The President of the Forex Association of Pakistan (FAP) Malik Bostan has suggested that exchange companies can arrange up to $12 billion per year if the government gives permission to seek dollars from overseas Pakistanis through a direct swap policy.
The meeting of the Standing Committee on Finance and Revenue was held in the Parliament House, Islamabad on Thursday under the Chairmanship of Qaiser Ahmed Sheikh.
Briefing the committee, FAP President Malik Bostan said that the association has convened meetings with the Finance Ministry and State Bank of Pakistan (SBP) to develop some viable mechanisms to deal with the shortage of dollars in the country.
He said that the exchange companies provide monthly $300 million to $400 million and annually $4 billion to the government through commercial banks.
Malik Bostan said that if the government gives permission to seek dollars from overseas Pakistanis through a direct swap policy, the exchange companies can arrange up to $12 billion per year.
He said that exchange companies have provided around $4 billion to the current government since April 2022.
State Minister for Finance Aisha Pasha on this occasion said that the government is not considering any scheme to give one-time permission to the account holders to deposit cash foreign currency in their bank accounts without asking the source.
The government of Pakistan and the International Monetary Fund (IMF) have agreed that there would be no more amnesty schemes.
The IMF is against the concept of amnesty schemes. Therefore, the government is not considering any scheme for the account holders, she added.
The Committee also desired that the Finance Minister should attend the next meeting to brief the Committee regarding a delay in the agreements between the Government of Pakistan and the IMF.
Member of committee Bargis Tahir disclosed in the meeting that around 600 people obtained loans worth $3 billion during PTI tenure at zero interest rate. He asked the SBP officials to furnish details of people and terms of loans.
Deputy governor SBP said that the commercial banks had provided loans to these people and this is confidential information that we can share in the in-camera meeting.
The Chairman Committee directed the SBP to provide people’s names along with the conditions of loans in the next meeting.
The committee also expressed grave concerns over the delay in the appointment of Presidents for the National Bank of Pakistan (NBP) and Zarai Taraqiati Bank Limited (ZTBL).
The chairman committee questioned Finance ministry officials why the heads of NBP and ZTBP were not appointed.
Minister of State for Finance Dr. Aisha Ghous Pasha briefed the Committee that the Presidents of the NBP and ZTBL shall be appointed before the end of this financial year.
She said that the process of appointment has been completed and now the matter is with the State Bank of Pakistan (SBP) where the fit and proper assessment is being done.
She told the Committee that the process was delayed but it will be completed at the earliest.
The Committee expressed grave concerns over the delay in the appointments of the Presidents NBP and ZTBL however, directed the Finance Division to finalize the process of appointments in order to improve the working and performance of the organization.