The State Bank of Pakistan (SBP) has unveiled a multifaceted plan to address the issue of hoarding US dollars, signaling a comprehensive reform in the exchange companies sector. A key element of this initiative involves introducing biometric verification for individuals making purchases of $500 or more from exchange companies. This measure aims to enhance accountability and deter illicit activities related to foreign currency transactions.
In a significant adjustment, the SBP has scaled down the limit for US dollar purchases for travel purposes. The limit has been reduced from $10,000 to $5,000, with an accompanying decrease in the annual limit from $60,000 to $30,000. This reduction is likely geared towards discouraging excessive accumulation of foreign currency and fostering responsible use.
Furthermore, a notable provision requires individuals making purchases of $2,000 or more from exchange companies to pay from their Pakistani Rupee accounts. This stipulation not only encourages transparency in transactions but also aligns with the SBP’s broader goal of promoting the use of local currency in domestic financial activities.
In a collaborative effort to reinforce regulatory oversight, the SBP aims to work closely with the Federal Investigation Agency (FIA) to crack down on illegal foreign exchange operators. This partnership seeks to identify and prosecute entities engaging in unauthorized and potentially unlawful foreign exchange activities. By involving law enforcement agencies, the SBP underscores its commitment to ensuring the integrity of the financial system and preventing exploitation by unscrupulous actors.
The SBP’s multifaceted approach, including biometric verification, revised purchase limits, encouragement of local currency use, and collaboration with the FIA, reflects a proactive strategy to curb the hoarding of US dollars, foster responsible financial behavior, and strengthen regulatory oversight in the exchange companies sector. These measures collectively contribute to a more robust and transparent financial ecosystem in Pakistan.
