SBP URGED TO RAISE PROFIT RATES ON FCA’s & ADOPT FRIENDLY DEPOSIT POLICIES…..The Financial Daily 19/12/2022

The Union of Small and Medium Enterprises (UNISAME) has invited the attention of the State Bank of Pakista (SBP) to the very low rate of profit given to foreign currency account holders and urged the SBP policy makers to match it with those foreign countries offering more.
One senior bank executive and also our Unisame Council member said one of the reasons why remittances are slower is because internationally banks are offering upto 4.5% mark-up on fixed deposits whereas in Pakistan foreign currency account (FCA) holders are virtually getting quarter percent mark-up/profit on their deposits.
He added that suppressing mark-up on FCA encourages savers to send their money out or even to remove it from banking system because of negligible profit.
He said if the government and banks start paying market rates on FCA deposits, this flow can be reversed. Artificially suppressing mark-up is leading to leakages.
President UNISAME Zulfikar Thaver said it is also very important for the SBP to announce and promise that FCA accounts will not be touched and the government will not freeze them under any circumstances , this will kill the rumours circulating in the circles that the government will lay their hands on the dollar accounts and issue FC bonds against them.
Another investment banker from one of the leading investment banks said in a private meeting that the government must invite the leading industrialist and the top rich 1000 business families and request them in a friendly manner to save the country from crisis and to bring their money invested in foreign banks to Pakistan and save the country. He said if the approach of the government is friendly they will help but they dislike threats and policemen like behaviour. There is no doubt that they love their country and would do anything to save it from the adverse situation .
He said when one of the former governments wanted to sell a leading bank so many rich parties came forward and wanted to buy it but it was sold to an existing bank because of their experience and others were requested to withdraw in national interest. He said many very rich groups and politicians are collectively in a position to bring their money to Pakistan and stand by the government to save the honour and prestige of the country but a friendly approach with amnesty is required and no amount of threat can achieve and gain their co-operation. The government must adopt a very friendly approach and take the business community in confidence.

Posted in: Press Releases