Issues faced by exchange companies: Farooqi to act as focal person

President Asif Ali Zardari on Saturday asked the ministry of finance and the State Bank of Pakistan to address the issues relating to exchange companies on a priority basis and provide them with a level-playing field.
In a meeting with a delegation of Exchange Companies Association of Pakistan (Ecap) at Bilawal House, Asif Ali Zardari appointed Principal Secretary to President Salman Farooqi as focal person and directed him to personally take up the matter and arrange exchange companies' meeting with the SBP governor and other officials to solve the problems being faced by ECs.
Ecap delegation comprised its Chairman Malik Muhammad Bostan, Haji Haroon and Zafar Paracha. Sindh Governor Dr Ishrat-ul-Ebad, Fouzia Wahab, Member National Assembly, Salman Farooqi, Deputy Governor State Bank Kamran Shahzad, Ali Sultan of the Exchange Policy Department and other officials were also present in the meeting.
This was President's second meeting with Ecap in five months. Earlier, he met Ecap in May. The President praised the performance of exchange companies for the stability of Pak rupee and rise in home remittances. He said the role of exchange companies cannot be ignored in the development of financial market and a massive raise in inflows of remittances is largely attributed to exchange companies' efforts.
The President assured the delegation that all the problems being faced by them will be solved on a priority basis to enable them to become more efficient. "The government is committed to providing Ecap with a level playing field as it plays a very important role in the money market."
About the progress on the issues of exchange companies, Zardari directed the SBP, the ministry and the FBR officials for maintaining a close liaison with Ecap to resolve their issues. The next meeting with president has been fixed for second week of October 2011 and before that Salman Farooqi will be required to arrange ECs meeting with governor SBP and the officials of other concerned departments.
During the meeting, the Ecap representatives appreciated the President's efforts and said that several problems of ECs are still un-addressed. Currently, there is a discrimination between banks and ECs as the ministry of finance is paying 25 Saudi riyal rebate on each $100 remittance to banks, while exchange companies have been completely ignored and not a single penny is being paid to ECs on remittances, they said and added that "we need a level-playing field to further enhance the inflows of remittances."
In addition, the SBP has also imposed a ban on network expansion and double taxation system also remains un-addressed by the authorities, they added. The SBP representatives said the central bank is fully committed to resolving the ECs problems and recently it also constituted a co-ordination committee to find solution to problems faced by exchange companies. The ban on network expansion will also be lifted soon, they added.