ISLAMABAD: A meeting of the National Assembly Standing Committee on Finance and Revenue has expressed grave concern over the devaluation of the Pakistani rupee to US dollar as well as the increase in inflation, asking the SBP deputy governor to apprise the committee in this regard.
The parliamentary panel meeting was held under the chair of Faiz Ullah on Tuesday in this regard.
The committee was of the point of view that devaluation of the rupee will not provide any space to control inflation in the country.
The committee also noted the effects of trade deficit and current deficit on the economy.
The SBP deputy governor informed the committee that currency devaluation does not have an immediate effect on inflation, adding that the depreciation on inflation will be felt in the next four to six months, not immediately. However, he said that imports are expected to decline while exports will increase.
He added that the value of currency is determined by the market but the SBP may intervene if an extraordinary situation arises.
It may be mentioned here that the rupee has depreciated by 10.3 per cent from July 1 to November 12.
Committee members were of the view that the SBP governor should brief the committee in-person and decided to invite him in the next meeting for further discussion in this regard.
Furthermore, the committee discussed issues noted during the visit of the parliamentary delegation to Azerbaijan headed by the Speaker regarding prolonged due diligence by Pakistani banks over the use of Taftan border as transit country, and Anti-Money Laundering (AML) requirements set by the SBP.
Special Invitees briefed the committee that in many instances, documents have to be changed showing other Central Asian countries as appetites to conduct trade between Pakistan and Azerbaijan.
They recommended that selected commercial banks may be asked to do away with these onerous requirements.
The committee directed the central to come up with a viable solution of the problems being faced to both sides in consultation with all stockholders within thirty days.
