Pakistan has recorded a significant increase in foreign currency deposits during the first nine months of FY2025-26, according to data from the State Bank of Pakistan.
Residents deposited Rs87 billion into foreign currency accounts during this period. This marks a sharp contrast to the same period last year, when there was a net withdrawal of Rs9 billion from these accounts.
Foreign currency accounts allow individuals and businesses to hold currencies such as US dollars, British pounds, euros, and Japanese yen.
These accounts are often used to protect savings from the weakening of the Pakistani rupee and to support international transactions.
Officials said the rise in deposits is partly due to stricter regulations introduced by the government and the central bank.
These rules have limited access to physical foreign currency, as exchange companies are now mostly required to provide rupee cheques instead of cash dollars.
Market sources noted that individuals can currently buy up to $950 using their national identity card, with a yearly limit of $2,000. Most of these purchases are linked to travel needs, including religious trips such as Umrah.
At the same time, demand for foreign currency for cryptocurrency use has declined. The government introduced the Virtual Assets Act 2026, under which the Pakistan Virtual Asset Regulatory Authority oversees digital asset activities.
Officials believe this shift has helped keep more foreign currency within the banking system, supporting financial stability and improving overall liquidity.