The State Bank of Pakistan (SBP) has cancelled the authorisation and licence of M/s Al-Rahim Exchange Company (Pvt.) Limited with immediate effect following serious violations of the central bank’s regulatory instructions. The action applies to the company’s head office as well as all of its constituent branches, effectively ending its authorised operations within Pakistan’s foreign exchange market. The central bank announced the decision through a statement issued on Monday, August 17, 2026, as part of its regulatory oversight of exchange companies operating in the country.
Following the cancellation, Al-Rahim Exchange Company has been prohibited from undertaking any foreign exchange related business activities in any capacity whatsoever. The restriction means that the company can no longer conduct activities covered by its previous authorisation and licence from the SBP. The immediate nature of the cancellation means the company’s permission to operate has ceased with effect from the date of the central bank’s decision.
The SBP stated that the licence cancellation was prompted by serious violations of its regulatory instructions. However, the central bank did not provide further details regarding the specific nature of the violations committed by Al-Rahim Exchange Company. The statement did not identify the particular regulatory requirements that were breached or provide additional information about the circumstances that led to the decision. The action nevertheless reflects the SBP’s authority to take regulatory measures against exchange companies that fail to comply with applicable instructions and requirements.
The cancellation covers the company’s head office along with all its constituent branches, meaning the regulatory action is not limited to a particular location or branch of the exchange company. All operations falling under the company’s authorisation are therefore affected by the decision. By withdrawing the company’s authorisation, the SBP has removed its ability to continue conducting foreign exchange business through its previously authorised network.
Exchange companies operate within a regulated segment of Pakistan’s financial system and are subject to instructions issued by the State Bank of Pakistan. Regulatory oversight is intended to ensure that foreign exchange businesses operate within the applicable framework and comply with the requirements governing their activities. The cancellation of Al-Rahim Exchange Company’s licence demonstrates that failure to comply with these instructions can result in significant regulatory action, including the withdrawal of authorisation.
The SBP’s decision also reinforces the importance of regulatory compliance for companies involved in foreign exchange related activities. Exchange companies are required to operate within the conditions attached to their authorisations and follow the central bank’s instructions. Where serious violations are identified, the regulator can impose measures affecting the company’s ability to continue operating. In this case, the central bank has opted for immediate cancellation of the authorisation covering both the head office and branches.
No further details regarding the violations or any additional regulatory proceedings were disclosed in the SBP statement. The central bank’s announcement focused on the cancellation of the authorisation and the resulting prohibition on foreign exchange related business activities. Any further information concerning the specific breaches, their consequences or subsequent action would depend on additional disclosures from the relevant authorities.
The cancellation adds another regulatory action to the SBP’s oversight of Pakistan’s exchange company sector. By taking action against an authorised exchange company for serious regulatory violations, the central bank has reiterated that compliance with its instructions remains a fundamental requirement for entities operating in the foreign exchange market. Al-Rahim Exchange Company will no longer be permitted to conduct foreign exchange related business in any capacity following the immediate cancellation of its authorisation.
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