ZAHEER ABABSI

ISLAMABAD: Finance Minister Ishaq Dar has said the government would take more measures against the illegal movement of the foreign exchange and action against illegal currency exchange dealers would continue.

Talking to mediapersons after having a meeting with the representatives of exchange companies here Friday, the finance minister said the illegal currency dealers and airports are the government’s target and during the recent crackdown, some people were caught at the airports while smuggling foreign currency out of the country as well as bringing gold into Pakistan. The minister further said the government’s measures have borne fruit and the PKR gained Re1 against the dollar after it came down to Rs107.20 from Rs108.20. Dar was optimistic that the situation would normalise in next eight to 10 days.

Dar said the government will minimise and eliminate the difference of exchange rates of foreign currencies between open market and inter-bank. Two to three airports have been identified to stop the illegal movement of the foreign currency, he added.

Foreign Exchanges Companies Chairman Sheikh Allauddin said forex companies would cooperate with the government to bring the rupee at its real value. He said they have also suggested the finance minister and other representatives of government departments during the meeting that the government should monitor the consumption of gold and keep a vigilant eye on the movement of other currencies as well.

A statement issued after the meeting stated that Finance Minister Dar held a meeting with the delegation of Forex Association of Pakistan led by Chairman Forex Association of Pakistan on the issue of smuggling of foreign exchange from the country. The finance minister said the government has already launched a crackdown on illegal money changers as well as at the airports. As a result of the crackdown on unscrupulous elements, the rupee/dollar parity has improved by rupee one in the last 48 hours, he maintained.

He said the government would not allow any unscrupulous element to play with the destiny of the country. The government did it in the past as in 1998 and 2013 and would correct this unnatural hike this time as well, he recounted. He said these unscrupulous elements must keep in mind that one rupee devaluation costs Rs57 billion loss to the exchequer which is detrimental to the interest of Pakistan. Dar said some unpatriotic elements have been involved in forex and bullion smuggling. He reiterated in unequivocal terms that rupee/dollar parity will not be allowed to be tampered through illegal and unnatural practices, and discipline will be enforced.

He also shared with the delegation that DG FIA, Chairman Federal Board of Revenue (FBR), Joint Director Intelligence Bureau and other senior officers concerned will have to take strict measures immediately against criminal elements involved in the smuggling of gold and currency.

He stated that FIA, IB, Custom Intelligence and State Bank of Pakistan have been tasked to keep strict vigilance in this regard and all airports and other entry points would be kept under strict surveillance to curb this menace of currency and bullion smuggling. He reiterated that the government is determined to establish writ of the State by all means.

The forex dealers appreciated steps taken by the agencies which have resulted in improvement of rupee dollar parity. They assured their fullest cooperation to the government. They also assured that they would not support any member of their association if he/she is involved in this illegal practice. It is expected that the situation will further improve in the coming week, they observed, the statement concluded.