The State Bank of Pakistan (SBP) has introduced a new facility to encourage more overseas Pakistanis to send money home through official channels. Exchange companies can now book PKR rates in advance for up to five working days after receiving home remittances.
Under this revised framework, exchange companies can enter into short-term forward sale agreements with authorized banks. This means they can lock in the dollar-to-rupee exchange rate ahead of time. It protects them from sudden changes in currency rates and reduces risk.
The main goal is to improve liquidity for exchange companies and make the formal remittance system more attractive. By reducing uncertainty, the SBP hopes to increase the flow of remittances through banks and licensed exchange firms instead of informal channels like hawala.
In the last financial year (2024-25), Pakistan received around $38 billion in total worker remittances. Exchange companies alone handled about $5 billion of these inflows.
Zafar Paracha, President of the Exchange Companies Association of Pakistan, welcomed the decision. He said it shows the central bank’s willingness to solve practical problems faced by the industry. The new rule will help improve compliance, liquidity management, and overall efficiency.
This step is important for Pakistan’s economy because remittances are a major source of foreign exchange and help strengthen the country’s reserves. Overseas Pakistanis will also benefit as the system becomes more stable and reliable.
The facility is expected to encourage higher remittance inflows in the coming months. Experts believe it will support the external account and provide more confidence to both exchange companies and senders.