Karachi (01st July 2025): Chairman of the Exchange Companies Association of Pakistan (ECAP), Malik Muhammad Bostan, appreciated the government’s decision to include exchange companies in the Pakistan Remittance Initiative (PRI). He said this decision will bring significant benefits to the country and assured that the exchange companies will fully justify the trust placed in them. He stated that the government, by including exchange companies in the PRI, has shown its trust, and while exchange companies have surrendered $4 billion this year, they will provide $8 to $10 billion through interbank next year. This is because they now have a fair and level playing field, and they will perform outstandingly in this environment, delivering consistent monthly results.
Malik Bostan noted that during the sacred Islamic month of Muharram, a long-standing demand of exchange companies has finally been fulfilled, as the State Bank issued Circular No. 4 of 2025, dated June 30, 2025. He extended his thanks to State Bank Governor Dr. Jameel Ahmed, Prime Minister Mian Shahbaz Sharif, Finance Minister Aurangzeb, and Field Marshal Asim Munir for their efforts in making this inclusion possible, which will greatly benefit the country. He reiterated that the exchange companies will live up to the trust placed in them.
He highlighted that last year exchange companies surrendered nearly $4 billion into the interbank market through their 1,500 locations, averaging approximately $2.5 million per location annually. This amount included inward remittances and foreign currency exports. In comparison, banks—operating 15,000 locations—surrendered around $33 billion, which comes to an average of $1 million per location. Banks were given a rebate of 33 Saudi Riyals per $100 (equivalent to PKR 20–22 per dollar), while exchange companies were only given PKR 2 per dollar and were not provided with a level playing field. This demand had been pending for 11 years and has finally been fulfilled by the current government.
He thanked Governor Dr. Jameel, Deputy Governor Dr. Inayat, and their team for taking the matter seriously. The State Bank’s circular now states that no sending fee will be charged for remittances of $200 or more (previously it was only for $100), which is a very positive decision. As a result, the PRI’s marketing budget will be cut by 50%, and the marketing fee of 15 Riyals will also be reduced.
The ECAP Chairman stated that currently there are about 15 million overseas Pakistani workers who receive approximately $8 billion in salaries every month. If they send their full earnings to Pakistan, it could greatly strengthen the economy, reserves, and Pakistani rupee. Currently, only $3–4 billion is being remitted; the rest is either being kept in foreign banks or invested in places like Dubai, Europe, or the Middle East. The government should build trust with these overseas Pakistanis, as the remittances they send can also be used to repay Pakistan’s debts.
Malik Bostan praised overseas Pakistanis for always standing by their country in difficult times—whether during the 1998 nuclear tests or recent conflicts. He acknowledged the important role played by the Chairman of the Overseas Foundation, Syed Qamar Raza, and requested the government to honor overseas Pakistanis and address their demands.
He concluded by expressing confidence that, God willing, exchange companies will demonstrate their performance, making both the government of Pakistan and the State Bank proud.
