The State Bank of Pakistan (SBP) has cancelled the authorisation and licence of Al-Rahim Exchange Company (Pvt.) Limited, citing serious violations of the central bank’s regulatory requirements.
The cancellation has taken effect immediately, effectively removing the company from Pakistan’s formal foreign exchange market.
Al-Rahim Exchange Company Barred From Forex Operations
Following the SBP’s decision, Al-Rahim Exchange Company and all of its branches are prohibited from conducting foreign exchange-related activities.
The company can no longer buy, sell or otherwise deal in foreign currencies. Customers and counterparties will therefore no longer be able to conduct foreign exchange transactions through the exchange house.
First Exchange Licence Cancellation of FY2026-27
The action represents the first exchange company licence cancellation during the financial year that began on July 1, 2026.
The decision also comes amid continued regulatory enforcement against exchange companies. The SBP has taken several actions against exchange houses during 2026 as part of efforts to improve compliance across the sector.
SBP Provides Limited Details on Violations
The central bank did not disclose the specific regulatory violations that led to the cancellation.
Exchange companies operating in Pakistan are subject to regulatory requirements covering areas such as foreign exchange transactions, documentation, reporting and anti-money-laundering compliance.
The latest action highlights the importance of maintaining compliance with the SBP’s regulatory framework for companies operating in the foreign exchange market.
Al-Rahim Had Operated Since 2004
Al-Rahim Exchange Company was established in 2004 and was based in Karachi. The company operated through a network of branches in several cities.
Its head office was located on Shahrah-e-Faisal in the PECHS area of Karachi.
With its licence now cancelled, the company no longer has the legal authority to conduct foreign exchange business in Pakistan.
SBP Tightens Oversight of Exchange Companies
The latest enforcement action reflects the SBP’s continued focus on strengthening oversight of Pakistan’s exchange company sector.
Only entities authorised and licensed by the central bank can legally conduct foreign exchange business. Licence cancellations serve as a reminder that regulatory compliance remains a fundamental requirement for companies operating in the sector.
The SBP’s action is also aimed at maintaining confidence and integrity within the country’s formal foreign exchange market.