AVN 47.10 Increased By ▲ 0.45 (0.96%)
BAFL 28.60 Increased By ▲ 0.10 (0.35%)
BOP 3.75 Increased By ▲ 0.04 (1.08%)
CNERGY 3.16 Increased By ▲ 0.03 (0.96%)
DFML 11.05 Increased By ▲ 0.36 (3.37%)
DGKC 52.69 Decreased By ▼ -1.00 (-1.86%)
EPCL 42.89 Increased By ▲ 0.34 (0.8%)
FCCL 12.04 Decreased By ▼ -0.09 (-0.74%)
FFL 6.00 Increased By ▲ 0.07 (1.18%)
FLYNG 5.94 Decreased By ▼ -0.05 (-0.83%)
GGL 10.02 Increased By ▲ 0.12 (1.21%)
HUBC 68.60 No Change ▼ 0.00 (0%)
HUMNL 5.70 Increased By ▲ 0.05 (0.88%)
KAPCO 22.10 Increased By ▲ 0.20 (0.91%)
KEL 1.77 Decreased By ▼ -0.01 (-0.56%)
LOTCHEM 29.26 Increased By ▲ 0.86 (3.03%)
MLCF 28.38 Decreased By ▼ -0.07 (-0.25%)
NETSOL 73.59 Increased By ▲ 1.19 (1.64%)
OGDC 76.70 Increased By ▲ 1.20 (1.59%)
PAEL 9.26 Increased By ▲ 0.06 (0.65%)
PIBTL 4.19 Decreased By ▼ -0.05 (-1.18%)
PPL 59.29 Increased By ▲ 1.28 (2.21%)
PRL 14.33 Increased By ▲ 0.25 (1.78%)
SILK 1.12 Increased By ▲ 0.01 (0.9%)
SNGP 42.57 Increased By ▲ 1.82 (4.47%)
TELE 6.69 Increased By ▲ 0.10 (1.52%)
TPLP 11.98 Increased By ▲ 0.28 (2.39%)
TRG 94.00 Increased By ▲ 0.20 (0.21%)
UNITY 12.99 Decreased By ▼ -0.04 (-0.31%)
WTL 1.16 No Change ▼ 0.00 (0%)
BR100 4,145 Increased By 14.8 (0.36%)
BR30 14,193 Increased By 116.1 (0.82%)
KSE100 41,447 Increased By 94.1 (0.23%)
KSE30 14,715 Increased By 51 (0.35%)
Follow us

ISLAMABAD: Exchange Companies Association of Pakistan (ECAP) Chairman Malik Bostan Wednesday suggested to the Senate Standing Committee on Finance to remove the condition of the Computerised National Identity Card numbers and videos of buyers/sellers of foreign exchange up to US$15,000.

Bostan made detailed recommendations to the committee to improve the dollar situation in the country.

He claimed that the exchange companies provide monthly US$300 million to US$400 million and annually US$4 billion to the government through commercial banks. If the government gives permission of seeking dollars from overseas Pakistanis through the direct swap policy, the exchange companies can arrange up to US$12 billion per year.

Exchange rate: Removal of cap to inject stability into currency market: Bostan

Exchange companies have provided around US$4 billion to the present government during April 2022 to March 2023.

He further recommended that the exchange companies be permitted home delivery facility to compete with the Hawala/Hundi business. They can take the biometric device to the door step of the buyers and sellers to fulfil requirements of the State Bank of Pakistan (SBP). The system is Hawala/Hundi is improving day by day and we need to compete with this informal economy. If the exchange companies provide facilities at the doorstep of the buyers and sellers, people will prefer to carry out transactions through the exchange companies.

“One-time permission should be given to the accountholders to deposit cash foreign currency in their bank accounts without asking source of the foreign exchange. We can easily generate US$2-4 billion by giving this permission to the accountholders,” he suggested.

He apprehended that the amnesty schemes are not allowed by the International Monetary Fund (IMF), but the permission can easily generate huge amount of foreign exchange in the country.

He briefed the committee that the know your costumer (KYC) should be done for the buyers/sellers of foreign exchange, but the State Bank of Pakistan (SBP) should remove the restriction of making videos or submitting CNICs of the buyers/sellers of foreign exchange.

The association discussed various recommendations and assured that if policies are revised and restrictions are given relaxation by keeping in view the current economic situation of the country, dollar stability can be achieved.

He said that Pakistan is an economically stable country if the focus is given on agriculture and natural resources. He said that it does not require an IMF deal. In its recommendations, stress was given on cease of Afghan Transit and allowing deposits up to 15,000 dollars without verification. The exchange companies association claimed that they bought four billion dollars in the country last year and has the capacity to bring one million dollar every month.

He suggested that the exchange companies and overseas Pakistani should be given the status of export industry to compete with the black market as well as Hawala and Hundi.

ECAP Chairman stated that the multiple taxation is creating serious problems for the exchange companies and Federal Board of Revenue (FBR) must resolve the issue of sales tax/Federal Excise Duty on the exchange companies.

He suggested that rewards of 20-25 percent should be given to the officials who intercept cases of border smuggling, especially at the Pak-Afghan border.

He said that there is no shortage of foreign exchange in the country, but the market cannot be regulated by force. There is a need to give free hand to the exchange companies.

Malik Bostan stated that the FATF compliance of the foreign exchange companies in Pakistan is the best in the world. He suggested that the government should provide incentives to freelancers to bring their US$2 billion into the country.

Copyright Business Recorder, 2023


1000 characters
Ch K A Nye Mar 30, 2023 11:43am
Really good suggestions most of which will result in FATF blacklisting.
thumb_up Recommended (0) reply Reply

Forex buyers, sellers: Senate panel urged to remove CNIC-video condition

Intra-day update: rupee falls against US dollar in inter-bank and open markets

Oil jumps 2% on Saudi plan to deepen output cuts from July

Virtual pipeline LNG import terminal: Govt mulling granting tax exemptions

AEDB grants 6-month LoI extension to two wind IPPs

IK says will be tried in military court

Roosevelt Hotel given to NYC govt for 3 years: govt

PIA starts direct Karachi-Skardu flights

Crackdown on tax defaulting vehicles to begin today

$5bn trade with Turkiye achievable in 3 years: PM

Power supply to Balochistan and Sindh will improve: NTDC energises Guddu-Shikarpur transmission line