Booth at airports: B category money exchange firms barred from seeking CAA's licence

The State Bank of Pakistan (SBP) has disallowed participation of B Category money exchange companies in Civil Aviation Authority (CAA) tender for award of new license of currency exchange booth at airports. However, they are qualified to seek renewal of old licenses.
As per the SBP's fresh directives, all exchange companies will be required to obtain a formal approval from the State Bank for award or renewal of license of currency exchange booth at airports. All Exchange Companies are required to deposit non-refundable fee of Rs 50000 per outlet in RTGS Clearing account of the State Bank and submit the payment receipt as evidence of having paid the applicable fee for CAA tender.
In order to facilitate the Exchange Companies, including the B category companies in timely opening of their outlets or currency exchange booths or branches at Pakistani airports under CAA license, the state bank has introduced some new procedures, which will be applicable with immediate effect:
"All Exchange Companies, including Exchange Companies of 'B' category desirous of participating in CAA tender(s) for award or renewal of license of currency exchange booths or branches at any Pakistani airport will be required to obtain, in-principle, approval from SBP before participating in each CAA tender.
They have been asked that application, complete in all respects, must reach Exchange Policy Department at least 7 working days prior to the last date of the application submission with the CAA tender.
The approval for participation in CAA tender will be given by SBP to those Exchange Companies which have better compliance ratings, financial health, corporate governance, etc, as mentioned in Exchange Companies Manual. In addition, applications will be treated independent of their Annual Network Expansion Plan and may be submitted to the Director, Exchange Policy Department any time during the year as per CAA tender timelines.
At present, the 'B' category companies are not allowed expansion of their branch network. However, those holding valid CAA license of currency exchange booth or branch can apply for permission to participate in fresh tenders at airports/locations where they already operate after expiry of CAA license subject to compliance as applicable to Exchange Companies with requirement of Exchange Companies Manual.
The SBP has warned that failure to comply with the above instructions will evoke regulatory action against the concerned companies under the relevant provisions of the Foreign Exchange Regulation Act 1947.