Senate committee questions SBP over fine on commercial banks

ISLAMABAD: A Senate committee formally requested the State Bank of Pakistan (SBP) to provide a detailed response regarding its decision to impose a fine of only Rs1.04 billion on commercial banks.

The said banks had reportedly profited Rs65 billion from the illegal sale of the United States (US) dollars.

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Senator Saifullah Abro raised concerns during the committee meeting. He stated that the issue at hand affected the entire country.

He questioned the State Bank’s oversight and performance. “This is an issue for entiee Pakistan, but the State Bank did not know. Is this the performance of the SBP?” Abro remarked.

The Senator insisted that the central bank must furnish all relevant details within a three-day time period.

In response to the committee’s request, officials from the country’s central bank stated that the three-day period was “insufficient” for compiling the necessary information and requested an extension.

The officials did not specify a proposed timeline for the additional time reportedly needed.

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The situation raised questions about the regulatory oversight and the effectiveness of the State Bank in addressing financial misconduct within the country’s banking sector.

The committee’s inquiry reflects broader concerns regarding the integrity of financial institutions and the enforcement of regulations designed to protect the economy.