Islamabad, December 17, 2022 (PPI-OT):A meeting of the Standing Committee on Finance and Revenue was held in the Committee Room 7, Parliament House, Islamabad under the Chairpersonship of Mr. Qaiser Ahmed Sheikh, MNA. The Committee was informed that inquiry against actions taken by State Bank of Pakistan (SBP) about exorbitant profits earned by treasuries of eight banks is still ongoing. The committee showed reservations about noncompliance of previous recommendations of the committee.
The Governor, State Bank of Pakistan (SBP) briefed committee about steps taken by SBP for managing current economic situation of the country. He informed that SBP has worked with the government to allow L/Cs opened before circulars about restriction.
Prior approval is needed for L/C above one hundred thousand dollars. As of yesterday, 30,000 cases dealing with L/Cs have been dealt with. He also stated that SBP will soon have meetings with businesses to better resolve this issue. Moreover, the committee was informed that volatility of dollar exchange rate is also due to smuggling and assisting Afghanistan in its imports. The Governor also stated that no restriction has been imposed on forex needed for education related expenses.
The Minister of State for Finance and Revenue, Dr. Aisha Ghaus Pasha briefed committee about ongoing talks with IMF. She stated that Pakistan is bearing cost of past bad policies such as fuel subsidy. IMF has asked government to work on various matters i.e., circular debt issue, improving tax collection and optimizing subsidies.
The Committee showed concern regarding the economic situation of the country and lack of structural reforms in the country. It also showed apprehension about increasing inflation due to bad policies, falling FDI, stagnant savings rate and low export to GDP ratio.
The Committee recommended that government should come up with a viable strategy and a grievance addressal mechanism for addressing, volatility of exchange rate and L/C issue respectively. It also recommended SBP to quickly conclude its inquiry about exorbitant profits earned by treasuries of eight banks and submit its report to the Committee.
The meeting of the Committee on Finance and Revenue was presided over by its Chairperson Mr Qaiser Ahmed Sheikh, MNA and attended by Members of National Assembly; Ms Nafisa Shah, Ch. Muhammad Barjees Tahir, Engr. Sabir Hussain Kaim Khani, Mr Nasir Iqbal Bosal, Chaudhary Khalid Javed, Mr Ali Pervaiz, Syed Hussain Tariq, and Ms. Wajiha Qamar. The meeting was also attended by Minister of State for Finance and Revenue, Ms Aisha Ghous Pasha, Governor, State Bank of Pakistan, and other government officers.
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Secretary,
National Assembly of Pakistan
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