Exchange companies’ dollar sales jump 30pc

Exchange companies in Pakistan experienced a significant increase in dollar sales to banks in August, with sales jumping by 30% year-on-year. According to the Exchange Companies Association of Pakistan (ECAP), companies sold $248.7 million to banks in August, up from $174.9 million in the same period last year. However, July saw a decline in sales to $230.7 million, down from $290.6 million in July 2025.

The surge in sales is attributed to the ongoing Gulf war, which has not affected Pakistan directly in terms of remittances. However, reports of Pakistani workers being sent back from the Gulf countries have caused concern among the market. The government has taken note of the situation, and there are fears of a shock if the war continues.

Pakistan is grappling with high oil prices, which are directly impacted by the war. However, the August inflow could potentially be higher if the situation in Kashmir were fully resolved. Malik Bostan, the Chairman of ECAP, stated that the inflows have started to normalize in Kashmir, and with the disruption caused by political conflicts, there could have been $50 million more inflows in July-Aug of this year.

ECAP has officially requested the State Bank to allow internet access across the entire Kashmir region. Partial internet access has already been restored. The exchange companies collectively sold $479.5 million in the financial year 2026-27, up from $465.5 million in the previous financial year. Pakistan is expecting higher remittances in FY27, with a target set at $44 billion, compared to $41.5 billion in FY26.

However, currency experts believe that the prolonged war has altered the economic situation in the Middle East, with Gulf countries struggling to sell their only income-generating product, oil.