KARACHI: The State Bank of Pakistan (SBP) has made it mandatory to open an account before buying $2,000 or above in order to restrict dollar outflows from the country.
State Minister for Finance Aisha Ghaus Pasha on Wednesday informed this to the Senate’s Standing Committee on Finance, which was meeting in Islamabad.
The SBP and the government have taken a number of actions to stop the dollar outflows. Ishaq Dar, the finance minister, is under fire for his failure to lower the dollar rate to below Rs200 and restock the nation’s depleting foreign exchange reserves, despite having stated his confidence in his ability to meet the external account requirements during the current fiscal year.
Because many industries were complaining about a shortage of raw materials and parts, restrictions on the opening of letters of credit (LCs) have already had an impact on industrial activities. The importers estimate that the stuck-up LCs may be worth around $1 billion, although there are no official statistics available.
The importers are simultaneously located in a lengthy line waiting to be granted authorization for the LC opening. This is difficult since there aren’t enough money coming into the banks to meet demand from importers. The export industry is facing serious challenges as a result of the reduction in imports, particularly raw materials.
In the meantime, the sudden interruption of gas supply in Sindh and Balochistan has prompted the All-Pakistan Textile Mills Association to request of the prime minister to prevent the export industry from collapsing. Exporters claimed that November was the worst month ever for the sector and that low export revenues could lead to another shock for the nation.
