The State Bank of Pakistan (SBP) has introduced sweeping new restrictions on the purchase of cash US dollars, aiming to curb undocumented foreign-exchange transactions and promote a more transparent, cash-less market.

According to the new regulations, citizens purchasing dollars with the intention of depositing them into their Foreign Currency (FCY) accounts will no longer be allowed to obtain cash. Instead, exchange companies and banks will directly credit the purchased amount into the buyer’s FCY account.

Individuals who do not hold a foreign currency account will not be permitted to buy cash dollars for subsequent deposit into a bank account.

The SBP has also imposed a strict limit on cash purchases: no individual may buy more than USD 500 in cash without fulfilling enhanced documentation requirements.

For any cash purchase of USD 500 or above, buyers must:

Declare a clear and valid reason for purchasing dollars. Undergo mandatory biometric verification. Provide all relevant supporting documents, such as travel tickets, visas, or other proof depending on the stated purpose.

Travelers, students, and those undertaking Hajj or Umrah will also be required to complete full documentation for any purchase exceeding USD 500 to prevent misuse of the facility.

The central bank says these measures are intended to reduce the circulation of cash dollars, discourage the informal foreign-exchange market, and promote a “cashless economy.” Officials believe the new framework will enhance transparency and bring greater stability to Pakistan’s currency markets.