Senate committee slams SBP inaction over banks’ Rs65bn ‘unlawful’ profits

The Senate’s Standing Committee on Economic Affairs criticised the State Bank of Pakistan (SBP) during a meeting on Monday for leniency in penalising commercial banks involved in Rs65 billion heist through unauthorised higher charges on opening of letters of credit (LCs) for imports at the height of a foreign exchange crisis in 2022. The meeting, presided over by Senator Saifullah Abro, sought details about profits earned by banks through foreign exchange on imports and also called upon the Economic Affairs Division to create a special desk for monitoring of foreign-funded projects. The committee asked the central bank to provide details on how funds received from the International Monetary Fund (IMF) over the years had been utilised.