Dollar Inflows from Next Week to Improve Declining Reserves : SBP Governor

State Bank of Pakistan (SBP) Governor Jameel Ahmad Wednesday claimed that the country’s critically low foreign exchange reserves would start to improve as dollar inflows are expected from next week.

Addressing businessmen at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the governor said that dollar inflows would start next week and highlighted that the government is also making efforts to secure inflows.

The governor said recently a “lot of announcements were made”, likely referring to the pledges of over $10 billion made by donors to help Pakistan recover from last year’s devastating floods, which will further improve the inflows.

Ahmad also highlighted that to encourage IT companies and freelancers to bring their foreign exchange earnings into the country, the State Bank of Pakistan (SBP) recently directed banks to credit 35 percent of the export proceeds into these exporters’ special foreign currency accounts. He said that the central bank expects an increase in inflows from the IT companies as a result.

It is pertinent to mention here that banks have been advised to facilitate IT exporters in opening their exporters’ special FCY accounts and for carrying out remittances transaction from their Exporters’ Special FCY retention accounts by issuing corporate debit cards, and providing digital platforms including FX digital portal, after necessary due diligence and establishing mechanism for ongoing monitoring of permissible payments abroad to meet their business requirements.

The governor also talked extensively about the persistent issues of letters of credit (LCs) and demurrage and detention charges. He said that the central bank is working to resolve both these issues at the earliest.

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  • Same story again and again from past months. Govt lost all of its tactics and lies are prominent.

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