The Bank of Punjab (BOP) has approved a significant capital injection of Rs 1 billion into its wholly owned subsidiary, BOP Exchange Private Limited, aimed at strengthening its regulatory capital base and supporting business growth in Pakistan’s expanding foreign exchange and remittance sector. The decision was formally taken by the bank’s Board of Directors during a meeting held on February 17, 2026, according to an official disclosure submitted to the Pakistan Stock Exchange (PSX).
The additional investment is expected to enhance BOP Exchange’s financial stability, enabling the subsidiary to meet regulatory capital requirements mandated by the State Bank of Pakistan while also providing the necessary resources to scale its operations. BOP Exchange, a fully owned subsidiary of the Bank of Punjab, plays a critical role in the bank’s broader financial ecosystem, facilitating currency exchange, foreign remittance, and related financial services.
This move reflects the growing strategic focus of financial institutions on strengthening their exchange and remittance arms amid increasing cross-border flows and evolving regulatory frameworks. With Pakistan witnessing higher remittance inflows and a rising demand for reliable foreign exchange services, expanding the operational and capital base of subsidiaries like BOP Exchange is seen as a vital step in maintaining competitiveness and compliance.
BOP Exchange was initially established in 2023 with an authorized capital of Rs 2.50 billion as part of the Bank of Punjab’s diversification strategy, aimed at expanding into regulated foreign exchange and remittance operations. Following this, the State Bank of Pakistan granted the subsidiary an Exchange Company License in September 2024, allowing it to commence regulated exchange activities. The latest infusion of Rs 1 billion further strengthens its capital position, supporting both regulatory compliance and strategic growth plans.
According to the disclosure submitted to the PSX, “Bank’s Board of Directors in its meeting held on 17.02.2026 have approved the Injection of an additional capital of PKR 1.0 billion in BOP Exchange Private Limited to meet the required regulatory capital requirements and support business growth.” This approval underscores the parent bank’s commitment to reinforcing the subsidiary’s operational and financial capabilities as it continues to expand its footprint in Pakistan’s exchange and remittance sector.
Analysts note that the injection not only enhances the subsidiary’s capital adequacy but also positions BOP Exchange to take advantage of emerging market opportunities, including rising demand for cross-border remittances, increasing digital adoption, and expansion of formal foreign exchange channels. By strengthening its subsidiary, the Bank of Punjab is strategically enhancing its operational ecosystem while ensuring compliance with regulatory standards.
The capital infusion is also expected to improve operational resilience, enable infrastructure upgrades, and support new initiatives aimed at increasing transaction efficiency and customer outreach. As Pakistan’s financial sector continues to evolve, investments in specialized subsidiaries like BOP Exchange highlight the growing importance of dedicated foreign exchange and remittance services in supporting both institutional growth and broader economic development.
With this latest move, the Bank of Punjab reinforces its strategic vision of scaling regulated financial operations, enhancing customer service, and consolidating its position as a leading player in Pakistan’s exchange and remittance market. The strengthened capital base ensures that BOP Exchange remains well-positioned to meet market demand while adhering to regulatory and compliance standards set by the central bank.
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