The State Bank of Pakistan (SBP) and the Federal Investigation Agency (FIA) have decided to take joint action against illegal foreign exchange dealers in the country.
A high-level meeting was held between the State Bank of Pakistan (SBP) Governor and the Director General of the Federal Investigation Agency (FIA) on Tuesday. The meeting took stock of illicit foreign exchange activities and chalked out a comprehensive plan of action against illegal foreign exchange businesses being carried out in the country.
It was agreed during the meeting that concerted joint efforts are required to apprehend and implicate illegal foreign exchange dealers and speculators across the country.
The joint teams from SBP and FIA will identify and take penal/legal action against the perpetrators to curb speculation and the grey market. The teams, while remaining within the legal mandate allowed to them by the relevant laws, would crack down on all illegal foreign exchange dealers and businesses across Pakistan.
Banks and exchange companies are authorized by the SBP to carry out foreign exchange business in Pakistan. The involvement of any person or entity, other than banks and exchange companies, in foreign exchange business is illegal under the Foreign Exchange Regulation Act, 1947.
The illegal foreign exchange business also adversely affects the open market exchange rate and increases the gap between the interbank and open market exchange rate.
