KARACHI: The Karachi Chamber of Commerce & Industry (KCCI) is of the view that a transparent and fair spot trading of foreign exchange will prevent leakages of foreign currency and curtail transactions through grey channels which are used to finance money laundering, cross-border smuggling and underinvoicing.
The chamber expressed its gratitude to Federal Minister for Finance & Revenue, Senator Muhammad Ishaq Dar and Governor State Bank of Pakistan (SBP), Jameel Ahmed for giving due consideration and adopting the budget proposal of KCCI for FY2023-24 to create a trading portal for spot transactions of foreign exchange to facilitate importers, exporters and industry.
Chairman Businessmen Group and Chief Executive TDAP, Zubair Motiwala, KCCI President Tariq Yousuf and Chairman of KCCI’s Special Committee for Budget Proposals, Ibrahim Kasumbi have appreciated the efforts by the government to streamline the process of buying and selling of foreign exchange for import/export trade which will eliminate manipulation and discourage Hawala/Hundi transactions that have resulted in heavy loss of foreign exchange to the country.
Chairman BMG, Zubair Motiwala expressed that the spot trading platform will facilitate import of raw materials which in turn will support the export-oriented industries and enhance exports.
President Tariq Yousuf added that KCCI will fully support this much needed initiative and will continue to provide its input and suggestions to improve the working of Trading Platform for spot sale and purchase of foreign exchange only for the purpose of financing imports of raw materials and intermediate goods. He emphasized that the platform should not allow purchase of foreign exchange for import of luxury goods including automobiles.
Chairman Special Committee for Budget Proposals Ibrahim Kasumbi stated that the Trading Platform should be transparent and accessible to registered stakeholders including importers, exporters and individuals sending remittances to Pakistan.
This will significantly narrow down the gap between interbank rates, open market as well as Hawala rates, resulting in diversion of remittances from grey channels to official banking channels. Spot transactions will certainly help in increasing foreign exchange reserves and stop leakages.
Copyright Business Recorder, 2023