The rumour mill is grinding again. People with decks of foreign currencies and bags of gold are fearing seizure of bank lockers where they have stashed away their treasures.
Rumours of safe deposit locker seizure by the central bank are circulating on the social media – just like they did earlier this year in June. Then Finance Minister Miftah Ismail had to clarify in a tweet that there was absolutely no plan to take over private lockers – “We have never even contemplated these steps. Nor will we ever do it.”
This time, so far, the government has not issued a clarification.
The locker rooms in leading banks of Lahore are operating as normal. There is no rush of people empting safes out and walking away with tightly clutched briefcases or handbags. Bank officials laughed off the circulating rumours of locker seizure. One of them said that the State Bank has to send a notification to that effect and so far none of the banks have received it.
There are no laws in Pakistan concerning safe deposit boxes. The state could take an extreme measure of freezing safety deposit boxes if the constitution is suspended and emergency is imposed in the country. But that could also be challenged in the courts. The State Bank could also freeze a locker if information is received on hoarding of ill-gotten valuables.
Bank officials laughed off the circulating rumours of locker seizure. One of them said that the State Bank has to send a notification to that effect and so far none of the banks have received it.
In case of information received regarding terror financing, the United Nations Security Council (Freezing and Seizure) Order, 2019 will apply. It states: Property in lockers.-Any money or articles of value deposited with the banks or financial institutions or placed in their safe lockers shall be frozen and no further dealings or transactions shall be made with respect to such money or articles, without prior permission of the Authorized Agency.
Perhaps the delay in the ninth review of Pakistan’s $7bn Extended Fund Facility (EFF) is feeding insecurity among people. Finance Minister Ishaq Dar acknowledged on Dec 1 that he agreed to the potential fallout of a breakdown in IMF talks. He said he would not take any dictates from the IMF.
Economic insecurity is the greatest motivator of rumours. Gone are the days when people hid jewelry and savings under the mattresses or secured them in vaults at home. More and more people are renting bank lockers to deposit mostly undeclared or unvalued contents because theft is common and homes are unsafe in urban centres of Pakistan.
The only people who could potentially benefit from this nasty rumour are burglars. So, dear people, if you rushed to banks to empty lockers, BEWARE! Guard your valuables, keep doors and windows locked and stay awake at night, for someone may have tipped off someone about your bank visit today.
