Dr. Ayesha Ghaus Pasha, Minister of State for Finance, has said that Pakistan expects to receive $1.5 billion from the Asian Development Bank (ADB), as well as $500 million from the Asian Infrastructure Investment Bank (AIIB).
The statements were made by the minister during a meeting of the Senate Standing Committee on Finance.
She further said that the federal government is in talks with bilateral partners such as Qatar and the United Arab Emirates (UAE) about investing in Pakistan.
The committee, which convened under the chairmanship of Senator Saleem Mandviwala, also raised the issue of commercial banks collecting fees for establishing Letters of Credit (LCs).
Senator Shaukat Tareen said that businessmen paid $10 to $30 billion via Dubai and other foreign nations due to Pakistani banks collecting additional fees.
He further said that commercial banks were opening LCs (letters of credit) for more than Rs. 240 even while the USD was valued at Rs. 230 in interbank, resulting in an excessive rise in banks’ profit of up to 100%.
Senator Shibli Faraz, while seconding Tarin, said that the LCs worth more than $1 billion that have been in place since before July 2022 had yet to be opened.
While rejecting the assertions of committee members, Deputy Governor State Bank of Pakistan (SBP) Inayat Hussain answered that 80 percent of commercial banks are not delaying LC opening since not a single merchant has gone into default.
However, he said that the central bank is looking into banks suspected of delaying the launch of LCs.
While dismissing the prospect of default, Dr. Pasha said that the country’s foreign currency reserves had stabilized as a consequence of continued external funding from a number of financial institutions.
She insisted that Pakistan will emerge from this terrible period in the same way that it has previously risen from difficult times.
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She added that the terrible flood had a significant impact on the country’s economic situation. She stated that Pakistan would soon get international help to assist flood victims.
Dr. Pasha also said that any international support for flood relief efforts is Pakistan’s right, considering the country’s contribution to global environmental degradation is less than 1%.
