Bank profits to fall.

KARACHI -- Earnings of commercial banks are expected to drop by 4-11 per cent for 2022 if the government imposes a new tax on their foreign exchange income.

Finance Minister Ishaq Dar said in a recent press conference that the government was planning to ramp up its tax revenues by levying an additional tax on banks, which have made 'excessive gains' on the back of a high volatility in the currency market.

Topline Securities said in a research note issued on Thursday a 10-30pc tax on banks' foreign exchange income can fetch the government additional Rs12-36 billion. That's because the research house expects banks will post collective foreign exchange income of around Rs120bn for 2022.

State Bank of Pakistan (SBP) Governor Jameel Ahmed recently told a standing committee of the National Assembly that the central bank was undertaking an investigations into the role that...