ISLAMABAD: Pakistani Interior Minister Sheikh Rashid Ahmed on Monday said the government had decided to audit five major foreign exchange companies to check the flight of US dollar and arrested dozens of individuals for their alleged involvement in hoarding the greenback.
The development comes after the US dollar last week reached a historic high of Rs170.96, prompting the State Bank of Pakistan (SBP) to announce curbs to stop “undesirable” flow of foreign currency out of Pakistan and enhance transparency in foreign currency transactions by exchange companies.
Under the new rules, people traveling to Afghanistan will be allowed to carry only $1,000 per person per visit, with a maximum annual limit of $6,000. Exchange companies will be required to conduct biometric verification for all foreign currency sale transactions equivalent to $500 and above and outward remittances, effective from October 22.
Exchange companies have also been asked to sell foreign currency in cash and make outward remittances equivalent to $10,000 and above against receipt of funds through cheque or banking channels only. In addition to that, Pakistani authorities have also initiated action against hoarders and money exchanges involved in smuggling of foreign currency.
“We have arrested 88 individuals for dollar hoarding,” the interior minister said at a weekly media briefing in Islamabad. “These are the people who are involved in rupee depreciation and playing a role in smuggling [dollars].”
Authorities have registered cases against 47 of the arrestees, according to the minister. The Federal Investigation Agency is investigating the matter and some more arrests are likely to be made over the next few days.
“The big news is that we have decided to audit five major companies that deal in dollars,” he said as the US dollar closed at Rs170.74 against the Pakistani rupee in the interbank market on Monday.
Ahmed also announced that non-governmental organizations (NGOs), which were receiving foreign funds, would be scrutinized to see if they were involved in any illegal activity. Out of a total of 27,000 NGOs registered in Pakistan, only 91 were receiving foreign funds to run their operations and do the charity work, he said.
“We are also looking into it to streamline them,” the minister said. “We aren’t creating any hurdles [for them], but doing something to see if any of the NGO that is working undercover, they should be investigated.”
He said his ministry was sending a summary to the cabinet to man four additional border crossings with Afghanistan, including the Ghulam Khan and Angoor Ada border crossings. “Our officials are present at the Torkham and Chaman crossings, and these four crossings should also be manned,” Ahmed said.