ISLAMABAD – New developments have been reported in the case of sudden andsuspicious rise of the US dollar against Pakistani Rupee.
The Senate Standing Committee (SSC) on Interior is investigating the suddendevaluation of the Pakistani Rupee which happened on 9th October, 2018 aswell as 30th November, 2018.
The SSC has enlisted the assistance of foreign exchange experts for theinvestigation and has now put forth questions for the banking industry, theregulators, and other stakeholders.
In its report, the SSC alleged that the artificial shortage of dollars iscreated through a cartel of some bank employees of almost all of thecommercial banks. The release of dollars is held deliberately in New York,and the time limit for the release of dollars is sabotaged with specialmanipulation using the public holidays with the view to mark more days thanthe official time limit of 3 days.
The cartel of bank employees through a well-organized manner forced theState Bank of Pakistan to pick the dollar through the market on higherrates to clear the outstanding payments of the government. Therefore, thecommittee has directed the State Bank of Pakistan and the FIA toinvestigate the matter on an urgent basis.
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The FIA has also been asked to investigate the illegal financialinstruction of Flying Letter Credits and its misuse by exporters who aren’tbringing export dollars back to Pakistan.
The SSC directly asked the SBP for its response on action taken againstsuch defaulters and Governer SBP was directed to provide details of FlyingLCs in the period before the devaluation of the PKR.
