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. 


Pakistan parliamentary panel passes bill proposing three-year jail term for preaching Zionism

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Pakistan parliamentary panel passes bill proposing three-year jail term for preaching Zionism

  • Draft law proposes imprisonment and fines for individuals involved in preaching and displaying symbols of Zionism
  • Pakistan does not recognize nor have diplomatic relations with Israel and calls for an independent Palestinian state

ISLAMABAD: Pakistan’s Senate Standing Committee on Interior has this week approved a bill proposing a three-year jail term and fines for individuals involved in propagating Zionism or displaying the movement’s symbols.
Zionism emerged in the late 19th century as an ethnic and religious movement but later converted into a political movement for the establishment of the Jewish state of Israel through the colonization of land outside Europe, which is Palestine. 
Pakistan does not recognize nor have diplomatic relations with Israel and calls for an independent Palestinian state based on “internationally agreed parameters” and the pre-1967 borders with Al-Quds Al-Sharif as its capital.
The anti-Zionism bill approved by the Senate committee on Thursday was introduced in the upper house of parliament by Senator Dr. Afnan Ullah Khan, a lawmaker from the ruling Pakistan Muslim League-Nawaz party. He has tabled the bill as a private member, which means its approval does not signify government policy. This bill will become law only if it is passed by both houses of parliament, Senate and National Assembly, with majority vote.
“Whoever knowingly or intentionally is engaged in the preaching of Zionism to incite and provoke hatred in society shall be punished with three years imprisonment, or with forty thousand rupees ($145) fine or with both,” says the draft law.
“Whoever knowingly or intentionally display symbol of Zionism to spread hatred and cause a disturbance in public peace shall be punished with two years imprisonment, or with thirty thousand rupees ($108) fine, or with both.”
Being a Muslim state, the bill says, Pakistan “should never allow display of symbols depicting Zionism for spreading unrest in Pakistan.”


Three-year-old girl sues Punjab government as smog crisis worsens in Lahore

Updated 47 min 2 sec ago
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Three-year-old girl sues Punjab government as smog crisis worsens in Lahore

  • Record air pollution has triggered hundreds of hospitalizations, school closures, stay-at-home orders in Lahore
  • On Friday, Lahore, home to 13 million people, had the worst air quality of any city in the world, according to IQAir

ISLAMABAD: A three-year-old girl in the eastern Pakistani city of Lahore has sued the government of the Punjab province as record-high air pollution levels have triggered hundreds of hospitalizations, school closures and stay-at-home orders in the city, which has been enveloped in a thick, toxic smog since last month.
On Friday, Lahore, home to 13 million people, had the worst air quality of any city in the world, according to IQAir, a Swiss air quality monitoring company.
Research shows children exposed to high levels of smog may suffer from reduced lung capacity, pneumonia, bronchitis and other lung infections and more asthma attacks and worse symptoms than adults. 
“Under Article 9-A of the Constitution, the government is obligated to provide citizens with a clean and healthy environment,” said the petition filed by three-year-old Amal Sekhera, who appeared in court with her mother Mehek Zafar on Thursday. 
Sekhera said she was seeking justice for herself, her friends and the future generations as children and the elderly were the most badly hit by air pollution and smog. She also criticized the Punjab government for failing to protect fundamental rights guaranteed by the constitution of Pakistan.
The Lahore High Court issued notices in response to the petition to the Punjab government, the Environmental Protection Agency (EPA) and the City Traffic Police. The hearing has been adjourned till Nov. 12, with the court instructing the government to ensure the presence of the provincial secretary of the Environment Protection Department and the director general of the EPA in court at the next hearing. 
Authorities earlier this week shut down schools in Lahore and said 50 percent of government employees in the city were told to work from home until next week. On Wednesday schools in 18 surrounding districts were also shut. Marriyum Aurangzeb, a senior minister in the Punjab province, has urged residents to voluntarily wear face masks and avoid unnecessary travel, and said that “otherwise, the government will be forced into a complete lockdown.” 
Authorities in the city have already banned barbecuing food without filters, as well as the use of motorized rickshaws, and wedding halls must close by 10pm. The government has also said it was looking into methods to induce artificial rainfall to combat the pollution, which has been sending patients to hospitals and private clinics complaining of coughs and burning eyes.
“Tens of thousands of patients suffering from respiratory diseases were treated at hospitals and clinics in a week,” Salman Kazmi, vice president of the Pakistan Medical Association, told media on Thursday.


Pakistan’s Muhammad Asif wins IBSF World Snooker Championship in Qatar

Updated 08 November 2024
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Pakistan’s Muhammad Asif wins IBSF World Snooker Championship in Qatar

  • Asif defeated Iran’s Ali Ghareghozlou 5-3 to clinch the title for 3rd time
  • PM Shehbaz Sharif promises to set up world-class facilities for sportsmen

ISLAMABAD: Prime Minister Shehbaz Sharif has congratulated Pakistani cueist Muhammad Asif for winning the International Billiards and Snooker Federation (IBSF) World Snooker Championship in Qatar for the third time, Pakistani state-run media reported on Thursday.
Asif defeated Iran’s Ali Ghareghozlou 5-3 to clinch the title in a thrilling final on Nov. 6. He outclassed Ali 5-3: 70-25, 7-87(84), 82(56)-8, 106(106)-08, 82-12, 43-91(58), 0-118 and 93(80)-4.
“Asif made the entire nation proud by winning the international championship for the third time,” PM Sharif was quoted as saying by the Radio Pakistan broadcaster. “The talented youth of Pakistan are highlighting the country’s name in the fields of sports.”
The IBSF, founded in 1971, is the governing body for billiards and snooker worldwide. It represents 85 member countries and is recognized by the World Confederation of Billiard Sports and the International Olympic Committee.
Asif, 42, first won the IBSF World Snooker Championship in 2012 and went on to win it again in 2019. His victory ties him with India’s Pankaj Advani who has also won the World Snooker Championship thrice.
The Pakistan prime minister said Asif’s family and coach also deserved recognition, adding that providing quality facilities to Pakistani players was top priority of his government.
“The government is making all possible efforts to provide international standard facilities to the players,” he added.
 


China, Pakistan discuss advancement of rail, road and economic zone projects under CPEC

Updated 08 November 2024
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China, Pakistan discuss advancement of rail, road and economic zone projects under CPEC

  • The discussions included sections of Main Line-1 railway project, Karakoram Highway as well as Gwadar port and economic zone
  • Beijing has invested over $65 billion in energy, infrastructure and other projects as part of the China-Pakistan Economic Corridor

ISLAMABAD: China and Pakistan on Thursday discussed advancement of key infrastructure and economic projects under the multi-billion-dollar China-Pakistan Economic Corridor (CPEC), the Pakistani government said, with the two sides also discussing security of Chinese nationals working in Pakistan.
CPEC, a part of China’s Belt and Road Initiative, aims to connect China to the Arabian Sea through a network of roads, railways, pipelines and ports in Pakistan and help Islamabad expand and modernize its economy.
The discussions on key CPEC projects were held during Chinese Ambassador to Pakistan Jiang Zaidong’s meeting with Pakistani Planning Minister Ahsan Iqbal, according to Pakistan’s Press Information Department (PID).
On the occasion, the Pakistani planning minister emphasized the need for concrete mechanisms to ensure smooth and effective implementation of bilateral projects.
“Both sides deliberated on advancing key projects, including the Karachi-Hyderabad section of Main Line-1 (ML-1) and Karakoram Highway (Thakot-Raikot Section) project, and agreed to accelerate the projects’ timely execution,” the PID said in a statement.
“Regarding the Gwadar Port and Free Zone, both sides expressed a mutual commitment to ensuring the continued development of Gwadar in a holistic manner.”
The meeting came two days after a security guard at a factory in the southern Pakistani city of Karachi shot and injured two Chinese nationals before fleeing, police said.
Last month, two Chinese nationals were killed in a suicide bombing near the international airport in Karachi. In March this year, a suicide bombing killed five Chinese engineers and a Pakistani driver in northwestern Pakistan as they headed to the Dasu Dam, the biggest hydropower project in the country. In 2022, three Chinese educators and their Pakistani driver were killed when an explosion ripped through a van at the University of Karachi. A blast on a bus killed 13 people in north Pakistan in 2021, including nine Chinese nationals.
China, breaking with tradition, publicly spoken out against security threats to its workers and nationals living in Pakistan, where hundreds of them work on Beijing-funded projects linked to CPEC.
Iqbal assured the Chinese ambassador the safety of Chinese citizens was a top priority of his government.
“Pakistan will continue working closely with China to ensure the security of Chinese citizens, projects, and institutions,” he was quoted as saying by the PID.
Ambassador Jiang expressed gratitude for Pakistan’s comprehensive engagement and said the Chinese side was ready for collaboration in areas of agriculture, mines and minerals, industrial cooperation, according to the PID.
Iqbal shared that his ministry was in coordination with the National Development and Reform Commission of China to arrange high-level workshops to bring together experts from both sides to outline the future direction of CPEC’s second phase.
China has lately shown willingness for the second phase of CPEC and has given assurances for the establishment of five new corridors, including that of growth, livelihood, innovation, green economy and open regional inclusive development.
 


Pakistan to press developed nations for unconditional climate funding at COP29

Updated 11 min 2 sec ago
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Pakistan to press developed nations for unconditional climate funding at COP29

  • Pakistan is ranked as the 5th most vulnerable country to climate change, according to the Global Climate Risk Index
  • Pakistan PM’s aide Romina Khurshid Alam says vulnerable countries are suffering from their own economic challenges

ISLAMABAD: Pakistan will urge developed countries attending the upcoming Conference of the Parties (COP29) in Baku to fulfill their pledges and provide easy access to climate funding without attaching conditions, Prime Minister Shehbaz Sharif’s coordinator on climate change said on Thursday.

The COP29 climate conference, scheduled to take place in Baku between November 11 and 22, will layout new policies and bring together representatives from various nations to discuss the adverse impacts of climate change and evaluate available solutions for adaptation.

Pakistan is ranked as the 5th most vulnerable country to climate change, according to the Global Climate Risk Index. In 2022, devastating floods affected over 33 million people and caused economic losses exceeding $30 billion, highlighting the country’s high susceptibility to extreme weather events.

“Pakistan is very clear on our stance that we need all the developed countries when it comes to the pledges, one, they need to complete their pledges, they need to fulfil their pledges, and two, easy access toward the fundings,” Romina Khurshid Alam, PM Sharif’s coordinator on climate change, told Arab News in an exclusive interview.

In this file photo, taken on August 30, 2024, people wade through flood waters after heavy monsoon rains in Multan. (AFP/File)

Due to the rising temperatures, extreme climatic phenomena, including floods, droughts, cyclones, torrential rainstorms and heatwaves, have been occurring more frequently and with greater intensity across Pakistan.

The South Asian country is among the most severely threatened countries in terms of climate–induced challenges, especially in the context of its dependency on climate-sensitive sectors such as agriculture, water, natural resources and the environment, and socio-economic issues such as poverty. The country’s adaptation to the adverse impacts of climate change is inevitable and likely to become critical in the future.

Alam said vulnerable countries were suffering from their own economic challenges and vulnerabilities, while at the same time, many countries faced additional restraints on climate funding.

“It’s not fair that we always get demands to ‘do more and to do this, to do that, these sanctions are coming,’ that is something which is on the human rights violation as well,” she said, adding that Pakistan wanted to raise its voice on what happened to the pledges, how many countries benefited from them and what straightforward mechanisms could be pursued to provide effective support.

Asked about the total amount pledged by developed nations, Alam said she would provide the exact figure after COP29, but noted that “the number is very low.”

“At COP29, we are talking about the data bank system like in a way that what countries are suffering and looking forward for the carbon credits policies,” she added.

In this file photo, taken on August 30, 2024, residents gather at the site of a landslide owing to heavy monsoon rains in the remote area of Patrak, in Upper Dir district, Khyber Pakhtunkhwa province. (AFP/File)

Last month, Pakistan proposed the establishment of a regional climate data bank to help Vulnerable Twenty (V20) group of countries prepare an evidence-based response to climate disasters.

Alam said the South Asian country had planned “many things” to showcase at Pakistan Pavilion during COP29.

Speaking about the prevailing smog issue, she said Pakistan would take it up with the Indian team at COP29.

“We are open to dialogues and open to come up with the solution, we want to get the things done by dialogue,” she said, noting that the chief minister of Pakistan’s Punjab, Maryam Nawaz, had also urged India to sit together to resolve this issue.

People walk along a street amid smog in Lahore on November 2, 2024. (AFP/File)

“CM Punjab very clearly said that ‘let’s sit together to sort out this issue because this cannot be done in a way that we are not doing this or you are doing this’,” Alam said.

“This is not a game, the main thing is to think about the children and to think about the future.”

Winter smog has become an annual crisis in Pakistan’s Punjab, particularly the provincial capital of Lahore, with air quality deteriorating to hazardous levels each season. The city consistently ranks among the world’s worst for air pollution, leading to a significant rise in respiratory issues and hospital admissions, especially affecting children and the elderly.

Last year, severe pollution levels prompted a surge in cases of asthma, lung infections and other respiratory problems among residents, according to media reports.

The problem this week prompted Punjab CM Nawaz to propose cross-border cooperation with Indian authorities to tackle shared pollution sources, such as crop residue burning, which exacerbate the region’s smog problem.