THERE are two broad categories of foreign currency accounts in Pakistan. The latest category of forex accounts are digital foreign currency accounts, which was introduced in 2020. The other category of foreign currency accounts was introduced a long time ago in 1974, and is still active.

Both these categories are mainly for overseas Pakistani workers to facilitate their home remittances. Both categories of accounts allow overseas Pakistanis to transfer outside Pakistan any amount out of their inward remittances from these accounts. However, there is a serious discrimination between interest rates on these two categories of forex accounts.

The discrimination is that interest rate on a digital account at the rate of seven per cent per annum is given by the banks in Pakistan, whereas the interest rate is 1pc on the other category of such accounts.

This is a discriminatory policy that must be reviewed urgently, and all categories of forex accounts must be offered a uniform rate of interest across Pakistan.

Despite his hectic agenda, the new finance minister should look into the matter, and take necessary steps to remove this discriminatory policy so that all foreign currency accounts in Pakistan may get a uniform value against their foreign exchange deposits.

Ejaz Ahmad Magoon
Doha, Qatar

Published in Dawn, April 8th, 2024