ISLAMABAD: The State Bank of Pakistan has initiated an inquiry into issuance of Letters of Credit (LCs) on high charges by certain banks.
Deputy Governor SBP Dr Inayat Hussain stated this during a meeting of the Senate Standing Committee on Finance which met here on Wednesday under the chair of Senator Saleem Mandviwala.
He said that the State bank has initiated the inquiry into opening of LCs on high charges by the banks and the report will be presented before the committee. Senator Shaukat Fayaz Tarin said that traders have been making payments from Dubai accounts for goods imported from Shanghai owing to this incurring problem.
He further added that the banks have issued LCs on Rs 240 or above when dollar values at Rs 230 in interbank and profit of banks have increased manifold. Officials of UBL and Bank Al Habib said that their banks suffered losses of around Rs 700 million and Rs 500 million respectively in August.
Dr Inayat Hussain Deputy Governor SBP said that the state bank is conducting an inquiry into this matter and a report will be presented before the committee. He said there is no delay in opening of the LCs and they have not received any such complaint whereas imports of certain items have been banned because their imports were high.
Advance payments are being stopped and imports of car parts have been restricted, he added. The committee also deliberated over the matter of unprecedented rise in dollar value.
Senator Shaukat Tarin inquired as to why dollar value is rising even after the IMF bailout. He said that dollars are going to Dubai from the open market. As finance minister, he said he thought that $10 billion were going out but he had received some information that $30 billion are being used for the purpose.
State Minister for Finance and Revenue Aisha Ghaus Pasha maintained that unfortunately Pakistan’s share in global emissions is around 1pc but Pakistan is among the most affected countries due to climate change.
She added that the flood has added to the woes of the already devastated economy and the government is in negotiations with Saudi Arabia and Qatar for investment in key sectors in order to provide strength to the dwindling economy.
Senator Saleem Mandviwalla stated that though Bangladesh has more reserves than Pakistan but they have taken more stringent measures than Pakistan. He suggested that restrictions should be put on use of fuel for cars and bikes as a large sum of money is being spent on the payment for fuel imports.
Furthermore, the committee also discussed the matter of harassment of the citizens by FBR officials. Senator Afnanullah Khan said that he was a covering candidate for his late father in Senate elections and FBR has ex-party the matter without serving any prior notice.
He filed a case in the revenue tribunal and the court has decided the matter in his favour, he added. Asim Ahmad, Chairman FBR, informed that inquiry will be conducted into the matter and the committee will be apprised of facts within one month.
While deliberating on the decision taken by the Civil Aviation Authority regarding declaration of foreign currency by Inbound International Passengers, Asim Ahmad, Chairman FBR, informed that matter doesn’t come under the ambit of civil aviation authority.
He apprised that in 2012, State Bank of Pakistan had issued a notification in which passengers carrying 10,000 dollars or more were required to make a declaration and Customs department had also issued a similar notice in 2018 but threshold was not specified in it. He further added that the declaration letter will be available on an App by 30th September.
Senator Faisal Saleem Rehman highlighted the issue of Tobacco farmers of KP who are forced to leave this business due to heavy taxation. He told that around 5 lac farmers have been affected by these hefty taxes.
The Chair decided to form a Sub Committee which will investigate the matter and present its report before the senate body.
The senate body also deliberated on a public petition regarding regularization of outsourced staff of National Bank of Pakistan. Rehmat Ali Hasnie, President NBP, apprised that the matter is sub- judice before Islamabad High Court due to which NBP could not shed light on it. The Chair disposed of the matter.
The senate body rejected the Bill titled “The State-Owned Enterprises (Governance and Operations)” by majority vote, while Senator Shaukat Fayaz Ahmed Tarin abstained from voting.
Senator Saadia Abbasi stated that the Government should not endorse previous govt bills and make new bills in the light of their own policies. She further added that the government did not require any bill for good governance.
