There is some evidence locally available that foreign currency is being smuggled to Afghanistan as dealers there pay much better return in the open market. In order to gain maximum financial benefit, unregistered currency exchange dealers here are busy in purchasing foreign currency on a much higher price compared to the bank rate, and then they move it to Afghanistan through some secure sources for financial benefits. This is one of the big reasons affecting our own foreign currency reserves and the pressure on the rupee.
In the present financial crisis, this grave issue needs to be tackled on a priority basis. The Federal Investigation Agency (FIA) should take proper action in consultation with the local community along with police and other intelligence agencies to sort out the parties involved in such a huge crime. If we succeed in stopping this smuggling, I am sure almost 30-40 per cent reserves will remain documented; otherwise we will continue to suffer.
Also, the trade between Pakistan and Afghanistan should be done in foreign currency. We should establish bank branches on the border so that they may facilitate importers and exporters at both ends.
This way, not only all transactions will be monitored and documented, it will also accommodate both exporters and importers to quickly execute goods and transactional activities. Adopting such practices will also be a step forward towards a documented economy in a more secure and efficient manner.
SYED WASI UL HASSAN
HANGU
