Foreign exchange companies have contributed approximately $5 billion to Pakistan’s remittances by the end of the fiscal year 2024-25, according to the Exchange Companies Association of Pakistan (ECAP).
Zafar Paracha, Secretary General of ECAP, highlighted the growing importance of these companies in supporting the country’s exchange rate stability, noting that $450 million was sold to banks in June alone.
He expressed optimism that FY26 could see record-breaking remittance inflows, thanks to the new incentive structure. Though not yet confirmed, the total remittances handled by exchange companies in FY25 is expected to reach $5 billion.
During the first 11 months of FY25, Pakistan received $35 billion in remittances. The final figure is expected to surpass the revised target of $38 billion, aided by the inflows from exchange companies.
The inclusion of exchange companies in the Pakistan Remittance Initiative (PRI) by the State Bank of Pakistan (SBP) has been welcomed by the sector.
For years, exchange companies had called for equal incentives with banks, emphasising their vital role in the remittance process.
Under the new arrangement, exchange companies will receive Rs22 per dollar transaction, a significant increase from the previous Rs2 per transaction.
