KARACHI/ISLAMABAD: Pakistan has witnessed a notable increase in remittances by 10-15% amidst a crackdown on exchange rate manipulation and illicit foreign exchange trade, as reported by Zafar Paracha, the General Secretary of the Exchange Companies Association of Pakistan (ECAP).
The State Bank of Pakistan (SBP) announced that remittances for September amounted to $2.21 billion, marking an increase from the previous month’s $2.09 billion, although it fell short of market expectations ranging from $2.4 to $2.5 billion.
This crackdown has proven to be an effective tool in bolstering Pakistan’s foreign reserves. The measures implemented by the authorities have been demonstrated to be the most effective means of strengthening Pakistan’s foreign reserves, he stated.
“There has been a notable increase in remittances entering the country through exchange companies, which have seen their daily exchange values rise to $50 million following the recent crackdown.
This has resulted in the recovery of over $900 million in just a few months from those engaged in black market activities, he added.
Speaking about the matter of black-market forex trade, Rashid Ashraf, CEO of ACE Money Transfer, stated,
“Many Pakistani diasporas opt for informal channels such as hawala/hundi to circumvent taxes and formal procedures, which they inaccurately perceive to be complicated. As a result, the funds that pass through unregulated channels facilitate various criminal activities and terror financing, thereby jeopardizing the hard-earned money of Pakistani expatriates.”
During a recent press conference, Rashid Ashraf, CEO of ACE Money Transfer, highlighted that many Pakistanis living abroad resort to using informal channels like hawala/hundi to transfer money back home due to their belief that formal procedures are too complex and difficult to navigate.
Unfortunately, this approach puts their hard-earned money at risk while also contributing to various crimes and terror financing.
To strengthen Pakistan’s foreign reserves, Mr. Bajwa added that Pakistanis residing abroad must provide support in line with the policies being put in place to reduce the flow of remittances from the illegal market.
To address this issue and improve the declining remittance inflows to Pakistan, ACE Money Transfer has partnered with Bank Alfalah to provide expatriates with secure, efficient, and reliable financial services.
