SMEs advised to use banking channel for remitting funds

KARACHI - The Union of Small and Medium Enterprises has advised the SMEs to impress upon their buyers to use the banking channel for remitting funds and also to use the banking channel themselves for remitting amounts to global suppliers and commission or expenses to agents to avoid complications.
President Unisame Zulfikar Thaver said the SME exporters have been receiving payments through Telegraphic Transfers (TT) from overseas buyers through exchange companies and submitting the TTs to their respective bankers for processing of export documents but of late the Federal Investigation Agency (FIA) has obtained list of beneficiaries from the exchange companies and are issuing summons to SMEs for investigations causing unnecessary botheration to the SMEs who are mostly not involved in any illegal business of money laundering or flight of capital.
He invited the urgent attention of the State Bank of Pakistan (SBP) to intimate the FIA not to conduct investigations in this harsh manner.
He said if this state of affairs continues the SMEs will be compelled not to export. He said that at present the remittances from the buyers are welcomed through any mode.
He said the importers in the under developed countries mostly remit through exchange brokers and companies because of lack of banking facilities and in some cases the buyers are not permitted to import except if they pay through their own overseas funds and to overcome this restriction they buy foreign currency through the exchange companies and arrange remittances through such methods.
He said the SMEs themselves prefer to get remittances through banking channels rather than exchange companies but in the case of exports it is their buyers prerogative whether the buyer remits through the banking channel or utilises the exchange company who gives them a better rate and the SME exporter does not have much say in the matter.