US Dollar deposits in Pakistan have increased significantly during the first nine months of FY26. The total reached Rs. 87 billion, showing strong demand for the US Dollar in the banking system.
This marks a major shift compared to the previous year. During the same period last year, there was a net withdrawal of Rs. 9 billion. This shows that more people are now returning to formal banking channels for US Dollar deposits.
The State Bank of Pakistan (State Bank of Pakistan) has introduced strict measures to control currency movement. These rules aim to limit dollar outflows and stabilize the financial system.
Despite these restrictions, demand for the US Dollar remains strong. The latest data suggests that regulatory measures have not reduced interest in holding foreign currency in banks.
Officials explained that in the past year, many residents avoided depositing foreign currency. Instead, a large portion of US Dollar holdings was used for cryptocurrency trading. This reduced official bank deposits during that period.
However, the situation has changed with new regulations. The introduction of the Virtual Assets Act 2026 has reduced the use of dollars in crypto-related activities. As a result, more US Dollar funds are returning to the banking system.
At the same time, access to the US Dollar has become more controlled. Exchange companies are now required to issue rupees through cheques in many transactions.
There are also limits on how much foreign currency individuals can purchase. The cap is set at $950 per identity card. The annual limit is $2,000 per person.
Foreign currency accounts remain an important option in Pakistan’s financial system. These accounts allow people to hold US Dollar savings for international payments and currency protection.
Financial experts say the rising deposits reflect ongoing economic uncertainty. Many individuals prefer holding the US Dollar as a stable asset during fluctuations in the local currency.
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The increase in US Dollar deposits suggests a gradual return of confidence in the formal banking sector. However, strict regulations continue to shape how foreign exchange is managed in the country.
