‘Over $15b being remitted through illegal channel’

[Kabira]

Brother problem is our many Pakistani labor dont know how to use banking channel, because many of our labor is uneducated.. Govt should need to educate them before leaving country how and where they need to approach if they want to send money back home.. Or they must have an account in Pakistan before leaving the country which they use for money transfer in Pakistan

Just crack down on hundi hawala mafia as demanded by FATF. Education isn't a problem but bit better rate is all that matter or for some other reasons...

 

[Amaa'n]

You guys are forgetting that remittance from abroad trough banking channel means showing flow of funds in Britain too, most of our folks are handling cash in hand and conceal their earnings, hence these illegal means are used for remittance

 

[Kabira]

How are they planning to reduce or eliminate the difference in exchange rates between the two systems? As long as expats get more rupees for their hard cash via hundi compared to the regular banks, the incentive will remain.

It will be hard to match hundi rates. Especially when their main purpose is money laundering or some other reason. Only way is to crack down on hundi mafia.

 

[Zulfiqar]

I know.. Our 80% import is from china.. It means 80% of our dollars are flowing to china.. But u guys will be surprised to know that 60% of our dollars are going to china through hundi hawala, 80% of imported items arriving through karachi ports..it can be easily trace out who sent the money illeagly for example if a company transmited 200k dollars through leagal channels to china what is the value of its impprted items...? But there you have another type of hurdle and that is fake invoices from the Chinese companies .. Suppose i imported items value of 200k dollars i will make request to my Chinese partner company to please send me invoice value of 50k US$... Now it requires alot of time and human resources at our ports to check of the value of import items is the same as per value of the transferd amount which transferd by legal channel.. So no way we can stop this hundi business it will keep harming us

He is correct. I knew a person who was importing a machinery. He was not avoiding taxes but did not know the rules as it his first time importing a machinery from abroad.

His son had already remitted 20 percent of invoice amount via a us based account to the chinese supplier so that he could have the delivery expedited.

In the end he had to ask the chinese to reduce the invoice amount due to the weboc where the invoice amount shall match the remittance amount.

 

[VCheng]

It will be hard to match hundi rates. Especially when their main purpose is money laundering or some other reason. Only way is to crack down on hundi mafia.

As long as that basic incentive remains, I do not see any meaningful change in this system. Usually, such actions are announced just before international concerns like FATF or IMF bailouts just to show that something is being done, and then it goes back to business as usual. It will probably be the same story yet again. Rinse. Repeat.

 

[Riz]

Just crack down on hundi hawala mafia as demanded by FATF. Education isn't a problem but bit better rate is all that matter or for some other reasons...

In dubai every 3rd pakistani is doing hundi hawala.. In Pakistan there relatives are involved transferring the money online to that person accounts.. I told u above FIA knows everything but many are corrupts and they are earning much more then their salaries

 

[cloud4000]

As long as that basic incentive remains, I do not see any meaningful change in this system. Usually, such actions are announced just before international concerns like FATF or IMF bailouts just to show that something is being done, and then it goes back to business as usual. It will probably be the same story yet again. Rinse. Repeat.

I can't find the article, but I read an article posted on PDF that many Pakistanis are holding on to cash -- and things like gold, silver and diamonds -- in their home rather than depositing them in banks. All sorts of reasons for this behavior: greed, dirty money, avoid paying zakat. But the truth of the matter is that Pakistanis have money, it just not in circulation. If somehow the government can change this behavior, it will be a boon for Pakistan.

Another option is to eliminate paper currency altogether and go electronic.

 

[VCheng]

I can't find the article, but I read an article posted on PDF that many Pakistanis are holding on to cash -- and things like gold, silver and diamonds -- in their home rather than depositing them in banks. All sorts of reasons for this behavior: greed, dirty money, avoid paying zakat. But the truth of the matter is that Pakistanis have money, it just not in circulation. If somehow the government can change this behavior, it will be a boon for Pakistan.

Another option is to eliminate paper currency altogether and go electronic.

In Pakistan the people are indeed rich, at least a distinct connected minority. It is just the government that remains poor by design to keep this state continuous.

 

[Riz]

I can't find the article, but I read an article posted on PDF that many Pakistanis are holding on to cash -- and things like gold, silver and diamonds -- in their home rather than depositing them in banks. All sorts of reasons for this behavior: greed, dirty money, avoid paying zakat. But the truth of the matter is that Pakistanis have money, it just not in circulation. If somehow the government can change this behavior, it will be a boon for Pakistan.

Another option is to eliminate paper currency altogether and go electronic.

Why not change the currency notes like modi govt did..i bet govt will recover trillions of black money.. But i know our janta is very smart they have had converted all the money into dollars . Hahaa

In Pakistan the people are indeed rich, at least a distinct connected minority. It is just the government that remains poor by design to keep this state continuous.

Retailers and rehri bans are millionaires brother..

 

[VCheng]

Why not change the currency notes like modi govt did..i bet govt will recover trillions of black money.. But i know our janta is very smart they have had converted all the money into dollars . Hahaa

Those who have the authority to make and then implement such changes will themselves be the most affected. Not happening.

Retailers and rehri bans are millionaires brother..

Probably true, but the real money lies where I said above.

 

[Riz]

Those who have the authority to make and then implement such changes will themselves be the most affected. Not happening.



Probably true, but the real money lies where I said above.

What stopping us to ban US$ sale in open market? Why a Pakistani need dollars? If they want to travel abroad they should use there own dollar accounts.. Fuking billioners are trading and investing in dollars and they are harming our economy for their personal benefit .

 

[VCheng]

Why a Pakistani need dollars?

Very simple reason: The USD holds its value far better than the PKR.

 

[AZ1]

Brother problem is our many Pakistani labor dont know how to use banking channel, because many of our labor is uneducated.. Govt should need to educate them before leaving country how and where they need to approach if they want to send money back home.. Or they must have an account in Pakistan before leaving the country which they use for money transfer in Pakistan

Govt agent should educate every labor going foriegn to use bank channel if they didn't they will be heavily charge when come back home. Strict will fix

 

[Riz]

Very simple reason: The USD holds its value far better than the PKR.

But it need to be stopped, its hurting our economy

 

[VCheng]

But it need to be stopped, its hurting our economy

Mere bans will never work. The real solution lies in making the PKR a better store of value by working on the fundamentals of the economy. That is the only enduring solution. And very hard to do.