This refers to your editorial "Do away with PNS" (ET,Nov18). As suggested this is the best opportune time to introduce ban on Participatory Notes(PNs) and minimise the problems connected with the excess overflows of foreign exchange .By doing away with PNs, both captal market and forex market can expect some order apart from having some checks on outflows of illegal funds. The forex inflows are welcome for economy's growth,but this should not be a conduit for exploiting loopholes to indulge in illegal transactions.
Some of the approaches to tackle excess inflows can be introduction of forex inflows stabilisation fund wherein excess funds can be contributed by the forex earners provision of incentives to use liberally forex earnings for acquisition of business opportunities abroad, by discouraging flows coming in a camouflaged manner etc. This is also the time to give a boost to the infrastructure development where imports of capital goods and technology are needed.
Dr T.V.Gopalakrishnan
(This appeared in ET 20/11/09)
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment