KARACHI: Foreign currency exchange companies in Pakistan contributed nearly $5 billion in remittances during the fiscal year 2024-25, marking a growing role in stabilizing the currency market. In June alone, they sold around $450 million to banks, according to the Exchange Companies Association of Pakistan (ECAP).
ECAP Secretary General Zafar Paracha praised the State Bank of Pakistan’s decision to include exchange companies in the Pakistan Remittance Initiative (PRI). He said this long-awaited inclusion will boost remittance flow through formal channels and encourage more foreign exchange to enter the system.
Paracha expressed optimism that this move could lead to a new record in FY2025-26. He highlighted that the government’s incentive to offer Rs22 per dollar to exchange companies – compared to just Rs2 earlier – will significantly improve remittance volumes.
The State Bank issued an official circular this week to formally bring exchange companies under the PRI umbrella. Paracha estimates that remittances through exchange companies alone touched the $5 billion mark in FY2025, though the data is yet to be officially confirmed.
While remittances surged to an expected $38 billion after adding June’s inflows, Pakistan’s exports remained weak. The country only saw a 6% increase in exports, far below the government’s $60 billion target. Strong remittances helped offset part of this trade deficit.
Despite strong inflows, the Pakistani rupee lost value in recent weeks. The rupee depreciated by at least Rs5 against the dollar during FY2025. On July 3, the dollar traded at Rs284.06 in the interbank and Rs286.40 in the open market. Globally, the US dollar is also under pressure, pushing investors toward other currencies and safe assets like gold.
