KARACHI: State Bank of Pakistan (SBP) has lifted restriction on import of US dollar against export of other permissible foreign currency in order to stabilize the exchange rate in local market.
A circular issued by the central bank and decided to allow exchange companies to import cash US Dollars against export of permissible foreign currencies without observing any limit and/or repatriate equivalent US Dollars through credit to their foreign currency accounts maintained with banks in Pakistan.
Earlier on January 01, 2018, the SBP issued circular related to import of cash US Dollars against Export of Permissible Foreign Currencies. In the circular the SBP decided that exchange companies can continue the import cash US Dollars against export of permissible foreign currencies unless advise otherwise. “However, total import of cash US Dollars shall not exceed 35 percent of total export of permissible foreign currencies during a month,” it said.
Earlier, in the day a meeting of Forex Association of Pakistan with SBP was held to discuss the sudden devalue of Pak Rupee against US dollar from Rs111 to Rs113.
Malik Bostan, President of Forex Association apprised SBP that the central bank had imposed restrictions that exchange companies could import US Dollar up to 35 percent against foreign currencies and remaining 65 percent was allowed through banking channels. This decision was resulted in reduction of US dollar supply in the open market.
Besides, developing tension between Pak-US relations after US President Donald Trump remarks on Pakistan and panic like situation internally after protest call by opposition parties also brought local currency under pressure against the dollar.
The forex association demanded the SBP to withdraw the import limit condition to help the local currency to maintain its levels.