December 19, 2023 (MLN): The inflow of remittances into the country through exchange companies has seen a rise of 10% to 15% following the recent crackdown, Zafar Paracha General Secretary of the Exchange Companies Association of Pakistan (ECAP) said on Monday during a press conference.
The crackdown launched by authorities has proved to be the most effective tool to bolster Pakistan’s foreign reserves, he added.
"We have seen a substantial rise in remittances flowing into the country through exchange companies, whose daily exchange values have been increased to $50 million after the recent crackdown that helped us recover more than $900m in just a couple of months from the culprits dealing in the black market,” he stated.
The black market forex trade, or, in other words, remittances flowing into the country through unregulated money operators like hawala and hundi, has caused a massive loss of more than $4 billion to Pakistan in FY23, he informed.
Thus, the foreign reserves plummeted from $12.9bn to an alarming $12.6bn and are even decreasing further due to the black-market flow of remittances.
He was of the view that the ongoing countrywide crackdown against unlawful money operators is the beacon of hope to the nation's depleting foreign reserve.
During the press conference, Rashid Ashraf, CEO of ACE Money Transfer indicated that most Pakistani diasporas turn towards informal channels like hawala/hundi to avoid taxes and formal procedures, which they wrongly consider to be complex and tricky.
Consequently, the money that flows through unregulated channels assists various crimes and terror financing while putting Pakistani expats’ hard-earned money at stake, he mentioned.
He further added that to reinforce declining remittance inflows to Pakistan from abroad, ACE Money Transfer has entered into a collaboration with Bank Alfalah through which expatriates will be provided with seamless, secure, and swift financial services.
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Posted on:2023-12-19T10:38:25+05:00
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