KARACHI: The US dollar ended at Pakistan Rupee (PKR) 186.13, a new historic high of the foreign currency, at closing of interbank foreign exchange market on Wednesday.
(more…)Author: Faisal Shahnawaz
-
SBP receives 20 applications for digital bank licenses
KARACHI: The State Bank of Pakistan (SBP) on Wednesday said that around 20 applications were received for digital bank license by end of deadline i.e. March 31, 2022.
The application process registered an overwhelming response whereby SBP received twenty (20) applications from a diverse range of applicants, including domestic commercial banks, microfinance banks, electronic money institutions and FinTech players, the SBP said in a statement issued on Wednesday.
Foreign players already operating in the digital banking space overseas have also expressed their interest to venture into Pakistani market.
The strong interest shown by both local and international players into SBP’s digital banks’ initiative reflects their confidence in the financial sector of Pakistan and the potential of the investment opportunities available in the country.
Earlier this year on January 03, 2022, SBP launched its “Licensing and Regulatory Framework for Digital Banks”.
While setting foundation for the customers’ convenience, providing cost effective digital financial services and promoting innovation for achieving SBP’s overall goal of digitization in the banking business, the Framework is primarily aimed at providing financial services to unserved and underserved segments of the society.
To achieve the intended objectives under this regulatory initiative, the applications were solicited from interested applicants who can demonstrate strong value proposition, robustness of technological infrastructure, sufficiency of financial strength, high level of technical expertise and effectiveness of their risk management culture in the Digital Banks’ space.
SBP developed and finalized this Framework after an extensive consultative process. Initially, SBP released an exposure draft of this Framework and a targeted survey was launched to invite feedback from a wide range of local as well as international stakeholders. Subsequently, a number of meetings were held with all the stakeholders to further enrich the consultative exercise.
Later, SBP also organized two interactive webinars titled ‘Digital Banks – A New Era in Pakistan’ and ‘The Promise of Digital Banks’ with leading local as well as international speakers to discuss the opportunities and challenges associated with digital banks as well as disseminate awareness about Pakistan’s digital bank licensing framework.
During the application window opened from January 03 till March 31, 2022, SBP has remained extensively engaged with all the interested applicants and held various rounds of discussions/ meetings with all of them.
Moreover, SBP team also remained committed to provide exclusive support and necessary facilitation required for preparation and submission of applications to all the applicants. This initiative of State Bank would greatly help in providing financial services to underserved and unserved segments of the society.
-
Dollar crosses PKR 186 in midday interbank trading
KARACHI: The US dollar crossed the level of 186 to Pakistan Rupee (PKR) during midday trading at interbank foreign exchange market on Wednesday.
The dollar/rupee parity is at Rs186.10 to the dollar. The foreign currency has gained 87 paisas so far when compared with last day’s closing of Rs185.23.
READ MORE: Dollar continues record spree against PKR; hits 185.23
The rupee fell non-stop against the dollar for the last 15 trading sessions. The local currency recorded Rs178.51 at interbank closing on March 11, 2022 and since then the dollar’s made gain Rs6.72 at the closing.
The local unit recorded a decline of Rs27.69 or 17.58 per cent against the dollar since start of the current fiscal year. The rupee was at Rs157.54 to the dollar on June 30, 2021 and fell to Rs185.23 to the dollar on April 05, 2022.
READ MORE: Dollar makes new top at Rs184.09
The recent fall may be attributed to significant fall to foreign exchange reserves. Pakistan’s foreign exchange reserves have depleted by $2.88 billion in a week to $18.554 billion by week ended March 25, 2022, State Bank of Pakistan (SBP) said on Thursday.
The foreign exchange reserves of the country were $21.44 billion by week ended March 18, 2022.
This is seventh consecutive week when the country’s foreign exchange reserves have witnessed consistent decline. The liquid foreign exchange reserves of Pakistan have declined by $5.167 billion since February 04, 2022, when the reserves were at $23.721 billion.
READ MORE: Rupee continues falling spree; dollar at Rs183.48
The ballooning current account deficit escalated the dollar value. Pakistan’s current account deficit ballooned to $12 billion during first eight months (July – February) 2021/2022 against a surplus of $994 million in the corresponding months of the last fiscal year.
Although the current account deficit narrowed to $545 million in February 2022 as compared with the deficit of $2.53 billion in January 2022, scheduled external repayments are still a threat to balance of payment.
READ MORE: Rupee falls to new historic low to dollar at 182.64
The trade deficit widened by 70 per cent to $35.39 billion during first nine months (July – March) 2021/2022 as compared with the deficit of $20.8 billion in the corresponding months of the last fiscal year.
The exports of the country recorded an increase of 24.67 per cent to $23.3 billion during first nine months of the current fiscal year as compared with $18.7 billion in the same months of the last fiscal year.
Meanwhile, import bill registered an increase of 48.63 per cent to $58.69 billion during July – March 2021/2022 as compared with $39.49 billion in the corresponding period of the last fiscal year.
-
Bitcoin to Pak Rupee on April 06, 2022
KARACHI: The exchange rate of Bitcoin (BTC) in Pak Rupee (PKR) is Rs8,459,985.89 on April 06, 2022 at 5:30 AM Pakistan Standard Time (PST), in the open exchange market. The rate of Bitcoin has been calculated and compared with the rate Rs8,578,480.80 at closing on April 05, 2022.
The rate of Bitcoin in US Dollar (USD) is $45,857.35 on April 06, 2022 at 5:30 AM Pakistan Standard Time (PST) in the open exchange market. The rate of Bitcoin has been calculated and compared with the rate $46,607.65 at closing on April 05, 2022.
Disclaimer: All data and information is provided for informational purposes only. The data has not been provided for trading purposes or financial, investment, tax, legal, accounting, or other advice. In the case of trading, it is advised to consult your broker or financial representative to verify pricing before executing any trade. The exchange rate does not constitute investment advice. Further, it is not a recommendation to buy, sell or hold any security or financial product.
-
Ripple to Pak Rupee on April 06, 2022
KARACHI: The exchange rate of Ripple (XRP) in Pak Rupee (PKR) is Rs151.90 on April 06, 2022 at 5:24 AM Pakistan Standard Time (PST), in the open exchange market. The rate of Ripple has been calculated and compared with the rate Rs152.14 at closing on April 05, 2022.
The rate of Ripple in US Dollar (USD) is $0.82 on April 06, 2022 at 5:24 AM Pakistan Standard Time (PST), in the open exchange market. The rate of Ripple has been calculated and compared with the rate of $0.83 at closing on April 05, 2022.
Disclaimer: All data and information are provided for informational purposes only. The data has not been provided for trading purposes or financial, investment, tax, legal, accounting, or other advice. In the case of trading, it is advised to consult your broker or financial representative to verify pricing before executing any trade. The exchange rate does not constitute investment advice. Further, it is not a recommendation to buy, sell or hold any security or financial product.
-
Dogecoin to Pak Rupee on April 06, 2022
KARACHI: The exchange rate of Dogecoin (DOGE) in Pakistani Rupee (PKR) experienced fluctuations, reaching Rs31.41 on April 06, 2022, at 5:17 AM Pakistan Standard Time (PST) in the open exchange market.
(more…) -
Eliminating commissioner audit selection power sought
KARACHI: The Karachi Tax Bar Association (KTBA) has proposed the discretionary power of commissioner Inland Revenue to select audit cases should be eliminated.
(more…) -
Threshold be doubled for domestic electric consumers
KARACHI: Federal Board of Revenue (FBR) has been suggested to double threshold for collection of withholding tax on consumption of electricity by domestic users.
(more…) -
SBP issues KIBOR rates on April 05, 2022
KARACHI: State Bank of Pakistan (SBP) on Tuesday issued the Karachi Interbank Offered Rates (KIBOR) as on April 05, 2022.
Following are the latest KIBOR rates:
Tenor BID OFFER 1 – Week 9.85 10.35 2 – Week 10.01 10.51 1 – Month 10.59 11.09 3 – Month 11.76 12.01 6 – Month 12.29 12.54 9 – Month 12.34 12.84 1 – Year 12.38 12.88 Source: State Bank of Pakistan -
SBP intervention sought to stop further rupee devaluation
KARACHI: Karachi Chamber of Commerce and Industry (KCCI) Tuesday urged the central bank to immediate intervene in to stop further devaluation of Pakistan rupee (PKR).
In a statement KCCI President Muhammad Idrees expressed deep concerns over continuous devaluation of rupee against dollar as the foreign currency hit a new all-time high by crossing Rs186.
READ MORE: Dollar continues record spree against PKR; hits 185.23
He urged the State Bank of Pakistan (SBP) to play its role and devise effective strategy to stop further devaluation rupees which was having a deep negative impact on the economy, particularly the inflation.
“Although the experts are attributing the rupee devaluation to political uncertainty but the SBP, being the regulator, has to play a role otherwise, it will create a lot of problems for the economy which is sinking as it faces a lot of challenges due to widening current and fiscal deficits,” he said.
READ MORE: Businessmen want early resolution of political uncertainty
Muhammad Idrees said that rising dollar against rupee was raising the cost of doing business, making Pakistani goods uncompetitive in the export markets and unaffordable for common man at the local markets as the impact of rising dollar value is usually passed onto end-users.
He said that it has to be understood that the share of exports in GDP stood at around 10 percent while the rest of 90 percent was local trade and imports hence the devaluation is hurting and has reached to a level where it has become unbearable.
“Due to lack of effective price control mechanism, an abnormal upsurge has been witnessed in the prices of almost all the commodities of household usage which have to be controlled to ease the already overburdened and miserable life of the inflation stricken common man,” he stressed.
READ MORE: Direct flights between Pakistan, Tajikistan needed
“Severe devaluation of rupee has raised the cost of doing business and fostered the inflation, therefore, it is really crucial to review the current strategies being pursued by the regulator,” he reiterated.
President KCCI feared that the economic crises including energy crises, devaluing rupee against dollar and rising trade deficit etc. would push the economy to a point of ‘no return’ and may even put Pakistan’s survival at stake. “All the efforts made to maintain GDP growth of 5 percent plus will go wasted if the ongoing political uncertainty continues for long period.”
READ MORE: Withholding tax should be on income: FBR Chairman
He stressed that the emerging situation has to be efficiently addressed and handled very carefully otherwise, the excessive devaluation will continue to increase the cost of doing business, which would terribly affect the industrial performance, raise unemployment and open the floodgates of inflation, particularly for the middle and lower segments of the society, besides making the already poor poorer due to unbearable inflation.