ISLAMABAD: The Ministry of Finance on Wednesday expressed ignorance about the whereabouts of over Rs821 billion, sparing Rs6 billion, that the National Accountability Bureau (NAB) claimed to have recovered since its inception some 16 years ago.
In this regard, the Senate Standing Committee on Finance and Revenue has summoned the Director General (DG) NAB and Auditor General of Pakistan (AGP) for questioning over the recovered money.
Additional Secretary Finance Division Tanveer Butt informed the committee that NAB has recovered Rs821 billion since its inception but only deposited Rs6 billion in government accounts.
As per the details, in a paper sent to the Senate committee, NAB claimed Rs76 billion as voluntary refund or plea-bargain, Rs122 billion as bank loan default recoveries, Rs60 billion recovery on account of restructuring of loans, Rs46 billion court fines imposed and over Rs500 billion in different ‘indirect recoveries’.
While answering questions raised by Senator Saleem Mandviwala, the additional secretary Finance responded that it was not known where the recovered money was collected.
The committee decided to write to the AGP and NAB (Accounts) DG to appear before it before the next meeting.
Furthermore, State Bank of Pakistan (SBP) Deputy Governor Murtaza Syed briefed the committee on the devaluation of the Pakistani rupee and inflation in the country.
The committee noted that despite Rs57 per dollar depreciation, the government could only increase exports by just 3pc whereas its impact on inflation had been devastating.
The SBP Deputy Governor apprised the committee that supply and demand in the market determine the exchange rate. He observed that Covid-19 was also one of the factors amongst others due to which the rupee depreciated and inflation was high.
Senator Talha said rupee was under pressure primarily because of smuggling of dollars from Pakistan into Afghanistan and also referred to a person from whom a huge amount of dollars were seized in Lahore.
He said people had initially absorbed the impact of devaluation but the massive inflation became unbearable. He said people were least interested if exchange rate was artificial or genuine as they were crying over the rising prices of commodities. “We are totally dissatisfied with your briefing and will issue a letter to the governor [of] SBP,” said the Senate committee chairman as some members termed the statement made by State Bank Governor Reza Baqir in London as “uncalled for” in which he had said devaluation had also benefited a large number of overseas Pakistani.
The SBP deputy governor acknowledged that the movement in exchange rate affected inflation but said the recent depreciation of exchange rate did not have much impact on inflation as the prices were being stoked food commodities and energy prices in the global market.
Senator Sherry Rehman and other senators also took notice of the statement given by the Baqir in London. The members committee termed the statement irresponsible and called for an explanation on the statement given by Raza Baqir.
Sherry Rehman noted that in terms of the dollar, international organizations are predicting that it will go up to 200 rupees.
Senator Saadia Abbasi asserted that the committee should also be informed about the recent negotiations held with the International Monetary Fund (IMF).
Additional Secretary Ministry of Finance said that he could not give a detailed answer in this regard and asked for more time to get details of the negotiations.
Senator Talha Mahmood expressed his intent to call the Finance adviser and other officials for a briefing to know the contents of the recent agreement with the IMF.
He lamented H that the rupee continued to mark down sharply against the dollar but exports did not surge. He said that Pakistan had engaged with the IMF twenty-three times, but was still on the grey list of the financial watchdog as well as the Financial Action Task Force (FATF).
