The Exchange Companies Association of Pakistan (ECAP) has offered $1 billion per month to the government in case of war or an emergency, the organization said on Thursday, as fears have grown that the worst confrontation in two decades of conflict between India and Pakistan could escalate.
India on Wednesday struck what it said was “terrorist infrastructure” in Pakistan and Azad Kashmir and Pakistan said it retaliated by shooting down five Indian aircraft. The Indian strikes killed 31 people and injured 57, Pakistan’s army said.
On Thursday, Pakistan’s military said it shot down 29 drones from India at multiple locations, including the two largest cities of Karachi and Lahore and the garrison city of Rawalpindi, home to the army’s headquarters.
The Indian defense ministry said Pakistan attempted to engage a number of military targets in northern and western India from Wednesday night into Thursday morning and they were “neutralized” by Indian air defense systems. In response, Indian forces targeted air defense radars and systems at a number of locations in Pakistan on Thursday, the ministry said.
“We are capable of providing the government with $1 billion (Rs280 billion) dollars per month in case of war or emergency,” ECAP Chairman Malik Muhammad Bostan said. “There is no panic in the currency markets.”
Exchange companies provide $25 million (Rs7 billion) daily to the interbank market, the statement said, adding that they had managed to sell $10 million (Rs2.8 billion) in the interbank market despite fresh tensions between Pakistan and India.
The statement quoted Bostan as saying the inflow of dollars would increase after flight operations returned to normal.
