KARACHI, Sept 16: The State Bank on Wednesday suspended the licence of the H&H Exchange Co. for 30 days "on the charges of attempting to export undeclared foreign currencies equivalent to US$1.72 million from the country".

With the suspension of its licence, M/s H&H Exchange Company has been debarred from undertaking any kind of foreign exchange business, including export and import of foreign currencies, inward and outward remittances, sale and purchase of foreign currencies etc., said a press released issued by the SBP.

The action has been taken on a "complaint from the customs authorities regarding the seizure of undeclared foreign currencies which were being smuggled out of the country from Karachi airport".

Under the SBP's licence, exchange companies are permitted to export foreign currencies other than US dollars only against declaration made to the customs authorities. But H&H Exchange Company's representative has misdeclared the amount which was being exported out of the country and hence violated the SBP rules and regulations/instructions.

The SBP has also asked the company "to explain its position in writing within thirty days as to why its licence may not be revoked for violating the State Bank's instructions".

Central Board of Revenue Chairman Abdullah Yousuf had also said at a press conference on Wednesday that the customs authorities had detained two employees of the company for attempting to smuggle $3.8 million out of Pakistan.

The amount included about $1.7 million allowed to be exported by the SBP but it was seized because it was being exported by the company involved in the smuggling attempt.