Multi-billion Rupees Banks Scam Exposed

By Newztodays Team

The multibillion rupees banks’ scam has landed in the cabinet of the caretaker set up which reveals how the commercial banks had doubled their profits by giving money to importers on high premium.

The scam has landed in recent meeting of the caretakers’ cabinet held last month.

The cabinet has been informed that State Bank of Pakistan had launched an inquiry into this scam.

In recent reports, all commercial banks had shown abnormal increase in their profits which went up to double to triple, raising serious questions over their profitability at a time when Pakistan was facing economic collapse.

The economy had not shown any signals of improvements, but the banks had registered the highest profits in history that was not logical.

Sources told that cabinet was brought into its notice by Revenue Division that during the calendar year 2022 alone, 26 banks had posted a huge profit of Rs.109 billion as foreign exchange in their financial statements as compared to Rs.57 billion declared for the calendar year 2021, showing so increase of Rs.52 billion in absolute terms of a growth of over 91% in percentage terms.

As compared to this, the banks had earned on average of Rs.33 billion annually before year 2020.

The Revenue Division informed the cabinet that over the last few years Pakistan had faced high current account deficits, and that the restricted supply of US dollars on account of stagnant exports and workers’ remittances had augmented the market demand for US dollars. Banks’ Earnings Surged by 95% in 3Q2023

Consequently, the Pakistani rupee had come under severe pressure and lost substantial value.

The Revenue Division further informed that the situation had favoured the banks, whereby US dollars were supplied to importers on hefty premiums and that exceptionally large profits had been booked and declared by the banks as ‘foreign exchange income’ in their financial statements.

The State Bank of Pakistan had, reportedly, initiated an inquiry into the alleged currency rate manipulation by commercial banks.

Keeping in view the scam, the federal government had imposed 40 percent tax on windfall gains by banks.

According to sources, the banks only gave money to those importers who gave them high premium for imports.