ISLAMABAD: Majority of Pakistan’s registered Forex companies collect at least $40 million ($42 million is also quoted by private market players) in a single day and deposit with State Bank of Pakistan just $10 million.
Remaining $30 million is used for hawala/hundi business, which is highly profitable business for the operators of these transactions.
A background discussion with persons handling hawala/hundi business revealed that in case Forex companies deposit dollars purchased from open market, with SBP, they earn one rupee and maximum two rupees per dollar. If they use this money for hawala/hundi, they earn 4/5 rupees per dollar, which is highly profitable business.
Forex market sources further disclosed that dollars purchased from market are sent abroad mostly through air route and most of the agents travel to three different destinations every day and come back next day. Two of these destinations are in Middle East and one in Far East. Profits earned, from this business, is distributed among all Forex companies equally, and agents of these companies travel daily to transport cash abroad, mostly from Karachi international airport. On airport, all agencies deputed to check smuggling are part of this dirty game, The News learnt reliably.
A source in Finance Ministry, privy to this business, disclosed that issue was discussed at the highest level in Islamabad many times and every time directions were issued to stop this business but these were never implemented.
If counted this figures is over one billion dollar a month, which flew abroad through black market. So, in a year at least $12 billion flew from Pakistan. Then this cash comes back through banking channel, mainly telegraphic transfer (T T). On Return fifty percent of this cash is retained with forex dealers and fifty percent submitted with SBP. The News also learnt that the money retained in shape of foreign currency is provided to the importers who use to make payments of under-invoiced imports and they make payment abroad or is utilised to buy property in other destinations.