Currency dealers in Pakistan’s open market have proposed a plan to lend $24 billion to the government over the next two years, intending to help it steer clear of the International Monetary Fund (IMF) program that has negatively impacted the country’s economy.
The Exchange Companies Association of Pakistan (ECAP) President, Malik Bostan, has urged the government to pass an order allowing exchange companies to borrow US dollars directly from overseas Pakistanis, foreign firms, and global exchange companies.
The loans offered would be interest-free, and the government could roll them over if required. Bostan pointed out that millions of expatriate Pakistanis are clients of exchange companies and are willing to lend $1 billion a month for the next 24 months in addition to the regular inflows received by these companies. He also noted that exchange companies supply $300-400 million a month to the inter-bank market, totaling $4 billion annually.
Bostan and other ECAP representatives presented the proposal during a meeting in Islamabad with the Senate Standing Committee on Finance Chairman, Saleem Mandviwala. High-ranking officials from the central bank and other institutions were also at the meeting.
Bostan also called on the government to reassess its laws, rules, and regulations concerning IT freelancers, who hold billions of dollars in foreign banks. He suggested easing the regulations could encourage them to bring their deposits to Pakistan.
In February 2023, Finance Minister Ishaq Dar approved Saylani Welfare Trust.
