— Major currencies around the globe depreciated against the dollar: Ghuas Pasha
GHULAM ABBAS
ISLAMABAD: As the government is unable to stop fast devolution of local currency against dollar, a senate body on Thursday showed its serious concerns that rupee has devalued by 20 percent in the past few months.
However, apart from the gap in demand and supply, political uncertainty, the ministry of finance claims that the devaluation of currency has an international factor too as in a short span of time major currencies around the globe have depreciated against the dollar.
During a meeting of the Senate Standing Committee on Finance, Revenue and Economic Affairs, which was chaired by Senator Saleem Mandviwalla in the Chair, the senators slammed the multiparty government for not controlling currency which is causing the rise in inflation.
Senator Mohsin Aziz said that the local currency was devalued against the dollar by at least Rs 5 every day. “For not opening LCs the auto, pharmaceutical and other sectors are closing their production units,” he said, adding that prices of commodities are skyrocketing in the country.
Responding to the severe criticism by members of the committee, State Minister for Finance, Aisha Ghaus Pasha however claimed that the inflation rate in the United states is at a 28 year high and the extraordinary rise in dollar is mainly because of the increase in U.S. discount rate. Senator Saleem Mandviwalla questioned “how will the dollar be stabilized?”
Replying to the query, Aisha Ghaus Pasha informed that international factors are beyond our control. “As far as local factors are concerned, we are aiming to increase remittances which currently stands at $ 3.12 billion (April 2022) and to reduce the import-export deficit of approximately $ 8 billion,” she added.
Another member of the committee criticized the government saying that the government is unable to even appoint governor state banks despite lapsing over three months. However the state minister claimed that governor SBP was being finalized this week.
Moreover, on the matter of IMF Bailout, the State Minister for Finance commented that the staff level agreement has been finalized and the current IMF bailout program would be implemented by August 25, 2022. However, on the speculations regarding the country heading towards default, Aisha Ghaus Pasha categorically stated that “We are not anywhere near the situation of Sri Lanka”.
Senator Danesh Kumar said that dollar rates are increasing due to smuggling as $ 0.5 million was recovered from a person in Quetta. He suggested the government close the three borders of the country to see a visible slash in the rate of the US currency. “If oil is imported from Iran, petrol could be available at Rs 150 in Pakistan,” he said.
Furthermore, Senator Anwar ul Haq Kakar raised the matter of discrimination facing by politicians in opening of bank accounts. Senator Saleem Mandviwalla commented that six months ago the matter was raised in committee but no substantial answer has been provided. He further added that committee is deliberating upon an idea to issuing an advertisement in the newspaper that any politician facing any sort of difficulty in opening a bank account can approach this forum with his/her grievances.State Minister for Finance maintained that any sort of discrimination against politicians cannot be tolerated and the ministry will inform the committee about the progress of matter in the next fifteen days.
Furthermore, the matter regarding year wise income tax collected from the industrial sector in Sindh province and the year wise duty collected on imports of goods through Karachi Port during the last three years respectively rose by Senator Mohsin Aziz in the House. Senator Mohsin Aziz was of the view that income tax collected from any industry or organization, headquartered in Karachi but operates throughout the country shall not be considered as a provincial matter in terms of taxation, revenue and custom duties. Aisha Ghaus Pasha apprised the committee that this problem is called “headquarter problem” and FBR as tax collector of the country currently does not have any mechanism to differentiate between these two.
However, the committee unanimously passed the “Public Finance Management Amendment Bill,2022 moved by Senator Danesh Kumar. The bill seeks to insert the word “Senate” after the word “National Assembly” in section 34&35 of the Act. Senator Danesh Kumar was of the opinion that Parliament comprises both “The National Assembly and the Senate” and any report on budget development and on government performance shall be presented before the Senate as well.
Moreover, the committee deferred the “Limited Liability Partnership Amendment Bill,2022 till next meeting for further deliberations. Additionally, on the issue of placement of jaggery and refined Sugar in same category in Customs list raised by Senator Fida Muhammad. Chairman FBR, Asim Ahmad informed the committee that the Ministry of Commerce determines the import and export policy of the country and the matter does not come under the ambit of FBR.
The meeting was also attended by Senator Saadia Abbasi, Senator Faisal Saleem, Senator Mushtaq Ahmed, Senator Muhammad Shafiq Tareen, Senator Fida Muhammad, Senator Zeeshan Khanzada, Federal Minister for Climate Change Senator Sherry Rehman, Chairman FBR Asim Ahmad and other senior officers of ministry and State Bank of Pakistan.
