The Senate Standing Committee (SSC) on Interior is investigating the sudden devaluation of the Pakistani Rupee which happened on 9th October, 2018 as well as 30th November, 2018.
The SSC has enlisted the assistance of foreign exchange experts for the investigation and has now put forth questions for the banking industry, the regulators, and other stakeholders.
In its report, the SSC alleged that the artificial shortage of dollars is created through a cartel of some bank employees of almost all of the commercial banks. The release of dollars is held deliberately in New York, and the time limit for the release of dollars is sabotaged with special manipulation using the public holidays with the view to mark more days than the official time limit of 3 days.
The cartel of bank employees through a well-organized manner forced the State Bank of Pakistan to pick the dollar through the market on higher rates to clear the outstanding payments of the government. Therefore, the committee has directed the State Bank of Pakistan and the FIA to investigate the matter on an urgent basis.
The FIA has also been asked to investigate the illegal financial instruction of Flying Letter Credits and its misuse by exporters who aren’t bringing export dollars back to Pakistan. The SSC directly asked the SBP for its response on action taken against such defaulters and Governer SBP was directed to provide details of Flying LCs in the period before the devaluation of the PKR.
A report on the various questions assembled by the SSC is expected to be sent by today.