Ishaq Dar seeks report on inflated exchange rate in LCs opening

LAHORE: Finance Minister Ishaq Dar has summoned report of the matter pertaining to opening of LCs in banks on inflated rate of dollar, ARY News reported on Thursday.

Ishaq Dar, who yesterday sworn in as federal finance minister, replaced Miftah Ismail.

According to sources at the finance ministry, the finance minister has summoned report about the banks’ practice of opening letters of credits (LCs) five to eight rupees above the exchange rate of dollars.

“Strict action will be taken against the bank officers, found to be involved in the practice in the light of the investigation report,” sources said.

“The business class had to pay crores of rupees extra for this practice of banks”, sources said. “The bank officials illegally earned several crores of rupees from importers over opening LCs,” according to sources.

“The banks continued this practice for several weeks,” sources said. All Pakistan Textile Mills Association (APTMA) chief Gohar Ejaz has already demanded of the prime minister about inquiry of this practice,” sources said.

Gohar Ejaz has said that the banks have earned billions of rupees with dollarization, which has overburdened the national economy and Pakistani rupee.

“Industrialists and traders are welcoming this audit inquiry,” APTMA chief added.