Federal Minister for Finance Ishaq Dar chairing a meeting on Thursday. PHOTO: PID
ISLAMABAD: Federal Minister for Finance, Senator Ishaq Dar said on Thursday that by March 17, payments against exports to Afghanistan will cease to be made in the Pakistani rupee.
The finance minister was chairing a high-level meeting to review Pakistan’s trade with Afghanistan at the Finance Ministry.
Attendants of the meeting were informed that Pakistan’s export to Afghanistan during 2012-13 amounted to US $2.3 billion. This includes trade undertaken in Pakistan Rupee, estimated to be 50% of total exports.
Dar took the decision after consultations and due recommendations by the concerned Ministries.
A two-month grace period was, however, being given to allow exporters to serve out existing contracts.
The decision has been taken in view of the fact that normal banking channels were now available for transactions between the two countries.
The move is likely to earn foreign exchange of US $1 billion.
Currency limit per person reduced to US $5000 per trip abroad
In a separate meeting held with representatives from the State Bank of Pakistan, the Finance Minister reviewed the limit of currency notes allowed to Pakistanis traveling abroad.
Governor SBP had raised the issue that the present limit of US$10,000 for each person per trip was being misused.
The Finance Minister stressed and clarified that the limit of US $5000 was applicable to passengers who were carrying currency notes.
Under the new laws, each child of up to 12 years will be entitled to 50% allowance while an infant will be permitted an allowance of 25%.
COMMENTS (11)
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Is there any other country in the world that doesn't accept its own currency for its exports?
That's good news for traders in Pakistan as they will now be paid in dollars rather than Pak Rupees. Reducing the cash limit while going abroad is good if govt wants to catch people who don't pay any tax and take loads of money to Dubai thus bypassing legal banking channels.
Despite negative criticism by a few haters, I see it as a positive step to prevent smuggling of Pakistan's currency to Afghanistan (and to Central Asia) and start of inflow payments against our exports in Dollars. The net benefit to the economy should be more than US$ 2 - 3 Billion.
Do you have control over the borders? If wishes were horses.
@Ali Rizvi: It's a good step, people are habitual in using laws for their personal benefits and country suffers later
So much for all those speeches about trying to help out Afghanistan. One more reason why people ignore what you say and judge you by your actions.
@Pakistani Patriot: You are right. We should see $:Rs parity around 130-135 by mid-year. Dar wanted people to sell their Dollars as his forecast was it would appreciate. Figure that one if you can?? Not just Afghanistan no longer needing Pak Rs. Pakistanis are shunning Pak Rs. Well done, Dar. Sharif's are a poison pill for Pakistan.
Good going PMLN's finance minister. You are on track to repeat your previous term's performance when the rupee was in free fall and you confiscated all US $ accounts in the country, no one was allowed to take $$s out of the country. That's what is next because you are not competent to run the finance ministry, just as the last time when you left the country bankrupt, foreign reserves were a mere $200 million and the nation was in heavy IMF debt. History repeats itself. Soon the people will be crying for the Army to take over once again to provide relief from these incompetent and corrupt politicians. Soon, very soon.