990401

Travelers cheques

made non-tradable

within country

RECORDER REPORT

KARACHI: Travelers cheques issued from Pakistan would not be tradable in the country, said the Finance Minister, Ishaq Dar. He was talking to a delegation of money changers.

Malik Mohammad Boostan, president Forex Association of Pakistan who led the delegation, said that the misuse of travelers cheque has been ended. The Governor State Bank, Dr. Mohammad Yaqub was also present in the meeting.

"The Finance Minister has assured that the banks will seal the ticket coupon with the amount of foreign exchange. This ticket could not be returnable to the airline", said Boostan.

The travelers cheque which would not be encashed in the country, can only be returned to the bank from where the cheques had been issued.

Selling of dollar bonds has practically stopped. No buyer is available. "We have told the minister that the banks are creating hurdle in the encashment of the dollar bonds which discouraged the buyers", said Boostan.

Usually the banks took seven to 10 days for the encashment of dollar bonds. They also ask to produce the owner of the bonds even in the case of bearer bonds.

"This is the main reason that no buyer is available for dollar bonds. If the encashment becomes easy, the bonds would get better return and investment will begin", said Boostan.

The State Bank would soon issue a circular for prompt response by the banks regarding the dollar bonds.

The money changers expressed their fear that dacoities against them were rapidly increasing all over the country. "The minister has assured to hold a meeting with the interior minister and make it easy for money changers to get arms licenses for defense purposes", said Boostan.

Dar assured the money changers that the government had no plan for devaluation of rupee against dollar. "The foreign exchange reserve is increasing, rupee is stable and remittances have picked-up pace. There is no reason to devalue rupee", Said the minister.