SBP governor shares details on exchange companies suspensions, new currency notes

KARACHI: The State Bank of Pakistan (SBP) has suspended licenses of 140 exchange companies. SBP Governor Jamil Ahmed said that strict regulatory action has been taken against 140 out of 166 exchange companies violating central bank rules.

The SBP governor said most of the violations were removed from the list of registered companies, while firm action was taken against complaints involving out-of-book transactions. He added that the central bank is closely monitoring exchange companies on a daily basis to curb dollar smuggling and ensure transparency in currency dealings.

Highlighting progress in financing, Jamil Ahmed said the volume of SME financing increased to Rs 150 billion during the current year, exceeding the initial target of Rs 100 billion. He noted that the highest number of loans were availed by the agriculture and services sectors, reflecting growing economic activity in these areas.

On external financing, the governor said that loans provided by friendly countries will continue to be rolled over until September 2027. He termed it encouraging that $6 billion has already been repaid, while Pakistan is expected to make another $4 billion payment in the near future.

Jamil Ahmed also pointed to significant improvements in the documented economy, digitalisation, and direct payment systems. He said daily digital transactions now range between Rs 7 billion to Rs8 billion, while Rs 1 trillion worth of transactions are being processed through direct payments within six to seven days, a volume that previously took an entire year to achieve.

Discussing the broader economic outlook, the SBP governor expressed optimism that economic matters will stabilise over the next two years. He acknowledged that the balance of payments remains the biggest challenge, but noted that stability has been observed over the past year.

He also revealed that the current account has remained in surplus for the last one year, while foreign exchange reserves have increased by $16 billion, indicating improving external sector conditions. Responding to a question, the SBP governor said that no final decision has yet been taken regarding the issuance of new currency notes.