Market to determine dollar value: SBP

ISLAMABAD-The State Bank of Pakistan (SBP) has said that the market would determine when the dollar value would be controlled, as the local currency is depreciating due to rise in demand for dollars after the removal of restrictions on imports.
Deputy Governor SBP Dr Inayat Hussain said that only the market can inform when the dollar will be in control and time will be consumed to control the dollar. He further said that demand for dollars is on the rise after the government removes restrictions on imports, which is affecting the rupee value. He further said that people have heavily invested in dollars. He was briefing the Senate Standing Committee on Finance and Revenue. The meeting was held here at Parliament House on Wednesday with Senator Saleem Mandviwalla in the chair.
The Senate Committee was briefed on consistent fluctuations in dollar price. Dr. Inayat Hussain pointed out that rising demand of dollars among the masses and import uplift are the primary drivers in dollar fluctuations. The chairman Committee was of the opinion that SBP should take precautionary measures to ensure dollar stability and discourage masses from unnecessary dollars purchases. Additionally, he highlighted the matter of LCs opening to import EV cars and maintained that the government should prioritize import of EV cars over the average fuel cars as it will contribute majorly in averting the climate crisis.
Furthermore, the Senate body deliberated on a starred question related to status of assets declared by Officers of Inland Revenue and Customs at the time of appointment and their current status. Senator Saifullah Sarwar Khan Nyazee inquired about the mechanism to monitor the assets of Inland officers. Chairman FBR apprised that officers failing to declare their assets would not be eligible for performance allowance and promotion. However, there is currently no specific mechanism in place to verify the assets of inland and customs officers, he added. The Committee recommended that FBR should develop a comprehensive mechanism to determine the assets of its officials.
In addition to that, the committee was briefed on the present status of EXIM Bank. Dr Inayat Hussain, Deputy Governor SBP, informed that Board Members of EXIM Bank have been notified, however, the Bank will become operational on the clearance of FPT forms and documentation of nominated Board members. The Committee directed the SBP to expedite the clearance of FPT forms within the upcoming two weeks.
While deliberating on the tax evasion of housing societies, chairman FBR stated that ‘Faisal Town’ has paid approximately Rs1 billion in tax on its profit, however, the other major players of the housing sector have not filed tax returns, leading to legal disputes in those cases. Moreover, as to the claims of refund by M/S Kolachee Pvt Ltd, Chairman FBR apprised that all the relevant queries have been addressed. The meeting was attended by Senator Sherry Rehman, Senator Saadia Abbasi, Senator Kamil Ali Agha, Senator Dilawar Khan, Senator Faisal Saleem Rehman, Senator Saifullah Sarwar Khan Nyazee, Special Secretary Finance Division Awais Manzur Sumra,Chairman FBR Malik Amjed Zubair Tiwana, Deputy Governor State Bank Dr. Inayat Hussain and other senior officers of relevant departments were also in attendance.

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