Karachi: Mr. Zafar Paracha, Secretary General of the Exchange Companies Association of Pakistan (ECAP), announced that exchange companies handled a total volume of approximately USD 7.0 billion in 2024, significantly contributing to Pakistan’s economic progress and prosperity. This achievement reflects the pivotal role of exchange companies in stabilizing Pakistan’s foreign exchange market.
Strengthening Foreign Reserves
Mr. Paracha revealed that exchange companies played a crucial part in bolstering Pakistan’s foreign reserves. In 2024, these companies contributed USD 3.85 billion to the interbank market. This contribution has been instrumental in strengthening Pakistan’s foreign reserves, which are essential for maintaining the stability of the national economy. By channeling a substantial portion of foreign currency into the interbank market, exchange companies have helped the country manage its external payments and improve its financial position.
Support for International Travel and Services
In addition to supporting the interbank market, exchange companies also facilitated USD 3.15 billion in the open market. This amount was directed towards meeting the growing demand for foreign currency related to international travel. This includes supporting Pakistanis traveling for Hajj and Umrah pilgrimages, helping families assist loved ones abroad, covering overseas medical treatments, and paying university fees for students studying overseas. The role of exchange companies in enabling these international transactions has been essential for supporting the personal and educational aspirations of many Pakistanis.
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Collaboration with Pakistan Army and SBP
Mr. Paracha acknowledged the significant support from senior officers in the Pakistan Army and the State Bank of Pakistan (SBP), whose efforts were crucial in achieving this success. The collaboration between exchange companies, the Army, and the SBP has ensured a smoother operation of foreign exchange transactions and reinforced the country’s financial system. This joint effort has helped maintain stability in both the interbank and open markets, contributing to Pakistan’s overall economic well-being.
A Milestone in Pakistan’s Financial Landscape
This accomplishment is a testament to the hard work and dedication of the exchange companies in Pakistan. The USD 7.0 billion handled by these companies in 2024 not only underscores their importance in the financial sector but also highlights their role in addressing Pakistan’s economic challenges. By facilitating foreign exchange transactions for both institutional and personal needs, exchange companies are helping create a more resilient and self-sufficient economy.
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