TWO directors of a leading foreign exchange company in Pakistan have been arrested for allegedly smuggling US$10 billion (S$14 billion) out of the country.The dealings of Javed Khanani and Munaf Kalia, directors of Khanani and Kalia International (KKI) have come under the spotlight as Pakistan desperately seeks US$5 billion this month to avert a looming bankruptcy amid the global financial crisis.

Investigators from the Federal Investigation Agency (FIA) said the money would have been more than enough to help tide the country over the current monetary crisis. They also said that the illegal transactions had contributed to a devaluation of the rupee by more than 20 per cent.

The two directors of KKI, which has branches across the country, were arrested over the weekend for 'illegally' transferring foreign currency abroad, Pakistani newspaper reports said. They have been charged with the 'physical transfer' of foreign currency from the country and running a 'hawala' or money-laundering racket.

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