Daily Times

KARACHI: Foreign Exchange (Forex) dealers have approached the federal finance minister, Senator Ishaq Dar, seeking his ministry’s intervention to ease the pressure on Pak rupee against US dollar in the open market which is constantly losing value on the back of increasing gold smuggling and under-invoicing.

The gap between greenback and Pak rupee has widened in local open currency market and inter-bank market mainly due to the smuggling of gold and currency from the five major airports of Pakistan which exerts pressure on the rupee against greenback.

Malik Bostan, Chairman, Forex Association of Pakistan while talking to Daily Times confirmed that his association has written a letter to the finance minister and are waiting for his response.

Bostan said gold prices difference in Dubai and Pakistani market exists to the tune of around Rs 2000 per tola. To benefit from the prices difference people were buying dollars from open market and sending the money to Duabi without declaring at airports. “They purchase gold from Duabi and smuggle that gold back to Pakistan, again, without declaring at the ports”, Forex Chairman added.

According to some estimates around 10,000 tola gold is being smuggled intoPakistan everyday. “Women are being engaged as carrier, they wear gold ornaments carved in Duabi for the purpose”, Bostan said.

The practice has exerted pressure on the local currency to large extend due to which the rupee has depreciated upto 108 in open market. On the other hand the inter-bank exchange rate hovers around 104 against US Dollar.

“We have asked the authorities to be extra vigilant at Karachi, Lahore, Islamabad, Faisalabad and Sialkot airports as these ports are being used for the smuggling of gold, particularly from Dubai, and dollar from Pakistan”, Malik Bostan informed.

Forex representatives also met with the Chief Collector Customs Enforcement South, Zahid Khokhar, on Tuesday and apprised him about the situation. The Chief Collector has assured to take extra steps, especially at green channels, to curb the smuggling, Bostan contented.

“We have also raised the issue of under-invoicing, especially in trade withChina. The Chinese data shows that the exports to Pakistan stand at around $12 billion while on the other hand the Pakistan’s data shows only $6 billion imports from the china which is the evidence of under-invoicing”, Malik Bostan said.

“The Chief collector has informed us that soon Pakistan and Chinese customs will be interlinked that would completely eliminate this problem, under-invoicing”, Bostan Informed.