SBP makes account opening mandatory for buying $2,000 or above

In a major move to restrict dollar outflows, the State Bank of Pakistan (SBP) has made it mandatory to open an account before buying $2,000 or above. State Minister for Finance Aisha Ghaus Pasha on Wednesday informed this to the Senate’s Standing Committee on Finance which met in Islamabad. The government and the SBP have taken several steps to get control over the dollar outflows. Finance Minister Ishaq Dar, who expressed confidence to meet the external account requirements during the current fiscal year, is being criticised for his failure to bring the dollar rate below Rs200 and replenish the country’s dwindling foreign exchange reserves. Curbs on the opening of letters of credit (LCs) have already affected industrial activities as many sectors were complaining about a shortage of raw materials and parts. No official figures about the stuck-up LCs are available but the importers claim it could be around $1 billion.