Senator Mohsin Aziz revealed on Wednesday, during a Senate Standing Committee on Finance session headed by Senator Saleem Mandviwalla, that children are being used to transport dollars out of the country, as per reports.
The State Bank of Pakistan (SBP) updated the meeting on Pakistan’s hyperinflation, interest rates, and foreign exchange rates.
SBP governor said that Pakistan’s economy is confronting both external and domestic problems and that the current account shortfall is likely to fall to $7 billion by the conclusion of the fiscal year from $10 billion this year.
Senator Aziz voiced concern that increasing the luxury tax to 25 percent will reduce revenue and increase smuggling. He also disclosed that children are being used to smuggle dollars, with up to $5 million being taken out of the nation on a daily basis.
The governor revealed that about $2.4 million in debt was returned during the current financial year. By the next weekend, Pakistan’s foreign currency reserves are predicted to exceed $4.3 billion. Nonetheless, the annual inflation rate is expected to reach 26.5 percent this year.
Saying that “children are being used to transport dollar out”, gives impression that there is something wrong. However, if you say it like what is actually happening that people are taking their money out of this country and have lost confidence in us, the two statements give a completely different picture of the same fact. This is how officials try to present the situation and that is why we don’t get to the root of the problem, rather exacerbate it.