Senate panel seeks explanation from SBP governor on rupee fall remarks

ISLAMABAD: The Senate Standing Committee on Finance on Wednesday sought an explanation from State Bank of Pakistan (SBP) Governor Reza Baqir over his controversial remarks about the depreciation of the rupee against the US dollar.

The SBP governor, addressing a press conference in Manchester in the UK last month, had said the rupee fall greatly benefited overseas Pakistanis sending remittances to the country.

Also Read: KCCI lambasts Reza Baqir for his statement on rupee devaluation

Expressing dissatisfaction over the central bank’s briefing, the Senate panel further instructed it to explain the intervention mechanism it employs to stabilise the exchange rate.

JUI-F Senator Talha Mehmood, who heads the committee, slammed the government over rising inflation and the rupee depreciation. He said the governor’s statement brought disgrace to the country.

PTI senator Walid Iqbal suggested that Reza Baqir’s patriotism should not be questioned.

Read: Inflation in Pakistan due to rise in exchange rates: SBP governor

SBP Governor Reza Baqir created quite a stir on social media after he defended the rupee depreciation saying it benefited overseas Pakistanis and claimed that inflation in the country was artificial and would be controlled. He said rising exchange rate has led to price hike.