Forex trading in Pakistan is regulated under the Foreign Exchange Regulation Act (FERA), 1947, which grants the State Bank of Pakistan (SBP) exclusive authority over all dealings in foreign exchange. Unauthorized participation in offshore online trading platforms is strictly prohibited (2).
Only SBP-licensed Authorized Dealers—primarily banks—and SECP-licensed brokers may conduct foreign exchange transactions on behalf of residents, ensuring compliance with national monetary policy. Retail individuals cannot legally open margin or CFD accounts with overseas platforms (1)(2).
"Such buying by residents of Pakistan is a violation of section 4(1) of the FERA. Further, it has also been observed that ADs are facilitating settlement/payments through their payment channels to such offshore trading platforms." (1)
Violators of FERA face civil and criminal penalties, including fines and possible imprisonment. Both SBP and the Securities and Exchange Commission of Pakistan (SECP) actively monitor and take enforcement actions against unlicensed forex brokers and platforms operating within Pakistan (1)(2).
Source:
https://www.sbp.org.pk/epd/2022/FECL8.htm
https://www.sbp.org.pk/fe_manual/appendix%20files/appendix%201/appendix1.htm
Last updated: 17-05-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
