Last Friday, at a meeting with representatives of Exchange Companies Association of Pakistan (ECAP), the president had directed the SBP and the FBR to immediately address the issues relating to exchange companies. Sources said the exchange policy department of the State Bank has asked exchange companies not to apply for expansion of current network even for payments booths
The SBP on Thursday issued a circular EPD/3814/24(I) Misc.EC-2011 dated May 12, 2011 to the chief executives of all the exchange companies asking them not to apply for expansion. The circular added that the exchange policy department of the SBP has drawn attention of exchange companies towards various instructions issued from time to time for the setting up of branches, franchise, payments booths and currency exchange booths.
"It has been decided that exchange policy department will not entertain any fresh request from exchange companies seeking expansion of their networks ie branches, franchises, payment booths and currency exchange booths," the circular said. Hence, the exchange companies have been advised not to apply for the expansion till further orders, it added.
"Most probably the SBP is going to revise the exchange companies' expansion policy, however it doesn't need imposing any such restriction," they added. Sources said the SBP has constituted a four-member co-ordination committee to solve the problems faced by exchange companies. This committee has two representatives of the SBP and two from exchange companies. It is being expected that this committee will review the already granted expansion licenses, they added.