Islamabad - A Pakistani court on Tuesday extended the detention of a senior executive at a top currency exchange firm who is accused of being involved in the illegal transfer of millions of dollars abroad, officials and media reports said.

Munaf Kalia of Khanani and Kalia International was detained in Karachi, the country's commercial and financial hub, at the weekend by the Federal Investigation Agency after weeks of surveillance.

Kalia was transported Monday to the eastern city of Lahore, where the agency was interrogating a director of his firm, Javed Khanani, after arresting him in a coordinated operation.

Special Magistrate Faisal Jamil on Tuesday remanded Kalia into the custody of investigators until November 17 as they carry out an inquiry into undocumented transfers of money abroad, a court official said.

According to General Tariq Pervez, the Federal Investigation Agency's director, investigators have also made other arrests and seized material and computers in their inquiry.

The State Bank of Pakistan, the country's central bank, has suspended the company's licence for 30 days and barred the offices and franchises of Khanani and Kalia International from doing any business.

Authorities said massive outflows of foreign currency in cash accelerated the fall of the country's reserves, which have plunged from 16 billion dollars in October 2007 to 7 billion dollars last month.

At the same time, the rupee has weakened by more than 27 per cent against the dollar.

Foreign exchange dealers have warned that the action against Pakistan's biggest exchange company would greatly impact remittances from overseas Pakistanis, which are mostly made through private firms because of their lower service charges.

Around 7 billion dollars were likely to be remitted to Pakistan by June 2009, but now the confidence of overseas Pakistanis in exchange companies has been shattered, the English-language Dawn newspaper quoted Forex Association of Pakistan president Malik Bostan as saying.

Meanwhile, the Geo news channel on Tuesday said a World Bank delegation was expected to visit Pakistan the last week of November to review the country's efforts on curbing money laundering.

The investigation and detentions have hit Pakistan as it struggles to secure around 5 billion dollars this month to escape default on foreign loans.

Islamabad is pinning its hopes on a meeting Monday of the so-called Friends of Pakistan, a group of major donors to the Islamic republic. It is hoping for an economic bailout but is also pursuing a rescue package of up to 9 billion dollars from the International Monetary Fund if substantial aid is not received. (dpa)