RAWALPINDI, Jan 28: The Federal Investigation Agency (FIA) is keeping a close watch on domestic and international flights to check movement of foreign exchange, particularly to the United Arab Emirates.

FIA’s immigration circle was also keeping an eye on the movement of foreign currency between Lahore, Karachi, Peshawar and Quetta.

A senior FIA official said the agency was checking all international flights to stop movement of foreign exchange exceeding $10,000.

He said: “Although there is no restriction on the transfer of foreign exchange on domestic flights, we have been keeping record and passing it on to higher authorities.”

The decision was taken at a meeting also attended by State Bank officials.

The meeting called for action against an unauthorised currency exchange company operating in Karachi and taking over its record containing the transaction of money transferred through Hundi or Hawala operations.

An FIA task force was formed to verify operations of other foreign exchange companies for taking legal action against unauthorised companies, the sources said.

FIA, the official said, had seized foreign exchange worth Rs32 million and arrested two people from Lahore’s Alama Iqbal Airport.

The sources said that in Karachi FIA had also been asked to investigate reports about currency smuggling.

The government had been informed that dollars and Pakistani rupees were being smuggled through Quetta and Peshawar to Afghanistan, where US dollar was selling at Rs90 while its maximum rate in Pakistan was Rs88. They said that the price difference provided an opportunity to racketeers to make huge profits.