SBP Allows Exchange Companies to Pre-Book PKR/USD Rates to Support Remittance Inflows
Apr 12, 2026
The State Bank of Pakistan (State Bank of Pakistan) has introduced a new facility allowing exchange companies to engage in short-term forward sale transactions against home remittance inflows. The step is aimed at improving liquidity and encouraging remittances through formal banking channels.
Under the revised mechanism, exchange companies can now enter forward agreements with authorized banks for up to five working days once remittance funds are received. This allows firms to lock in exchange rates in advance, helping reduce the impact of currency fluctuations.
A forward sale arrangement refers to an agreement in which currency is sold at a pre-agreed rate for a future date, providing greater certainty in value for both exchange companies and their customers.
According to officials, the policy is designed to stabilize foreign currency inflows at a time when remittances remain a key support for Pakistan’s external account and foreign exchange reserves.
Recent data shows that exchange companies facilitated around $5 billion in inflows, while total worker remittances reached approximately $38 billion during fiscal year 2024–25.
Industry representatives have welcomed the development. Zafar Paracha, president of the Exchange Companies Association of Pakistan, said the initiative reflects the central bank’s willingness to work with market participants to address operational challenges in the remittance sector.
He added that the new system is expected to improve compliance, strengthen liquidity management, and encourage greater use of official channels over informal money transfer methods.
Market participants believe the facility will provide additional flexibility and efficiency to exchange companies handling remittance flows.
