In order to modernise the financial system in the country, the State Bank of Pakistan has announced a major change in the method of providing foreign currency. Under the new regulations, foreign currency will now be provided only in cashless mode, while cash transactions have been completely stopped.
The state bank’s circular has issued clear instructions to all exchange companies to immediately implement the new policy and process every transaction according to the documented and digital model. The aim of this move is to reduce the undocumented economy, increase financial transparency and upgrade the system according to global norms.
Experts say that this step will limit illegal networks like Hawala Hundi and encourage people to use formal channels. According to them, the same model has been successfully implemented in several countries and it will also help establish strong financial discipline in Pakistan.
The association of exchange companies has assured its support on the new policy but pointed out that some additional time and technology will be required for complete digital transformation. Citizens expressed different opinions on the decision — some called it a safe step while others expressed concerns about the difficulties caused by the sudden change.
The State Bank has made it clear that the policy aims to make the market stable and transparent, while in the future, transforming the financial sector into a fully digital system in stages is among the government’s priorities.
