KARACHI: The State Bank of Pakistan (SBP) has cancelled the licence of M/s Glaxy Exchange (Private) Limited due to serious violations of the central bank’s rules and regulations.
According to a press release issued on Friday, the decision has taken effect immediately.
Following the cancellation, the exchange company, including its head office and all outlets, is no longer allowed to carry out any foreign exchange-related business.
Meanwhile, Pakistan is likely to see another cut in interest rates, as the State Bank of Pakistan (SBP) is expected to reduce its key policy rate by 50 basis points at the Monetary Policy Committee meeting on January 26, according to a market poll.
The poll said the expected cut is due to lower inflation, higher foreign exchange reserves, and a stable rupee, although some risks still exist.
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While most analysts expect a 50 basis points cut, some believe the SBP may opt for a 75 basis points reduction, and a few think the rate may remain unchanged.
Overall, the median forecast points to a 50 basis points cut, continuing the central bank’s move away from its record 22% policy rate set in 2023. Since mid-2024, the SBP has reduced interest rates by a total of 1,150 basis points.
Analysts supporting a smaller cut say inflation is slowing, external finances have improved, and the balance of payments is stabilising. However, they caution that high core inflation and global geopolitical tensions could influence future policy decisions.
