Biometric verification to be made mandatory for purchase of $500 and above

To curb the hoarding of US dollars, the State Bank of Pakistan has introduced a plan requiring biometric verification for individuals purchasing $500 and above from exchange companies.

This move is part of comprehensive reforms in the exchange sector aimed at addressing the dollar crisis, where limited exports and remittances lead to significant greenback utilization for imports.

To further control the situation, the SBP has also reduced the US dollar purchase limit for travel purposes from $10,000 to $5,000 and the annual limit from $60,000 to $30,000. Additionally, any customer buying $2,000 or more from exchange companies must pay from their Pakistani Rupee account.

The central bank has set a daily purchase limit of $10,000 and an annual limit of $100,000 for individuals. As part of the reforms, the Federal Investigation Agency will collaborate with the SBP and other stakeholders to crack down on illegal foreign exchange operators.

The official announcement of these reforms is expected after approval in the next SIFC meeting. Last year, amidst a rising dollar, the government initiated a crackdown on dollar smuggling and hoarding, identifying groups involved in these activities.