The country is at present going through a severe economic crisis and there is acute dearth of foreign exchange, resulting in an adverse balance of payments situation.
The faulty economic policies of the past have landed us in this crisis and it is a well known fact that the country has been facing a severe shortage of foreign exchange for the last 12-18 months with the reserves depleting at a very fast pace, because exports have been dwindling while imports continue unabated at the same pace. All efforts are being made by the government, at all appropriate levels, to attract Foreign Direct Investment from friendly countries, as well as borrow on short term basis from world economic agencies like IMF, World Bank, Asian Development Bank etc so as to provide support to the economy and prevent default in payments on scheduled debts repayment.
In this prevailing situation all patriotic elements in the country have been making efforts in this direction and even individuals have been trying to convince the rich to bring back their money from abroad. E-mails and SMSs from individuals and letters to the editors in different newspapers have tried to motivate all those who have some money to spare, to open and maintain foreign currency accounts in Pakistani banks even though they may be of smaller amounts of US $1000. Efforts are being made to convince Pakistani expatriates to send as much foreign exchange as possible back to the country because this is the time of need and any money sent in FE, even in smaller amounts will help provide strength to the foreign reserves of the country.
At this critical time, it is shocking to learn that some unscrupulous elements have allegedly been working to deprive the country of the existing foreign exchange by smuggling and transferring large amounts through illegal means, like the Hundi and Havala methods. Whereas some illegal transfer always takes place and smaller amounts are smuggled out of the country by individuals and the same is reportedly overlooked by the authorities. Large scale operations in this regard on an institutionalised basis are totally unacceptable even under normal circumstances - what to say of the present times when all efforts need to be taken to preserve and enhance the foreign exchange reserves.
It was reported some time back that individuals were apprehended while trying to smuggle large amounts of Pakistani currency across the China-Pakistan border and it was evident that some FE would also have been taken to either side by these people. However, the news that some large and credible money changers are also allegedly involved in this heinous crime, is not only disconcerting, but is also totally unnerving, to say the least. These money changers have been licensed by the State Bank of Pakistan to carry out transactions in foreign exchange for the convenience of the public and thus would be making a reasonable earning from the service charges received from them.
It has been reported that as a result of the investigations carried out by the FIA, some large money changing companies are allegedly involved and it is estimated that about US $10 billion were sent out by them during the last three months or so. What needs to be seen is the possibility that influential people are allegedly involved in this unhealthy practice of depriving the country of the precious commodity when we need it the most.
The confidence of the general public has been badly shaken and has sent a wave of disgust among them against the guilty persons. The big shock is that even some leading money changers, who enjoyed the trust and confidence of the common man in the country and abroad and were approached extensively for the transfer of money through legal means, should have allegedly been found to be involved in such horrible activity.
It is a matter of comfort and solace that the government and its agencies, like the State Bank and the FIA etc, have been vigilant and have nabbed these persons at the right time and have managed to prevent them from doing further damage to the country's exchange reserves. While it is hoped that the culprits will be brought to book and punished, no unnecessary scare should be created and only the wrongdoers must be punished so that normal business may continue and the common man is not denied his legal right in relation to money matters.
In this regard the statement of the chief of FIA is very significant in which he has stated that the action is not a sudden crackdown, but that they had been vigilant and were keeping an eye on the FE dealers in the country for some time. This was extremely essential in view of the precarious foreign reserves situation prevailing in the country and the government had also directed us to keep a watch on the local foreign exchange market and see that no underhand dealings were done to cheat the country's exchequer of the much needed commodity, especially at this point in time of dearth and need.
The State Bank has also been involved in this action and will be deeply involved in further investigation of facts in this regard. The advisor to the Prime Minister, Shaukat Tarin, has said that the people involved in the illegal transfer of dollars would be brought to book, irrespective of their influence and action will be taken according to law.