The State Bank of Pakistan has introduced a major reform to improve transparency in the foreign-exchange market. Under its latest directive, biometric verification through NADRA will now be compulsory for every individual buying or selling foreign currency. The central bank has also ordered all exchange companies to install advanced face-scan cameras at their service counters by January 1, 2026, ensuring real-time digital identity checks for every transaction.
New Biometric Rules Aim to Strengthen Transparency and Security
According to the State Bank, each forex transaction will require instant verification through NADRA’s facial recognition system. This digital check will confirm the identity of buyers and sellers within seconds and eliminate the possibility of forged or incomplete documents.
Malik Bostan, Chairman of the Exchange Companies Association of Pakistan (ECAP), described the move as a significant shift toward a paperless and fully digital system. He stated that while the basic currency-exchange process will stay unchanged, businesses must upgrade their counters with the new face-scan technology to meet regulatory requirements. He added that the adoption of biometric cameras will boost confidence in the system and help prevent misuse of forex services.
Double Verification System to Improve Ease and Compliance
ECAP General Secretary Zafar Paracha welcomed the step, noting that NADRA ID verification combined with facial recognition will form a double-layered security mechanism. This structure will make illegal transactions harder to conceal and enhance monitoring across the sector.
Paracha explained that digitalisation will also streamline customer experience. Faster verification will reduce waiting times, simplify documentation, and ensure that buyers and sellers complete transactions effortlessly.
Industry representatives believe the State Bank’s decision will modernise Pakistan’s foreign-exchange framework. They say the upgrade will increase compliance, curb irregularities, and align the country with global digital-finance standards. As exchange companies prepare to install biometric systems, the market is expected to transition toward safer, quicker, and more efficient forex operations.
