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Category: Money & Banking

Money and banking drive economic activity by facilitating transactions, savings, and investments. Banks manage financial resources, offer credit, and regulate money supply, ensuring stability and growth in Pakistan’s financial sector.

  • State Bank launches environment, social risk management manual

    State Bank launches environment, social risk management manual

    KARACHI: State Bank of Pakistan (SBP) on Wednesday launched environment and social risk management manual at a conference.

    The central bank organized a Sustainable Banking Conference, in collaboration with IFC, a member of the World Bank Group.

    The objective of the conference was to create critically needed awareness related to climate change and sustainability within the financial sector and launch the Environmental and Social Risk Management (ESRM) Implementation Manual. The inaugural session of the conference was chaired by Governor SBP Jameel Ahmad.

    READ MORE: SBP limits cash up to USD 5,000 taking out of Pakistan

    The conference was attended by high profile dignitaries including, Khawaja Aftab Ahmed (Regional Director, IFC), Zeeshan Ahmed Sheikh (Country Manager for Afghanistan and Pakistan, IFC), Toshio Odagiri (the Counsul General of Japan in Karachi), Dr. Shamshad Akhtar (Chairperson, PSX Board), Yaseen Anwar (Senior Policy Advisor, IFC), Ms. Sima Kamil (Deputy Governor, SBP), presidents/CEOs of banks/DFIs, senior officials from Pakistan Banks Association, Sindh Environmental Protection Agency and other relevant stakeholders.

    During the conference, Governor, SBP, launched the ESRM Implementation Manual for banks and DFIs. While delivering the keynote address, Governor, SBP remarked that this manual has been launched as part of SBP’s ongoing efforts to promote green banking in Pakistan.

    The ESRM manual is a procedural guide for the banks/DFIs to establish their environmental & social risk management systems, as advised in SBP’s Green Banking Guidelines (GBGs). Further, he highlighted that the conference was an effort to spread awareness on the impact of climate change and environmental degradation on the financial sector of Pakistan and a step towards SBP’s endeavor to reduce the vulnerability of financial sector from such risks.

    READ MORE: SBP, FIA jointly take action against illegal exchange companies

    He added that Pakistan is one of the most vulnerable countries to the impacts of climate change as we have witnessed during the recent floods; therefore, it is critical time for Pakistan’s financial sector to become sensitive to financial consequences arising from environmental & social risks.

    SBP, being a responsible regulator of the financial system, has also undertaken certain initiatives like Green Banking Guidelines and Financing Scheme for Renewable Energy, to ingrain sustainability considerations into the financial sector as per international best practices.

    Governor, SBP, encouraged the entire banking industry to take full benefit of the manual to establish their ESRM systems and procedures. State Bank will keep on providing necessary support and guidance at every stage of ESRM implementation.

    READ MORE: US Dollar falls by 26 paisas to PKR 221.66 in interbank market

    In the inauguration ceremony, Khawaja Aftab Ahmed, IFC Regional Director for the Middle East, Pakistan and Afghanistan, shared that the launch of the Environmental and Social Risk Management (ESRM) Implementation Manual marks a significant step towards promoting sustainable banking practices in Pakistan.

    He added that the manual can help the banking industry better manage environmental and social risks throughout their lending practices, and subsequently, enable a green and inclusive economic recovery at a critical time for Pakistan.

    READ MORE: Faysal Bank enables donations through WhatsApp

    The conference also included two high-level panel discussions on important topics including ESG integration in financial sector and climate finance risk & climate disclosures wherein, in addition to other senior level experts, two ex-SBP Governors shared their experiences. Deputy Governor, Sima Kamil concluded the conference and thanked all participants.

  • SBP limits cash up to USD 5,000 taking out of Pakistan

    SBP limits cash up to USD 5,000 taking out of Pakistan

    KARACHI: State Bank of Pakistan (SBP) on Tuesday restricted the amount of foreign currency in cash up to equivalent to USD 5,000 from USD 10,000.

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  • PKR ends stable against US dollar in interbank

    PKR ends stable against US dollar in interbank

    KARACHI: Pakistani Rupee (PKR) ended stable against the US dollar on Tuesday amid demand of the foreign currency for import and corporate payments.

    The exchange rate ended at PKR 221.65 to the dollar from previous day’s closing of PKR 221.66 in the interbank foreign exchange market.

    READ MORE: US Dollar falls by 26 paisas to PKR 221.66 in interbank market

    Currency experts said that the market witnessed dollar demand during the day for import and corporate payments.

    However, tight monitoring of the central bank prevented fall in the rupee value. The experts said that the reports of further tightening of exchange rules had also helped the rupee to stable.

    Pakistan foreign exchange reserves have increased by $1.527 billion to $14.69 billion by week ended October 28, 2022 after transfer of funds from Asian Development Bank (ADB).

    READ MORE: Rupee inches up against dollar to end PKR 221.92

    The country’s foreign exchange reserves increased to $14.689 billion by week ended October 28, 2022 as compared with $13.162 billion a week ago i.e. October 21, 2022.

    The country’s foreign exchange reserves hit all-time high of $27.228 billion on August 27, 2021. Since then the foreign exchange reserves have declined by $12.539 billion.

    READ MORE: Dollar extends gain to reach PKR 221.95 in interbank

    The official foreign exchange reserves of the State Bank also increased by $1.473 billion to $8.913 billion by week ended October 28, 2022 when compared with $7.44 billion a week ago.

    Currency experts said that the dollar witnessed appreciation globally following a sharp rise in treasury yields after the Federal Reserve signaled the interest rates would likely spike.

    The Fed earlier raised its benchmark funds rate by 75 basis points to 3.75-4 per cent as widely expected.

    READ MORE: Dollar gains 78 paisas to end PKR 221.43 in interbank

  • Bank holiday restored on November 09, 2022

    Bank holiday restored on November 09, 2022

    KARACH: The State Bank of Pakistan (SBP) on Tuesday announced bank holiday on November 09, 2022.

    Therefore all commercial banks and financial institutions will remain closed on November 09, 2022 on the occasion of Iqbal Day.

    Earlier the federal government issued a circular restoring the holiday on occasion of Iqbal Day.

    In continuation of Cabinet Division’s circular No. 10-01/2021-Min-II dated December 17, 2021, it is for information that the Prime Minister is pleased to restore the public holiday on occasion of Allama Iqbal Day i.e. November 9, 2022. Therefore, Wednesday November 09, 2022 shall be observed as public holiday throughout the country.

  • SBP, FIA jointly take action against illegal exchange companies

    SBP, FIA jointly take action against illegal exchange companies

    KARACHI: State Bank of Pakistan (SBP) and Federal Investigation Agency (FIA) have decided to jointly take action against illegal exchange companies.

    A statement issued on Tuesday stated that a high-level meeting was held between the SBP governor and the Director General, FIA on November 8, 2022.

    READ MORE: US Dollar falls by 26 paisas to PKR 221.66 in interbank market

    The meeting took stock of illicit foreign exchange activities and chalked out a comprehensive plan of action against illegal foreign exchange businesses being carried out in the country.

    It was agreed during the meeting that concerted joint effort is required to apprehend and implicate the illegal foreign exchange operators and speculators across the country.

    READ MORE: Faysal Bank enables donations through WhatsApp

    Accordingly, SBP and FIA have jointly initiated action against illegal foreign exchange operators in Pakistan. To this effect, joint teams from SBP and FIA shall identify and take penal/legal action against the perpetrators so as to curb speculation and the grey market.

    The teams, while remaining within the legal mandate allowed to them by the relevant laws, would crack down on all illegal foreign exchange operators and businesses across Pakistan.

    READ MORE: Pakistan should ban trade in cash dollars: forex association

    Banks and Exchange Companies are authorized by the SBP to carry out Foreign Exchange business in Pakistan. Involvement of any person or entity, other than banks and Exchange Companies, in foreign exchange business is illegal under the Foreign Exchange Regulation Act, 1947.

    The illegal foreign exchange business also adversely affects the open market exchange rate and increases the gap between the interbank and open market exchange rate.

    READ MORE: Pakistan, China sign agreement for RMB clearance

  • US Dollar falls by 26 paisas to PKR 221.66 in interbank market

    US Dollar falls by 26 paisas to PKR 221.66 in interbank market

    KARACHI: The US Dollar fell by 26 paisas against the Pakistani Rupee (PKR) on Monday to end at PKR 221.26 in interbank foreign exchange market.

    The exchange rate witnessed a recovery of 26 paisas in the rupee value to end PKR 221.26 from last Friday’s closing of PKR 221.92 in interbank foreign exchange market.

    READ MORE: Rupee inches up against dollar to end PKR 221.92

    Currency market opened with the stable currency rate because of positive sentiments prevailed during the day. The last closing on Friday November 04, 2022 witnessed volatile trading because of an attack on former Prime Minister Imran Khan. The political instability kept the pressure. However, the reports that the State Bank of Pakistan (SBP) had allowed the exchange companies to retain 20 per cent of the workers’ remittances helped the market sentiments to improve.

    Besides, latest data showed improvement in foreign exchange reserves position.

    READ MORE: Dollar extends gain to reach PKR 221.95 in interbank

    Pakistan foreign exchange reserves have increased by $1.527 billion to $14.69 billion by week ended October 28, 2022 after transfer of funds from Asian Development Bank (ADB).

    The country’s foreign exchange reserves increased to $14.689 billion by week ended October 28, 2022 as compared with $13.162 billion a week ago i.e. October 21, 2022.

    READ MORE: Dollar gains 78 paisas to end PKR 221.43 in interbank

    The country’s foreign exchange reserves hit all-time high of $27.228 billion on August 27, 2021. Since then the foreign exchange reserves have declined by $12.539 billion.

    The official foreign exchange reserves of the State Bank also increased by $1.473 billion to $8.913 billion by week ended October 28, 2022 when compared with $7.44 billion a week ago.

    READ MORE: Rupee rebounds after Dar holds meetings with banks, exchange companies

    Currency experts said that the dollar witnessed appreciation globally following a sharp rise in treasury yields after the Federal Reserve signaled the interest rates would likely spike.

    The Fed earlier raised its benchmark funds rate by 75 basis points to 3.75-4 per cent as widely expected.

  • Rupee inches up against dollar to end PKR 221.92

    Rupee inches up against dollar to end PKR 221.92

    The Pakistani Rupee (PKR) displayed resilience on Friday, registering a modest gain of three paisas against the US dollar in the interbank foreign exchange market. The exchange rate closed at PKR 221.92 to the dollar, compared to the previous day’s closing of PKR 221.95.

    (more…)
  • Pakistan should ban trade in cash dollars: forex association

    Pakistan should ban trade in cash dollars: forex association

    KARACHI: The government should immediately ban trade in cash dollars to prevent depreciation in Pakistani Rupee (PKR), forex association demanded on Thursday.

    Exchange Companies Association of Pakistan (ECAP) in a statement claimed that an amount of around $2 billion transferred to Afghanistan which was pressurizing the foreign exchange reserves of Pakistan.

    READ MORE: Dollar extends gain to reach PKR 221.95 in interbank

    “The government should enforce trade with Afghanistan through banking channels,” ECAP Chairman Malik Bostan said.

    The Afghan government issued a circular last month allowing exchange Pakistani currency with Afghani currency or other foreign currencies.

    “There are trillions of Pakistani rupees with the Afghanis and they are exchanging with the foreign currencies,” Bostan said, adding that he already had informed authorities in Pakistan that it would put pressure on the local currency.

    Furthermore, Pakistan government had an agreement of coal purchase worth $ 2 billion with the Afghan traders. Under this agreement Pakistan is importing 22,000 tons of coal worth $6 million on a daily basis.

    READ MORE: Dollar gains 78 paisas to end PKR 221.43 in interbank

    “The Taliban government assured that Afghan traders will export coal in Pakistani rupee. But in contrast Afghan traders were demanding dollars or UAE Dirham. This is creating black marketing of dollars in the local market,” Bostan added.

    He said that in a meeting with Finance Minister Ishaq Dar, the exchange companies were asked to sale dollars on the market rates. “Due to this restrictions, people were selling dollars in black market,” Bostan added.

    He further added that due to this illegal trade the business of exchange companies drastically declined by 80 per cent since September 2022. “Prior to this, exchange companies were making transactions of about 10-15 million dollars on a daily basis. But now it reduced to only 2-4 million dollars.”

    READ MORE: Rupee rebounds after Dar holds meetings with banks, exchange companies

    Bostan said that only one per cent people are visiting exchange companies to sell dollars and 200 per cent increase in those people who are visiting to purchase the foreign currency.

    He informed the State Bank of Pakistan (SBP) had imposed restrictions on the exchange companies that the inflows under workers remittances should be surrendered 100 per cent in the interbank market.

    READ MORE: Rupee crashes to dollar as PTI long march starts

    The exchange companies demanded that the central bank should allow sale of 50 per cent of the inward remittances to the real customers, which would ease dollar demand. “The SBP however allowed the exchange companies the sale of 20 per cent of inward remittances to customers,” Bostan said.

    Besides, the exchange companies demanded the government of reducing travelling expenses limit to $5000 from existing $10,000.

  • Faysal Bank enables donations through WhatsApp

    Faysal Bank enables donations through WhatsApp

    KARACHI: Faysal Bank Limited as part of its digital transformation journey has introduced a new innovative feature of Donation Payments via its WhatsApp banking channel.

    Faysal Islami WhatsApp Banking enables its subscribers to make real-time donation payments to over 25 reputable charitable organizations such as SKMT, TCF, SIUT, Indus Hospital, Alamgir Welfare Trust and Pink Ribbon to mention only a few.

    The launch of the Donations Payments services through WhatsApp banking channel of Faysal Bank could not have come at a more opportune time as October is the month of breast cancer awareness and major donation drives towards this cause.

    Speaking on the occasion of the launch, Shaheryar Saeed Khan, Chief Digital Officer, Faysal Bank Limited said, “With the wide-spread use of the Faysal Islami WhatsApp channel, the Bank intends to better serve its diverse customers by introducing more and more innovative features to it.”

    Present at the occasion Omer Aftab, Chief Executive Officer, Pink Ribbon said, “The launch of this innovative feature by Faysal Bank Limited will enable us to promote the cause of breast cancer awareness and facilitating quick and easy donation payments by all.”

    The event was attended by other senior team members of both organizations.

  • Dollar extends gain to reach PKR 221.95 in interbank

    Dollar extends gain to reach PKR 221.95 in interbank

    KARACHI: The US dollar extended gain against the Pakistani Rupee (PKR) on Thursday to end at PKR 221.95 in interbank foreign exchange market.

    The exchange rate recorded a decline of 52 paisas in rupee value to end at PKR 221.95 against the dollar from previous day’s closing of PKR 221.43 in the interbank foreign exchange market.

    READ MORE: Dollar gains 78 paisas to end PKR 221.43 in interbank

    Currency experts said that the dollar witnessed appreciation globally following a sharp rise in treasury yields after the Federal Reserve signaled the interest rates would likely spike.

    The Fed a day earlier raised its benchmark funds rate by 75 basis points to 3.75-4 per cent as widely expected.

    During the last week the rupee witnessed massive deterioration against the dollar after the PTI chief announced the protest rally.

    READ MORE: Rupee rebounds after Dar holds meetings with banks, exchange companies

    PTI Chief Imran Khan was removed as prime minister through a vote of no confidence by the allied political parties in April this year. Imran Khan claimed that his government was toppled by a conspiracy.

    Prior to the announcement of the long march, the rupee witnessed recovery against the greenback due to removal of Pakistan name from the grey list of the Financial Action Task Force (FATF).

    READ MORE: Rupee crashes to dollar as PTI long march starts

    Further, the sentiments were also improved due to commitment of Asian Development Bank (ADB) to finance the country. The ADB approved a financing of $1.5 billion to the country. Currency experts said that the approval of loan program by the ADB helped the rupee to make gain.

    Interestingly, the amount of $1.5 billion was received last night by the State Bank of Pakistan (SBP). However, the fund transfer also failed to support the local currency.

    READ MORE: Dollar climbs to PKR 221.50 on rising political tension