ISLAMABAD: The federal minister of finance and revenue Miftah Ismail has stated that the government will use a number of policy measures to stabilize the currency market in the upcoming days without revealing the specifics of the measures that will be implemented.
Speaking on a local TV show on Monday night, the finance minister admitted that there is a shortage of dollars in the market.
According to Miftah, the government would take steps to lower the dollar rate but, in contrast to the previous administration, it would not make any snap judgments or populist choices.
The dollar rates provided at the kerb market earlier in August were lower than those in the interbank market. However, rates have increased due to an increase in demand for dollars from Afghanistan. Therefore, the inflow of dollars from the kerb into the interbank market has decreased,” he said.
His remarks come as the Pakistani rupee is experiencing increased pressure and fell against the US dollar for the seventh session in a row on Monday. It depreciated by 0.71% to close at 229.82 in the interbank market as a lack of dollars kept the local currency under pressure.
The finance minister claimed that certain institutions were participating in selling dollars at higher prices while taking advantage of the continued market instability without mentioning the specific banks in question.
The central bank governor has been asked to submit a report after the prime minister took notice of this. Additionally, eight banks have received show-cause notices from the State Bank of Pakistan. These banks will be punished following the proper procedures. We’ll damage these banks.
Miftah stated that administrative and market-based measures must be used to limit currency market speculation.
Miftah claimed that the administration is acting to boost the economy. “We need to step up our efforts after the floods. We will evaluate energy imports and foreign exchange under the auspices of two committees the prime minister has established, the speaker stated.
