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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.

  • Pakistan, China sign agreement for RMB clearance

    Pakistan, China sign agreement for RMB clearance

    KARACHI: The central banks of Pakistan and China have signed an agreement for establishing RMB (Chinese currency) clearing arrangement.

    State Bank of Pakistan (SBP) and Peoples Bank of China (PBoC) have signed an MOU on establishing RMB (Chinese currency) clearing arrangements in Pakistan, according to a statement issued on Wednesday.

    The MOU was signed by Governor SBP Jameel Ahmad and Governor PBoC Yi Gang.

    The establishment of the RMB clearing arrangement in Pakistan will further boost usage of RMB for cross-border transactions among Chinese and Pakistani enterprises and financial institutions.

    This will also promote bilateral trade and investment between the two countries.

  • Final chance to encash bearer prize bonds: SBP

    Final chance to encash bearer prize bonds: SBP

    KARACHI: The final chance has been given to public to exchange or encash bearer prize bonds with various denominations by June 30, 2023.

    The State Bank of Pakistan (SBP) in a statement on Wednesday said that the federal government had given another opportunity to the public to get the withdrawn prize bonds of Rs.7500, 15,000, 25,000 and Rs. 40,000 redeemed/encashed by June 30, 2023.

    READ MORE: Pakistan-issued prize bonds expire on June 30, 2022

    Earlier, the government had fixed deadline of June 30, 2022, for redemption/encashment of these prize bonds, however, considering that some of the prize bond holders could not get their bonds redeemed a final opportunity has been given for encashment of prize bonds till June 30, 2023.

    READ MORE: SBP directs banks to accept bearer prize bonds

    The investors of aforesaid prize bonds have following options of encashment or exchange: Encashment at Face Value; Conversion to Premium Prize Bonds of Rs. 25,000 and/or Rs. 40,000 (Registered); Replacement with Special Savings Certificates (SSC) or Defense Savings Certificates (DSC).

    READ MORE: Prize bond (bearer) holders given 3 months to document

    The prize bonds can be redeemed from SBP Banking Services Corporation office and branches of commercial banks across the country till 30th June 2023. The SBP has issued necessary instructions to commercial banks to accept requests from general public for encashment or exchange of the prize bonds till the extended date.

    READ MORE: History of Prize Bonds in Pakistan

    The members of general public holding these are encouraged to avail this final opportunity and get their prize bonds redeemed before June 30, 2023. These prize bonds shall not be en-cashable or exchangeable after the expiry of the extended deadline, thereby rendering them worthless.

  • Dollar gains 78 paisas to end PKR 221.43 in interbank

    Dollar gains 78 paisas to end PKR 221.43 in interbank

    KARACHI: The US dollar gained 78 paisas against the Pakistani Rupee (PKR) on Wednesday to end at PKR 221.43 in the interbank foreign exchange market.

    Currency experts said that mounting political uncertainty put pressure on the local currency.

    READ MORE: Rupee gains 24 paisas to end PKR 220.65 against US dollar

    The exchange rate recorded a fall of 78 paisas in rupee value to end at PKR 221.43 from previous day’s closing of PKR 220.65 in the interbank foreign exchange market.

    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

  • Banking Mohtasib opens new Faisalabad regional office

    Banking Mohtasib opens new Faisalabad regional office

    KARACHI: A new Regional Office of Banking Mohtasib Pakistan (BMP) has become functional at SBP BSC, Faisalabad premises from Tuesday November 01, 2022.

    With the opening of new office, the complainants of Faisalabad and its adjoining areas would be facilitated as earlier these customers had to travel to Multan and Lahore for redressal of their grievances.

    With the establishment of Faisalabad Office, the number of Regional Offices of BMP has risen to six, besides the Secretariat in Karachi. Another Regional Office of BMP at Muzaffarabad, AJK is also proposed to be operational shortly.

    It may be added here that the services of Banking Mohtasib are free of cost and the complainants do not need to engage an advocate / legal counsel to plead their cases.

  • Faysal Bank posts 51% growth in profit before tax

    Faysal Bank posts 51% growth in profit before tax

    Faysal Bank Limited has posted a massive growth of 51 per cent in its profit before tax for nine months period ended September 30, 2022.

    According to a statement issued on Tuesday, Faysal Bank Limited achieved the landmark of Rs1 trillion mark in balance sheet footings with a record profit before tax of Rs15.0 billion, 51 per cent higher than the corresponding period last year

    The Board of Directors of Faysal Bank Limited (FBL), in their meeting held on October 27, 2022, approved the financial statements of the Bank for the nine months ended September 30, 2022 and announced an interim cash dividend of Rs. 5.50 per share i.e. 55 per cent. This is in addition to interim cash dividend for the second quarter ended June 30, 2022 already paid at Rs. 0.50 per share i.e. 5 per cent.

    The bank is very close to the completion of the requirements of converting Faysal Bank Limited into a full-fledged Islamic bank. Accordingly, all the Non-Shariah Compliant retained earnings of the Bank are being distributed to the shareholders as cash dividend.

    FBL has delivered exuberant performance in the nine months of 2022 with a Profit Before Tax (PBT) of Rs. 15.0 billion, 51 per cent higher than the Rs. 9.9 billion in the corresponding period last year. However, the increase in Profit After Tax (PAT) is restricted to 26 per cent from Rs. 6.1 billion in 9m’21 to Rs. 7.7 billion in first nine months of 2022 on the back of extremely high and retrospective tax measures announced in the federal budget.

    Current deposit momentum built over last several quarters continued and has reached Rs. 274 billion, 27 per cent growth over December 2021. Total deposits increased by 13 per cent over December 2021 with CASA mix improving to 80 per cent from 75 per cent at December 2021. FBL’s net advances increased by 18 per cent to Rs. 468 billion, with the growth across all lending businesses and improvement in ADR to 65 per cent as at September 2022. Despite the prevailing uncertainty, FBL is committed to its strategy for conversion into Islamic bank and have applied to SBP for issuance of Islamic Banking License.

    The Bank continued to deliver on growth objectives and increased the total revenue by 33 per cent over 9m’21 to Rs. 33.6 billion. Non markup expenses of the bank have increased by 27 per cent over 9m’21 while the cost to income ratio has improved from 60 per cent in 9m’21 to 57 per cent in 9m’22. Net provision for 9m’22 reflected reversals of Rs. 0.7 billion while infection ratio continued to reduce and is at 4.6 per cent with total coverage at 89.5 per cent.

    FBL will continue to invest in expanding the footprints by network expansion and is planning to open another 50+ branches in Q4’22 with an objective to reach the branch network to 700+ by the end of this year. The bank will continue to reshape banking experience by improving the quality of customer service, providing innovative digital solutions and will continue to invest in modern technologies to improve digital offerings and customer experience.

    FBL was incorporated in Pakistan on October 3, 1994 as a public limited company and its shares are listed on Pakistan Stock Exchange. FBL offers a wide range of modern banking services to all customer segments, i.e., Retail, Small & Medium Sized Enterprises, Commercial, Agri-based, and Corporate.

  • Rupee gains 24 paisas to end PKR 220.65 against US dollar

    Rupee gains 24 paisas to end PKR 220.65 against US dollar

    KARACHI: The Pakistani Rupee (PKR) gained 24 paisas against the US dollar on Tuesday owing to positive sentiments continued after the finance minister met heads of financial institutions.

    The exchange rate ended at PKR 220.65 to the dollar from previous day’s closing of PKR 220.89 in the interbank foreign exchange market.

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

    The local currency made recovery during the last two sessions following meetings of Finance Minister Ishaq Dar with representatives of banks and exchange companies last week.

    The finance minister on Saturday October 29, 2022 held meetings with representatives of exchange companies and bankers and discussed the exchange rate volatility.

    Finance Minister Ishaq Dar has advised foreign exchange companies to ensure appropriate exchange rate for the betterment of the country.

    The finance minister highlighting the economic situation of the country stated that the present government with its pragmatic policy decisions has not only arrested the decline but has also set the economy in the right direction.

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

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

    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: Dollar climbs to PKR 221.50 on rising political tension

    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: Rupee slips sharply to dollar on PTI long march

  • Rupee rebounds after Dar holds meetings with banks, exchange companies

    Rupee rebounds after Dar holds meetings with banks, exchange companies

    KARACHI: The Pakistani Rupee (PKR) recovered sharply against the US dollar on Monday following meetings of Finance Minister Ishaq Dar with representatives of banks and exchange companies last week.

    The exchange rate recorded a recovery of PKR 1.58 in rupee value to end at PKR 220.89 to the dollar from last Friday’s closing of PKR 222.47 in the interbank foreign exchange market.

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

    The finance minister on Saturday October 29, 2022 held meetings with representatives of exchange companies and bankers and discussed the exchange rate volatility.

    Finance Minister Ishaq Dar has advised foreign exchange companies to ensure appropriate exchange rate for the betterment of the country.

    The finance minister highlighting the economic situation of the country stated that the present government with its pragmatic policy decisions has not only arrested the decline but has also set the economy in the right direction.

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

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

    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).

    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.

    READ MORE: Rupee slips sharply to dollar on PTI long march

    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.

    The rupee had also seen support by contraction in current account deficit during the first quarter of the current fiscal year.

    Pakistan’s current account deficit has recorded a decline of 37 per cent to $2.21 billion during first quarter (July – September) of fiscal year 2022/2023, according to official data released last week.

    READ MORE: Rupee recovers to PKR 219.73 against dollar

    The current account deficit of the country was $3.53 billion in the same quarter of the last fiscal year.

    Contraction in current account deficit can be attributed to significant fall in trade deficit. The trade deficit also contracted by 21.32 per cent to $9.22 billion during first quarter of the current fiscal year as compared with the deficit of $11.72 billion in the same quarter of the last fiscal year.

  • NBP net profit declines by 21% on high tax incidence in 9MCY22

    NBP net profit declines by 21% on high tax incidence in 9MCY22

    National Bank of Pakistan (NBP) has declared 21 per cent decline in after tax profit due to high incidence during first nine months (January – September) 2022.

    According to unconsolidated financial results submitted to the Pakistan Stock Exchange (PSX), NBP announced after tax profit at Rs19.16 billion for nine months period ended September 30, 2022 as compared with Rs24.14 billion in the corresponding period of the last year.

    The bank declared earnings per share (EPS) at Rs9.01 for the nine months period ended September 30, 2022 as compared with EPS Rs11.35 in the same period of the last year.

    Board of Directors of National Bank of Pakistan met on October 28, 2022 and not recommended any cash dividend, bonus issue/ right share or any other entitlement.

    Bank officials said that taxation charge for the period amounted to Rs29.2 billion as against Rs16.1 billion during nine months of year 2021. They said that the Finance Act, 2022 brought in certain changes, which apart from increase in the statutory and super tax rate, also had a retrospective impact mainly due to ADR being below 50 per cent with reference to prior year’s earnings and has increased the effective tax rate from 40 per cent for nine months of 2021 to 60.4 per cent for nine months of 2022.

    During nine months period ended September 30, 2022, the bank generated a gross interest income (GII) of Rs332.2 billion as against Rs166.5 billion for the similar nine months period of 2021. The Rs165.7 billion increase in GII is achieved through a robust volumetric growth in average interests earning assets coupled with the impact of higher average policy rate during this period that stood at 12.4 per cent as compared to 7 per cent during the same period last year.

    Bank’s investments portfolio during nine months period ended September 30, 2022 averaged Rs2,427.5 billion (September 2021: Rs1,633.8 billion) and generated mark-up/interest income of Rs225.5 billion being Rs125.3 billion or 124.9 billion up against Rs100.3 billion for the corresponding period of last year.

    This translates into average yield at 12.4 per cent (September 2021: 8.2 per cent). In the higher policy rate environment, the maturity profile of the bank’s investment book is skewed towards the shorter duration securities under available-for-sale category.

    Similarly, placements, that averaged Rs126.9 billion (September 2021: Rs53.9 billion) generated a mark-up income of Rs10.8 billion (September 2021: Rs2.9 billion) at an improved yield of 11.3 per cent as compared to 7.1 per cent for September 2021.

    For the nine months period ended September 30, 2021, the bank’s loan book averaged Rs1,341.9 billion and generated a mark-up income of Rs95.9 billion i.e. Rs32.5 billion or 51.4 per cent higher than Rs63.4 billion of the similar period last year. This significant growth was achieved through both, a volumetric growth, as well as the favorable Year on Year (YoY) rate variance. Pertinent to mention this high performance was achieved despite the fact that the bank carries a significant proportion of lower margin and non-performance public sector loans.

    Likewise, on the back of higher average policy rate, the bank’s cost of funds for nine months period ended September 30, 2022 recorded a significant YoY increase and amounted to Rs251.6 billion as against Rs94.1 billion for corresponding nine month period of 2021.

    The Rs159.5 billion or 167.4 per cent YoY increase is mainly recorded in cost of deposits that amounted to Rs141.9 billion as against Rs61.7 billion in the same period of the last year and the borrowings/repo costs by Rs75.8 billion to close at Rs101.5 billion. As compared to nine months ended September 2021, average non-remunerative current deposits increased impressively by Rs66.9 billion or 13.3 per cent to Rs569.6 billion.

    Operating expenses of the bank for the period under review amounted to Rs54.8 billion which is 16.5 per cent higher YoY as compared to Rs47 billion of same period last year.

  • Dar advises forex companies to ensure appropriate exchange rate

    Dar advises forex companies to ensure appropriate exchange rate

    ISLAMABAD: Finance Minister Ishaq Dar has advised foreign exchange companies to ensure appropriate exchange rate for the betterment of the country.

    Federal Minister Senator Mohammad Ishaq Dar held a meeting with heads of all the major Forex Exchange Companies of Pakistan at state Bank of Pakistan (SBP).

    READ MORE: Meezan Bank donates Rs35 mn to Indus Hospital for power project

    Senior Advisor to Prime Minister (SAPM) on Finance Tariq Bajwa, SAPM on Revenue Tariq Pasha, Governor SBP Jameel Ahmad and senior officers from Finance Division and State Bank of Pakistan attended the meeting.

    The Finance Minister highlighting the economic situation of the country stated that the present government with its pragmatic policy decisions has not only arrested the decline but has also set the economy in the right direction.

    READ MORE: NdcTech wins best sales partner award

    Finance Minister also shared the priorities of the present government and expressed resolve of the Government to ensure stable economic and fiscal policies and requested the forex companies to ensure appropriate exchange rate for the betterment of the country.

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

    The leading Exchange companies of Pakistan showed complete trust in Government’s fiscal and monetary policies and committed to the Finance Minister their full support to ensure economic and financial strengthening of Pakistan.

    READ MORE: SBP imposes over Rs290 million as penalty on six commercial banks

  • Meezan Bank donates Rs35 mn to Indus Hospital for power project

    Meezan Bank donates Rs35 mn to Indus Hospital for power project

    KARACHI: Meezan Bank– Pakistan’s leading Islamic bank has donated Rs35 million to Indus Hospital & Health Network for installation of a solar panels system.

    The initiative is part of the Bank’s Corporate Social Responsibility and Sustainability initiatives for 2022 and will provide financing to cover part of the 1.2MW solar power project being installed on the hospital’s rooftop.

    The system financed by the Bank will generate nearly 300 KW of electricity, reducing approximately 114,000 Kg of Carbon dioxide emissions per annum, which is equivalent to taking over 25 gasoline-powered vehicles off the road for one year. 

    With the proposed solar panel system installation, The Indus Hospital (TIH) would be able to reduce its rising electricity expenses while channelling those funds towards patients’ welfare.

    The collaboration between both the parties promises a shared sustainable future for the community at large, benefitting healthcare of individuals – thus fulfilling one of the core objectives defined in the Bank’s CSR policy.

    Ariful Islam – Deputy CEO, Meezan Bank handed over the cheque on Meezan Bank’s behalf to Dr. Abdul Bari Khan – founder Indus Hospital & Health Network. Senior management team members from both the organizations were also present at the occasion.

    Speaking about the initiative, Ariful Islam said: “Meezan Bank’s accelerated focus on renewable energy initiatives is part of its agenda to play a deeper role in climate action and is aligned with the United Nations Sustainable Development Goals (SDGs).

    “This initiative promises to increase energy security and efficiency for The Indus Hospital and reaffirms our commitment towards decarbonization while also enabling healthcare access to the masses.”