KARACHI: Exchange companies revealed on Saturday that they sold as much as $6 billion to banks during the just-concluded FY26.
Pakistan received a record $41.6bn in remittances in 2025-26, strengthening the economy by becoming a major source of foreign exchange.
“The inflows through the exchange companies were in the range of $5-$6bn during the FY26,” said Zafar Paracha, General Secretary, Exchange Companies Association of Pakistan. He said on average the exchange companies had been selling about $500 million per month.
However, the State Bank has closed down at least five exchange companies in FY26 for violations of its rules and regulations. One of the exchange companies recently surrendered its licence to do business.
“The exchange companies are over-regulated by the State Bank, which made it difficult to carry on business and remain in profit.
This is the reason that more companies are mulling to close down their business,” said a currency dealer. He did not mention the names of the companies willing to surrender their licenses.
The State Bank has been encouraging banks to establish their own exchange companies for remittances and domestic trading. So far, 14 banks have opened their companies. While the country’s dependence on remittances has been increasing each year, with remittances exceeding export earnings, the SBP has recently withdrawn some incentives available to banks to attract remittances.
Experts said the amount of incentives, at Rs120bn, was so large that it attracted IMF attention, and the matter was influenced to stop this disbursement of prizes.
The government is making efforts to enhance remittances through labour exports abroad. Recently, the prime minister has asked foreign missions to find jobs for Pakistanis in their respective countries.
However, it was noted with surprise in business circles that the government talks about $60bn and $100bn in exports, but no solid effort has so far been made to give it practical shape.
“The exports depend on large domestic and foreign investments in the manufacturing sector, but the situation is different; neither domestic nor foreign investments improved in FY26,” said an exporter.
He stated that the business community has been advising the government from the outset that without investment in manufacturing, exports would remain well below the country’s potential.
Published in Dawn, July 12th, 2026