ISLAMABAD: The Ministry of Finance and FBR have expressed their ignorance of the announcement made by the Civil Aviation Authority regarding the declaration of foreign currency for international passengers arriving in Pakistan, while the decision comes amid the falling value of the rupee. Due to this, the local currency is under pressure.
According to media reports, the meeting of the Senate Standing Committee on Finance was informed that the CAA had visited the Financial Monitoring Unit (FMU) before the on-site visit of the delegation of the Financial Action Task Force (FATF) and the Asia-Pacific Group on Money Laundering. As per the demand of FMU) issued orders on August 16.
The delegation of these two international organizations completed their on-site visit on September 2.
As per the CAA order, all incoming international flights are required to ensure that all passengers declare their ownership of foreign currency through a pro forma form that airlines submit to the CAA. will do
In the meeting, State Bank of Pakistan Deputy Governor Dr. Inayat Hussain said that this decision and initiative is also one of the reasons for the recent pressure on the rupee.
The Deputy Governor of the State Bank said that foreign exchange companies had complained about the CAA order, as the move made travelers shy away from bringing foreign currency.
Also, Finance Minister Miftah Ismail said in a news conference that he had expected the rupee to appreciate and stabilize against the dollar as a result of the IMF recovery program, but the recent floods had largely destroyed the cotton crop. which will result in $1.2 billion worth of cotton imports to meet textile export needs.
He added that 20 percent of the onion and tomato crops were damaged as a result of the recent floods, which would require imports of these commodities and the market was showing such a likely future reaction.
Chairman FBR Asim Ahmed said that his agency does not have the authority under the Customs Act to impose restrictions on the inward movement of foreign currency, hence the decision on mandatory declaration of foreign currency. is not part of
Minister of State for Finance Dr. Ayesha Ghos Pasha said that she is also unaware of this decision of CAA.
On this occasion, Deputy Governor State Bank said that our understanding was that the CAA had issued the circular with the consent of Pakistan Customs.
On the question regarding the implementation of this decision by the Standing Committee, the Additional Secretary of the Ministry of Finance contacted the Director General of the National Cell on FATA and confirmed that the requirements of the Paris-based watchdog were met. It was decided to do this.
Senator Saleem Mandviwala, who presided over the meeting, said that the decision to display foreign currency on behalf of passengers should be withdrawn, but he did not press the demand on the request of State Bank representatives.
However, he insisted that the central bank should not allow the export of dollars when Pakistan is currently in short supply.
Federal Minister Senator Talha Mehmood also confirmed that the decision to export US currency has put additional pressure on the value of the rupee.