The framework governs intermediaries and aggregators collecting funds locally in Pakistani Rupees for onward remittance to foreign service providers, which is core remittance service regulation.
The framework involves cross-border fund transfers and foreign exchange service distribution, which relates to cross-border payment infrastructure and flows.
Specialism
The update introduces a regulatory framework for foreign exchange intermediaries and aggregators in Pakistan, which relates to payment service distribution and cross-border fund transfers, but lacks specific compliance obligations typical of core payment regulation.
The SBP's directive to Authorized Dealers to communicate compliance requirements to constituents suggests ongoing regulatory oversight, though the update is primarily administrative framework-setting rather than active supervisory action.
2026-05-26 08:23:02·pthandapani@vixio.com
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TITLE: Pakistan's State Bank Issues Framework for Foreign Exchange Services Distribution by Intermediaries
BODY:
On May 22, 2026, the State Bank of Pakistan (SBP) issued Foreign Exchange Circular No. 01 of 2026, introducing a new framework governing the distribution of foreign exchange services by intermediaries and aggregators operating in Pakistan.
The circular addresses the acquisition of services from abroad by Pakistani firms and companies, which is governed under Paragraph 11, Chapter 14 of the Foreign Exchange Manual. To facilitate companies seeking to act as intermediaries or aggregators between foreign service providers and domestic service acquirers, the SBP introduced a separate framework through the insertion of Paragraph 11A in Chapter 14 of the Foreign Exchange Manual. This new framework specifically governs intermediaries and aggregators that collect funds locally in Pakistani Rupees for onward remittance to foreign service providers.
The circular was addressed to the presidents and chief executives of all Authorized Dealers (ADs) in foreign exchange. The SBP directed ADs to communicate these developments to all their constituents to ensure meticulous compliance with the updated framework. The specific provisions of the new framework are detailed in Annexure A of the circular, which outlines the operational requirements and conditions for intermediaries and aggregators seeking to facilitate foreign exchange service distribution in Pakistan.
This development is significant for financial institutions, intermediaries, and aggregators operating in Pakistan's foreign exchange market, as it establishes clear regulatory parameters for service distribution activities involving cross-border fund transfers.