BankIslami Pakistan Limited has approved the establishment of a new exchange company with an initial paid-up capital of Rs1.2 billion, according to a filing at the Pakistan Stock Exchange (PSX).
The decision was made during a meeting of the Board of Directors held on February 27, 2025. The exchange company will be a wholly owned subsidiary of BankIslami and will operate within the regulatory framework prescribed by SBP.
“At a meeting of the Board of Directors of BankIslami Pakistan Limited held at 10:30 a.m. on February 27, 2025, at the registered office of the Bank, the Board of Directors has approved the establishment of an exchange company with an initial paid-up share capital of Rs. 1.2 billion, subject to approval/clearance by the State Bank of Pakistan and completion of other regulatory compliance requirements,” read the notification sent to the PSX.
However, the establishment of the exchange subsidiary is subject to regulatory approvals from the State Bank of Pakistan (SBP).
The move aligns with the government’s broader initiative to streamline and regulate foreign exchange operations in the country. In 2023, the State Bank of Pakistan introduced a series of structural reforms pertaining to exchange companies, with the primary objective of tightening control over the open market and fortifying governance, internal controls, and compliance standards within the sector.
As a part of this initiative, public and private banks involved in foreign exchange activities were mandated to establish wholly owned Exchange Companies, designed to address the legitimate foreign exchange requirements of the general public.
The SBP also raised the minimum capital requirement for exchange companies from Rs 200 million to Rs 500 million, with the additional stipulation that the capital must be unencumbered by prior losses.
