Exchange Companies contributed $5 billion to Pakistan's economy in 2024-25
Exchange companies played a significant role in Pakistan’s remittance inflows during the fiscal year 2024–25, contributing an estimated $5 billion, according to the Exchange Companies Association of Pakistan (ECAP).
Zafar Paracha, Secretary General of ECAP, emphasized the growing importance
of exchange companies in supporting exchange rate stability and the national
economy. He noted that $450 million was routed to banks in June alone through
these companies.
Paracha expressed optimism that FY2025–26 could witness record-breaking
remittance inflows, driven by a newly introduced incentive structure. While
final figures are pending, the total remittances facilitated by exchange
companies are expected to reach the $5 billion mark for FY25.
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unveils new regulatory framework for exchange companies
National Remittance Outlook
During the first 11 months of FY25, Pakistan received $35 billion in
remittances, with projections indicating that the year-end total will exceed
the revised $38 billion target, supported in part by increased flows through
exchange companies.
Inclusion in PRI & Incentive Reform
The sector has welcomed its formal inclusion in the Pakistan Remittance
Initiative (PRI)—a move led by the State Bank of Pakistan (SBP) to streamline
and enhance remittance inflows.
Exchange companies have long advocated for equal treatment and incentives in
line with commercial banks. Under the newly revised structure, they will now
receive Rs22 per dollar transaction, a substantial increase from the previous Rs2
per transaction, which is expected to significantly boost formal remittance
channels.
Read More SBP
introduces incentives to attract more remittances
ECAP believes this new policy will not only incentivize the sector but also
help curb informal and illegal channels, further strengthening foreign exchange
reserves and supporting economic stability.
Source: Profit Pakistan