State Bank of Pakistan. Photo: File
KARACHI:
The State Bank of Pakistan (SBP) on Tuesday cancelled the licences of two exchange companies for violating regulatory instructions, tightening oversight of the foreign exchange market.
In separate statements, the central bank said it had revoked, with immediate effect, the authorisation of Al Raj International Exchange Company (Private) Limited and Dream Exchange (Private) Limited over “serious violations” of its rules and regulations.
Following the action, both companies, including their head offices and all branches, have been barred from carrying out any foreign exchange-related business activities in any capacity.
The move reflects SBP’s continued efforts to enforce compliance within the exchange companies’ segment, which plays a critical role in managing retail-level currency transactions and remittance flows. Over the past two years, the regulator has intensified scrutiny of the sector amid concerns over undocumented transactions, exchange rate volatility, and illegal currency trading.
The central bank has repeatedly warned exchange companies to strictly adhere to regulatory requirements, including know-your-customer (KYC) protocols, anti-money laundering (AML) standards, and reporting obligations. Non-compliance, it maintains, will result in strict enforcement measures, including suspension or cancellation of licences.
Analysts believe the latest cancellations signal a zero-tolerance approach by the regulator and may prompt other exchange companies to further tighten internal controls to avoid similar penalties.
Furthermore, the Pakistani rupee inched up 0.01% to close at 279.22 against the US dollar in the inter-bank market on Tuesday, gaining Rs0.03 from 279.25 in the previous session, as the greenback weakened globally following US President Donald Trump’s decision to delay strikes on Iran’s power grid.
Meanwhile, gold prices in Pakistan rebounded in line with stability in the international market, after touching a four-month low in the previous session amid easing geopolitical concerns.
In the local market, the price of gold per tola surged by Rs16,300 to settle at Rs464,062, according to data released by the All-Pakistan Gems and Jewellers Sarafa Association. Similarly, the rate for 10 grams of gold rose by Rs13,975 to close at Rs397,858.
The recovery follows a sharp decline on Monday, when gold prices plunged by Rs43,600 per tola, tracking losses in global markets. Overall, gold has shed Rs116,100 per tola since March 2, reflecting heightened volatility.
In the international market, spot gold was largely unchanged at $4,408.77 per ounce by midday trading, after hitting the low of $4,097.99 in the previous session – its weakest level since November. US gold futures for April delivery also remained steady at $4,409.30.
Meanwhile, silver prices in the domestic market increased by Rs570 to Rs7,454 per tola. Market analyst Adnan Agar, Director at Interactive Commodities, noted that sentiment remains bearish in the short term, with expectations that gold prices may retest lower levels before any sustained recovery, depending on global economic cues and interest rate outlook.
