A major scandal has surfaced involving commercial banks accused of profiting Rs65 billion by selling dollars at inflated rates.
The Senate Standing Committee on Economic Affairs, led by Senator Saifullah Abro, has initiated action against the implicated banks.
During a recent committee session, Senator Abro voiced his alarm regarding the issue, recalling that in 2022, former finance minister Ishaq Dar disclosed the banks’ illegal earnings from the sale of overpriced dollars. “This money belongs to the underprivileged, and it must be returned,” the chairman asserted.
Senator Kamran Murtaza raised concerns about accountability for the expensive dollar sales, to which officials from the State Bank of Pakistan (SBP) acknowledged the banks’ infractions. They revealed that a penalty of Rs1.4 billion had been imposed on the banks, which Senator Murtaza criticized as insufficient, given that the banks had garnered Rs65 billion illegally.
The committee has requested a comprehensive report from the State Bank within two weeks, detailing those responsible for the financial misconduct. Additionally, the Economic Affairs Ministry has been instructed to implement measures for the recovery of the misappropriated funds. The committee emphasized the need for strict actions to prevent future incidents of this nature.
The committee also touched upon the use of the International Monetary Fund (IMF) loan, with the chairman questioning how the funds were allocated. SBP officials clarified that the IMF loan is exclusively utilized for balance of payments and is not accessible to any entity other than the State Bank, underscoring that such loans are only sought when absolutely necessary.
The Senate Standing Committee on Economic Affairs has signaled its determination to tackle financial misconduct, with the forthcoming report from the State Bank expected to play a pivotal role in addressing this financial scandal.