Despite improved dollar inflows this year, importers in Pakistan are struggling to access foreign currency, leading to rising import costs and unofficial price hikes beyond official exchange rates. The shortage continues to create uncertainty in trade, even as the State Bank of Pakistan (SBP) maintains that no formal restrictions are in place.
According to banking sources cited by Dawn, only 20% to 30% of importers are currently allowed to buy dollars through banks. Although import data from May showed an 8% decline in imports and a 23% drop in the trade deficit, limited access to dollars has resulted in higher rates, forcing importers to pay more than the interbank price.
Currency dealers revealed that banks have been instructed to arrange dollars for import payments, but only a few—mainly “export banks”—have access to enough export proceeds. As a result, importers are reportedly paying Rs2 to Rs3 above the official rate per dollar, creating an unofficial premium that adds to business costs.
While some concerns have emerged about panic-buying of dollars, market expert Zafar Paracha dismissed those fears. He linked the increase in demand partly to the Haj season. He also noted that buying dollars from the open market is not easy, as larger transactions face strict scrutiny from agencies like the FIA.
Furthermore, importers are finding it difficult to legally purchase more than $1,000 due to documentation requirements and monitoring. Meanwhile, a senior banker emphasized that the stable exchange rate has been supported by stronger remittance flows, which remain crucial for maintaining foreign reserves.
Pakistan expects to receive $38 billion in remittances during FY25, with a target of $39 billion for FY26. These inflows are helping the country’s economy stay afloat, but the persistent dollar shortage continues to challenge importers and affect trade operations.