The Cabinet Committee for Economic Revival has rejected a plan for banning Afghanistan from Pakistan’s foreign exchange market despite a member’s warning that it was causing the ongoing Rupee slump against the US Dollar.
During the committee’s inaugural meeting, Minister for Communication Shahid Ashraf Tarar expressed concern about Afghanistan’s impact on Pakistan’s exchange market. According to Express Tribune, he said Afghans were buying currency from Pakistan and putting pressure on the rupee.
He asked Finance Minister Dr. Shamshad Akhtar to intervene because the dollar was not accessible in the market at Rs. 340.
The communication minister wanted the economic revival team to focus on acute difficulties rather than long-term solutions. However, the committee decided not to make a decision on the matter and chose to focus on difficulties in other industries.
On Wednesday, the committee reconvened and heard presentations on suggestions for capital markets and financial initiatives aimed at economic revival. The cabinet committee charged Minister of Commerce and Industries Gohar Ejaz to devise a proposal for economic restoration, particularly in terms of export enhancement and competitiveness, by September 4, 2023.
Members of the committee also emphasized the necessity of restoring investor confidence and market sentiments in order to avert any shortfalls in stock market activity. Meanwhile, Finance Advisor Dr. Waqar Masood Khan advocated forming an oversight committee to monitor the inflation situation. The committee, however, didn’t pursue the agenda.
