The State Bank of Pakistan (SBP), in a major move to restrict dollar outflows, has made it mandatory to have an account for forex transactions of $2,000 or above.
Aisha Ghaus Pasha, State Minister for Finance, on Wednesday apprised the Senate’s Standing Committee on Finance with the move during the committee’s meeting in Islamabad.
The ruling comes after the government and central bank undertook several steps to bring the dollar outflows under control.
Exchange Rate Volatility Continues
Finance Minister Ishaq Dar said earlier that the government will clear pending Letters of Credit (LCs) amounting to $100,000 as well as resolve the issues of all pending LCs.
Restrictions on the opening of LCs have already impacted industrial work as many sectors were complaining about a lack of raw material and parts.
Dar has been under pressure for not being able to bring the dollar rate below Rs200 and replenish the country’s dwindling foreign exchange reserves despite earlier promises.
