Pakistani exchange companies have demanded the government issue regulations for cryptocurrencies, in order to bring in inflows of dollars into the country.
The Exchange Companies Association of Pakistan (ECAP) proposed that the government should formulate cryptocurrency regulations and allow trading platforms in Pakistan.
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They claimed that people had invested billions of dollars in crypto exchanges, which is currently insecure in Pakistan.
This suggestion has been presented by Malik Bostan, Chairman, Exchange Companies Association of Pakistan (ECAP) in a meeting with Salim Mandviwala, Chairman, Senate Standing Committee on Finance on Wednesday in order to improve foreign exchange position in the country.
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He claimed that people had invested billions of dollars in crypto exchange, which is insecure in Pakistan. Bostan stated that these investment might brought back by granting license.
The ECAP has provided a roadmap to the government for improving the foreign exchange reserves of the country by controlling unnecessary outflow of the greenback.
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Bostan informed the standing committee that exchange companies were providing around $4 billion to the government through commercial banks. “We have proposed that if the government allows us direct swap then we will able to provide about $12 billion annually,” he said, adding that this will help reduce dependency on foreign lenders, including International Monetary Fund (IMF).
He proposed the authorities to allow home delivery of workers remittances and buying/selling of foreign exchange. “Our members are ready to provide home delivery by ensuring biometric verification,” Bostan added. This will discourage informal ways of foreign exchange movement.
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ECAP chairman said that people were taking out around $15 million per day from Pakistan. He proposed that dollar outflow should be restricted for the purpose of business, official tours, health, education, Hajj, Umrah etc.
He also suggested that the government should stop auto financing forthwith. “At present about 20 million vehicle plying on roads, which consuming huge amount of imported fuel.”
Bostan apprised that about $2 billon of freelancers were stuck up abroad. The government should provide incentives to bring the amount into the country.