KARACHI: Pakistani traders misusing Afghan Transit Trade by importing about $2 billion worth import monthly, claimed by Malik Mohammad Bostan, Chairman Exchange Companies and Forex Association of Pakistan at a press conference on Monday.
(more…)Tag: Forex Association of Pakistan
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Banks increasing dollar rates; FAP tells Prime Minister
KARACHI: Malik Mohammad Bostan, President, Forex Association of Pakistan (FAP) on Monday informed Prime Minister Shehbaz Sharif that banks are increasing dollars rate.
Prime Minister Shehbaz Shari, in a Zoom meeting with FAP President, expressed concerns of significant devaluation of Pakistan Rupee (PKR) and asked reasons behind the recent fall of rupee against the dollar.
READ MORE: FAP demands dollar exchange without CNIC condition
Bostan explained the reasons for dollar appreciation including high trade deficit, delay of $1 billion IMF loan tranche and huge external debt which are scheduled to pay this year.
FAP President said that until the rate of dollar is not reduced in the interbank the free market may not bring down the exchange rate. He said the exchange companies can control the free market. “If banks bring down dollar rate by Re1 we will appreciate the local currency by Rs2,” he added.
READ MORE: FAP suggests incentive to undeclared $3 billion
Bostan informed the prime minister that after his oath taking the rupee appreciated to Rs181 to dollar from Rs189. “However, after political uncertainty and announcement of sit-in in Islamabad put pressure on the exchange rate,” he added.
READ MORE: Dollar makes fresh high at Rs194.18 at interbank closing
Due to uncertainty, importers are opening more Letter of Credit (LCs) and exporters were surrendering less dollars, which have reduced the supply of dollars in the local market, he added.
FAP President suggested that the government should ban import of luxury items, which help in saving around $12 billion annually. “This will help the country to repay external debt without taking more loans,” he added.
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FAP demands dollar exchange without CNIC condition
KARACHI: Forex Association of Pakistan (FAP) on Monday demanded the government of allowing US dollar exchange without the condition of Computerized National Identity Card (CNIC) in order to ensure sufficient supply of the foreign currency.
In a statement issued by FAP President Malik Mohammad Bostan said an estimated amount of $3 billion were taken at home safes and bank lockers. “People want to exchange the foreign currency but without CNIC condition,” he added.
READ MORE: FAP suggests incentive to undeclared $3 billion
Bostan said prior to 2008 under Protection of Economic Reform Act, many people purchased the foreign currency and parked at foreign banks and also had taken at homes or bank lockers. “At that time there was no condition CNIC,” he added.
“If this condition is relaxed then exchange companies will able to purchase huge amount of dollars and other foreign currency from public,” Bostan said.
READ MORE: Dollar hits record high Rs194 in midday trading
FAP President said the government should allow purchase of gold from local market. “They may sale gold in international market and surrender foreign currency in the local market.”
There is need to channelize foreign currency invested in cryptocurrency, he said and demanded that the government should provide legal cover to bring foreign currency back home.
READ MORE: Pakistan’s forex reserves fall to $16.37 billion
He suggested that banks should stop forward dollar selling and should be allowed to sale dollar equivalent to purchase.
Bostan said the State Bank of Pakistan (SBP) should imposed 100 per cent cash margin on all imports except for necessary items.
READ MORE: Pakistan receives record monthly high $3 billion as remittances
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FAP suggests incentive to undeclared $3 billion
People have an undeclared amount of $2 billion to $3 billion foreign currency in their homes and personal bank lockers. They want to exchange with Pakistani Rupee (PKR) but due to certain restrictions they are unable to bring it out. The government should provide legal shelter for declaration of concealed dollars, which will help to boost the foreign exchange reserves.
READ MORE: Pakistan’s forex reserves fall to $16.37 billion
Malik Muhammad Bostan, President, Forex Association of Pakistan (FAP) commented these at a conference on present economic woes, especially falling rupee and depletion of foreign exchange reserves.
“Many people taking advantage of Economic Reform Act purchased huge amount of dollars from the local market during the period of 1993 to 2008 and deposited in the banks of foreign countries or retained the dollars at their homes or lockers,” he said.
READ MORE: Pakistan’s forex reserves dip to $16.55 billion
Prior to year 2008, there were many unlicensed money exchange companies were operating under Economic Reform Act. Those exchange companies were allowed to sale and purchase foreign currency without ‘Know Your Customer (KYC)’. SBP licensed exchange companies were required to conduct KYC on sale/purchase of above $10,000.
“Now those people want to sale their dollars through KYC but without identification,” he said, adding that the under Financial Action Task Force (FATF) conditions, the banks are required to obtain identification on sale/purchase of above $15,000.
READ MORE: SBP forex reserves shrink to 1.69 months import cover
“If this condition is relaxed then exchange companies will able to purchase huge amount of dollars and other foreign currency from public,” Bostan said.
FAP President said the government should allow purchase of gold from local market. “They may sale gold in international market and surrender foreign currency in the local market.”
Pakistan forex reserves inch up to $17.045 billion
There is need to channelize foreign currency invested in cryptocurrency, he said and demanded that the government should provide legal cover to bring foreign currency back home.
He suggested that banks should stop forward dollar selling and should be allowed to sale dollar equivalent to purchase.
Bostan said the State Bank of Pakistan (SBP) should imposed 100 per cent cash margin on all imports except for necessary items.
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Rupee gains 20 paisas in open market
KARACHI: The Pak Rupee gained 20 paisas in open market on Saturday owing to monitoring launched by exchange companies after meeting with State Bank of Pakistan.
The buying and selling of dollar was recorded at Rs142.30/Rs142.80 from previous day’s ending of Rs142.50/Rs142.50 in cash ready market.
The representatives of Forex Association of Pakistan (FAP) held meetings during last two days with State Bank of Pakistan to control the higher demand of dollar in open market.
In the last day meeting the FAP decided that it would not entertain non genuine buyers of dollars and would monitor the trading in the open market.
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Exchange companies stop dollar selling except for needy customers
KARACHI: Foreign exchange companies have decided to stop sale of dollars except for needy customers for education, health and Hajj, said Malik Bostan, President, Forex Association of Pakistan (FAP) on Friday.
The representatives of FAP today again held a meeting with Syed Irfan Ali Shah, Executive Director of State Bank of Pakistan (SBP) to discuss reducing dollar rate and availability of the greenback to customers in the open market.
After the conclusion of the meeting, the FAP decided that US Dollars should only be sold to real customers, including persons going abroad for heath and education. Further, buyers of dollars for Hajj and Umrah should also be entertained, it was decided.
It is decided that dollars should not be sold to people, who wanted to create uncertainty in the market.
Malik Bostan urged people to invest in local money instead of US dollar. “We should shun use of dollar to strengthen our economy,” he said.
He appealed the people that if they avoid dollar buying for few days then its value would automatically reduce.
Malik Bostan said that at present the dollar demand is around $7-8 million and in contrast the supply is only $4-5 million.
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Rupee value to strengthen in coming days, SBP tells FAP members
KARACHI: State Bank of Pakistan (SBP) has said that the rupee value to stabilize as large payment was made last week.
Talking to representatives of Forex Association of Pakistan (FAP) on Thursday, Executive Director of SBP Syed Irfan Ali Shah said that last week large payments made last week and now the local currency would not devalue further, said a FAP press release.
He further said that the government had no intention to devalue the local currency.
He said that the local currency would depreciate with rising demand in interbank foreign exchange market but it would stabilize on easing demand.
“It has been seen today the rupee value strengthen in the interbank bank,” he said and added that the rupee value would further strengthen in coming days.
He said that the trade deficit would reduce to $12 billion from previous year’s $18 billion. He also hoped that the exports would grow to $28 billion from $23 billion.
The SBP executive director said that friendly countries including Saudi Arabia, Dubai, Malaysia, Singapore, Australia and China would make investment of around $20 – 30 billion next year. This will increase foreign direct investment, he added.
The government is also making all efforts to send skilled laborers abroad to increase workers remittances. These efforts will help increasing workers remittances from $18 billion to $25 billion, he added.
Earlier, FAP President Malik Bostan expressed reservations on the shortage of dollar in free market.
Bostan attributed the rising dollar rate to interbank because before the visit of IMF delegation on March 05 the interbank rate was Rs138.50 to the dollar and since than the dollar value increased by Rs3 to Rs141.50. This trend also prevailed in free market, he added.
He said that the government had admitted the IMF conditionalities on exchange rate policy that should be based on market forces.
Due to these conditions there are 80 percent buyers and 20 percent sellers in the cash free market, he added.
Malik Bostan said that the dollar demand was also higher due to Hajj season.
He also pointed out to a comment by Dr. Ashfaque Hassan, Member Advisor Council, who said that the dollar would reach Rs150. Such statements send negative message to the public, he added.
Malik Bostan said that the dollar demand was also rising due to conditions imposed on non-filer of income tax returns by the government as people had investment option in dollar, gold and prize bonds.