KARACHI: The State Bank of Pakistan has announced a major change in the country’s financial system and has decided to make the provision of foreign currency completely cashless for all citizens. According to the central bank’s circular, no exchange company will now be able to provide foreign currency to Pakistani citizens in the form of cash.
The State Bank has directed exchange companies to immediately implement the new policy under Clause 5 of Chapter 7 of the regulatory framework. Officials say that this decision will make financial transactions more transparent and will help reduce the undocumented economy.
Exchange companies have assured to implement the State Bank’s instructions, but they say that additional technical facilities will be required for a complete system change. The move has received mixed reactions from citizens — some calling it a safe and modern step, while others are concerned that the sudden change could lead to difficulties in transactions.
According to the State Bank, the policy aims to improve market stability, transparency, and financial discipline, while a fully digital model will be a core part of the government’s future strategy.
Economists are calling this decision a major shift from the traditional system of foreign exchange in Pakistan. According to them, the cashless model will limit the illegal hawala hundi network and accelerate the move towards digital payments.
