Business Desk 
Nov 17, 2025
The State Bank of Pakistan (SBP) on Sunday imposed new restrictions on cash dollar transactions, instructing banks and exchange companies to transfer foreign currency directly into customers’ accounts instead of providing cash.
Announced through an official circular, this initiative aims to promote a cashless economy and improve oversight over foreign currency flows.
Under the revised regulations, all foreign currency sales to resident Pakistanis for deposit in foreign currency (FCY) accounts have to be settled through account-to-account transfers.
No longer will people without FCY accounts be able to purchase cash dollars for depositing into their accounts.
Exchange companies explained that the policy does not impact purchasing dollars for travel or personal use. However, cash buys over $500 do require documentation, biometric verification, and a specified purpose. Travellers, students, and religious pilgrims provide full paperwork for larger amounts.
According to industry experts, the move by SBP may benefit bank-owned exchange companies because commercial banks would be encouraged by the move to expand their currency exchange services. This will facilitate more customers since the transfer process is streamlined.
Currency specialists warn that the changes will result in processing taking longer. In the case of other non-dollar currencies such as the euro or pound sterling, cheque clearance can take as long as 25 days if it is being deposited across banks. Even dollar transfers might need at least five days for processing across banks.
