In a major step to modernize the national economy and make financial transactions safer and more transparent, the State Bank of Pakistan (SBP) has announced a fundamental change in the procedure for the sale of foreign currency.

SBP has mandated that banks cease over-the-counter cash dollar sales and instead transfer the equivalent amounts directly into purchasers' accounts.

According to an SBP circular, citizens will no longer receive foreign currency in cash form. The central bank described the move as a major step toward modernizing the national economy and enhancing the safety and transparency of financial transactions.

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The policy aligns with global financial standards and is expected to help reduce the informal economy domestically, the State Bank stated.

Under Chapter 7, Clause 5 of the regulatory framework, all exchange companies have been instructed to implement the new policy immediately. No exchange company will be permitted to provide foreign currency to Pakistani citizens in physical cash under the updated guidelines.