Dollar sellers rush to exchange companies as Pakistan cracks down on hoarders, smugglers

An employee of a foreign exchange shop poses with U.S. dollar banknotes from behind a glass booth in Karachi, Pakistan on September 7, 2023. (Photo courtesy: REUTERS)
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Updated 07 September 2023
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Dollar sellers rush to exchange companies as Pakistan cracks down on hoarders, smugglers

  • Rupee recoups its value by 7% from Rs329 to Rs307 against dollar in open market during last three trading sessions 
  • Financial experts term crackdown against dealers, exchange companies short-term actions, call for broader measures 

KARACHI: Pakistan’s exchange companies witnessed a massive influx of customers, predominantly sellers, seeking to convert their dollar bills on Thursday as authorities continue to crack down on currency hoarders, smugglers, and black marketers, currency dealers and financials analysts said. 

The development took place days after Pakistan announced a crackdown against illegal currency smugglers and hoarders following army chief General Syed Asim Munir’s meeting with leading business figures in Lahore and Karachi last week. Munir assured the business community of fostering “transparency” in the dollar exchange and interbank rates. 

The greenback’s smuggling to Afghanistan and its illegal trading at the black market widened the gap between the interbank and open market rates last week. After the clampdown, the rupee gained 0.7 percent in the last three trading sessions to close at Rs304.94 against the dollar on Thursday. In the open market, the rupee appreciated around 7 percent since September 4 to close at Rs307 on Thursday. 

“We complained and requested the army chief to take action against elements who were coercively taking our customers away from outside our exchange companies to buy and sell dollars in black market,” Malik Bostan, president of the Forex Association of Pakistan, told Arab News. 

Bostan said over 90 percent of the exchange business had been diverted to the black market, adding that exchange companies were losing massive chunks of business. 

“After losing major chunks of business, it was feared that the rupee would hit the Rs400 mark against the greenback,” Bostan said. He added that the timely crackdown and deployment of law enforcement personnel at exchange companies had fortunately reversed the trend. 

Bostan said exchange companies have deposited $30 million in the interbank market during the last two days. 

Meanwhile, currency dealers said the government has taken strict action against hoarders and has enhanced security measures at the borders to stop the smuggling of US dollars. 

“More sellers are rushing to our counters than buyers as the crackdown has nullified demand,” Zafar Paracha, general secretary of the Exchange Companies Association of Pakistan (ECAP), told Arab News. He added that exchange companies witnessed 30 percent more sellers at their counters on Thursday after the measures were taken. 

Separately, Pakistan’s Federal Investigation Agency (FIA) arrested five suspects involved in the hawala hundi (informal transfer of money) business in different parts of Pakistan’s commercial hub Karachi. 

The agency in a statement said initially, a sum of $35,000 was recovered from the individuals while the suspects failed to provide satisfactory explanations about the sale and purchase of $23,000. 

“During the investigation, dozens of foreign currency-related messages, including Hawala transactions, were found on the accused individuals’ mobile phones,” the FIA said. 

Pakistani analysts appreciated the government’s recent actions but called on authorities to maintain efforts to curb smuggling and unofficial dollar dealings.

“In the medium and long term, the focus should shift toward implementing more substantial strategies, such as attracting Foreign Direct Investment (FDI) and effectively managing the current account deficit to bolster our reserves,” Ali Nawaz, CEO of the financial services company Chase Securities, told Arab News. 

Senior financial analyst Khurram Hussain agreed with Nawaz, saying that similar measures have been taken numerous times in the past but always ended up being short-lived ones. 

“These actions only created short-term impacts due to the underlying economic conditions of the country as governments have been printing money to meet their expenses which has been fueling inflation amid limited supply of dollars,” Hussain told Arab News. 

To regulate foreign exchange business, Pakistan’s central bank announced reforms in the exchange companies’ sector on Wednesday.

As per these reforms, the central bank called on leading banks actively engaged in foreign exchange business to establish wholly-owned exchange companies. 

Meanwhile, existing exchange companies would now be consolidated into a single category and their minimum capital requirement has been increased to Rs500 million. 


UAE promotes Arab culture and cuisine at three-day festival in Karachi 

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UAE promotes Arab culture and cuisine at three-day festival in Karachi 

  • UAE consulate in Karachi kicks off celebrations ahead of nation’s National Day 
  • UAE is one of Pakistan’s largest trading partners and major source of remittances

KARACHI: The United Arab Emirates (UAE) Consul General in Karachi this week paid a visit to promote several stalls selling Arab cuisine and highlighting Arab culture at a three-day festival in Pakistan’s southern port city of Karachi, ahead of the Gulf nation’s National Day. 
Sindh’s Culture Minister Syed Zulfiqar Ali Shah inaugurated the three-day Sindh Craft Festival on Friday which showcases traditional shawls, quilts, handlooms, and caps made by artists from all over Sindh at Karachi’s famous Port Grand entertainment hub. 
UAE Consul General Dr. Bakheet Ateeq Al Rumaithi visited the festival on Friday to highlight Arab cuisine and review stalls promoting Arab culture at the festival. The UAE consulate is gearing up for celebrations to mark the nation’s 53rd National Day on Dec. 2.
“Various stalls have been set up at Port Grand keeping in mind Arab culture,” the UAE Consulate in Karachi said in a statement on Friday. 

Sindh’s Culture Minister Syed Zulfiqar Ali Shah (2L) inaugurates three-day Sindh Craft Festival during an event to mark the UAE’s 53rd National Day in Karachi on November 22, 2024. (Photo courtesy: UAE Consulate Karachi)

Al Rumaithi noted that women, children and the elderly were all taking part in the three-day cultural festival. 
“We have a centuries-old relationship with Pakistan which is strengthening,” he observed. 

UAE Consul General Dr. Bakheet Ateeq Al Rumaithi (5R) cuts the cake to celebrate the UAE’s 53rd National Day in Karachi on November 22, 2024. (Photo courtesy: UAE Consulate Karachi)

The UAE is one of Pakistan’s largest trading partners and a major source of foreign investment, valued at over $10 billion in the last 20 years, according to the UAE ministry of foreign affairs. The UAE-Pakistan trade volume rose to $7.9 billion in 2023, up 12 percent from 2022. 
In May this year, Prime Minister Shehbaz Sharif said the Emirates had committed $10 billion to invest in promising economic sectors in Pakistan. The Pakistan Business Council (PBC), set up this September at the Sharjah Chamber of Commerce and Industry, also aims to increase Pakistan’s bilateral trade volume with the UAE to $40 billion in three years.
The UAE is also home to more than a million Pakistani expatriates and the second-largest source of remittances to Pakistan after Saudi Arabia.


T20 Blind Cricket World Cup kicks off in Pakistan today sans India’s participation

Updated 23 November 2024
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T20 Blind Cricket World Cup kicks off in Pakistan today sans India’s participation

  • Pakistan’s blind cricket team to take on South Africa in Lahore today
  • India failed to secure clearance from government to travel to Pakistan

ISLAMABAD: The fourth T20 Blind Cricket World Cup will kick off today, Saturday, with Pakistan set to face South Africa in the eastern city of Lahore, state-run media reported days after India pulled out of the tournament.
The T20 Blind Cricket World Cup is scheduled to be held in Pakistan from Nov. 23-Dec. 3. As per Radio Pakistan, the tournament will feature blind cricket teams from Pakistan, Sri Lanka, Bangladesh, South Africa, Nepal and Afghanistan.  
“In the Fourth edition of the Blind Cricket T20 World Cup, the opening match will be played between South Africa and Pakistan in Lahore today,” Radio Pakistan said. 
India was also scheduled to take part in the tournament but the Cricket Association for the Blind in India (CABI) announced on Wednesday that its blind cricket team was withdrawing from the event, citing its failure to secure clearance from New Delhi to travel to Pakistan. 
Political tensions between nuclear-armed neighbors India and Pakistan have restricted cultural exchanges and bilateral sports events between the two nations.
Both countries have fought three wars, two of them over the Muslim-majority Himalayan region of Kashmir, which they both claim in full but rule in part.
India withdrew its blind cricket team from the tournament with a little over three months left before the start of the 2025 Champions Trophy, which is also set to be held in Pakistan in February/March next year. The Board of Control for Cricket in India (BCCI) informed the International Cricket Council (ICC) this month that India will not travel to Pakistan for the tournament.
The ICC informed the PCB of the BCCI’s decision, following which Pakistan demanded an explanation from the cricket governing body. Pakistan has repeatedly insisted it will not agree for the tournament to be shifted to another country and has insisted India travel to Pakistan for the Champions Trophy.
Pakistan hosted last year’s Asia Cup but all of India’s games were played in Sri Lanka under a “hybrid” hosting model for the tournament. Several months later, Pakistan traveled to India for the 50-over World Cup.


Pakistani authorities block roads and motorways ahead of opposition’s Islamabad protest

Updated 58 min 10 sec ago
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Pakistani authorities block roads and motorways ahead of opposition’s Islamabad protest

  • Jailed Imran Khan’s party has called for a “long march” to Islamabad on Nov. 24 to demand his release
  • Motorway police say as per intelligence reports, protesters will be armed with sticks and slingshots

ISLAMABAD: Pakistan’s National Highways and Motorway Police (NHMP) has said that motorways across the country have been sealed from various areas to protect people’s lives ahead of a planned protest by former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party to Islamabad on Sunday.
Pakistani authorities sealed off major arteries and roads with shipping containers leading to Islamabad from the surrounding Rawalpindi city and other areas on Friday ahead of the PTI’s “long march” scheduled for Sunday, Nov. 24.
In a notification released on Friday, the NHMP cited intelligence reports that protesters were planning to disrupt law and order in the capital, adding that they would be armed with sticks and slingshots.
“To prevent any untoward situation and to protect the lives of the people, motorways have been closed from various locations,” the NHMP said.
“The lives and property of the people will be guaranteed at all costs. Those who take the law into their hands will be dealt with strictly.”
Hours earlier, the NHMP had shared a notification on its social media platform X in which it had said that certain sections of the motorway were closed due to maintenance work. These sections were: M-1 Islamabad to Peshawar, M-2 Islamabad to Lahore, M-3 Lahore to Abdul Hakeem, M-4 Pindi Bhattian to Multan, M-14 Hakla to Yarik and M-11 Lahore to Sialkot.
As per local media reports, the Metro Bus service between the twin cities of Islamabad and Rawalpindi will be suspended on Nov. 24 while a ban on public gatherings has been imposed in Punjab from Nov. 23-25 ahead of the PTI’s march.
The PTI’s protest is primarily aimed at pressurizing the government to end Khan’s imprisonment which has lasted for over a year on what his party contends are politically motivated charges. The party also aims to raise its voice against alleged rigging in the Feb. 8 general elections while calling for measures to ensure judicial independence, which it says has been undermined by the 26th constitutional amendment. The government denies this. 
Earlier this week, Pakistan’s interior ministry had authorized the deployment of paramilitary Punjab Rangers and Frontier Corps troops in Islamabad to maintain law and order.
Pakistan’s parliament also passed a law earlier this year to regulate public gatherings in Islamabad, specifying timings for rallies and designating specific areas. The law prescribes three-year jail terms for participants in illegal assemblies and 10-year imprisonment for repeat offenders.


Families of Pakistanis trapped in forced labor in Myanmar urge authorities to secure release

Updated 23 November 2024
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Families of Pakistanis trapped in forced labor in Myanmar urge authorities to secure release

  • Thirteen Pakistanis were allegedly lured with job offers and trafficked to Myanmar from Thailand
  • Families say captors torture them to lure others into cryptocurrency scams disguised as investments

ISLAMABAD: The families of 13 Pakistani nationals allegedly taken hostage by job scammers in Myanmar have appealed to authorities this week to secure their release, saying their loved ones are being confined to a compound, subjected to torture and forced to lure customers online for cryptocurrency scams.
The incident is part of a growing trend of Pakistanis falling victim to transnational criminal networks operating in Southeast Asia. In July this year, families of six other Pakistanis reported similar cases, claiming their relatives were held hostage by criminal gangs in Myanmar.
According to the families of the 13 individuals, including two women, they traveled to Thailand in March on valid work visas for a construction company, where they worked for two months. Subsequently, they were relocated to Laos and then Myanmar after their employer claimed to be moving operations.
The victims, who had completed short computer and IT courses, had prior experience in online jobs and were recruited by an agent in Rawalpindi, Pakistan.
“They are now being held hostage in Myanmar, subjected to physical torture and sleep deprivation and forced to lure customers from Europe, America and Canada into cryptocurrency scams,” Danish Qamar, a resident of Wah Cantt in Punjab province, whose brother and nephew are among the trapped, told Arab News.
“They are tortured and made to work over 18 hours daily to trap people into fake cryptocurrency investments,” he added. “We have written applications to Pakistan’s foreign office and the Overseas Pakistani Foundation, but there has been no meaningful response.”
The issue of Myanmar’s criminal zones has also raised global concern, with the United States Institute of Peace reporting in November 2022 that these areas have been facilitating human trafficking, slavery and international fraud on a large scale.
Such criminal activities exploit vulnerable individuals, lured by the promise of high-paying jobs abroad, only to be trapped in forced labor and fraudulent operations.
Earlier this year, Pakistan’s foreign office acknowledged reports of Pakistani citizens being detained by such networks in Myanmar, saying that its diplomatic mission in the Southeast Asian country was working with local authorities to secure their release. The foreign office also emphasized the need for a coordinated international response to combat human trafficking and transnational organized crime.
Asked about the 13 Pakistanis, foreign office spokesperson Mumtaz Zahra Baloch reiterated in a brief response to Arab News, “Our mission is in contact with the relevant authorities.”
However, she did not provide further details on the number of Pakistanis held or the measures being taken for their release.
According to the families, the 13 individuals have been trapped in Myanmar for about 20 days. Efforts to seek help from Pakistani missions in Myanmar and Thailand have proven futile, as officials reportedly cited limited access to the “lawless” border regions where the victims are being held.
“Officials say this is a lawless area, but the scammers have all the facilities like the Internet and electricity to run their operations,” said Maqsood Sadiq, the father of Suleman, 20, one of the hostages.
“We urge the government to act immediately to secure their release,” he added.


Pakistan PM forms committee to resolve tensions with key coalition ally

Updated 23 November 2024
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Pakistan PM forms committee to resolve tensions with key coalition ally

  • Deputy PM Ishaq Dar, Defense Minister Khawaja Asif and Law Minister Azam Nazeer Tarar key members of committee
  • PPP Chairman Bilawal Bhutto-Zardari last week criticized federal government for imposing Internet restrictions, other issues

ISLAMABAD: Prime Minister Shehbaz Sharif this week formed a committee to resolve tensions between the ruling Pakistan Muslim League-Nawaz (PML-N) party and the Pakistan Peoples Party (PPP), a key coalition ally of the government, state-run media reported. 
PPP Chairman Bilawal Bhutto-Zardari publicly lashed out at the PML-N-led government last week, regretting its decision to block virtual private networks (VPNs) across the country. Authorities say the measures are meant to deter militants and other suspects who use VPNs to conceal their identities and spread “anti-state propaganda” and promote “blasphemous” or other illegal content online.
Speaking to journalists at his party’s media cell, the PPP chairman had also criticized the government for approving a project to construct new canals on the Indus River, saying the decision had been taken without consulting his party. 
“Prime Minister Shehbaz Sharif has constituted a committee to resolve issues between the Pakistan People’s Party and the Pakistan Muslim League-Nawaz and to foster cooperation on political and other matters,” state broadcaster Radio Pakistan reported on Friday. 
Deputy Prime Minister and Foreign Minister Senator Muhammad Ishaq Dar, Defense Minister Khawaja Muhammad Asif, Minister for Law Azam Nazeer Tarar and Minister for Economic Affairs Ahad Khan Cheema are members of the committee. 
It also includes Minister for Kashmir Affairs and Gilgit-Baltistan Engineer Amir Muqam, Adviser to Prime Minister Rana Sanaullah, Speaker Punjab Assembly Malik Ahmad Khan, Senior Punjab Minister Marriyum Aurangzeb, PML-N leaders Khawaja Saad Rafique, Jaffar Khan Mandokhail, and Bashir Ahmed Memon, it added. 
“The Prime Minister has assigned the committee the responsibility of having detailed consultation with the PPP to ensure political collaboration and resolve the issues,” Radio Pakistan said. 
It added that the committee would hold talks with members nominated by the PPP to discuss the future course of action between the two parties. 
The PPP is a major coalition ally of the coalition government which also voted Sharif into power after the contentious national election in February. While it is not part of the federal government, the PPP has its government in Pakistan’s southern Sindh province. 
Sharif’s government has relied on the PPP’s crucial votes in parliament to pass the national budget and key constitutional amendments earlier this year.