Bank Alfalah Limited (BAFL) is set to establish an Exchange Company with an initial paid-up capital of up to PKR 2 billion, as confirmed by the bank’s filing on PSX today.
This capital will be generated through the issuance of 200 million ordinary shares to BAFL at a rate of Rs10 per share. The exchange company will function as a wholly owned subsidiary of Bank Alfalah, pending approval and clearance from the State Bank of Pakistan (SBP) and the fulfillment of other regulatory requirements.
This decision follows the SBP’s recent reforms, which encourage banks involved in foreign exchange operations to create wholly owned Exchange Companies (ECs) to address the legitimate foreign exchange demands of the public. The central bank’s goal is to streamline and consolidate various types of ECs into a single category with a clear mandate, addressing past regulatory challenges in EC operations.
Previously, five banks have resolved to establish an Exchange Company as subsidiary. While Many other banks are contemplating the same.
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