaning it would no longer produce any of its spirits, including Duo Rum, Abstrakt Vodka, and Lonewolf Gin, at its distillery in Ellon, Aberdeenshire.
The company, which was founded in 2007, said it made the decision to focus on its beer brands, including the highly-popular Punk IPA, Elvis Juice, and Hazy Jane.
Now, in a statement, a spokesperson for BrewDog said the company had appointed Alix Partners to “support a structured and competitive process to evaluate the next phase of investment for the business.”
The statement said: “As with many businesses operating in a challenging economic climate and facing sustained macro headwinds, we regularly review our options with a focus on the long-term strength and sustainability of the company.
“Following a year of decisive action in 2025, which saw a focus on costs and operating efficiencies, we have appointed AlixPartners to support a structured and competitive process to evaluate the next phase of investment for the business. This is a deliberate and disciplined step with a focus on strengthening the long-term future of the BrewDog brand and its operations.”
Although no decisions have been made, a sale is under consideration.
In a statment BrewDog added: “BrewDog remains a global pioneer in craft beer: a world-class consumer brand, the No.1 independent brewer in the UK, and with a highly engaged global community. We believe that this combination will attract substantial interest, though no final decisions have been made.”
According to reports by Sky News, AlixPartners had begun sounding out prospective buyers in the last few days.
The company, which has 72 bars worldwide and four breweries in Scotland, the US, Australia, and Germany, said its breweries, bars, and venues will continue to operate as normal. It employs 1400 people across the organisation.
BrewDog’s founders James Watt and Martin Dickie are the company’s major shareholders alongside private equity company TSG, which invested £213 million in 2017, making it a 21 per cent shareholder.
In 2024, the beer brand grossed £357 million in sales, and it is a major independent brewer with 4 per cent market share in the UK grocery market.
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