KARACHI: Exchange companies contributed approximately $450 million to remittance inflows in June, bringing their total contribution to around $5 billion for FY25, according to the Exchange Companies Association of Pakistan (ECAP).
“This reflects our increasing role in supporting exchange rate stability,” said ECAP Secretary General Zafar Paracha. He added that the sector sold $450 million to banks in June alone.
The industry has welcomed the State Bank of Pakistan’s (SBP) recent decision to formally include exchange companies in the Pakistan Remittance Initiative (PRI). Under the new framework, exchange firms will receive Rs22 per dollar transaction—up significantly from the previous Rs2.
“This move will encourage more inflows through exchange firms, and we could see record remittances in FY26,” Mr Paracha noted, while clarifying that FY25’s final figure is yet to be officially confirmed.
Pakistan recorded $35 billion in remittances during the first 11 months of FY25. With June included, the total is expected to exceed the revised $38 billion target.
Despite strong remittance inflows, export growth remained modest at just 6%—well below the government’s $60 billion target. Remittances helped compensate for the export shortfall, while also aiding exchange rate stability, which encouraged exporters to release funds and gave importers more confidence.
Pakistan also secured about $16 billion in rollover agreements from China, the UAE, and Saudi Arabia, helping boost SBP’s foreign exchange reserves to $14.5 billion by the end of FY25.
However, the rupee began to lose ground in recent weeks, depreciating by at least Rs5 over FY25. On July 3, the interbank rate stood at Rs284.06 per dollar, while the open market rate was Rs286.40.
Globally, the US dollar has faced pressure, weakening against the euro and the pound. Analysts cite growing risks surrounding the dollar, prompting a shift toward alternative currencies and commodities like gold.
