SBP Governor Says Court Decision Needed Before Acting on Blocked Foreign Currency Account Profits
The State Bank of Pakistan announced it cannot release profits on foreign currency accounts seized in 1999 until a court ruling is issued, leaving the matter pending before the judiciary.
Share
Desk Analysis
How This Affects the Exchange
Sector Effect
Negative · Do not buy
Banks face uncertainty over blocked foreign currency account profits, leading to a negative outlook and a Don't buy bias.
Sectors & Direction
Desk read
Desk call: Do not buy · Negatively affected
- BanksNegatively affected
Companies
Mentions in This Briefing
Sectors: Banks — Negative · Do not buy. PSX tickers: MEBL, MCB, UBL, HBL, BAHL, FABL. Banks face uncertainty over blocked foreign currency account profits, leading to a negative outlook and a Don't buy bias.
Full Story
Open on ProPakistani## Background
The State Bank of Pakistan (SBP) addressed the long‑standing issue of profits linked to foreign currency accounts that were confiscated in 1999. These accounts have remained blocked for over two decades, and the profits accrued on them have not been released to the original owners.
## Senate Committee Discussion
The matter was raised before the Senate Standing Committee on Finance and Revenue. SBP Governor Jameel Ahmad informed committee members that the case involves four parties and is currently awaiting a court decision. He emphasized that the central bank lacks the authority to act until the judiciary provides a ruling.
## Calls for Resolution
Senator Talha Mahmood highlighted that a substantial sum remains stuck and urged a swift resolution. Committee Chairman Saleem Mandviwalla also appealed for an early decision, stressing the financial and reputational implications for the banking sector.
## Current Status
The issue remains unresolved, with the SBP awaiting a legal verdict before any further action can be taken regarding the release of profits on the blocked foreign currency accounts.