KARACHI: Dollars being sold by the exchange companies in the interbank market fell by 12 per cent in the first seven months of the current fiscal year.

This was against the inflows of remittances through the banking channel, which increased by 11.3 per cent during the same period. Apparently, more inflows are coming through banking channels, with greater facilitation by banks or better regulations and schemes introduced by the State Bank for remittances.

However, exchange companies said selling and buying dollars in the open market is becoming difficult due to strict vigilance and restrictions. This was the reason exchange companies are getting less from people willing to sell their dollars. At the same time, buying dollars from exchange companies is more difficult.

“Despite strict rules and regulations for dollar trading, investments in cryptocurrencies have increased this year,” said a currency dealer, adding that no one knows the volume of investment in cryptocurrencies. Earlier, exchange companies estimated an investment of $800 to $1,000 million in cryptocurrencies.

Strict regulations, crypto investments blamed for decline

Data from the Exchange Companies Association of Pakistan showed that companies sold a total of $1.692bn to banks during July-January 2025-26. It was 12pc less than the amount sold in the same market during this period last year, which was around $1.921bn.

In January, the companies sold a total of $309m, up from $260m in the same month last year. A number of companies are facing pressure to merge with bigger companies, as the State Bank is willing to reduce the number of companies. At the same time, the banks are being encouraged to open their own exchange companies. This move was intended to handle fewer companies more easily and to stop money laundering and dollar smuggling.

However, market sources said cryptocurrencies are offering much higher rates against the dollar, which may attract remitters to obtain local currency and sell dollars outside Pakistan, such as in Dubai.

Exchange Companies Association of Pakistan Chairman Malik Bostan said higher inflows in Ramazan will boost dollar sales in the banking market. He said that, usually, inflows increase by up to 20 per cent in Ramazan; both remittances through banks and exchange companies are expected to increase.

Published in Dawn, February 15th, 2026