Islamabad: Chairman of the Exchange Companies Association of Pakistan, Malik Muhammad Bostan, along with other senior representatives, held a meeting with Director General of ISI, Lt. General Faisal Naseer, at the ISI Headquarters in Islamabad where they briefed him on the recent surge in the dollar exchange rate, upon inquiry by the DG regarding the renewed spike in dollar value, Malik Bostan informed that the cross-border currency smuggling networks operating towards Iran and Afghanistan have once again become active and are smuggling US dollars and other foreign currencies out of Pakistan, he added that in major cities where exchange businesses operate at large scale, agents of black-market currency dealers intercept customers outside legal exchange counters by offering them higher rates and then lure them into hidden offices to sell foreign currencies at illegal rates, as a result, legal exchange companies are suffering from low footfall and supply of dollars in the open market is continuously decreasing, furthermore, the recent FBR regulation that imposes tax liability on sellers when any individual makes a cash purchase exceeding Rs. 200,000 has worsened the situation as many non-filers are now avoiding official channels and buying dollars in bulk from the black market to hoard foreign currency, Bostan requested the government to provide relief in taxation similar to SBP’s existing circular which allows individuals to buy up to USD 2,000 in cash from exchange companies, suggesting that such threshold should be exempted from tax to reduce pressure on the demand side, General Faisal Naseer appreciated the recommendations and assured that the matter will be taken up with the government and simultaneously ordered an immediate crackdown on currency smugglers and hundi hawala operators by law enforcement agencies, in response to his directives, FIA launched large-scale operations based on intelligence which forced the underground currency mafia to halt their operations, as a direct outcome, the open market rate of the dollar dropped from Rs. 288.60 to Rs. 288 while the interbank rate declined from Rs. 285 to Rs. 284.80 per dollar, Malik Bostan stated that if such operations continue effectively, the dollar rate may fall below Rs. 280 and further drop to Rs. 270 or even Rs. 250 in coming days, he strongly advised the public to avoid buying dollars at this stage and urged those holding dollars to immediately sell them before the rate further plunges
