The Karachi Chamber of Commerce & Industry (KCCI) has expressed its gratitude to Federal Minister for Finance & Revenue Senator Muhammad Ishaq Dar and Governor State Bank of Pakistan (SBP) Jameel Ahmed for giving due consideration and adopting the budget proposal of KCCI for FY2023-24 to create a Trading Portal for Spot Transactions of Foreign Exchange to facilitate Importers, Exporters and Industry.

Chairman Businessmen Group and Chief Executive TDAP Zubair Motiwala, President KCCI Tariq Yousuf and Chairman of KCCI’s Special Committee for Budget Proposals Ibrahim Kasumbi, in a joint statement, appreciated the efforts by the government to streamline the process of buying and selling of foreign exchange for import/export trade which will eliminate manipulation and discourage Hawala/Hundi transactions that have resulted in heavy loss of foreign exchange to the country.

KCCI was of the view that a transparent and fair spot trading of foreign exchange will prevent leakages of foreign currency and curtail transactions through grey channels, which are used to finance money laundering, cross-border smuggling and under-invoicing.

Chairman BMG Zubair Motiwala expressed that the spot trading platform will facilitate the import of raw materials, which will support the export-oriented industries and enhance exports.

President Tariq Yousuf added that KCCI will fully support this much-needed initiative and will continue to provide its input and suggestions to improve the working of the Trading Platform for spot sale and purchase of foreign exchange only for the purpose of financing imports of raw materials and intermediate goods. He emphasised that the platform should not allow the purchase of foreign exchange for the import of luxury goods, including automobiles.

Chairman of the Special Committee for Budget Proposals Ibrahim Kasumbi stated that the Trading Platform should be transparent and accessible to registered stakeholders, including importers, exporters and individuals sending remittances to Pakistan. This will significantly narrow down the gap between interbank rates, open market, and Hawala rates, resulting in the diversion of remittances from grey channels to official banking channels. Spot transactions will certainly help in increasing foreign exchange reserves and stop leakages.