KARACHI: The persistent shortage of US dollars in Karachi’s open currency market has caused difficulties for travellers, students and other legitimate buyers, despite continued efforts by authorities to stabilise foreign exchange availability.
Furthermore, the visits to multiple currency exchange outlets across the city indicate that many dealers are facing an acute lack of greenbacks.
In this regard, several exchanges reported that they are “only selling what they buy”, while others have stopped selling dollars altogether. Where sales are taking place, customers are often restricted to purchasing small amounts, typically no more than $100.
In this sense, some exchange companies are also holding only old-design dollar notes, which are less acceptable abroad and difficult for travellers to exchange at their destinations.
One passenger travelling to Malaysia in late November mentioned that they were unable to purchase dollars at the airport, which they planned to exchange for Malaysian ringgit upon arrival.
In addition, shortly before departure, they were compelled to buy ringgit locally at a rate of Rs74.5 per unit, significantly higher than the prevailing mid-market exchange rate of around Rs68 at the time.
The shortage has also affected students and their families. One of the Lahore residents said they visited 11 exchange companies unsuccessfully while attempting to arrange funds for a sibling’s overseas education expenses.
Meanwhile, market participants attribute the situation partly to stricter regulatory measures. Existing requirements such as biometric verification and presentation of an original CNIC have been supplemented by recent State Bank of Pakistan (SBP) circulars.
The notification issued on November 14 requires exchange companies to issue cheques for customers depositing dollars into foreign currency accounts, while a subsequent directive introduced additional facial recognition verification, posing challenges for some individuals, including women who wear the veil.
Meanwhile, experts warn that dollar-pegged digital currencies, though prohibited under current SBP instructions, are becoming more accessible and may be diverting activity to unregulated channels. Pakistan Banks Association Secretary Mir Nejib Rahman reiterated that banks cannot engage with stablecoins or crypto assets until a formal regulatory framework is issued.
