Pakistan’s foreign exchange companies sold $ 646 million to banks in the first quarter of the financial year 2026, which fell from $ 750 million to 14 percent in the same quarter a year ago, as the country has to reduce the supply of physical dollars and reduce remittances by visiting Pakistanis abroad.
Exchange Companies Association of Pakistan (ECAP) termed banks as low remittances and delays in dollar payments to exchanges firms. “We have sold $ 646 million in the banking market during the first three months of fiscal year 26, ECAP Chairman Malik Bosan said in a statement. Although less than last year, the data is not discouraged.”
Monthly data shows permanent decline: Exchange companies sold $ 290 million in July, $ 170 million in August, and $ 186 million in September. In comparison, sales in the same month of FY 25 were $ 333 million, $ 294 million, and $ 213 million, respectively.
According to Dawn, market participants report a physical dollar reduction, with exchange companies rapidly issuing dollar -linked checks to deposit foreign currency accounts. Dealers say banks are promoted to the reduction that delays the payment of exchange firms, making it difficult to access cash in the open market.
Currency experts point out the rise in weak remittances this year and concerns about the “systematic” exchange rate, which can remove some arrival from public channels. Despite the rupee’s definition in the last two months, some analysts say the current rate does not reflect the real market equality.
Pakistan has received $ 38 billion remittances in fiscal year 25 and has set a target of $ 40 billion for the current fiscal year. Bosan said the arrival of remittances is satisfactory and expressed hope of fulfilling the purpose of the fiscal year 26. Analysts believe that maintaining last year’s arrival level will help stabilize the exchange rate.