In a significant move, Allied Bank Ltd (ABL) has revealed
its plans to establish an exchange company, operating as a wholly owned
subsidiary with an initial capital of Rs1 billion.
This announcement by one of the nation's largest commercial
banks comes in response to a recent circular issued by the State Bank of
Pakistan (SBP), introducing "structural reforms" in the exchange
companies sector.
Meezan
Bank to establish exchange company with Rs. 1 billion capital
Notably, prominent banks such as United Bank Ltd, MCB Bank
Ltd, and Meezan Bank Ltd have also made similar announcements regarding the
establishment of exchange companies.
Historically, commercial banks were not permitted to engage
in foreign exchange transactions with the general public. Exchange companies
served as the primary providers of foreign exchange services at the retail
level, while banks managed dollar-denominated transactions within the interbank
market. However, recent developments have led to a shift in this landscape.
Source: Dawn