Pakistan’s few banks were involved, allegedly overcharging for opening the Letters of Credit (L/Cs) to the importers. State Bank of Pakistan (SBP) took notice of the customers’ complaints and sent notices to the Allied Bank of Pakistan, National Bank of Pakistan, Bank Al Habib, Meezan Bank, Standard Chartered Bank, Habib Bank Limited, United Bank Limited, and Habib Metro.

State Bank of Pakistan held a meeting with the Finance Committee of the National Assembly headed by Qaiser Ahmed Shaikh. SBP Deputy Governor Inayat Hussain stated that SBP received the complaints in June-July and issued show-cause notices to the banks.

SBP informed about the meeting with banks involved in overcharging the importers for L/Cs opening and warned them to charge reasonably and to follow the rules. They also advised them to have a transparent and rational approach to pricing the foreign exchange transactions. He stated that by the end of November, they would complete the process of taking action and charging the banks involved in allegedly charging the importers. He assured about the strict monitoring of the banks, and they received no new complaints.

Sabir Hussain Kaim Khani, a member of the national assembly, said that the National Bank of Pakistan (NBP) is also involved in devaluing the rupee; how can we control the private banks?

Prime Minister’s Finance Advisor Tariq Bajwa said that market forces determine the foreign exchange rate, and sometimes SBP intervenes according to the need. The committee chairman asked to plan a meeting on December 15, 2022, and the Governor of SBP to provide an update on the matter.