The State Bank of Pakistan (SBP) has issued a new directive prohibiting cash-based dollar transactions in an effort to stabilize the rupee and prevent excessive dollar outflows. Under the new rules, banks and exchange companies must transfer foreign currency directly into customers’ accounts instead of providing cash. Individuals without foreign currency accounts will no longer be able to purchase cash dollars. The SBP stated that the move aims to promote a cashless economy and ensure transparency in foreign exchange dealings. Exchange companies clarified that the decision will not affect travelers or those buying dollars for legitimate purposes, though buyers must provide proof of need. Additionally, transactions between customers and exchange companies are now limited to USD 500 unless verified for higher amounts. The new policy is part of Pakistan’s broader effort to strengthen its financial system amid ongoing currency pressure and foreign exchange challenges.