- Exchange companies now receive $15 million daily: Al-Bustan.
- The campaign exposes the relationship between black market traders and bank employees: President of ECAP
- Constant checking of illegal trade in dollars will help boost reserves.
ISLAMABAD: Chairman of the Exchange Companies Association of Pakistan (ECAP) Malik Bostan hopes that against the backdrop of the government’s crackdown on hoarders, black market and dollar smugglers, remittances in the country will increase by 10-20%.
Talking to NewsHe said that because of the campaign, exchange companies that previously received about $5 million a day now receive $15 million a day, an increase of 200%. For the same reason, he said the interbank and open market rate of the dollar has fallen significantly and is now around Rs 295. He asserted that if the campaign continues, the dollar will fall below Rs 250.
Bustan revealed that the campaign against hoarders, black market and dollar smugglers also revealed a link between black market traders and bank employees. He said that a huge amount of dollars was hidden in the vaults of various banks, and the bank employees coordinated with black marketers, using these dollars in hawala/hindi. Bostan said that the keys to these safes were in the possession of the corrupt bank employees, adding that upon receiving messages from the black marketers in question, they (the bankers) used to carry out illicit trade in US dollars.
The ECAP chief claimed that several FIRs have been lodged against bankers involved in the illegal activity.
Bostan said the illegal dollar trade has also corrupted many importers and exporters. He explained that there is a trend towards over-invoicing among importers and under-invoicing among exporters just for the sake of illicit trade in dollars. Importers, by overinvoicing, send more dollars abroad, while exporters, by underinvoicing, leave a large portion of their dollars in foreign banks. Bostan said this harms Pakistan and its foreign exchange reserves.
He also pointed out how dollars are smuggled into Afghanistan. He believed that permanent check on illegal dollar trade in all its forms would help Pakistan boost its foreign exchange reserves.
Following the campaign, which began on September 6 after a campaign by the military leadership, tens of millions of dollars have already been deposited in banks and open markets in the country. The Pakistani rupee, which fell to record levels to Rs 308 in inter-bank trade and beyond Rs 330 in the open market early this month, is in recovery mode and fell to Rs 295 in inter-bank trade and Rs 296 in the open market. This trend is expected to continue if the campaign against illicit trade in US dollars continues.
According to Al-Bustan, he asked the army commander, Lieutenant General Asim Munir, to take action against hoarders, black marketeers and dollar smugglers. Before the crackdown, the vast majority of people went to black market dealers.