ISLAMABAD – The Senate Standing Committee on Finance, Revenue, and EconomicAffairs was informed on Tuesday that devaluation of Pak rupee would helpboosting the country’s foreign exchange reserves with the increase incountry’s exports and foreign remittances, and decline in imports, andcurrent account deficit.
“Although positive consequence have started surfacing due to thedevaluation of Pak rupee but real positive consequences would be felt afteraround a year,” a representative of State Bank of Pakistan informed thecommittee.The meeting of the committee was held here presided over by its ChairmanSenator Farooq H. Naik and was attended by Ayesha Raza Farooq, MusadiqMalik, Mohsin Aziz, Muhammad Akram, Muhamad Ali Khan Saif, Fida Muhammad,Chairman Federal Board of Revenue Jahanzaib Khan and other officials ofministry of finance, FBR, and SBP.
The SBP official said the current sharp devaluation of Pak rupee injected anew life into Pakistan’s economy which was witnessed by the fact thatduring first quarter of fiscal year 2018-19, foreign remittances increasedby 13 percent, trade deficit narrowed by 1.6 percent, and current accountdeficit also shrank by 2.6 percent.
He, however admitted inflation in the country has also increased due todevaluation, but in order to control inflation, the SBP was also revisingthe monetary policy.
He said until last year, the current account deficit remained at over $2billion while now in August this year it declined to as low as $600 million.Senator Mohsin Aziz questioned, that if during previous 3,4 years, thecurrent account deficit remained so high, then under whom intervention, thevalue of Pak rupee was controlled artificially.In reply, the SBP official said at that time the situation was not as graveas it was now. However, the committee did not seem to be satisfied with hisreply.
To a question, the SBP official said that the monetary policy was beingdetermined by the 10-members committee and there was not intervention ofthe government in the policy decisions.
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Meanwhile discussing on another agenda, Senator Muhammad Ali Saif said thatwhile opening bank accounts and issuing credit cards, the banks wereshowing discriminatory attitude to some certain sections includingparliamentarians, advocates, politicians, and journalists.Musadik Malik also endorsed his opinion as according to him he was alsodenying a credit card by a bank despite having applied for the credit cards5 months ago.
The SBP representative said that the bank should not reject application ofany customer to open bank accounts, credit cards or any other serviceswithout any legal reason which the bank officer will have to present to thecustomer.Saif said the banks irritate the politicians, parliamentarians, andadvocates while opening an account and demand unnecessary documents just toembarrass them.Naik said opening bank account was right of everyone.
He said in the next meeting governor SBP must be present to provide validreply to the reservations of the lawmakers, besides chairman PakistanBanking Association and Banking Ombudsman should also be present in thenext meeting.“Currently there are over 55 million bank account holders across thecountry and if a banker refuses any citizens to allow him opening of bankaccount there must be valid reason behind it,” the meeting was informed.
The committee directed SBP to remove systematic restrictions to avertdiscrimination against any class or profession including journalists,advocates or politicians.
