An amendment has been proposed in the Foreign Exchange Regulations Act (FERA), 1947 to give more powers to the State Bank of Pakistan.
The Ministry of Finance has proposed introduce a bill “FER (Amendment) Act 2019,” in the National Assembly.
Its purpose is to prevent illegal foreign exchange transactions. The SBP will get extra powers to regulate foreign exchange regimes more effectively if the amendment is enacted.
The amendments would substantially strengthen the SBP’s powers to issue necessary regulations and instructions relating to inland movement of foreign currency and enable it to monitor such movement, said the Ministry of Finance.
The measure is a part of the government’s efforts to enhance the transparency of financial transactions, it added. The proposed amendment has been approved by the Federal Cabinet and transmitted to Parliament for enactment.