Wednesday 16 April 2008

Pakistan: Dubai property boom revives Hundi trade

KARACHI, April 15: The UAE dirham is in higher demand than the US dollar in the local market, which has boosted the “Hundi” business in the country once again.

The reason for flourishing Hundi business and high demand of dirham is the slump in the real estate in Pakistan and the boom in property business in Dubai.

“The dollar is not paying more these days as the greenback has become unpredictable in Pakistan,” said Kamal Saeed, a currency dealer.

“We see all major currencies gaining against the dollar but the situation is reverse in our country,” he added.

He said the dirham business was paying much more than the dollar. However, most of the dirham is being paid through Hundi business. Investors used to pay in rupee in Pakistani and receive dirham in Dubai.

“The State Bank has strict laws for investing abroad, especially it is very difficult for an individual to stratify the demand of the State Bank,” said M. Munazir, a real estate dealer in Karachi.
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