Zarco Exchange
Zarco Exchange was a Pakistan-based foreign-exchange and money-transfer company that operated a nationwide outlet network before becoming the subject of a major 2009 regulatory and criminal investigation.
Last updated August 31, 2026
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Overview
Zarco Exchange was a foreign-exchange and remittance business based in Lahore, Pakistan. Its operations were built around a broad nationwide network of exchange offices and agency relationships with international money-transfer and electronic-payment services. The company was described as one of the largest Western Union agents in Pakistan and was ranked second nationally in 2009 among foreign-exchange companies, behind Khanani & Kalia International. The business offered currency-exchange and international money-transfer services through its own branches and through relationships with companies including Western Union, PayPal, and WebMoney. It also introduced branded financial products, including Visa traveller's cheques, although the available reference material does not provide enough detail to establish the scale or duration of those product lines. Zarco's business was severely disrupted in August 2009 when Pakistani authorities connected it to the wider Pakistan Forex Scam Case. The Federal Investigation Agency raided and closed all 727 of the company's exchange outlets on 7 August 2009. The State Bank of Pakistan suspended the company's licence, and more than 3,500 employees were reportedly unable to work as a result of the closure. Government allegations included money laundering and illegal transfers of funds abroad, while the investigation also raised allegations of fraud involving the company, its management, and directors. Zarco's chief executive, Sayd Lakht-e-Hussnain, denied involvement in fraud. The resulting dispute involved competing claims by Zarco and its management on one side and the State Bank of Pakistan and other authorities on the other. The legal and regulatory process continued into 2010 and 2011. In December 2010, a Lahore banking-offences court reportedly found no reason why Zarco should not seek revival of its licence. In February 2011, the Federal Investigation Agency released Lakht-e-Hussnain after deciding not to continue pursuing the case against him. By April 2011, the State Bank had reinstated Zarco's licences, allowing the company to resume operations. The available material does not establish Zarco Exchange's current ownership, corporate status, active branch network, present website, financial performance, or whether it continues to trade. It is therefore best characterized as a historically significant Pakistani exchange and remittance brand whose public record is dominated by the 2009 closure, subsequent legal proceedings, and regulatory reinstatement.
History
Zarco Exchange developed as a Pakistani foreign-exchange and remittance business headquartered in Lahore. Its principal operating model combined a large branch network with agency and service relationships involving international transfer and payment platforms. By 2009, the company was described as one of the largest Western Union agents in Pakistan and was ranked second among the country's foreign-exchange companies after Khanani & Kalia International. The company maintained offices across Pakistan and provided currency exchange, money-transfer, and related financial services. Its relationships reportedly included Western Union, PayPal, and WebMoney. Zarco also introduced its own Visa traveller's cheques and other financial products, indicating an effort to extend beyond basic currency conversion into branded payment and travel-finance services. The company's major turning point came in August 2009 during the Pakistan Forex Scam Case. Pakistani authorities accused Zarco of money laundering and of making illegal transfers to other countries. On 7 August, the Federal Investigation Agency raided and closed all 727 Zarco exchange outlets nationwide. The State Bank of Pakistan suspended the company's licence, bringing its operating network to a halt. The closure reportedly affected more than 3,500 employees. The investigation generated allegations of fraud against the company and raised questions about the conduct of directors and managers. Zarco CEO Sayd Lakht-e-Hussnain denied involvement in fraud. The matter developed into a complex legal dispute involving competing allegations and denials between Zarco and its management and the State Bank of Pakistan and other authorities. The available reference does not provide a complete account of every proceeding or the evidentiary basis for each allegation, so the accusations should be treated as allegations rather than established findings. The company eventually obtained a path toward regulatory restoration. In December 2010, the Special Court for offences in banking in Lahore stated that it saw no reason why Zarco should not apply to the State Bank for revival of its licence. In February 2011, the Federal Investigation Agency released Lakht-e-Hussnain after deciding not to pursue the case against him. By April 2011, the State Bank had reinstated Zarco's licences, and the company resumed trading. The post-reinstatement record is not sufficiently documented in the supplied material. There is no reliable information here about the company's current ownership, management, financial condition, branch footprint, licence status, or whether the brand remains active. Zarco Exchange's documented historical significance therefore rests on its large pre-2009 Pakistani network, its role as an agent for major international transfer services, its involvement in the 2009 foreign-exchange enforcement case, and its subsequent return to licensed operations in 2011.
- 2011
Licence reinstatement and operational restart
[1]The State Bank reinstated Zarco's licences by April, after which the company resumed trading.
- 2010
Court indicates licence revival could be sought
[1]A Lahore banking-offences court found no apparent reason preventing Zarco from applying to revive its licence.
- 2009
National ranking and major agency network
[1]Zarco was described as Pakistan's second-largest foreign-exchange company after Khanani & Kalia International and operated 727 offices nationwide.
- 2009
Nationwide closure during Forex Scam Case
[1]The Federal Investigation Agency raided and closed all Zarco outlets on 7 August, while the State Bank suspended the company's licence.
Products and positioning
A nationwide Pakistani foreign-exchange and remittance network serving retail customers and international money-transfer users through branch offices and agency relationships.
Foreign exchange
Foreign-currency exchange
Currency exchange was the company's core business. Zarco delivered the service through a large network of retail offices distributed across Pakistan. The available material does not specify the currencies traded, pricing model, or customer segmentation.
Remittance services
International money transfers
Zarco operated as an agent and service provider for international transfer activities, including a reported relationship with Western Union. The company also had working relationships with PayPal and WebMoney, although the precise scope of each relationship is not documented in the available source.
Travel payment product
Visa traveller's cheques
Zarco introduced its own Visa traveller's cheques as part of a broader range of financial products. The supplied material does not establish the launch date, distribution arrangements, or whether the product remained available after the company's 2009 closure.
Controversies
2009
Pakistan Forex Scam Case
Pakistani authorities implicated Zarco Exchange in a wider foreign-exchange enforcement case and alleged money laundering, illegal transfers abroad, and fraud. The Federal Investigation Agency closed the company's 727 outlets, while the State Bank suspended its licence. Zarco's CEO denied wrongdoing, and the subsequent proceedings ultimately led to licence reinstatement in 2011.
Brand decisions
2011
Return to licensed operationsStrategyBackground
A Lahore banking-offences court indicated in December 2010 that Zarco could seek revival of its licence, and the case against CEO Sayd Lakht-e-Hussnain was no longer pursued by the FIA.
Action taken
The State Bank reinstated Zarco's licences by April 2011.
Aftermath
Zarco resumed trading, although the available sources do not document the scale or longevity of its post-reinstatement operations.
2009
Authorities suspend the operating licenceOtherBackground
Zarco was implicated in the Pakistan Forex Scam Case amid allegations concerning money laundering, illegal foreign transfers, and fraud.
Action taken
The State Bank of Pakistan suspended the company's licence, while the Federal Investigation Agency closed its nationwide outlet network.
Aftermath
All 727 offices were closed and more than 3,500 employees were reportedly unable to work. A prolonged legal and regulatory dispute followed.
Sources1 sources
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