KARACHI, May 20: The State Bank on Tuesday issued no objection certificates to six more foreign exchange companies. This has raised to 20 the number of the companies that have so far obtained the NOCs.

Money changers said the companies that received the NOCs on Tuesday are: PCC Exchange Company, Atlas Exchange Company, Paracha International, Noble Exchange International, Malik Exchange Company and Pakistan Currency Exchange.

These companies will have to fulfil some formalities with the Securities and Exchange Commission of Pakistan before seeking a final licence from the SBP to start operations. The State Bank has so far issued licences to seven foreign exchange companies, namely H&H Exchange Company, NBP Exchange Company, KKI Exchange Company, Al-Sahara Exchange Company, Data Exchange Company, Galaxy International and Dollar East. The first five have already gone into operation.

Foreign exchange companies are being set up to phase out money changers and keep a stricter check on inflows and outflows of foreign exchange to and from the country. Unlike money changers foreign exchange companies are also allowed to make inward and outward electronic transfers of money, but they have to report the deals to the State Bank.