Pakistanis conducting 5,000-7,000 illegal dollar transactions via Dubai

Pakistanis are reportedly conducting around 5,000-7,000 illegal international transactions in dollar-denominations every day via Dubai due to a tightening of regulations in property and money markets.

According to The Express Tribune, the hawala/Hundi business {money transition through informal channels} is prohibited in Pakistan.

Dubai, however, has legalised this through the issuance of licences to currency dealers so that they can settle their international payments.

He said that the government's recently-introduced change in property valuations has diverted money from real estate towards Dubai, dollars, gold and bonds.

It is also being rumoured that the demonetisation in India, the cancellation of the Rs.5,000 currency-notes and bonds worth Rs.40,000/each in Pakistan and the additional demand for gold, has mounted pressure on the rupee-dollar parity.

Currency dealers said the end of the money crisis in India would help Pakistani rupee recover by Rs1-2 a dollar.

One currency dealer said that the black money is also being converted into smuggled gold in the country. Gold dealers in the parallel markets here are also smuggling the yellow metal to India and Dubai.

Dealers added that price of bullion in India is Rs4,000-5,000 per tola (11.66 gram) higher than Pakistan. It is Rs2, 000 per tola expensive in Dubai.

Afghanistan is another big market, which attracts a significant amount of dollars from Pakistan.

Currency dealers have appealed to Pakistan's Finance Minister Ishaq Dar and also held at least two meeting with high-officials of the central bank to resolve their problems.