State Bank of Pakistan (SBP) Deputy Governor Dr. Inayat Hussain Wednesday pointed out that rising demand for dollars from the public and lifting of import restrictions are the primary drivers of the depreciating rupee.
The deputy governor was briefing the Senate Standing Committee on Finance and Revenue on the consistent fluctuation in dollar price.
Committee Chairman Senator Saleem Mandviwalla was of the opinion that SBP should take precautionary measures to ensure dollar stability and discourage the public from unnecessarily purchasing dollars.
Mandviwalla highlighted the matter of opening letters of credit (LCs) to import electric vehicles (EVs) and said that the government should prioritize the import of EVs over traditional vehicles as it would contribute to averting the climate crisis.
In addition to that, the committee was briefed on the present status of EXIM Bank. Dr. Hussain informed that Board Members of EXIM Bank have been notified, however, the bank will become operational on the clearance of FPT forms and documentation of nominated Board Members. The committee directed the SBP to expedite the clearance of FPT forms within two weeks.
