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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.

  • PKR continues upward journey for seventh consecutive session against dollar

    PKR continues upward journey for seventh consecutive session against dollar

    KARACHI: Pakistani Rupee (PKR) on Monday continued its upward journey against the dollar and strengthened for seventh consecutive session.

    The rupee made a gain of PKR 1.16 to end at PKR 227.29 against the dollar as compared with last Friday’s closing of PKR 228.45 in the interbank foreign exchange market.

    The local unit gained PKR 12.42 against the dollar during the last five sessions. The exchange rate reached a record low of PKR 239.71 on September 22, 2022 to the dollar but ended at PKR 227.29 on October 01, 2022.

    Market analysts said that the assumption of the charge of the finance minister by Ishaq Dar impacted the market positively.

    A day earlier Ishaq Dar took oath as federal minister. Previously, he was known to effectively control the exchange rate in the last tenure of PML (N) government.

    READ MORE: Rupee gains for sixth straight session against dollar; recovers PKR 11.26

    Meanwhile, the international oil prices also crashed which helped the rupee to make gains.

    It is worth mentioning that the rupee on last Friday recovered against the dollar after witnessing a consecutive 15-session fall.

    During this period the local currency depreciated by PKR 21.10 against the dollar from the interbank closing on September 01, 2022 at PKR 218.60.

    The local currency witnessed the historic low at PKR 239.94 to the dollar on July 28, 2022.

    Currency experts said that the rupee recovered because of the contraction in the current account deficit. Pakistan current account deficit recorded a contraction of 19 per cent during the first two months (July – August) of the current fiscal year 2022/2023.

    Further, the experts said that the recent measures taken by the SBP also helped the rupee to gain value.

    READ MORE: PKR makes recovery against dollar for fourth straight session

    However, the rupee failed to get support from the latest announcement of the State Bank of Pakistan (SBP) about the funds of Saudi Arabia.

    The rupee has witnessed a continuous depreciation against the greenback even after the inflows received from the International Monetary Fund (IMF).

    The local currency recorded some recovery against the greenback after the IMF fund was transferred to the State Bank of Pakistan (SBP). However, the removal of sanction on import of luxury and non-essential items the rupee again started free fall.

    The currency experts said that although the IMF inflows would help the further inflows under bilateral and multilateral sources. However, the devastation of floods has changed the economic environment scenario.

    READ MORE: PKR strengthens sharply to dollar during last three sessions

    The torrential rains and flash floods have inflicted a loss of over $10 billion to Pakistan’s economy. The devastation will prompt the country to make imports in the coming days, especially for agriculture products.

    The rupee also fell due to continuous depletion in foreign exchange reserves of the country.

  • SBP bars foreign currency transaction without CCTV system

    SBP bars foreign currency transaction without CCTV system

    KARACHI: State Bank of Pakistan (SBP) on Friday made it mandatory for exchange companies to make foreign currency transactions in the presence of functional CCTV system.

    The central bank in a circular noted that CCTV Systems of Exchange Companies and Exchange Companies of ‘B’ Category should be functional at all times (i.e. 24 hours a day and 7 days a week) as required under existing regulations.

    READ MORE: SBP documents foreign currency transactions above $2,000

    However, in order to ensure transparency, it has been advised that Exchange Companies and Exchange Companies of ‘B’ Category shall not carry out any business activity during the period in which CCTV system is non-functional at any of their outlet for any reason, including technical faults, until the functionality of the CCTV system is restored.

    Moreover, minimum preservation period of video recording through CCTV system has been enhanced from two to six months or until the inspection of the company by SBP, whichever is earlier.

    This would ensure availability of CCTV recording for audit/inspection purposes.

    READ MORE: PKR ends 15-day losing streak; recovers against dollar

    Furthermore, the SBP also made it mandatory for exchange companies to make sales transactions through their bank accounts.

    The central bank said that the SBP had amended foreign exchange regulations with an objective to promote documentation and transparency in the foreign exchange transactions between exchange companies.

    In terms of revised regulations, it has been made mandatory for Exchange Companies, Franchises of Exchange Companies and Exchange Companies of ‘B’ Category to settle Pakistan Rupee consideration of all foreign currency purchase/ sale transactions conducted among themselves through their bank accounts.

    READ MORE: SBP issues new instructions on cross border payments

    Following is the circular issued by the SBP for making changes:

    Attention of Exchange Companies (ECs) and Exchange Companies of ‘B’ Category (ECs-B) is invited towards instructions contained in Paras 9 (i)(b) of Chapter 3 and Para 12 (i)(a) of Chapter 8 of Exchange Companies Manual, in terms of which, they are allowed to purchase/sale foreign currencies from each other, as per their scope of business.

    In order to promote documentation and transparency in the foreign exchange transactions, it has been decided that, henceforth, Pakistan Rupee consideration of currency exchange transactions between ECs, ECs-B and franchises of ECs shall be conducted through the bank accounts of respective ECs, ECs-B and franchises of ECs. Accordingly, the relevant Paras of Exchange Companies Manual would stand amended as under:

    READ MORE: President Alvi bars retrospective effect to profit rates on saving certificates

    Para 9(i)(b):

    Purchase and sale of foreign exchange in “Ready”, “Tom” and “Spot” value dates from/to other Exchange Companies. Further, Exchange Companies, including their Franchises, shall settle Pakistan Rupee consideration of all foreign currency purchase/ sale transactions conducted with other Exchange Companies, Franchises of Exchange Companies, and Exchange Companies of ‘B’ Category only through their bank accounts.

    Para 12(i)(a)

    Exchange Companies of ‘B’ Category are authorized to deal in purchase and sale of foreign currency notes and coins from individuals, Exchange Companies and Exchange Companies of ‘B’ category in ‘Ready’ value only.  Further, Exchange Companies of “B” Category shall settle Pakistan Rupee consideration of all foreign currency purchase/sale transactions conducted with other Exchange Companies, franchises of Exchange Companies and Exchange Companies of “B” Category only through their bank accounts.

    READ MORE: No restriction on imports, SBP clarifies

    Moreover, Exchange Companies and Exchange Companies of ‘B’ Category are advised to ensure that CCTV should be functional at all times (i.e. 24 hours a day and 7 days a week), as required in terms of Para 1(vii)(c) of Chapter 4 and Para 16B(iii) of Chapter 8, respectively, of Exchange Companies Manual. In cases, where CCTV system is non-functional at an outlet for any reason, including technical faults, Exchange Companies and Exchange Companies of ‘B’ Category shall not carry out any business activities in the said outlet during such time, until the functionality of the CCTV system is restored.

    Further, minimum preservation period of video recording as given in Para 1(vii (d)) of Chapter 4 and Para 16B (iv) of Chapter 8 of Exchange Companies Manual shall be six months or until inspection of the company by SBP, whichever is earlier.

  • HBL says allegations meritless

    HBL says allegations meritless

    KARACHI: Habib Bank Limited (HBL) on Friday issued a clarification related to the news published a day earlier related to supporting terror financing.

    In a communication sent to Pakistan Stock Exchange (PSX), the bank said that the allegations in the complaints – which have been pending in the US court for more than two years – are meritless, and HBL is contesting them fully and vigorously.

    The public record is clear that the HBL is unwavering in its commitment to combating the financing of terrorism.

    “HBL’s extensive global implementation of anti-money laundering and counter-compliance controls is well documented and has been highly successful and lauded by regulators around the world,” it added.

    HBL’s preliminary motion was successful in two aspects: The Court dismissed the primary liability claims and narrowed the case substantially. The court also stated that the secondary liability claims will be evaluated for dismissal upon following due legal proceedings, and no judgment was passed by the court on the matter.

    “Indeed, the court specifically invited HBL to renew its motion to dismissal all remaining claims for lack of jurisdiction after the parties have exchange certain factual information concerning jurisdiction.”

    Moreover, HBL proactively initiated a business transformation program, in early 2018, around its control and compliance process and system to adhere to international standards.

    “The bank has made investments in management time and resources to further strengthen its AML and CFT protocols by partnering with global experts in this field,” HBL added.

    The bank is committed to adhere to the highest standards of compliance with the international and local laws and regulations.

  • Rupee gains for sixth straight session against dollar; recovers PKR 11.26

    Rupee gains for sixth straight session against dollar; recovers PKR 11.26

    KARACHI: Pakistani Rupee (PKR) made gains for the sixth straight session against the dollar on Friday and recovered PKR 11.26 during the period under review.

    The local unit gained PKR 11.26 against the dollar during the last five sessions. The exchange rate reached a record low of PKR 239.71 on September 22, 2022 to the dollar but ended at PKR 228.45 on September 30, 2022.

    READ MORE: PKR makes recovery against dollar for fourth straight session

    On Friday, the exchange rate witnessed a gain of PKR 1.18 to end at PKR 228.45 to the dollar from the previous day’s closing of PKR 229.63 in interbank foreign exchange market.

    Market analysts said that the assumption of the charge of the finance minister by Ishaq Dar impacted the market positively.

    A day earlier Ishaq Dar took oath as federal minister. Previously, he was known to effectively control the exchange rate in the last tenure of PML (N) government.

    READ MORE: PKR strengthens sharply to dollar during last three sessions

    Meanwhile, the international oil prices also crashed which helped the rupee to make gains.

    It is worth mentioning that the rupee on last Friday recovered against the dollar after witnessing a consecutive 15-session fall.

    During this period the local currency depreciated by PKR 21.10 against the dollar from the interbank closing on September 01, 2022 at PKR 218.60.

    The local currency witnessed the historic low at PKR 239.94 to the dollar on July 28, 2022.

    READ MORE: Dollar tumbles to PKR as market welcomes Dar nomination

    Currency experts said that the rupee recovered because of the contraction in the current account deficit. Pakistan current account deficit recorded a contraction of 19 per cent during the first two months (July – August) of the current fiscal year 2022/2023.

    Further, the experts said that the recent measures taken by the SBP also helped the rupee to gain value.

    However, the rupee failed to get support from the latest announcement of the State Bank of Pakistan (SBP) about the funds of Saudi Arabia.

    The rupee has witnessed a continuous depreciation against the greenback even after the inflows received from the International Monetary Fund (IMF).

    READ MORE: PKR ends 15-day losing streak; recovers against dollar

    The local currency recorded some recovery against the greenback after the IMF fund was transferred to the State Bank of Pakistan (SBP). However, the removal of sanction on import of luxury and non-essential items the rupee again started free fall.

    The currency experts said that although the IMF inflows would help the further inflows under bilateral and multilateral sources. However, the devastation of floods has changed the economic environment scenario.

    The torrential rains and flash floods have inflicted a loss of over $10 billion to Pakistan’s economy. The devastation will prompt the country to make imports in the coming days, especially for agriculture products.

    The rupee also fell due to continuous depletion in foreign exchange reserves of the country.

  • HBL comes under scrutiny for assisting terror organizations

    HBL comes under scrutiny for assisting terror organizations

    KARACHI: Habib Bank Limited (HBL) has come under scrutiny once again and has been alleged to provide financial support to the terrorist organizations.

    According to KTrade Alert issued on Thursday, shortly after the news had hit the market, HBL’s stock hit the lower circuit.

    READ MORE: HBL declares 108 percent growth in quarterly profit

    As per the Justice Against Sponsors of Terrorism Act (JASTA), HBL Bank has repeated misconduct and revealed a pattern of funding terrorism at various occasions in the last decade as of 2006.

    Plaintiffs in these consolidated cases are 370 individuals who were injured or whose family members were injured or killed in terrorist attacks, who bring this action against HBL Bank under the Anti- Terrorism Act (ATA), as amended by the Justice Against Sponsors of Terrorism Act (“JASTA”).

    Recall that HBL Bank and HBL’s New York Branch were previously implicated in money laundering and terrorist financing back in 2017.

    The bank was penalized USD225 million and lost its NY banking license for non-compliance with and violation of NY’s state laws and regulations.

    Therefore, the bank recognized a penalty of PkR 23.72  billion (EPS impact of PkR16.2) in CY17 that wiped majority of the profits.

    To recall, HBL’s CET1 and Tier1 CAR deteriorated to 12.1 per cent each in CY17 vis-à-vis 13.1 per cent in CY15.

    As a reminder, HBL has one of the lowest CAR in the banking industry. As per June 2022 accounts, the Tier1 and CET1CAR stands at 11.39 per cent and 10.69 per cent, respectively against the requirement of 11.0 per cent and 9.5 per cent.

    As per the court, HBL’s motion to dismiss primary liability claims has been granted as none of the alleged banking services were acts of international terrorism.

    Meanwhile, secondary liability claims have been denied because HBL allegedly supported and aided campaign of terrorism.

    The parties are expected to meet on October 19, 2022 to file a proposed civil case management plan and scheduling order.

  • Pakistani rupee recovers PKR 10.08 against dollar in five sessions

    Pakistani rupee recovers PKR 10.08 against dollar in five sessions

    KARACHI: The Pakistani Rupee (PKR) on Thursday continued its winning streak and gained PKR 10.08 against the dollar during past five straight sessions owing to assumption of Ishaq Dar the portfolio of the finance minister of the country.

    The local currency gained PKR 10.08 against the dollar during the last five sessions. The exchange rate reached near to record low of PKR 239.71 on September 22, 2022 to the dollar but ended at PKR 229.63 on September 29, 2022.

    READ MORE: PKR makes recovery against dollar for fourth straight session

    On Thursday, the exchange rate witnessed a gain of PKR 2.49 to end at PKR 229.63 to the dollar from previous day’s closing of PKR 232.12 in interbank foreign exchange market.

    Market analysts said that the assumption of the charge of the finance minister by Ishaq Dar impacted the market positively.

    A day earlier Ishaq Dar took oath as federal minister. Previously, he was known to effectively control the exchange rate in the last tenure of PML (N) government.

    READ MORE: PKR strengthens sharply to dollar during last three sessions

    Meanwhile, the international oil prices are also crashed which helped the rupee to make gain.

    It is worth mentioning that the rupee on last Friday recovered against the dollar after witnessed a consecutive 15-session fall.

    During this period the local currency depreciated by PKR 21.10 against the dollar from the interbank closing on September 01, 2022 at PKR 218.60.

    The local currency witnessed the historic low at PKR 239.94 to the dollar on July 28, 2022.

    READ MORE: Dollar tumbles to PKR as market welcomes Dar nomination

    Currency experts said that the rupee was recovered because of contraction in current account deficit. Pakistan current account deficit recorded a contraction of 19 per cent during first two months (July – August) of the current fiscal year 2022/2023.

    Further, the experts said that the recent measures taken by the SBP also helped the rupee to gain value.

    However, the rupee failed to get support from the latest announcement of the State Bank of Pakistan (SBP) about the funds of Saudi Arabia.

    The rupee has witnessed a continuous depreciation against the greenback even after the inflows received from the International Monetary Fund (IMF).

    READ MORE: PKR ends 15-day losing streak; recovers against dollar

    The local currency recorded some recovery against the greenback after the IMF fund was transferred to the State Bank of Pakistan (SBP). However, the removal of sanction on import of luxury and non-essential items the rupee again started free fall.

    The currency experts said that although the IMF inflows would help the further inflows under bilateral and multilateral sources. However, the devastation of floods has changed the economic environment scenario.

    The torrential rains and flash floods have inflicted a loss of over $10 billion to Pakistan’s economy. The devastation will prompt the country to make imports in the coming days, especially for agriculture products.

    The rupee also fell due to continuous depletion in foreign exchange reserves of the country.

  • PKR makes recovery against dollar for fourth straight session

    PKR makes recovery against dollar for fourth straight session

    KARACHI: The Pakistani Rupee (PKR) continued recovery against the dollar for the fourth straight session on Wednesday owing to lower international oil prices and optimism prevailed over return of Ishaq Dar as the finance minister.

    The local unit strengthened by PKR 7.59 against the dollar during the last four sessions. The exchange rate reached near to record low of PKR 239.71 on September 22, 2022 to the dollar but ended at PKR 232.12 on September 28, 2022.

    READ MORE: PKR strengthens sharply to dollar during last three sessions

    On Wednesday, the exchange rate witnessed a gain of PKR 1.79 to end at PKR 232.12 to the dollar from previous day’s closing of PKR 233.91 in interbank foreign exchange market.

    Market analysts said that the nomination of Ishaq Dar had sent positive sentiments to the foreign exchange market.

    Ishaq Dar on Wednesday took oath as federal minister. Previously, he was known to effectively control the exchange rate in the last tenure of PML (N) government.

    READ MORE: Dollar tumbles to PKR as market welcomes Dar nomination

    Meanwhile, the international oil prices are also crashed which helped the rupee to make gain.

    It is worth mentioning that the rupee on last Friday recovered against the dollar after witnessed a consecutive 15-session fall.

    During this period the local currency depreciated by PKR 21.10 against the dollar from the interbank closing on September 01, 2022 at PKR 218.60.

    The local currency witnessed the historic low at PKR 239.94 to the dollar on July 28, 2022.

    READ MORE: PKR ends 15-day losing streak; recovers against dollar

    Currency experts said that the rupee was recovered because of contraction in current account deficit. Pakistan current account deficit recorded a contraction of 19 per cent during first two months (July – August) of the current fiscal year 2022/2023.

    Further, the experts said that the recent measures taken by the SBP also helped the rupee to gain value.

    However, the rupee failed to get support from the latest announcement of the State Bank of Pakistan (SBP) about the funds of Saudi Arabia.

    The rupee has witnessed a continuous depreciation against the greenback even after the inflows received from the International Monetary Fund (IMF).

    READ MORE: Rupee slumps for 15th straight session against dollar

    The local currency recorded some recovery against the greenback after the IMF fund was transferred to the State Bank of Pakistan (SBP). However, the removal of sanction on import of luxury and non-essential items the rupee again started free fall.

    The currency experts said that although the IMF inflows would help the further inflows under bilateral and multilateral sources. However, the devastation of floods has changed the economic environment scenario.

    The torrential rains and flash floods have inflicted a loss of over $10 billion to Pakistan’s economy. The devastation will prompt the country to make imports in the coming days, especially for agriculture products.

    The rupee also fell due to continuous depletion in foreign exchange reserves of the country.

  • Dollar plummets to PKR 231.50 in early trade on Sept 28, 2022

    Dollar plummets to PKR 231.50 in early trade on Sept 28, 2022

    KARACHI: US dollar plummeted to Pakistani Rupee (PKR) at 231.50 in early interbank foreign exchange trading on Wednesday Sept 28, 2022.

    The dollar is being traded at PKR 231.50 while recording a fall of PKR 2.41 from previous day’s closing of PKR 233.91 in interbank foreign exchange market.

    Market analysts said that the nomination of Ishaq Dar had sent positive sentiments to the foreign exchange market.

    Ishaq Dar sworn in as senator on Tuesday after returning to Pakistan. Previously, he was known to effectively control the exchange rate in the last tenure of PML (N) government.

    Meanwhile, the international oil prices are also crashed which helped the rupee to make gain.

    It is worth mentioning that the rupee on last Friday recovered against the dollar after witnessed a consecutive 15-session fall.

    During this period the local currency depreciated by PKR 21.10 against the dollar from the interbank closing on September 01, 2022 at PKR 218.60.

    The local currency witnessed the historic low at PKR 239.94 to the dollar on July 28, 2022.

    Currency experts said that the rupee was recovered because of contraction in current account deficit. Pakistan current account deficit recorded a contraction of 19 per cent during first two months (July – August) of the current fiscal year 2022/2023.

    Further, the experts said that the recent measures taken by the SBP also helped the rupee to gain value.

    However, the rupee failed to get support from the latest announcement of the State Bank of Pakistan (SBP) about the funds of Saudi Arabia.

    The rupee has witnessed a continuous depreciation against the greenback even after the inflows received from the International Monetary Fund (IMF).

    The local currency recorded some recovery against the greenback after the IMF fund was transferred to the State Bank of Pakistan (SBP). However, the removal of sanction on import of luxury and non-essential items the rupee again started free fall.

  • Faysal Bank to provide digital financial solutions to freelancers

    Faysal Bank to provide digital financial solutions to freelancers

    Faysal Bank Limited (FBL) will provide Shariah Compliant digital financial solutions and capacity building of freelancers.

    (more…)
  • PKR strengthens sharply to dollar during last three sessions

    PKR strengthens sharply to dollar during last three sessions

    KARACHI: Pakistani Rupee (PKR) gained sharply against the US dollar during last three sessions on Tuesday on lower international oil prices and nomination of Ishaq Dar as finance minister.

    The local unit strengthened by PKR 5.80 against the dollar during the last three sessions. The exchange rate reached near to record low of PKR 239.71 on September 22, 2022 to the dollar but ended at PKR 233.91 on September 27, 2022.

    READ MORE: Dollar tumbles to PKR as market welcomes Dar nomination

    On Tuesday, the exchange rate witnessed a gain of PKR 3.11 to end at PKR 233.91 to the dollar from previous day’s closing of PKR 237.02 in interbank foreign exchange market.

    Market analysts said that the nomination of Ishaq Dar had sent positive sentiments to the foreign exchange market.

    Ishaq Dar sworn in as senator on Tuesday after returning to Pakistan. Previously, he was known to effectively control the exchange rate in the last tenure of PML (N) government.

    READ MORE: PKR ends 15-day losing streak; recovers against dollar

    Meanwhile, the international oil prices are also crashed which helped the rupee to make gain.

    It is worth mentioning that the rupee on last Friday recovered against the dollar after witnessed a consecutive 15-session fall.

    During this period the local currency depreciated by PKR 21.10 against the dollar from the interbank closing on September 01, 2022 at PKR 218.60.

    The local currency witnessed the historic low at PKR 239.94 to the dollar on July 28, 2022.

    Currency experts said that the rupee was recovered because of contraction in current account deficit. Pakistan current account deficit recorded a contraction of 19 per cent during first two months (July – August) of the current fiscal year 2022/2023.

    READ MORE: Rupee slumps for 15th straight session against dollar

    Further, the experts said that the recent measures taken by the SBP also helped the rupee to gain value.

    However, the rupee failed to get support from the latest announcement of the State Bank of Pakistan (SBP) about the funds of Saudi Arabia.

    The rupee has witnessed a continuous depreciation against the greenback even after the inflows received from the International Monetary Fund (IMF).

    The local currency recorded some recovery against the greenback after the IMF fund was transferred to the State Bank of Pakistan (SBP). However, the removal of sanction on import of luxury and non-essential items the rupee again started free fall.

    READ MORE: Rupee ends near historic low; Dollar gains to PKR 239.65

    The currency experts said that although the IMF inflows would help the further inflows under bilateral and multilateral sources. However, the devastation of floods has changed the economic environment scenario.

    The torrential rains and flash floods have inflicted a loss of over $10 billion to Pakistan’s economy. The devastation will prompt the country to make imports in the coming days, especially for agriculture products.

    The rupee also fell due to continuous depletion in foreign exchange reserves of the country.