PHC upheld SBP decision

F.P. Report

PESHAWAR: Peshawar High Court (PHC) upheld State Bank of Pakistan (SBP) regarding incorporation of Money Exchange franchises in its branches while rejecting exchange companies’ writ pleas.

PHC’s divisional bench comprising of Justice Ijaz Anwar and Justice Shakeel Ahmad issued the decision on Exchange Companies’ writ pleas. During hearing SBP’s representative Alamzeb Khan advocate and Deputy Attorney General Aftab Ahmad appeared on behalf of federal’s government.

The writ pleaded that applicant’s companies are operating money changer franchises in Peshawar but on 6th September SBP issued a circular which had provided two option either the petitioners would incorporate the franchises in money exchange branches or sold it.

The counsel for petitioner argued that the circular is issued in contradiction with Foreign Exchange Regulation Act 1947 because the applicants had obtained permission from SBP and didn’t violated the rules. SBP’s 6th September circular is also against Article 9&18 of the Constitution of Pakistan.

However, SBP’s lawyer Alamzeb advocate argued that the Bank has jurisdiction to regulate and issue policy guidelines time to time to Money Exchange Companies. He argued that the decision is appreciated for its positive impacts for Money Exchange Companies and didn’t challenged before court in rest of the country.

PHC had turndown Money Exchanger writ pleas and declare that SBP is regulatory authority and can issue guidelines in this regard.