State Bank of Pakistan (SBP) Acting Governor Saeed Ahmed has said that the positive economic indicators may bring some good news in the monetary policy. Speaking at a meeting of Karachi Chamber of Commerce and Industry (KCCI) and later talking to newsmen, he made it clear that the policy rate was reviewed after two months and it was not very simple that the rates might go up and down.
He said that the policy rate was fixed after reviewing many factors and the monetary policy committee was authorised to decide the rates after considering all factors. Referring to the demand that an export-import (Exim) bank be established in Pakistan, the acting SBP governor said the issue was already under consideration and assured that he would take it up with the Minister of Finance.
Regarding Islamic banking, he said that the sector had been growing at an impressive rate of 13 percent per annum and around 1,300 branches were working under Islamic banking system in the country. He however said that there were still problems in Islamic banking capacity building.
The acting SBP governor said that the depositors in Islamic banking were paying double tax and the issue had been referred to Federal Board of Revenue (FBR) to exempt the depositors from double taxation. To a question about dollar and rupee rates, he said it depended on demand and supply. "In case the demand of dollar increases, its rates may go up and vice versa," he added.
To another question about bank lockers, he said that the insurance value of a locker depended on its size. Regarding the recent incident of robbery at a bank, he said that the lockers were the property of the private bank's foundation and SBP had no jurisdiction to intervene in the matter. When he was asked that there were no cash counters in bank branches at the Export Processing Zone, he assured to look into the matter.
Regarding printing and designing of currency notes, Ahmed said that the issue came under discussion during the meeting held on last Friday and it had been decided to revamp pristine press. However, he denied the reports about bringing Rs 10,000 currency notes. Referring to Euro bands, he said that the International Finance Commission (IFC) had expressed satisfaction on Pakistan's economic performance and this might have a positive impact on the euro bonds.