Latest news with #MalikBostan
Bloomberg
24-07-2025
- Business
- Bloomberg
Pakistan Army Intelligence Officer Meets FX Body as Rupee Falls
A group of private foreign exchange companies in Pakistan met with the head of an intelligence department this week to discuss the local rupee's slump. 'We briefed them about the current currency market situation,' said Malik Bostan, the chairman of the Exchange Companies Association of Pakistan, referring to a July 22 meeting with Major General Faisal Naseer, a director general in the Inter-Services Intelligence.
Business Recorder
24-07-2025
- Business
- Business Recorder
Currency smugglers: LEAs decide to intensify crackdown
KARACHI: Law enforcement agencies have decided to intensify their crackdown on currency smugglers and unauthorized money dealers, accordingly, on Wednesday, FIA teams conducted intelligence-based raids, contributing to a decline in the dollar rate in the open market. According to the Exchange Companies Association of Pakistan (ECAP), the action followed a meeting between ECAP Chairman Malik Muhammad Bostan and members with Director General (C) ISI, Major General Faisal Naseer, at his office in Islamabad on Tuesday. According a statement issued by the ECAP, during the meeting, Major General Faisal Naseer inquired about the reason of recent sharp increase in the exchange rate. In response, Malik Bostan explained that the surge is due to smuggling of dollars and other foreign currencies to Iran and Afghanistan. Additionally, he highlighted that agents of these smugglers trap customers outside legal exchange companies by offering better rates and then they take these customers to secret offices to buy foreign currencies at black market rates. This move of smugglers is preventing customers from reaching legal exchange counters and, due to higher rates in the black market the supply of dollars is decreasing daily. Bostan further mentioned that due to new FBR regulations, any purchase above Rs. 200,000 made in cash (rather than through banking channels) results in the imposition of tax on the seller. Consequently, many non-filer customers, to hide their identities, are buying and hoarding foreign currencies from the black market at large scale. He suggested that the government should not impose any tax on purchase of $2,000 in foreign currency. This would reduce the demand for dollars and help bring down the exchange rate quickly, he added. According to Malik Bostan, Major General Faisal Naseer responded positively and said he would discuss this proposal with the government. Moreover, he immediately ordered law enforcement agencies to launch a crackdown on currency smugglers and arrest them. As a result of this action, the smuggling mafia reportedly went underground by Wednesday. Bostan further said that on Wednesday FIA teams conducted intelligence-based raids, which led to a drop in the market dollar rate from Rs. 288.60 to Rs. 288, and in the interbank market, the rate dropped from Rs. 285 to Rs. 284.80 per dollar. Copyright Business Recorder, 2025
Business Recorder
01-07-2025
- Business
- Business Recorder
Open market: currency dealers aim to double remittance inflows with increased margin in FY26
Currency dealers in the open market have projected to double the inflows of workers' remittances sent home by overseas Pakistanis in one year, aiming to attract $8-10 billion in the new fiscal year 2025-26 after the central bank jacked up their rate of margin to Rs22 a dollar with effect from Tuesday. According to the Exchange Companies Association of Pakistan (ECAP), the exchange companies (EC) attracted a total of $4 billion in the previous fiscal year ended June 30, 2025, while they were paid Rs2 for brining each dollar in Pakistan from expatriates. Pakistan receives record $4.1bn in remittances in March, says SBP governor Referring a circular of the State Bank of Pakistan (SBP) issued on Monday, ECAP Chairman Malik Bostan told the Business Recorder that the central bank has included exchange companies (ECs) in Pakistan Remittance Initiative (PRI), surging their rebate to Rs22/$ from Rs2/$ paid till June 30, 2025. 'Our inclusion in PRI has provided us (ECs/currency dealers) a level playing field,' he said. Banks in Pakistan attracted $33 billion in FY25, compared to $4 billion by exchange companies operating in the open market. ECs sold almost all the received workers' remittances of $4 billion in inter-bank market in FY25, helping the central bank to consolidate its foreign exchange reserves and finance trade deficit during the year. There are residing almost 15 million Pakistani expatriates in across the world with 70% of them living alone in two leading Middle Eastern countries namely Saudi Arabia and the United Arab Emirates (UAE). They sent a total of $35 billion in the first 11-month of FY25 from across the globe, up by 29% compared to the same period of FY24, it was learnt. ECAP chairman said Pakistani workers abroad collectively earn around $8 billion per month in salaries. 'If all of this money were sent to Pakistan, it could significantly strengthen our economy, reserves, and the Pakistani rupee. Right now, only $3–4 billion is being sent, while the remaining $4 billion is either being kept in foreign bank accounts or invested in places like Dubai, Europe, or the Middle East,' he said.
Arab News
09-05-2025
- Business
- Arab News
Pakistan's currency exchange union offers $1 billion to government in case of war
KARACHI: The Exchange Companies Association of Pakistan (ECAP) has offered $1 billion per month to the government in case of war or an emergency, the organization said on Thursday, as fears have grown that the worst confrontation in two decades of conflict between India and Pakistan could escalate. India on Wednesday struck what it said was 'terrorist infrastructure' in Pakistan and Azad Kashmir and Pakistan said it retaliated by shooting down five Indian aircraft. The Indian strikes killed 31 people and injured 57, Pakistan's army said. On Thursday, Pakistan's military said it shot down 29 drones from India at multiple locations, including the two largest cities of Karachi and Lahore and the garrison city of Rawalpindi, home to the army's headquarters. The Indian defense ministry said Pakistan attempted to engage a number of military targets in northern and western India from Wednesday night into Thursday morning and they were 'neutralized' by Indian air defense systems. In response, Indian forces targeted air defense radars and systems at a number of locations in Pakistan on Thursday, the ministry said. 'We are capable of providing the government with $1 billion (Rs280 billion) dollars per month in case of war or emergency,' ECAP Chairman Malik Muhammad Bostan said. 'There is no panic in the currency markets.' Exchange companies provide $25 million (Rs7 billion) daily to the interbank market, the statement said, adding that they had managed to sell $10 million (Rs2.8 billion) in the interbank market despite fresh tensions between Pakistan and India. The statement quoted Bostan as saying the inflow of dollars would increase after flight operations returned to normal. The ECAP offer came amid a record-breaking 6,482-point plunge at the Pakistan Stock Exchange (PSX), marking the largest single-day decline in the index's history as investors feared escalation in the standoff between India and Pakistan. The relationship between India and Pakistan has been fraught with tension since they gained independence from colonial Britain in 1947. The countries have fought three wars, two of them over Kashmir, and clashed many times. The countries, which both claim Kashmir in full and rule over parts of it separately, acquired nuclear weapons in the 1990s.
Business Recorder
07-05-2025
- Business
- Business Recorder
Indo-Pak tensions: overseas Pakistanis can mobilise $1bn monthly in emergencies, ECAP
Overseas Pakistanis have the capacity to provide up to $1 billion a month in emergency financing to Pakistan through exchange companies, offering a critical financial cushion in times of national crisis, said Malik Bostan, Chairman of the Exchange Companies Association of Pakistan (ECAP). Speaking at the Karachi Press Club on Wednesday, Bostan said the association has a swap system in place that allows the Pakistani diaspora to lend funds for a period of two years, with full repayment guaranteed by the government. 'We have a backup system ready to mobilize $1 billion a month, or $12 billion annually, from overseas Pakistanis if needed,' he told reporters. His statement comes at a time when nuclear-armed neighbours Pakistan and India are engaged in escalating skirmishes, with recent Indian attacks reportedly killing 26 and injuring 45 civilians across multiple locations. The chance of further escalation remains high, heightening concerns over regional stability and the country's economic resilience. Bostan recalled that a similar mechanism had helped Pakistan weather a severe financial crunch in 1994 when foreign exchange reserves had dropped to just $400 million. 'At that time, the exchange companies arranged $10 billion through the same swap system,' he said. He noted that he had offered to activate this financing channel again in early 2023, when Pakistan's reserves had dwindled to below $3 billion—barely enough to cover a month's imports. However, the then-government instead opted for a $3 billion short-term loan from the International Monetary Fund (IMF) in June 2023, followed by a long-term $7 billion facility signed in mid-2024. According to Bostan, around 15 million Pakistanis live abroad and collectively earn about $8 billion a month. 'They already send around $4 billion monthly as workers' remittances. The remaining $4 billion is retained overseas, which shows they have the potential to contribute even more if necessary,' he explained. In March 2025, workers' remittances hit a record high of $4.1 billion, bringing the total to $28 billion in the first nine months of FY24-25. Bostan said this figure could rise further if the government offers attractive investment options and instills greater confidence among expatriates. Despite recent tensions with India and a brief suspension of international flights, the rupee remained stable at around Rs281 against the US dollar in the interbank market, Bostan added. He said that currency dealers sold $10 million in the interbank market on Wednesday morning due to low demand for foreign currencies in the open market. He expected dollar inflows to pick up with the resumption of flights, as overseas Pakistanis returning home typically bring in foreign exchange. 'Exchange companies surrender $20–25 million daily to the interbank market, totaling around $425–450 million a month,' he noted. Bostan emphasized that overseas Pakistanis are not just a source of remittances but a financial lifeline in difficult times, urging the government to strengthen ties with the diaspora to ensure their potential can be fully leveraged during national emergencies. Tensions between Pakistan and India escalated sharply following a deadly April 22 attack in Pahalgam, Occupied Kashmir, which killed 26 people, most of them tourists. India blamed the assault on cross-border elements without offering evidence, a claim Pakistan strongly rejected, calling instead for an independent investigation. In the days since, both countries moved into a state of heightened alert. Pakistan reinforced its military presence along the border, anticipating a possible incursion. Meanwhile, the Indian leadership granted its armed forces 'operational freedom,' further inflaming fears of escalation. Despite backchannel diplomatic efforts to contain the fallout, tensions remained high.
