Gov SBP sees rise in forex reserves amid expected influx next week
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KARACHI: Governor State Bank of Pakistan (SBP) Jameel Ahmad expressed hope that country’s foreign exchange reserves would increase after influx of dollars next week, saying process to open letters of credit (LCs) would be restored soon. Addressing business community at Federation of Pakistan Chambers of Commerce and Industry (FPCCI) he said central bank wanted to facilitate business community at every cost. He said government had to take some tough measures in wake of widening current account deficit.
He admitted that imports witnessed drop and that central bank was facilitating process for agriculture sector. He said 33,000 LCs had been cleared so far. He said SBP facilitated shipments under categories of essential, energy, export-oriented industries, agriculture inputs, deferred payment/self-funded imports and imports for export-oriented projects near completion.
“Our capacity to export will build up only after we complete export-oriented projects, thus we have facilitated timely completion of these projects,” he said.
Industrialists and businessmen complained to Governor that if supply chain was not restored, there would be flood of unemployment in country and prices of pulses would go up to Rs 1,000 per kg in Ramadhan. FPCCI President Irfan Sheikh said exporters and importers were looking towards SBP for resolution of their problems.
Former FPCCI Pesident Nasir Magu said people sitting in central bank considered themselves World Bank and IMF, fearing riots in March this year. He suggested that dollar transfer should be allowed in open account.
Ex-FPCCI President Anjum Nisar lamented that Ministry of Finance and SBP had no policy to solve crisis. “It seems that central bank is hand in glove with commercial banks as industries are shutting and people are being laid off.” Nisar said banks were giving three rates of dollar. Zakaria Usman said an open import of dollars should be allowed on indvidual basis.
Published in The Daily National Courier, January, 19 2023
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