SBP decision to revoke company’s license suspended

PESHAWAR: The Peshawar High Court (PHC) on Thursday suspended the State Bank of Pakistan (SBP) ‘s decision to revoke the license of a private exchange company and halt its operations.

The court also issued notices to the bank and other relevant parties, seeking their response on the matter.A two-member bench comprising Justice Muhammad Ijaz Khan and Justice Syed Mudassir Ameer heard the writ petition filed by Orient Exchange Company.

During the hearing, the petitioner’s lawyers, Barrister Qasim Wadood and Babar Khan Yousafzai, argued that their client was the only Category B exchange company operating in the province.

They stated that the company had applied for an upgrade to a Category A license, but the SBP instead revoked its license without providing any justification.The lawyers contended that the cancellation of the company’s license violated fundamental principles of justice, as the petitioner was not allowed to present their case before the decision was made.

They argued that the company fully meets all the criteria and eligibility requirements under the Exchange Companies Manual, yet the SBP made an illegal and unjust decision that lacks legal backing.

The court suspended the State Bank’s orders on the license revocation, noting that the Ministry of Finance, the State Bank, and the Director of the Exchange Policy Department had yet to submit their comments on the matter. The suspension will remain in effect until the next hearing, which has been scheduled for April 9.