Islamabad September 18 2022: Pakistan Central Bank, State Bank of Pakistan (SBP) issued show cause notice to eight banks over allegation of currency speculation as SBP is investigating whether they had charged well above market rate for opening of Letter of Credit (LCs) or not, says Pakistan's Finance Minister Miftah Ismail.
However, he did not disclose the names of the commercial banks to which show cause notice has been issued.
"We will take strict measures against those who have violated the market and imposed hefty penalties" he added.
Pakistan Rupee touched low of 239.94 on 29th July 2022 on uncertainty of IMF program, but banks charged well above the rate of interbank during that period.
"We didn't have enough dollars to defend our currency but i strongly believe that dollar will come down organically when people feel that dollar is overvalued. Positive statements from IMF, ADB and AIIB will help to improve sentiment in coming days" he added.
He further added, "We will not intervene in dollar market to manage our currency nor IMF will allow us to do this."
Pakistan top ten banks earned an amount of PKR 27,671 million from dealing in foreign currencies in the period from April to June 2022 compared to full year earning of PKR 37,896 million in full year 2021.
Earning through Foreign Exchange Dealing for top ten banks of Pakistan
|Bank||Foreign Exchange Earning|
Full year 2021
|Foreign Exchange Earning in |
3-Months Ended June 2022
|Habib Bank Limited||PKR 4,590 million||PKR 4,339 million|
|Allied Bank Limited||PKR 1,974 million||PKR 3,544 million|
|Bank Alfalah Limited||PKR 4,129 million||PKR 3,421 million|
|United Bank Limited||PKR 3,991 million||PKR 3,332 million|
|MCB Bank Limited||PKR 3,734 million||PKR 2,903 million|
|Bank Al Habib Limited||PKR 2,970 million||PKR 2,524 million|
|Meezan Bank Limited||PKR 3,159 million||PKR 2,318 million|
|National Bank of Pakistan||PKR 6,510 million||PKR 2,184 million|
|Askari Bank Limited||PKR 3,124 million||PKR 1,590 million|
|Habib Metropolitan Bank||PKR 3,707 million||PKR 1,516 million|