Biometric Verification
ISLAMABAD: The State Bank of Pakistan has unveiled a strategy to curb the hoarding of US dollars, making biometric verification mandatory for individuals purchasing $500 and above from exchange companies. As part of broader reforms in the exchange companies sector, this move aims to enhance transparency and counter the illegal hoarding of foreign currency. The Special Investment Facilitation Council (SIFC) Apex Committee was informed about this initiative on January 3, 2024, as part of comprehensive reforms.
Pakistan is grappling with a dollar crisis, compounded by sluggish exports and remittances, with a significant portion of dollars utilized for importing goods. Unscrupulous entities exploit this situation to hoard US dollars, leading to windfall profits.
In response, the State Bank of Pakistan has reduced the US dollar purchase limit for travel purposes from $10,000 to $5,000 and the annual limit from $60,000 to $30,000. Customers purchasing $2,000 or more from exchange companies are required to make payments from their Pakistani Rupee accounts.
For individuals, the central bank has set a daily limit of $10,000 for US dollar purchases and an annual limit of $100,000. Additionally, the Federal Investigation Agency will collaborate with the State Bank of Pakistan and relevant stakeholders to launch a crackdown against illegal foreign exchange operators as part of the reforms.
The reforms, including the mandatory biometric verification and revised purchase limits, are expected to be made public following approval at the next SIFC meeting. This initiative is reminiscent of the government’s crackdown last year when the dollar crossed the 300 mark, targeting dollar smuggling and hoarding. The Ministry of Interior had identified groups involved in such activities and developed a list of facilitators, including government officials and their patrons.
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