Forex information: Senate panel for devising declaration forms on int’l flights

ISLAMABAD: While deferring the State Owned Enterprise (SOEs) Bill 2021, the Senate Standing Committee on Finance has directed the authorities to devise a mechanism for facilitating passengers from collecting foreign currency information through customer declaration forms on international flights.

A meeting of the Senate Standing Committee on Finance and Revenue was held at the Parliament House under the chairmanship of Senator Saleem Mandviwalla. The issues taken up included exporting excess foreign currency cash as allowed by the State Bank of Pakistan (SBP), SECP data breach, availability of details of registered companies on the Dark Web and issue of increased taxes on mobile phones. The committee also discussed difficulties faced by importers due to high dollar rates charged by commercial banks to open LCs.

Deliberating over details regarding the export of excess foreign currency cash as permitted by the State Bank of Pakistan (SBP), the Senate Standing Committee on Finance was informed that the SBP issues special permission to export defaced/small denomination/soiled USD cash notes. In order to carry out exports, it was asserted that Exchange Companies (ECs) have to comply with all relevant regulations.

Regarding currency declaration counters established by the CAA at all airports in Pakistan where passengers travelling on international routes are bound to declare the volume of foreign currencies at both arrival and departure, the committee was informed that this was due to the existing FATF limits that call for stringent monitoring of foreign exchange that is let out of the country. The committee directed the Ministry of Finance to provide detail in 15 days after streamlining the process in order to facilitate passengers.

Discussing the SECP data breach and availability of details of registered companies on the Dark Web, members of the Senate panel were of the view that the issue had been highlighted out of proportion and the SECP must revamp online security. The committee was informed that the issue is being investigated and a report will be submitted to the committee soon.

Reviewing increased taxes on mobile phones, the committee was informed that a temporary ban was imposed on the import of mobile phones due to the current account situation in the country. However, no new taxes have been imposed. The reason for an increase in the prices is due to regulatory duties on the recommendation of the National Tariff Commission. It was revealed that regulatory duties imposed are independent of the Money Bill and can be charged at any time.

Discussing difficulties faced by importers due to high dollar rates charged by commercial banks for opening LCs, the committee took a strong notice and stressed the need for measures to address the issue as the future of industry and trade depended on this. It was asserted that numerous businesses are on the verge of shutting down due to this. The market sentiment has experienced an all-time low. The Senate Standing Committee recommended convening a meeting with a single-point agenda soon.