The State Bank of Pakistan (SBP) has restricted cash dollar sales, directing banks and exchange companies to transfer foreign currency directly into buyers’ accounts to promote a cashless economy.
Under the new rules, individuals cannot receive cash dollars for deposit into foreign currency accounts. Buyers without such accounts will be unable to purchase cash, and cheque transfers may take at least five days to clear.
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For purchases above $500, individuals must provide a declared purpose, complete biometric verification, and submit supporting documents. Travelers, students, and those performing Haj or Umrah are required to present full documentation for larger transfers.
Currency experts warn that transactions in euros or pounds could face longer delays, with cheques deposited into different banks taking 20-25 days to clear, potentially slowing international payments.
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Bank-owned exchange companies benefit from the new circular, as they can attract more customers, while independent money changers face operational limitations due to restrictions on holding cash dollars in bank accounts.
Money changers now must sell foreign currency directly in the banking market, limiting their competitiveness and forcing them to rely on bank-managed exchange outlets for customer transactions.