The Ministry of Finance has been suppressing the evaluation report of Sazbaz in the matter of foreign currency for 3 months. Photo: File
Islamabad: The finance ministry has suppressed a review report in which the central bank examined the foreign exchange regime, delaying disciplinary action against these commercial banks.
For the last 3 months, the finance ministry has been suppressing a review report in which the central bank had reviewed the foreign exchange mechanism, due to which the disciplinary action against these commercial banks is delayed, even though the review report clearly stated. These banks were charging more than its actual value in currency exchange.
Actions against at least 8 commercial banks have been stopped even as Finance Minister Ishaq Dar repeatedly vowed to impose heavy taxes on commercial banks that allegedly manipulated the value of the rupee against the US dollar. 25 billion to 50 billion rupees profit was earned.
The Central Bank on Wednesday informed the Senate Standing Committee on Finance that the State Bank has reviewed the matter and submitted its report to the Finance Division on December 27, 2022. The date of submission of the report indicates that the Federal Govt. And central banks are deliberately delaying action against banks.
The federal government had an opportunity to levy additional taxes through the mini-budget last month, which it claimed was levied in lieu of penalties. Despite determining the charging, he was in no mood to take any decisive action against them soon.
State Bank Executive Director Arshad Mahmood Bhatti said in the meeting that there was a shortage of dollars and importers were trying to get the limited amount of dollars available but these banks kept charging more instead of taking a reasonable exchange rate. Nor did Additional Secretary Finance Amjad Mehmood give any date for taking punitive action against the banks.
Officials of the Ministry of Finance have been repeatedly saying that the government wants to impose an additional income tax of up to 41% on the foreign exchange earnings of the banks to recover 37 billion rupees in taxes. Accordingly, if the government does not intend to proceed with the financing option, the SBP will initiate enforcement proceedings as per its supervisory framework.
In September last year, the Deputy Governor State Bank told the Senate Standing Committee on Finance that show-cause notices have been issued to other banks including the National Bank of Pakistan, Allied Bank Limited. Officials of Habib Metro Bank and United Bank Limited appeared before the Standing Committee.
The hearing took place on a day when the Pakistani rupee depreciated further on Wednesday to around Rs 284 against the dollar. Amjad Mehmood said the federal government was taking a cautious approach as any move would affect the banking industry. but will have
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