Exchange Companies Association of Pakistan (ECA) Chairman Malik Bustan has offered to provide $1 billion monthly for the next two years to the government.
Briefing the Senate Standing Committee on Finance, Bostan said that the demands of the International Monetary Fund (IMF) are increasing day by day.
He claimed there is no shortage of foreign currency in the country and suggested that dollar market could never be controlled through strict measures and needed a free hand. He said that $180 billion went out of the Pakistan in 30 years.
The ECA chairman went on to say that there is need to give the market a free hand, adding that a lot of money is being wasted in cryptocurrency and foreign forex trade.
He also encouraged the government of providing Hundi/Hawala license to exchange companies on a pattern of Dubai and UK.
Mr Bostan further claimed that as per Financial Action Task Force (FATF), it does not require identification for sale of up to $15,000.
Afghan Transit Trade Benefits
He said that the Afghan Transit Trade has increased a lot, and reference is being used in the trade, adding that every month billions of dollars are being smuggled from Pakistan in the form of official and unofficial trade and through the borders, all of which are burdening Pakistan’s foreign exchange reserves.
The ECA chairman further added that Britain and Dubai have issued licenses for hawala banking.
“In Pakistan, SBP has limited the charges of exchange companies. Banks get Rs20 for bringing a dollar while forex association receives a rupee,” he said.