By Staff Reporter
KARACHI: The State Bank of Pakistan (SBP) has established a whistleblower system to get tips on foreign exchange dealers that may be breaking its rules.
The central bank said it has introduced a dedicated email address — [email protected] — using which people can report any unauthorized foreign exchange activity. “This email may also be used to report any unauthorized activity carried out by an exchange company or where exchange company is not providing system generated receipt of the currency exchange transaction,” the bank said in a statement.
“While reporting an unauthorized foreign exchange activity, the complainant is expected to provide facts and as much specific information and particulars as possible to examine the matter thoroughly.”
The central bank, however, advised “to refrain from rumor mongering, speculation, false and frivolous allegations/accusations”.
The disclosure of identity for utilizing this forum is voluntary; however, if shared the identity will be kept confidential.
The public at large is encouraged to be judicious in reporting incidents.
The SBP further said if a person faces any issue in dealing with exchange companies, he/she may share the concerns at [email protected]. “Examples of such issues may include but are not limited to sale/purchase of foreign currency notes by exchange companies issuing receipts which are not system generated, charging exorbitantly high exchange rate over those displayed on the notice board, denial of genuine requests of the customer for provision of foreign currencies, etc.”
Foreign exchange business in Pakistan is regulated by the SBP (SBP) under Foreign Exchange Regulation Act, 1947. The SBP has authorized twenty six Exchange Companies of “A” category and twenty Exchange Companies of “B” category to deal in foreign exchange business including sale/purchase of foreign currency notes.
The central bank announcement coincided with the data on home remittances, which fell by 9 percent during the first four months of this fiscal year.
Industry officials said people, mainly in Gulf countries, are opting for unofficial channels or illegal channels, which offer a considerably better exchange rate.
The SBP data shows’ that inflows from all major sources registered a year-on-year drop in July-October.
Remittances from the United States in the four-month period decreased 8.6 percent, Saudi Arabia 11.7 percent and United Arab Emirates 9.2 percent.
Remittances from other Gulf countries dropped 6.2 percent year-on-year during the four months while the decline remained 11.1 percent for member countries of the European Union. Inflows from Canada and Malaysia recorded a decrease of 10.8 percent and 1.2 percent, respectively. The only major country posting growth in remittances was the United Kingdom. Inflows from the kingdom remained 6.9 percent higher than a year ago.
Inflows from Saudi Arabia remained at $570.5 million in October. Remittances from the United Arab Emirates were $427 million while the inflows from the United Kingdom totaled $278.8 million. Overseas Pakistanis based in the United States remitted $253.1 million.
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