The decision to create an exchange company aligns with the framework outlined by the State Bank of Pakistan. The authorized share capital for this venture is Rs. 2 billion, divided into 200,000,000 ordinary shares with a face value of Rs. 10 each. This initiative is subject to approval and clearance by the State Bank of Pakistan, along with the fulfillment of other regulatory compliance requirements, as stated in the stock filing.
“The Exchange Company would be a wholly owned subsidiary of the Bank and will operate as an exchange company within the framework prescribed by the State Bank of Pakistan,” the filing further explained.
In September, the central bank introduced several structural reforms in the Exchange Companies sector. As part of these reforms, banks actively involved in the exchange business were directed to establish wholly owned Exchange Companies. These entities are intended to cater to the legitimate foreign exchange requirements of the general public.
Since the announcement of these reforms, several banks, including Faysal Bank (PSX: FABL), United Bank Limited (PSX: UBL), Bank Al Habib (PSX: BAHL), MCB Bank (PSX: MCB), Allied Bank (PSX: ABL), and Meezan Bank (PSX: MEBL), have also revealed their plans to establish Exchange Companies in compliance with the State Bank of Pakistan’s directives.