The State Bank of Pakistan (SBP) has introduced new regulations requiring biometric verification for all transactions over $500 at exchange companies. This measure is part of a broader strategy to stabilize the foreign exchange market as reported by The News.
Officials from the central bank, during a meeting with the Special Investment Facilitation Council (SIFC) Apex Committee on January 3, 2024, disclosed these new rules. The decision comes in response to Pakistan's dollar crisis, fueled by inadequate exports and remittances and the extensive use of dollars for import financing. The situation has also led to the illegal hoarding of US dollars.
Significant changes have been made to the US dollar purchase limits. For travel, the maximum purchase amount is now $5,000 per transaction, reduced from the previous limit of $10,000, and the annual limit has been cut from $60,000 to $30,000. Additionally, any purchase of $2,000 or more requires payment directly from the buyer's Pak Rupee account.
Individuals are now limited to purchasing $10,000 in US dollars per day, with an annual limit of $100,000. To enforce these rules, the Federal Investigation Agency will collaborate with the SBP and other entities to target illegal foreign exchange operations.
These reforms are set to be formally announced after their approval in the upcoming SIFC meeting. This initiative is a continuation of the government's crackdown on dollar smuggling and hoarding, which intensified when the dollar's value exceeded 300. The Ministry of Interior has identified groups involved in these illegal activities, some of which are linked to government officials.
