The federal government Tuesday assured the representatives of the Exchange Companies that a representatives of the State Bank will accompany FIA team during the surprise visits of Exchange Companies. A delegation of ECs, led by the President of Forex Association of Pakistan (FAP), Malik Bostan called on Adviser to Prime Minister on Finance, Revenue and Economic Affairs, Dr Abdul Hafeez Shaikh in Islamabad. The meeting was also attended by Secretary Finance Naveed Kamran Baloch, Governor State Bank of Pakistan (SBP) Dr Reza Baqir, Director General FIA Basheer Memon, President Exchange Companies Association of Pakistan (ECAP) and senior officials of Ministry of Finance and representatives of foreign exchange dealers.
After the meeting, Malik Bostan told Business Recorder that advisor to Prime Minister on Finance Abdul Hafeez Shaikh and DG FIA has accepted the exchange companies' long-standing demand and now a representative of the SBP will escort FIA team during the surprise visit of any Exchange Company and the entire inspection will be conducted in the presence of SBP's representative.
He said during the meeting, FAP also suggested a rebate scheme for exchange companies for higher home remittances inflows. "Presently, Pakistani banks with alliance of some 170 international money transfer companies are carrying $10 billion inward home remittances inflows and government is paying Rs 6 per transaction to these banks, while exchange companies are not paying a single penny for bringing home remittances," he said and added that exchange companies can bring $5 to $7 billion annually, if government pays a rebate of Rs 2 per transaction.
Bostan also urged the government for imports from China under the currency swap arrangement to reduce the demand of greenback in the local market for import purposes. "The government can save $15 billion by implementing currency swap arrangement," he added.
He said during the last one week exchange rate has stabilized in the open currency market and dollar demand has reduced, of which dollar rate dropped to Rs 150 from Rs 154. During the last three days, exchange companies have surrendered some $15 million in interbank market through commercial banks, he added.
Meanwhile, according a statement issued by ministry of finance, the delegation suggested various measures aiming at improving foreign exchange of the country. The representatives of the association said that smuggling of dollar to Afghanistan and Iran is a serious issue and the government agencies should take strict action against such elements who are involved in foreign currency smuggling.
The delegation said that people, who are travelling abroad, are carrying six million dollars per day. In order to reduce the outflow of dollar, the delegation proposed that the foreign currency limit for people, who are travelling abroad, should be revised.
The delegation expressed concern over underinvoicing by some importers and suggested that the customs authorities should take over the goods of the importers who are involved in underinvoicing causing losses to the exchequer. The delegation also offered its support to improve foreign exchange of the country. Dr Abdul Hafeez Shaikh assured the delegation that their proposals would be considered positively.