KARACHI: The Exchange Companies Association of Pakistan (ECAP) has pledged its full support for the State Bank of Pakistan’s (SBP) recently updated framework for exchange companies, describing it as a transformative initiative.
Zafar Paracha, Secretary General of ECAP, praised the updated “Regulatory Framework for Exchange Companies (RFEC)” for its potential to enhance the operational capabilities of exchange companies, ensure customer security, and combat illegal trading activities in the gray market.
“This comprehensive framework will strengthen corporate governance structures, establish robust internal controls and IT systems, and reinforce the enforcement regime,” Paracha said.
These measures will not only elevate operational standards across the sector but also enable exchange companies to serve their customers more effectively, he added.
The consolidated RFEC reflects SBP’s commitment to fostering transparency and efficiency in the financial sector, with a strong focus on safeguarding customer interests and curbing illicit trading practices.
He further commended the leadership and dedication of SBP Governor Jameel Ahmed and other SBP officials, acknowledging their relentless efforts and unwavering commitment to strengthening Pakistan’s economy.
“The SBP’s initiatives have already begun yielding positive outcomes in key areas, demonstrating their effectiveness in driving economic stability,” he added.
Paracha said that with the efforts of the SBP, significant difference of Rs15 between open market and interbank rates has been successfully reduced, fostering stability in the exchange rate and bringing more home remittances in the country.
“The rise in workers’ remittances is a clear indication of growing trust and confidence in the formal financial channels,” he added.
“In addition, the SBP’s monetary policy measurers have helped to contain the inflation to provided much-needed relief to the public and encouraged economic activity.” He said that monetary easing and reduced interest rates would help to revive the industrial and economic activities in the country.
On external account, the country had witnessed a significant reduction in the current account deficit, providing a cushion to build the depleting foreign exchange reserves, he mentioned.
On behalf of ECAP, he has assured full support to the SBP and said that exchange companies would continue to support for the economic growth by bringing more foreign exchange in the country.
Copyright Business Recorder, 2024
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