Forex Association of Pakistan (FAP) President Malik Bostan Thursday termed importers the main reason behind the severe shortage of dollars in the country, reported 24NewsHD TV channel.

He maintained that the importers themselves had created problems by importing goods worth between $3 billion and $4 billion without Letter of Credit (LC).

He stressed that the government would have to take important decisions to increase the supply of dollars, adding that the dollar rate would not drop until its supply improved.

“When the foreign exchange reserves began to dwindle, the government imposed a ban on unnecessary imports. The State Bank also imposed a condition on the opening of the LC without a non-objection certificate (NOC),” he said.

“In three to four months, all the imported goods have come without LC. The government has made huge payments in the form of external debt in three to four months,” he added.

“The importers have imported goods worth between $3 billion and $4 billion in three to four months. The main reason behind the decrease in remittances and exports is transit trade through Afghanistan,” he maintained.

“When the government increased the duty and imposed a ban, the Afghanistan transit trade channel began to be used. Our importers are smuggling those goods from Afghanistan into Pakistan. This $2 billion worth business is happening every month,” he alleged.

“The exporters are not bringing dollars from abroad. Everyone is thinking that he will bring the dollars to Pakistan when it is expensive. This is the reason that a big difference of Rs20 to Rs30 is being witnessed in value of dollar in Hawala/Hundi business,” he added.

“As many as 15,000 people travel from Pakistan to Afghanistan every day. $1,000 are allowed to be taken from Pakistan to Afghanistan. Officially, $1.5 million are being taken from Pakistan to Afghanistan every day. It has to be stopped,” he emphasised.

“The government must ban the taking away of dollars from Pakistan to Afghanistan. Only if the supply of dollars improves, the official price and the open market rate of dollar will also decrease,” he added.

Reporter: Ashraf Khan