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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.

  • Last date extended for exchanging bearer prize bonds to June 30, 2023

    Last date extended for exchanging bearer prize bonds to June 30, 2023

    ISLAMABAD: The federal government on Tuesday announced to extend the last date for exchanging / converting the bearer prize bonds up to June 30, 2023.

    The bearer prize bonds with denominations of Rs40,000/-, Rs25,000/-, Rs15,000/ and Rs7,500 were expired on June 30, 2022. However, there is huge amount unclaimed against these bearer bonds and people complained for not providing sufficient time for exchanging the bonds.

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

    The finance division through various notifications notified the date extension up to June 30, 2023 for the bearer prize bonds.

    The finance ministry launched the withdrawal of the unregistered prize bonds in a phased manner. The federal government on June 24, 2019, announced to discontinue the circulation of Rs40,000 denomination national prize bonds. Similarly, on December 10, 2020, the government announced to discontinue the circulation of Rs25,000 denomination prize bonds. In April 2021, the finance ministry announced that national prize bonds of denominations Rs7,500 and Rs15,000 shall not be sold.

    READ MORE: SBP directs banks to accept bearer prize bonds

    Since June 2019 the government repeatedly extended the date for exchanging the bearer bonds. Previously, the last date for exchanging the unregistered bonds was December 31, 2021.

    The government is aiming to document the bearer bonds so the exchanging the unregistered bond with cash has been prohibited. The ministry of finance issued various procedure to convert the bond without exchanging with the cash.

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

    The bonds can be converted to premium prize bonds (registered) of denomination of Rs25,000 and Rs40,000 (subject to the adjustment of differential amount) through 16 field offices of State Bank of Pakistan (SBP) Banking Services Corporation (BSC), and branches of six commercial banks i.e. National Bank of Pakistan, Habib Bank Limited, United Bank Limited, MCB Bank Limited, Allied Bank Limited, and Bank Alfalah Limited.

    READ MORE: History of Prize Bonds in Pakistan

    The bonds can be replaced with Special Saving Certificates/Defence Saving Certificates through the 16 field offices of SBP Banking Services Corporation, authorized commercial banks, and the National Savings Center.

    The bonds will only be encashed by transferring the proceeds to the bonds holder’s bank account through the 16 field offices of SBP BSC as well as the authorized commercial bank branches and to the Saving Accounts at National Savings Centers.

  • Rupee recovers to PKR 219.73 against dollar

    Rupee recovers to PKR 219.73 against dollar

    KARACHI: The Pakistani Rupee (PKR) recovered 68 paisas against the US dollar on Tuesday owing to expected inflows to support balance of payment.

    The exchange rate witnessed a gain of 68 paisas in rupee value to end at PKR 219.73 to the dollar from the previous day’s closing of PKR 220.41 in the interbank foreign exchange market.

    READ MORE: Dollar slips to PKR 220.41 on improved economic sentiments

    Currency experts believed the removal of name from the grey list of the Financial Action Task Force (FATF) would help the country to secure multilateral funding.

    FATF, the global watchdog, last Friday formally announced giving clearance to Pakistan by removing the country’s name from its grey list.

    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.

    READ MORE: Rupee gains 11 paisas to dollar on ADB loan approval

    Currency experts said that the approval of loan program by the ADB helped the rupee to make gain.

    The ADB in a statement on Friday said that it had approved $1.5 billion in financing to help the Government of Pakistan provide social protection, promote food security, and support employment for its people amid devastating floods and global supply chain disruptions.

    Besides, the rupee was also supported by contraction in current account deficit during the first quarter of the current fiscal year.

    READ MORE: Dollar inches up to end at PKR 220.95 in interbank market

    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.

    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.

    READ MORE: Rupee plunges to PKR 220.88 against dollar in interbank

    Furthermore, the local currency also received support as the level of foreign exchange reserves were remained flat.

    Pakistan’s weekly foreign exchange reserves increased nominally to $13.251 billion by week ended October 14, 2022 as compared with $13.247 billion a week ago i.e. October 7, 2022.

  • SBP announces last date to exchange old design banknotes

    SBP announces last date to exchange old design banknotes

    State Bank of Pakistan (SBP) on Tuesday said that old design banknotes of Rs10, 50, 100 and 1,000 are exchangeable till December 31, 2022.

    The central bank said it is the sole issuer of banknotes in the country ensuring adequate supply of good quality banknotes across the country is amongst its key strategic goals.

    SBP collects soiled and unfit banknotes from the market and replaces them with fresh banknotes. Like other central banks, SBP issues new series of banknotes from time to time and demonetizes the earlier series with the approval of Federal Government.

    Further, the approval for demonetization of banknotes is granted by Federal Cabinet on the recommendations of SBP Board in terms of section 25(2) of SBP Act, 1956.

    The issuance of new series and demonetization of the old design banknotes helps central banks in checking counterfeiting and ensuring the integrity of banknotes in circulation.

    The new series of banknotes was issued from 2005 to 2008 and the old design banknotes have been slowly phased out from circulation. The Federal Government has therefore decided to demonetize old design banknotes of Rs 10, 50, 100 and 1000. These notes have ceased to be Legal Tender effective from 1st December 2016.

    The Old Design Banknotes of Rs. 10, 50, 100 and 1000 are exchangeable from the offices of the SBP Banking Services Corporations up till 31st December 2022.

    These banknotes are exchangeable from SBP BSC Offices located at Karachi, Lahore, Peshawar, Quetta, Islamabad, Rawalpindi, Faisalabad, Multan, Gujranwala, Hyderabad, Sialkot, Sukkur, Bahawalpur, Muzaffarabad and D. I. Khan

    READ MORE: Electricity withholding tax not applicable on ATL domestic consumers

    READ MORE: Tax rates on goods, passenger transport vehicles during 2022-2023

    READ MORE: FBR notifies tax rates on brokerage, commission during 2022-2023

    READ MORE: Non-ATL to pay 200% more tax on motor vehicle purchase during 2022-2023

  • Dollar slips to PKR 220.41 on improved economic sentiments

    Dollar slips to PKR 220.41 on improved economic sentiments

    KARACHI: The US dollar slipped by 43 paisas against the Pakistani Rupee (PKR) on Monday owing to improved economic sentiments after FATF decision.

    The exchange rate witnessed a gain of 43 paisas in rupee value to end at PKR 220.41 from last Friday’s closing of PKR 220.84 in the interbank foreign exchange market.

    READ MORE: Rupee gains 11 paisas to dollar on ADB loan approval

    Financial Action Task Force (FATF), the global watchdog, last Friday formally announced giving clearance to Pakistan by removing the country’s name from its grey list.

    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: Dollar inches up to end at PKR 220.95 in interbank market

    The ADB in a statement on Friday said that it had approved $1.5 billion in financing to help the Government of Pakistan provide social protection, promote food security, and support employment for its people amid devastating floods and global supply chain disruptions.

    Besides, the rupee was also supported 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 plunges to PKR 220.88 against dollar in interbank

    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.

    READ MORE: Rupee fall continues; Dollar ends at PKR 219.71 in interbank

    Furthermore, the local currency also received support as the level of foreign exchange reserves were remained flat.

    Pakistan’s weekly foreign exchange reserves increased nominally to $13.251 billion by week ended October 14, 2022 as compared with $13.247 billion a week ago i.e. October 7, 2022.

  • Rupee gains 11 paisas to dollar on ADB loan approval

    Rupee gains 11 paisas to dollar on ADB loan approval

    KARACHI: Pakistani Rupee (PKR) has gained 11 paisas against the dollar on Friday after the Asian Development Bank (ADB) approved a financing of $1.5 billion to the country.

    The exchange rate recorded a gain of 11 paisas in rupee value to end at PKR 220.84 to the dollar from previous day’s closing of PKR 220.95 in interbank foreign exchange market.

    READ MORE: Dollar inches up to end at PKR 220.95 in interbank market

    Currency experts said that the approval of loan program by the ADB helped the rupee to make gain.

    The ADB in a statement on Friday said that it had approved $1.5 billion in financing to help the Government of Pakistan provide social protection, promote food security, and support employment for its people amid devastating floods and global supply chain disruptions.

    Besides, the rupee was also supported by contraction in current account deficit during the first quarter of the current fiscal year.

    READ MORE: Rupee plunges to PKR 220.88 against dollar in interbank

    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 on Wednesday.

    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.

    READ MORE: Rupee fall continues; Dollar ends at PKR 219.71 in interbank

    Furthermore, the local currency also received support as the level of foreign exchange reserves were remained flat.

    Pakistan’s weekly foreign exchange reserves increased nominally to $13.251 billion by week ended October 14, 2022 as compared with $13.247 billion a week ago i.e. October 7, 2022.

    READ MORE: PKR falls to dollar in interbank on Oct 17, 2022

  • Allied Bank’s profit declines in 9MCY22 as tax payment surges by 129%

    Allied Bank’s profit declines in 9MCY22 as tax payment surges by 129%

    KARACHI: Allied Bank of Pakistan (ABL) has declared fall in net profit to Rs12.63 billion during nine months period ended September 30, 2022 as tax payment of the bank surged by 129 per cent.

    According to financial results submitted to Pakistan Stock Exchange (PSX) on Thursday, the bank declared Rs12.63 billion profit after tax during January – September 2022 as compared with Rs13.07 billion in the same period of the last year.

    The fall in profit may be attributed to massive increase in tax liability during the period. Allied Bank paid an amount of Rs20.39 billion as income tax for the nine months period ended September 30, 2022 as compared with Rs8.90 billion in the corresponding months of the last year.

    As per the unconsolidated results, the bank announced earnings per share at Rs11.03 for the nine months period ended September 30, 2022 as compared with Rs11.41 in the same period of the last year.

    The board of directors of Allied Bank Limited met on October 20, 2022 and approved an interim cash dividend for the quarter ended September 30, 2022 at Rs2 per share i.e. 20 per cent. This is in addition to interim dividend already paid at Rs4 per share i.e. 40 per cent.

    The net mark-up/interest income of the bank rose to Rs45.44 billion during January – September 2022 as compared with Rs34.68 billion in the same period of the last year.

    Total non mark-up/interest income grew to Rs16.33 billion for the period under review as compared with Rs11.73 billion in the corresponding period of the last year. Out of this, the foreign exchange income massively increased to Rs7.14 billion as compared with Rs1.11 billion.

    Operating expenses of the bank grew to Rs28.47 billion during first nine months of the current year as compared with Rs24.42 billion in the same period of the last year.

    The bank declared Rs33 billion as profit before tax for nine months ended September 30, 2022 as compared with Rs21.97 billion in the corresponding months of the last year.

  • Dollar inches up to end at PKR 220.95 in interbank market

    Dollar inches up to end at PKR 220.95 in interbank market

    The US Dollar made slight gains against the Pakistani Rupee (PKR) in the interbank foreign exchange market on Thursday, closing at PKR 220.95. The rupee lost seven paisas compared to the previous day’s closing of PKR 220.88, reflecting the prevailing pressure on the local currency.

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  • UBL announces 18% decline in net profit on huge tax payment

    UBL announces 18% decline in net profit on huge tax payment

    KARACHI: United Bank Limited (UBL) has posted 18 per cent decline in net profit to Rs18.76 billion for the nine months period ended September 30, 2022.

    The profit after tax of the bank was Rs22.76 billion in the same months of the last year, according to financial results of the bank submitted to the Pakistan Stock Exchange (PSX).

    Bank has declared earnings per share for the period at Rs15.33 as compared with EPS of Rs18.59 in the nine months period ended September 30, 2021.

    The decline in net profit may be attributed to massive surged in payment of income tax during the period. The bank paid an amount of Rs31.89 billion for the period January – September 2022 when compared with Rs16.56 billion in the same period of the last year.

    Board of directors of the bank met on Wednesday October 19, 2022 to approve the financial results for the nine months ended September 30, 2022. The board approved an interim cash dividend for the nine months ended September 30, 2022 at Rs4 per share i.e. 40 per cent. This is in addition to interim dividend already paid at Rs9 per share i.e. 90 per cent.

    According to the financial results, the bank recorded an increase in net mark-up/interest income to Rs72.77 billion during first nine months of the current year as compared with Rs53.68 billion in the same months of the last year.

    Total non mark-up / interest income also increased to Rs22.12 billion as against Rs17.28 billion. Out of non mark-up/interest income the bank made huge gain of Rs7.63 billion as foreign exchange income during first nine months of the current year as compared with Rs2.56 billion in the same period of the last year.

    Total income of the bank rose to Rs94.89 billion when compared with Rs70.97 billion.

    Operating expenses of the bank grew to Rs37.77 billion from Rs31.2 billion. The bank recorded profit before tax at Rs50.65 billion during January – September 2022 as compared with Rs39.32 billion in the same period of the last year.

  • Meezan Bank posts sharp growth of 46% in 9MCY22

    Meezan Bank posts sharp growth of 46% in 9MCY22

    KARACHI: Meezan Bank Limited has posted massive 46 per cent growth in net profit for the nine months period ended September 30, 2022.

    According to unconsolidated financial results for quarter and nine- month period ended September 30, 2022 submitted to Pakistan Stock Exchange (PSX) on Wednesday, the bank posted after tax profit of Rs28.59 billion for the period January – September 2022 as compared with Rs19.56 billion in the corresponding period of the last year.

    The bank announced Rs15.97 as earnings per share for the nine months period ended September 30, 2022 as compared with the EPS of Rs10.93 in the same period of the last year.

    Board of directors of the bank on October 19, 2022 recommended an interim cash dividend for the quarter and nine months ended September 30, 2022 at Rs2 per share i.e. 20 per cent. This is an addition to interim dividend already paid at Rs3.5 per share i.e. 35 per cent.

    Total earnings of the bank jumped to Rs77.15 billion for the nine months period ended September 30, 2022 as compared with Rs48.52 billion in the same period of the last year.

    Foreign exchange income of the bank increased to Rs3.86 billion for the period under review as compared with Rs2.15 billion in the corresponding period of last year.

    This brings the total income of the bank to Rs92.19 billion during January – September 2022 as compared with Rs 58.78 billion in the same period of the last year.

    Operating expenses of the bank increased to Rs32.7 billion for the period under review as compared with Rs24.85 billion in the same period of the last year.

    Provisions and write-offs for the period grew to Rs1.73 billion as against Rs553 million in the last year.

    The bank paid an amount of Rs27.76 billion as taxes during first nine months of year 2022 as compared with Rs13.08 billion in the same period of the last year.

  • Rupee plunges to PKR 220.88 against dollar in interbank

    Rupee plunges to PKR 220.88 against dollar in interbank

    KARACHI: Pakistani Rupee (PKR) sharply declined against dollar on Wednesday amid falling foreign exchange reserves and high demand for import payments.

    The local currency ended down by PKR 1.17 to end at PKR 220.88 against the dollar from previous day’s closing of PKR 219.71 in the interbank foreign exchange market.

    READ MORE: Rupee fall continues; Dollar ends at PKR 219.71 in interbank

    Currency experts said that the local currency was under pressure during the day due to rising dollar demand for import payments and falling foreign exchange reserves.

    The dollar rebounded on October 12, 2022 after making a losing streak for straight 13 sessions to the rupee.

    READ MORE: PKR falls to dollar in interbank on Oct 17, 2022

    The exchange rate reached to near record low of PKR 239.71 on September 22, 2022 to the dollar but ended at PKR 217.79 on October 10, 2022. Dar recently claimed that the actual value of the dollar is below PKR 200 and he vowed to bring it down.

    The rupee hit all-time low of PKR 239.94 against the dollar on July 28, 2022.

    READ MORE: PKR falls against dollar on depleting forex reserves

    Pakistan’s foreign exchange reserves continued to decline and depleted by $342 million to $13.247 billion by week ended October 07, 2022. The foreign exchange reserves of the country were at $13.589 billion a week ago i.e. September 30, 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 $13.981 billion.

    READ MORE: Dollar ends up to PKR 218.38 in interbank on Oct 13, 2022

    They said that the rupee had made gain during the past couple of weeks due to various measures taken by the central bank to curb the dollar hoarding.