KARACHI, Jan 18: Forex Association of Pakistan has convened a meeting here on Saturday to prepare money changers for the time to come after the creation of the proposed exchange companies.

The State Bank is going to allow setting up of the exchange companies that would not only deal in cash but also handle transfer of foreign exchange. The central bank has finalized the draft rules of business for these companies the setting up of which may force the money changers to wind up their operations.

“We will discuss about how to press the government and the State Bank to let us live along side exchange companies instead of phasing us out,” president of Forex Association of Pakistan Malik Bostan told Dawn.

He said money changers had come to know that the State Bank was going to phase them out after the establishment of exchange companies. “Nowhere in the world money changers are shown the doors when exchange companies come into operation,” he claimed.

“We want to tell the SBP and the government that the money changers and exchange companies can work at the same time. There is no clash of interest.”

He said money changers should be allowed to continue to buy and sell foreign currencies and exchange companies be authorized to transfer money.

Bostan who is a member of the State Bank’s committee set up to draft rules for the proposed exchange companies refused to answer when asked if he had raised this issue at the committee’s meeting held at the SBP office on Thursday.

On Thursday the committee headed by SBP’s Executive Director Farhat Saeed met and gave final touches to a draft of the rules of business for exchange companies.

Sources close to the meeting said the paid-up capital of these companies would be Rs100 million and they would be allowed to open 15 branches or booths or franchise offices each across the country.