Karachi: While the Federal Investigation Agency (FIA) is taking all measures against illegal currency trading, the pressure on the exchange rate refused to ease as the dollar hit a record high of Rs 181.3 in the open market on Friday.
FIA Director General Sanaullah Abbasi told dawn That during December alone, the agency had arrested 158 people and seized local and foreign currency worth Rs 30 crore across the country in an attempt to stabilize the rupee against the greenback.
He said the crackdown against those involved in illegal currency trading was initiated against the backdrop of fears that dollars were being hoarded and smuggled out of the country.
DG says foreign currency worth Rs 300 million seized this month
He said the FIA acted on information shared by intelligence agencies, the State Bank of Pakistan and its own field formations. When asked why the dollar is rising against the rupee both in the interbank and in the open market, he said the agency only deals with the black market.
“There are other national and international variables and macro and micro economics that deal with appreciation and depreciation of any currency” [and these] It is being taken care of by the government, especially the SBP and the finance ministry,” he replied cautiously.
Dr. Abbasi divides the FIA’s campaign into two phases. According to him, the first phase, from 25 August to 30 November, began immediately after the change of power in Afghanistan. “FIA registered 92 FIRs, conducted 40 inquiries, arrested 107 people, sealed 21 shops and recovered Rs 365 million including foreign currency worth Rs 156 million.”
In the second phase, from December 1 till now, the FIA registered 117 FIRs, conducted 32 inquiries, arrested 158 people, sealed nine shops and seized Rs 300 million including foreign currency worth Rs 88 million.
The FIA chief said the total amount seized during the year was Rs 1.3 billion.
More than 10,000 transactions were investigated Dr. Abbasi said that the federal government had asked the FIA to oversee the operations of forex companies.
“The FIA has inspected their sell-purchase records and investigated five A category and 29 B category forex companies. More than 10,000 sales and purchase transactions by these companies were investigated. After finding out some irregularities, seven FIRs were registered and 11 inquiries were conducted against B category forex firms,” he said.
During the current year, the FIA investigated suspicious transactions in bulk after obtaining information about them through Suspicious Transaction Reports (STRs).
After making inquiries into these multi-layered complex financial transactions, 156 FIRs were registered
From January 1 to today, he said, 29 STRs had been referred to the Federal Board of Revenue, the National Bureau of Accountability and the Anti-Narcotics Force for further action.
He added that the FIA’s action is still on as contribution to the stabilization of the rupee is the top priority of the agency.
‘Government seems careless’
Zafar Paracha, chairman of the Exchange Companies Association of Pakistan, linked the government’s seriousness to the stabilization of the rupee.
They told dawn All indicators of the economy suggested that the dollar was overvalued as its exchange rate should be between Rs 160-165.
“Overall, SBP has taken good measures but their effectiveness has not been reflected in [dollar] Rate. We have not seen such seriousness on the part of the government and it seems that the government and the SBP are not on the same page,” Mr Paracha said.
He said the market is of the view that the government is not taking any interest in controlling the rupee’s depreciation as devaluation could be one of the conditions of the International Monetary Fund. “Of course [Adviser to the Prime Minister on Finance] Shaukat Tarin has said that the value of the dollar is high, but we have not seen such a statement from any other side.
Regarding the FIA’s action, he said: “Exchange companies do not set the interbank rate. An increase in the interbank rate causes the rate to rise in the open market. We are licensed entities strictly complying with the conditions set by the central bank.” We are doing business and it is unfortunate that our members and customers are being called by the FIA.
Published in Dawn, December 27, 2021