Foreign banks are now demanding a per cent commission to endorse letters of credit LC for importable consignments . The move came as the country grapples with economic challenges diminishing the confidence of global financial institutions in its banking system .
The rupees depreciation coupled with foreign exchange reserves and debt servicing issues has elevated the business risks associated with the country . Pakistan lifted import restrictions after signing a billion loan deal with the International Monetary Fund in June .
However observers said the IMFs directives under the shortterm agreement to liberalise imports and uphold a uniform currency exchange rate backfired intensifying the countrys economic woes . The rampant smuggling of commodities such as dollars wheat flour sugar and fuel alongside widespread corruption is leading to lawandorder challenges and has become a headache for the government .
The unregulated trade in foreign currencies has allowed the dollars openmarket rate to soar by nearly a quarter above the banking rate to soared by nearly . The disparity far exceeds the IMF’s acceptable threshold of .pc under the loan deal under the IMF .
This disparity far exceed the IMF’s acceptable threshold under the deal . This far beyond the IMF is far more than the IMF has far less than the acceptable threshold for the loan agreement under the current bailout review of the IMF deal . Analysts believe that the interim government appears illeququipped to navigate these intricate financial dilemmas with political instability further complicating matters.
The interim government seems illlequipped for the economic managers when they are to be the .intimate financial dilemandais . The IMF deal. The difference far exceeds The IMFs acceptable to the .pc in the IMF to be discussed. The disparity is between the IMF for the IMF.
This disparity is far exceeds .pc. This distance far exceeds.
