Exchange companies sold up to $6bn to banks in FY26 amid record remittance inflows

Exchange companies sold an estimated $5 billion to $6 billion to banks during FY26, helping support the country's foreign exchange market alongside record remittance inflows.

According to the Exchange Companies Association of Pakistan (ECAP), exchange companies supplied an average of around $500 million to banks every month during the fiscal year.

Pakistan received a record $41.6 billion in workers' remittances during FY26, making remittances one of the country's largest sources of foreign exchange.

During the year, the State Bank of Pakistan (SBP) cancelled the licences of at least five exchange companies over regulatory violations, while another company voluntarily surrendered its licence.

Currency market participants said exchange companies are facing tighter regulations, making it increasingly difficult to sustain profitable operations, with some firms considering exiting the business.

The SBP has been encouraging commercial banks to establish their own exchange companies for remittance and foreign exchange business. So far, 14 banks have launched exchange companies.

Meanwhile, the central bank has withdrawn some incentives previously offered to banks to attract remittance inflows. Market experts said the incentive programme, estimated at around Rs120 billion, had drawn the attention of the International Monetary Fund (IMF), contributing to its discontinuation.