ISLAMABAD    -   The federal government and the State Bank of Pakistan (SBP) on Saturday agreed to further put a squeeze on those who were ma­nipulating the foreign exchange market.

In last month, the commercial banks had admitted in Senate Standing Committee on Finance and Revenue to charge high­er value of dollar against the lo­cal currency due to the unprece­dented conditions. 

Dr Inayat Hussain, Deputy Gov­ernor SBP, told the committee that the State Bank of Pakistan had initiated the inquiry into matter and report will be pre­sented before committee. “The banks quoted very high rates on some of the transactions, which created more volatility and un­certainty,” Dr Hussain said in the parliamentary committee. 

Pakistan’s rupee touched its lowest ebb of Rs240 to a dollar, partly due to the roles played by these banks, according to the re­ports. Later, newly appointed Fi­nance Minister Ishaq Dar had warned that some speculators were involved in this game that they should stop forthwith. “Our currency does not deserve to be there where it currently is. I be­lieve some speculators who had been playing the game have now stopped. Before I landed here, they had started going in a good direction,” he said soon while talking to the media after taking oath other day.

In a latest development, Gov­ernor State Bank of Pakistan Mr. Jameel Ahmad called on Fed­eral Minister for Finance and Revenue Senator Mohammad Ishaq Dar at Finance Division. Finance Minister and Governor SBP agreed that continuing ef­forts by the government and the Bank will further put a squeeze on those who were manipulat­ing the foreign exchange market.

Finance Minster Ishaq Dar shared about fiscal measures being undertaken for econom­ic revival of the country. He stressed that fiscal and mone­tary policy coordination is im­perative for sustainable and ef­fective economic growth. The meeting discussed the mea­sures being undertaken for the stabilisation and growth of the country’s economy.

Governor SBP Mr. Jameel Ah­mad extended felicitations to the Finance Minister on assum­ing the office and stated that with the arrival of the Finance Minister, the market sentiments have considerably improved as reflected in the appreciation of the rupee.