Wattoo requests a change in the rule of export earnings and foreign currency deposits

DNA

Lahore: The Pakistan Businesses Forum has requested an amendment to the export earnings rule to expedite export payments. This would strengthen the country’s foreign exchange reserves and help prevent further volatility of the rupee against the dollar.

PBF Vice President JahanAra Wattoo says the State Bank of Pakistan (SBP) needs to change the rules on the time limit for export earnings, which may need to be reduced to a maximum of forty days, in order for exporters’ installments to arrive. at the right time before the public treasury and this also facilitates assistance. the volatility of the dollar rupee. Unfortunately, in recent months, mainly exporters looking for additional profits, they have distributed their products.

She said private dollar bank accounts were to be required with the new regulations. If the public needs dollars, they will only get them from financial banks, but it shouldn’t exceed $2,000 a day on a single cnic. These steps are a little difficult for the regulator and the authorities, but in order to increase the value of the rupee for the times to come, we must regulate it as soon as for all.

She cited the example that in Bangladesh individuals hardly need to take $1000 for their use because Bangladesh has allowed to have strict check and balance on foreign currency and this is one of the their strong currency factors even today; he added.

“We need your (government) solutions out of the box, however maintaining market confidence will be crucial.”

Wattoo further offers SBP to step in and offer to exchange the funds in dollars for rupees at a lower cost for the borrowing banks, and through this, SBP could raise substantial funds at $5 billion.

She even said that currently the real exchange rate is around 195. The dollar is overvalued against the rupee, therefore the necessary measures must be taken immediately by the regulator so that the panic stops, especially in the current calamity, because for the rehabilitation of the floods, the effects are reinforced. the rupee is vital.