During a Senate Standing Committee on Finance session on Wednesday, Senator Mohsin Aziz disclosed that children are being used to transport dollars out of the country, according to reports. The State Bank of Pakistan (SBP) also provided an update on Pakistan’s hyperinflation, interest rates, and foreign exchange rates. The SBP governor stated that Pakistan’s economy is facing both external and domestic challenges, and the current account deficit is expected to decrease from $10 billion to $7 billion by the end of the fiscal year.
Senator Aziz expressed concerns about the proposal to increase the luxury tax to 25 percent, suggesting that it could lead to a decrease in revenue and an increase in smuggling. He also shared that children are being exploited for dollar smuggling, with up to $5 million leaving the country each day.
In more positive news, the governor reported that approximately $2.4 million in debt was recovered during the current financial year, and Pakistan’s foreign currency reserves are expected to exceed $4.3 billion by the end of the week. However, the annual inflation rate is projected to reach 26.5 percent this year.