Press Release
VIS Reaffirms Entity Ratings of Pakistan Currency Exchange Company (Private) Limited
Karachi, April 22, 2026: VIS Credit Rating Company Limited (‘VIS’) has reaffirmed the entity ratings of Pakistan Currency Exchange Company (Private) Limited (‘PCEC’ or ‘the Company’) at ‘A-/A2’ (Single A Minus/A Two). Medium to long term rating of 'A-' indicates good credit quality; Protection factors are adequate. Risk factors may vary with possible changes in the economy. Short-term rating of 'A2' suggests good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned ratings remains ‘Stable’. Previous ratings action was announced on November 28, 2024.
PCEC was incorporated in Pakistan on June 20, 2003, as a private limited company. The State Bank of Pakistan (SBP) has issued a license in favor of the Company to undertake the business of an exchange company under the Foreign Exchange Regulations Act, 1947. The Company is engaged in the business of currency exchange and associated services permitted under the license. The registered office of the Company is situated in Karachi. PCEC operates through multiple branches across various cities in Pakistan, including Karachi, Lahore, Islamabad, Quetta, and Peshawar.
The assigned rating reflects PCEC’s established market position in Pakistan’s currency exchange sector, supported by an extensive branch network, diversified service offerings, and strong sponsor backing from the Bostan family. The Company benefits from experienced management and deep industry knowledge, which has enabled it to maintain a notable market presence and adapt to evolving regulatory and operational dynamics.
The business risk profile remains moderate to high, given exposure to regulatory changes, increasing compliance requirements, and intensifying competition from banks and fintechs. While transaction volumes have grown significantly, particularly in bulk and export-related FX dealings, the shift away from cash-based transactions and evolving customer preferences continues to impact revenue mix and margins. The financial risk profile is characterized by strong topline growth but limited earnings conversion, weak coverage metrics, and reliance on external funding, however, liquidity is supported by a cash-heavy balance sheet, providing a degree of financial flexibility.
For further information on this ratings announcement, please contact on 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Currency Exchange Companies
https://docs.vis.com.pk/docs/ExchangeCompanyRatingMethodologyV2-2025.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf