Dar rejects impression of taking over commercial banks forex reserves

Canada Gloabl (Web News) Finance and Revene Minister Ishaq Dar clarified on Wednesday that the government will not seize foreign currency held by commercial banks, claiming that his previous statement about the country’s reserves had been twisted by certain sections.

“My comment was largely misunderstood because nothing of the sort will happen,” he said at a press conference alongside Prime Minister Shehbaz Sharif and other ministers.

The minister was forced to clarify a few days later after telling an interviewer that Pakistan’s foreign exchange reserves totaled $10 billion – a much higher figure than the central bank’s $5.6 billion reserves as of December 30, 2022, because dollars held by commercial banks also belonged to the country.

Fears were raised by the finance minister’s statement that the government would seize money from private banks.

Dar explained that before 1999, private banks were prohibited from holding foreign currency and had to deposit all incoming funds with the State Bank of Pakistan (SBP).

Ishaq Dar, the minister of finance, stated that a three-year time period had been set for the restoration phase.

He stated that monies for this purpose will also come from the development budgets of the federal and provincial governments.

Ishaq Dar claimed that a thorough discussion with the IMF had taken place regarding the nation’s economic situation.

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