Exchange | Pakistan

KARACHI: Foreign exchange companies contributed around $450 million to remittance inflows during June, taking their total contribution to approximately $5 billion in FY25, according to the Exchange Companies Association of Pakistan (ECAP). “We sold about $450m to banks in June, highlighting our growing role in supporting the country’s exchange rate stability,” said Zafar Paracha, Secretary General of ECAP. Exchange companies have welcomed the State Bank of Pakistan’s (SBP) recent decision to include them in the Pakistan Remittance Initiative (PRI). For years, these companies have demanded similar incentives to those offered to banks, arguing that they also play a crucial role in channelling remittances. “This incentive will certainly boost remittance inflows through exchange companies, and I believe FY26 could witness a new record,” Mr Paracha said. He estimated the total remittances handled by exchange firms during FY25 to be around $5bn, although he noted the figure is not yet officially confirmed. The SBP ...