The State Bank of Pakistan (SBP) has mandated that all foreign currency sold to resident Pakistanis for deposit into foreign currency bank accounts must be done exclusively through digital channels, The News reported.
This move, which comes as part of revised regulations for exchange companies, aims to curb illegal dollar movements, reduce under-the-counter dollarisation, and enhance anti-money laundering (AML) measures in the country.
The new rule restricts physical cash transactions and requires that all foreign currency purchases be conducted via account-to-account transfers. This regulation is part of the broader effort to stabilise the foreign exchange market, as Pakistan prepares for a potential shift towards cryptocurrency and digital currencies.
According to the report, a draft law for regulating cryptocurrency trading has already been submitted to parliament, and the SBP is collaborating with the Pakistan Virtual Assets Regulatory Authority (PVARA) to oversee the integration of virtual assets.
Exchange Companies Association of Pakistan Chairman Malik Bostan explained that the SBP’s decision was driven by the increased dollar purchases for crypto trading, where many Pakistanis were using dollars bought in the open market for profits from cryptocurrency investments.
He highlighted that such activities were misusing foreign currency and contributing to black market operations and hawala channels. He supported the SBP’s move, stating it would curb dollar leakage, strengthen foreign exchange reserves, and help stabilise the rupee.
However, some exchange dealers have raised concerns about the new regulation, noting that many Pakistanis do not hold foreign currency accounts, which makes purchasing foreign currency for crypto trading difficult. They also criticised the overregulation of exchange companies, saying that the previous system allowed customers to buy up to $1,000 in cash, with larger purchases routed through banking channels. But the latest circular may favor bank-owned exchange outlets, which SBP has been encouraging to expand their operations.
