The State Bank of Pakistan (SBP) has made it necessary to register an account before purchasing anything worth more than $2,000 in a significant step to limit dollar outflows.
This was disclosed on Wednesday to the Senate’s Standing Committee on Finance, which was meeting in Islamabad, by State Minister for Finance Aisha Ghaus Pasha. The SBP and the government have taken several actions to stop the dollar outflows.
Ishaq Dar, the finance minister, is under fire for failing to lower the dollar rate to below Rs 200 and restock the nation’s depleting foreign exchange reserves, despite having stated his confidence in his ability to satisfy the external account obligations during the current fiscal year.
Because many industries were complaining about a scarcity of raw materials and parts, restrictions on issuing letters of credit (LCs) have already impacted industrial activity. The importers estimate that the stuck-up LCs may be worth approximately $1 billion, but official statistics still need to be made available.
The importers are simultaneously in a lengthy line waiting to be granted authorisation for the LC opening. This is difficult since there isnÂ’t enough money coming into the banks to fulfil demand from importers. The export business faces major challenges due to reduced imports, notably raw materials.
In the meantime, the unexpected interruption of gas supplies in Sindh and Balochistan has prompted the All-Pakistan Textile Mills Association to request the prime minister to prevent the export sector from collapsing. Exporters claimed that November was the worst month ever for the sector and that poor export revenue might lead to another shock for the nation.
A top banker claimed that the central bank has been working to seize every dollar, making it more challenging for money to leave the country. As the outflow from credit cards had risen, banks that were freely issuing overseas credit cards were also prohibited.