Karachi, July 20, 2023 – In an official statement released on Thursday, the Karachi Chamber of Commerce & Industry (KCCI) expressed its appreciation to Federal Minister for Finance & Revenue Senator Muhammad Ishaq Dar and Governor State Bank of Pakistan (SBP) Jameel Ahmed for approving the budget proposal of KCCI for FY2023-24.
The proposal calls for the creation of a Trading Portal for Spot Transactions of foreign Exchange, which will offer facilitation to Importers, Exporters, and Industries.
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Karachi Chamber of Commerce & Industry (KCCI) applauds Pakistan government’s decision to establish a web platform for spot trading of currency, aimed at boosting transparency and curbing illicit transactions.
The move was met with support from key figures within the business community. Chairman Businessmen Group and Chief Executive TDAP Zubair Motiwala, President KCCI Tariq Yousuf, and Chairman of KCCI’s Special Committee for Budget Proposals Ibrahim Kasumbi issued a joint statement praising the government’s efforts to streamline the buying and selling of foreign exchange for import/export trade. The new platform aims to eliminate manipulation and discourage illegal practices like Hawala/Hundi transactions, which have caused significant losses of foreign exchange for the country.
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KCCI believes that implementing a transparent and fair spot trading system for foreign exchange will help prevent leakages of foreign currency and restrict transactions through unofficial channels, used for money laundering, cross-border smuggling, and under-invoicing.
Chairman BMG Zubair Motiwala emphasized that the spot trading platform will facilitate the import of raw materials, thereby supporting export-oriented industries and bolstering exports in the long run. President Tariq Yousuf pledged KCCI’s full support for this crucial initiative, promising to contribute valuable input and suggestions to improve the functioning of the Trading Platform, specifically for spot sale and purchase of foreign exchange solely for financing imports of raw materials and intermediate goods. He also stressed that the platform should prohibit the purchase of foreign exchange for luxury items, including automobiles.
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Chairman Special Committee for Budget Proposals Ibrahim Kasumbi highlighted the need for transparency and accessibility in the Trading Platform. It should be open to registered stakeholders, including importers, exporters, and individuals sending remittances to Pakistan. By doing so, the platform aims to reduce the disparity between interbank rates, open market rates, and Hawala rates, encouraging the use of official banking channels and diminishing reliance on grey channels for remittances. Consequently, spot transactions are expected to bolster foreign exchange reserves and halt the outflow of foreign currency.
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The KCCI is optimistic that the government’s initiative to create a web platform for spot trading of currency will pave the way for a more robust and efficient foreign exchange system, fostering economic growth and stability for the nation.
