LAHORE: Finance Minister Ishaq Dar said on Thursday that Exim Bank would become functional during this financial year.

He was chairing a high-level meeting at the State Bank of Pakistan.

The meeting was informed that Rs10 billion funds were allocated in the budget 2015-16 for setting up the bank.

It was decided that Rs7bn equity funds for the bank would be released on January 4, 2016 and a notification to this effect would be issued on January 5, 2016.

It was further decided that on April 4, 2016, further Rs3bn would be released.

Dar directed the authorities concerned to ensure effective utilisation of external debt.

On the occasion, SBP Governor Ashraf Mahmood Wathra gave a detailed briefing on monetary reforms.

The meeting was attended by Economic Affairs Division Secretary Tariq Bajwa, Additional Secretary Finance Tariq Mahmood Pasha and senior officers of the finance ministry.

EXCHANGE COMPANIES: The finance minister also chaired a meeting with the representatives of exchange companies.

He was briefed about the issues faced by forex companies. Trends and developments in foreign exchange market were discussed in detail.

The meeting noted that Pakistan’s external account was stable on the back of lower commodity prices, healthy workers’ remittances, and continued support from international financial institutions.

The meeting was informed that as a result of these developments and overall macroeconomic stability achieved by the government in past two years, the country’s foreign exchange reserves reached an all-time high level of $20.44bn.

The participants opined that in the backdrop of stable outlook in the external account, the recent exchange rate fluctuations in the kerb market were not justified.

The representatives also gave suggestions to curb speculative pressures in the open market.

Dar assured them the government would address issues faced by exchange companies and also act upon the suggested measures for curbing smuggling and speculative trading.

The finance minister directed the Federal Board of Revenue to require importers to produce proof of payment and origin of payment for non-LC imports at the time of Customs clearance.

Discussing the issue of raids by agencies on forex companies, he stressed that he will take up the matter with the relevant quarters to include SBP representative in joint investigation teams if there was any credible information regarding illegal activities by the companies licensed by the central bank.

Dar reiterated that dollarisation of the economy will not be allowed and SBP, in its role of regulator, will take all necessary measures to put an end to such activities.

The representatives of exchange companies were of the view that with the foregoing measures, the current pressure on Pak rupee against US dollar in the open market will ease.

Published in Dawn, December 4th, 2015