SBP Governor Reveals Details on Suspended Exchange Companies and New Currency Notes

The State Bank of Pakistan (SBP) has suspended licenses of 140 exchange companies following strict regulatory action against violations by registered entities. SBP Governor Jamil Ahmed reported that most of these violations have now been rectified, with firm actions taken in cases involving out-of-book transactions.

Ahmed emphasized the central bank’s ongoing daily monitoring of exchange companies to combat dollar smuggling and maintain transparency in currency dealings. Notably, he highlighted increased SME financing volumes reaching Rs 150 billion this year, exceeding the initial target of Rs 100 billion. The highest loan uptake was observed in agriculture and services sectors, indicative of robust economic activity.

Regarding external financing, Ahmed announced that loans from friendly countries will be rolled over until September 2027. He noted encouraging progress with $6 billion already repaid, with another $4 billion expected to follow soon.

Ahmed pointed out significant improvements in the documented economy, digitalization, and direct payment systems. Daily digital transactions now range between Rs 7 billion and Rs 8 billion, while six-to-seven-day direct payments process an Rs 1 trillion volume, which was previously achieved over a year.

Discussing the broader economic outlook, SBP Governor Jamil Ahmed expressed optimism about stabilizing economic matters within the next two years. While acknowledging that the balance of payments remains a major challenge, stability has been observed in recent periods. He also mentioned that the current account has remained in surplus for the past year and foreign exchange reserves have increased by $16 billion, reflecting improved external sector conditions.

Ahmed did not confirm any final decision on issuing new currency notes.