KARACHI: The State Bank of Pakistan (SBP) has revised the Statutory Liquidity Reserve (SLR) requirement of exchange companies from 25 per cent to 15 per cent of their capital. The enhanced liquidity will enable exchange companies to further channelise home remittances and foreign exchange.
During the year ended June 2020, exchange companies, through their tie-up arrangements abroad, have channelised home remittances of $1.44billion, while this figure stands at $1.67bn for ten months of the current year (FY 20-21).
This regulatory intervention from SBP will provide increased liquidity to exchange companies to enable them to play their role in increasing the remittances flow. Furthermore, the public will also be facilitated as they will receive remittances timely and conveniently at their homes from more than 1,200 outlets of exchange companies across Pakistan.
At present, out of 27 exchange companies of ‘A’ category, 18 exchange companies are providing home remittances services.