Biometric proof must for buying $500 or above: State Bank of Pakistan.

In a bid to counteract the hoarding of the US dollar, the State Bank of Pakistan has implemented a plan necessitating biometric verification for individuals buying $500 or more from exchange companies. According to an official at the SIFC Secretariat who spoke on the condition of anonymity, high-ranking officials from the central bank revealed this initiative during a meeting of the Special Investment Facilitation Council (SIFC) Apex Committee on January 3, 2024. The move is part of a broader set of reforms in the exchange companies sector.

Pakistan is currently facing a dollar crisis due to lower-than-expected exports and remittances, and a significant portion of the foreign currency is being utilized to fund imports. Exploiting the situation, unscrupulous individuals engage in hoarding US dollars to capitalize on windfall profits.

The SIFC was briefed that the State Bank of Pakistan has also adjusted the US dollar purchase limit for travel purposes, reducing it from $10,000 to $5,000 for individual transactions and from $60,000 to $30,000 annually.

Customers making US dollar purchases of $2,000 or more from exchange companies will be obligated to utilize funds from their Pakistani Rupee accounts.

For individual customers, the central bank has established a daily US dollar purchase limit of $10,000 and an annual limit of $100,000.

As part of these reforms, the Federal Investigation Agency will collaborate with the State Bank of Pakistan and other relevant stakeholders to launch an effective crackdown against illegal foreign exchange operators.