SBP Allows ABL, Bank Al Habib to Start Their Currency Exchange Operations

The State Bank of Pakistan (SBP) has allowed Allied Bank Limited (ABL) and Bank AL Habib Limited (BAHL) to begin operations of their fully-owned Exchange Companies (ECs). In a notice to the Pakistan Stock Exchange (PSX) on Friday, ABL stated,  “SBP has issued ‘License for Commencement of Operations’ to M/s. ABL Exchange (Private) Limited.” Meanwhile, a similar notice was issued by Bank Al Habib to the bourse. “This refers to our previous announcement at PSX on September 22, 2023, regarding the Board’s approval to establish an EC as a wholly owned (100%) subsidiary of the bank with an authorized share capital of Rs. 1,000 million,” read the notice. “Alhamdulillah, we are pleased to inform you that subsequent to the issuance of Certificate of Incorporation from the Securities and Exchange Commission of Pakistan (SECP), the State Bank of Pakistan (SBP) has issued a license for Commencement of Operations to ‘AL Habib Exchange Company (Private) Limited’,” it added. In a separate notice, the Bank of Punjab (BoP) has also obtained a ‘No Objection’ from the State Bank of Pakistan to establish an exchange company. “State Bank of Pakistan has conveyed its ‘No Objection’ to The Bank of Punjab for establishing an exchange company in the name of ‘BoP Exchange Company (Pvt) Limited’,” added the statement. Last year, the State Bank of Pakistan decided to introduce structural reforms in the Exchange Companies sector, aiming to enhance controls in response to the significant depreciation of the rupee’s value in the open market.