SBP withdraws restriction on cash dollar import

KARACHI: The State Bank of Pakistan has withdrawn the restriction on importing dollars up to 35%, allowing exchange companies to import 100% of the foreign currency.

Officials of exchange companies and SBP Deputy Governor Jameel Ahmad met Tuesday, when the latter expressed concern on increasing rates of US dollar against the Pakistani rupee.

Earlier, The News quoted secretary general of the Exchange Companies Association of Pakistan (ECAP) as saying that they wanted the bar to be lifted as the restriction of importing 35% of cash US dollar against permissible export of foreign currencies and routing of 65% through banks hurt the market mechanism.

ECAP Secretary General Zafar Paracha said it was the disruption in market mechanism, which pushed the rate of dollar from Rs110.7 to Rs113. He added the restriction would create problems for the exchange companies in maintaining the demand and supply of dollar.