Karachi, October 27, 2023 – Allied Bank Limited (ABL) has received approval from the State Bank of Pakistan (SBP) to establish an exchange company, marking a significant development in the financial sector.
The SBP’s decision, aimed at enhancing the stability of exchange rates, paves the way for the formation of M/s. ABL Exchange (Private) Limited.
The communication of this approval was officially shared by ABL with the Pakistan Stock Exchange (PSX), signifying the bank’s commitment to expanding its range of financial services.
This notable milestone was achieved following a circular resolution passed by the Board of Directors of Allied Bank Limited on September 27, 2023. The resolution authorized the establishment of an Exchange Company, with an initial paid-up capital of Rs. 1,000 million, pending clearance from the State Bank of Pakistan, the Securities & Exchange Commission of Pakistan, and the fulfillment of other regulatory compliance requirements.
M/s. ABL Exchange (Private) Limited will operate as a wholly owned subsidiary of Allied Bank Limited, showcasing ABL’s dedication to venturing into new avenues and complementing its existing banking services with additional financial products.
The SBP’s decision to grant approval for commercial banks to establish their own exchange companies is part of a broader effort to stabilize exchange rates and enhance the country’s financial ecosystem. This move allows banks to play a more active role in the foreign exchange market, providing a valuable service to customers and contributing to the overall stability of the currency.
Exchange companies have a critical role to play in facilitating international trade, helping individuals and businesses engage in cross-border transactions, and ensuring the efficient flow of foreign currency. They provide valuable services such as currency exchange, remittances, and other foreign exchange-related transactions.
By enabling commercial banks like ABL to establish their own exchange companies, the SBP aims to enhance the accessibility of these services and ensure they meet international standards. This not only benefits businesses and consumers who require foreign exchange services but also contributes to the overall financial resilience of the country.
In summary, the State Bank of Pakistan’s no objection to ABL for setting up M/s. ABL Exchange (Private) Limited is a significant development in the financial sector. It reflects the regulator’s commitment to improving exchange rate stability and enhancing the overall financial services landscape in Pakistan. This move will empower ABL to expand its financial offerings and better serve the financial needs of its customers. It also aligns with the broader objective of promoting financial inclusivity and facilitating international trade.
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