The financial discipline of the country is hostage to status quo. The country has been facing crisis after crisis since its inception in 1947 and despite marvelous achievements in various sectors, financial ailments continued to haunt this nation. The fault line lies in the shortage of cash but the financial managers in the successive governments always opted for short-term solutions to long-term problems. After a 10-year moratorium on the import of US dollars, the State Bank has now allowed the companies, dealing in foreign exchange, to bring in the greenbacks directly in baggage or in their accounts against the sale of foreign currencies abroad. In a circular issued by the central bank, the ban on the import of dollars has been lifted from August 3 to October 15. It is hoped that the decision will improve dollar supply in the market, reduce its demand and bring down difference in dollar rates in inter-bank and open markets. The measure is expected to bring stability in the exchange rate in the country. However, the companies are only allowed to bring dollars through Jinnah Airport, Karachi. The companies dealing in foreign currencies in other cities of the country will also have to use Karachi airport for the import of dollars.
On another note, the State Bank has allowed the exchange companies to export permissible foreign currencies against repatriation of equivalent amount of dollars in their foreign currency accounts maintained with banks in Pakistan as per the prevailing rules and regulations. The bank says that the US dollars must be brought into the country within two working days from the date of export of foreign currencies. However, the practice of repatriation of dollars through credit to bank accounts of the exchange companies would remain unchanged. According experts, strings are always attached with relaxation of certain rules for a specific period of time in this country. Iran has seen the worst financial crisis during its conflict with the western powers over the nuclear issue, but it has improved its economy to the extent that the country has turned into an emerging economic power not only in the region but also on the global level. The purchasing power party of Turkey was less than 3000 dollars a couple of decades ago, but its current per capital income is over 12000 dollars.
Pakistan’s economic outlook is oscillating between hope and despair. Instead of taking revolutionary steps, the financial managers in the country only look to squeeze common man. It is yet to be seen the reaction of the financial market to the latest government measure.
