ISLAMABAD – A recent statement by State Bank of Pakistan (SBP) Governor Dr. Reza Baqir has drawn sharp criticism from senators, who termed it “irresponsible” and called for immediate clarification. The contentious statement pertains to the continuous depreciation of the Pakistani Rupee (PKR) against the US Dollar.
During a meeting of the Senate Standing Committee on Finance, Revenue, and Economic Affairs, chaired by Senator Talha Mahmood, the matter took center stage. Senators, including Sherry Rehman, Saadia Abbasi, and Anwaar-ul-Haq Kakar, voiced their concerns over the Governor’s remarks, stating that such a statement coming from a non-political office was inappropriate and could harm economic sentiment.
Sherry Rehman specifically pointed out that global financial forecasts were indicating the dollar might cross the Rs 200 mark, further fueling public anxiety. Senators unanimously agreed that the statement had added to the uncertainty surrounding the exchange rate and questioned whether the SBP was fulfilling its mandate of stabilizing the currency.
The committee emphasized that while inflation and rupee devaluation were becoming alarming, exports had increased by a mere 3 percent over the last three years—hardly a justification for such a sharp decline in the currency’s value. The Deputy Governor of SBP, who briefed the committee, failed to satisfy the members with his explanation, particularly when he cited COVID-19 and international dollar strength as contributing factors.
Senator Talha Mahmood expressed frustration over dollar smuggling to Afghanistan and the lack of government control. Senator Musadik Malik questioned the SBP’s level of intervention in the foreign exchange market over the past three years, while Senator Saadia Abbasi called for complete transparency regarding the latest negotiations with the IMF.
Adding to the controversy, Senator Saleem Mandviwala demanded answers about the Rs 821 billion claimed to have been recovered by NAB but not deposited in any known government account. This matter, too, was flagged for further investigation.
The committee resolved to summon Governor Reza Baqir in the next meeting for a formal explanation regarding his statement. Senators reiterated that accountability and responsibility were essential, particularly when public trust in financial leadership is at stake. Until then, the statement will remain a subject of scrutiny, as senators push for more transparency and clearer communication from Pakistan’s top economic institutions.