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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.

  • SBP issues new instructions on cross border payments

    SBP issues new instructions on cross border payments

    KARACHI: State Bank of Pakistan (SBP) on Tuesday issued new instructions related to cross border payments to bring in line with international best practices.

    The central bank in a circular stated that as per existing practice, the banks provide payment cases related to Asian Clearing Union (ACU), Cash Reserve Requirements (CRR) & Special Cash Reserve Requirements (SCRR) and Deposits/ Withdrawals from Local US Dollar Instrument Collection and Settlement; through SBP, Banking Services Corporation, Karachi Office (SBP BSC – KO).

    READ MORE: PKR falls for 13th session as dollar ends near record high

    Further, the banks also send their queries with regard to above payment cases to SBP BSC – KO for clarification, guidance and advice.

    In order to bring cross border payments in line with international best practices, State Bank of Pakistan (SBP) has re-engineered its business process by centralizing all cross border payments, including above, at the Treasury Operations Department-SBP (TOD-SBP).

    Hence, all banks/ Islamic banks are advised to please ensure compliance of following instructions with effect from October 01, 2022.

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

    All ACU payment cases / letters addressed to Chief Manager “ACU Section” SBP BSC-KO, shall now be submitted to Director, Treasury Operations Department (Director-TOD), SBP, Karachi as per formats attached at annexure ‘A’ & ‘B’.

    All banks’ CRR & SCRR deposits & withdrawal cases / letters (FE25) addressed to Chief Manager “DAD Section” SBP BSC-KO shall now be submitted to Director-TOD as per formats attached at annexures ‘C’ & ‘D’.

    READ MORE: No restriction on imports, SBP clarifies

    All Local US Dollar deposits & withdrawals cases from Instrument Collection & Settlement (FE2) addressed to Chief Manager “DAD Section” SBP BSC-KO shall now be submitted to Director-TOD as per formats attached at annexures ‘E’ & ‘F’.

    Any queries with regard to above payment cases shall now be submitted to Director-TOD for clarification, guidance and advice.

    READ MORE: State Bank suspends two exchange companies

    The contact details of TOD officers and Standard Settlement Instructions (SSIs) of SBP are attached at annexures ‘G’ & ‘H’ for ready reference.

    The SBP issued following annexures related to cross border payments:

    1. Annexure A- Letter for Transfer / Purchase of ACU Dollars
    2. Annexure B- Letter for Repatriation / Surrender of ACU Dollars
    3. Annexure C- Letter for CRR & SCRR Deposit
    4. Annexure D- Letter for CRR & SCRR Withdrawal
    5. Annexure E- Letter for Deposit to Local US Dollar Instrument Collection & Settlement Account
    6. Annexure F- Letter for Withdrawal from Local US Dollar Instrument Collection & Settlement Account
    7. Annexure G- Contact Details of Treasury Operations Department, SBP Karachi.
    8. Annexure H- Standard Settlement Instructions (SSIs) of SBP
  • PKR falls for 13th session as dollar ends near record high

    PKR falls for 13th session as dollar ends near record high

    KARACHI: The Pakistani Rupee (PKR) witnessed the fall for 13th consecutive session on Tuesday as the US dollar ended near record high in interbank foreign exchange market.

    The exchange rate recorded a decline of PKR 1 to end at PKR 238.91 to the dollar from previous day’s closing of PKR 237.91 in interbank foreign exchange market.

    READ MORE: PKR plunges for 12th session; Dollar ends at PKR 237.91

    The local currency recorded a decline of Rs20.31 or 9.34 per cent during the past 13 sessions from Rs218.60 against the dollar on September 01, 2022.

    It is pertinent to mention that the local currency recorded the all-time low of PKR 239.94 on July 28, 2022.

    Currency experts said that mounting dollar demand for imports and corporate payments was pressurizing the local currency.

    READ MORE: Dollar rallies for 11th straight session; ends PKR 236.84 at interbank

    Furthermore, the political uncertainty is also destabilizing the local unit against the greenback.

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

    Saudi Fund for Development (SFD) has confirmed rollover of $3 billion deposit maturing on December 05, 2022 for one year. Deposit is placed with SBP and is part of its forex reserves. This reflects continuing strong and special relationship between KSA and Pakistan, according to the SBP.

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

    READ MORE: Rupee devaluation continues; Dollar jumps to PKR 235.88

    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: Pakistani Rupee declines for ninth straight session; Dollar ends at PKR 234.32

    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 hits PKR 239 in midday interbank trading

    Dollar hits PKR 239 in midday interbank trading

    KARACHI: US dollar becomes stronger against Pakistani Rupee (PKR) to reach at PKR 238 at midday interbank foreign exchange market on Tuesday.

    The foreign currency continued the gaining momentum of past 12 sessions against the local currency.

    READ MORE: PKR plunges for 12th session; Dollar ends at PKR 237.91

    US dollar made so far another PKR 1.09 to trade at PKR 239 from last closing of PKR 237.91 in the interbank foreign exchange market.

    Currency experts said that the falling foreign exchange reserves and high import payment pressured the local currency.

    They said that usually dollar demand remained higher by end of each quarter due to oil payments and demand from corporate sector.

    READ MORE: Dollar rallies for 11th straight session; ends PKR 236.84 at interbank

    Furthermore, they said that the recent statement of Finance Minister Miftah Ismail regarding lack of inflows from friendly countries also sent disappointments to the currency market.

    It is worth mentioning that the rupee recorded all-time low of Rs239.94 on July 28, 2022.

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

    READ MORE: Rupee devaluation continues; Dollar jumps to PKR 235.88

    The rupee made 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: Pakistani Rupee declines for ninth straight session; Dollar ends at PKR 234.32

    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 plunges for 12th session; Dollar ends at PKR 237.91

    PKR plunges for 12th session; Dollar ends at PKR 237.91

    KARACHI: Pakistani Rupee (PKR) plunged for 12th consecutive session against the dollar on Monday to end at PKR 237.91 in the interbank foreign exchange market.

    The exchange rate witnessed a decline of PKR 1.07 in rupee value to end at PKR 237.91 as compared with last Friday’s closing of PKR 236.84 in the interbank foreign exchange market.

    READ MORE: Dollar rallies for 11th straight session; ends PKR 236.84 at interbank

    The local currency recorded a decline of Rs19.31 or 8.83 per cent during the past 12 sessions from Rs218.60 against the dollar on September 01, 2022.

    Currency experts said that mounting dollar demand for import and corporate payments was pressurizing the local currency.

    Furthermore, the political uncertainty is also destabilizing the local unit against the greenback.

    It is worth mentioning that the rupee recorded all-time low of Rs239.94 on July 28, 2022.

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

    READ MORE: Rupee devaluation continues; Dollar jumps to PKR 235.88

    Saudi Fund for Development (SFD) has confirmed rollover of $3 billion deposit maturing on December 05, 2022 for one year. Deposit is placed with SBP and is part of its forex reserves. This reflects continuing strong and special relationship between KSA and Pakistan, according to the SBP.

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

    READ MORE: Pakistani Rupee declines for ninth straight session; Dollar ends at PKR 234.32

    The rupee made 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: Dollar surges to PKR 233.50 in midday interbank on September 14, 2022

    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 surges to PKR 238 at midday interbank

    Dollar surges to PKR 238 at midday interbank

    KARACHI: The US dollar surged to Pakistani Rupee (PKR) at 238 at midday interbank foreign exchange market on Monday.

    The foreign currency started the week to continue the gaining momentum of past 11 sessions against the local currency.

    READ MORE: Dollar rallies for 11th straight session; ends PKR 236.84 at interbank

    US dollar made so far another PKR 1.16 to trade at PKR 238 from last Friday’s closing of PKR 236.84 in the interbank foreign exchange market.

    Currency experts said that the falling foreign exchange reserves and high import payment pressured the local currency.

    READ MORE: Rupee devaluation continues; Dollar jumps to PKR 235.88

    They said that usually dollar demand remained higher by end of each quarter due to oil payments and demand from corporate sector.

    Furthermore, they said that the recent statement of Finance Minister Miftah Ismail regarding lack of inflows from friendly countries also sent disappointments to the currency market.

    It is worth mentioning that the rupee recorded all-time low of Rs239.94 on July 28, 2022.

    READ MORE: Pakistani Rupee declines for ninth straight session; Dollar ends at PKR 234.32

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

    The rupee made 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: Dollar surges to PKR 233.50 in midday interbank on September 14, 2022

    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.

  • President Alvi bars retrospective effect to profit rates on saving certificates

    President Alvi bars retrospective effect to profit rates on saving certificates

    ISLAMABAD: The President of Pakistan Dr. Arif Alvi, while rejecting the retrospective effect of government decision, has directed the authorities to pay profit rate on saving certificates on prevailing rates.

    While accepting a representation of an aggrieved citizen against a decision of the Wafaqi Mohtasib, President Dr Arif Alvi has directed the Central Directorate of National Savings (CDNS) to pay profit on the Special Saving Certificates (SSCs) as per the profit rate prevailing at the time of purchasing the certificates.

    READ MORE: President Alvi directs State Life Insurance to pay compensation

    He said that CDNS had committed maladministration by revising the profit rates retrospectively and in contrary to the existing law, thus causing the citizen a loss of Rs 5.3 million.

    The President issued these directions while deciding on a representation preferred by Ms Yasmeen Merchant, who had purchased six SSCs from CDNS on 01.11.2019 at a profit rate of 12.7 per cent for five certificates and 13.9 per cent profit rate for the sixth certificate.

    READ MORE: President Alvi rejects Habib Bank plea, orders to pay victims

    Four days later on 05.11.2019, however, Finance Division issued a notification reducing the profit rates from 12.7 per cent to 11 per cent and 13.9 per cent to 11.8 per cent with retrospective effect from 01.11.2019, causing her a loss of Rs 5.3 million.

    The President accepted her representation and held that the complainant was entitled to the profit rate prevailing on the date of issuance of certificates and that the change made through the notification did not apply to her investment in retrospective and, therefore, it could not affect her duly earned right of profit nor it can nullify it to her disadvantage.

    READ MORE: HBL ordered to compensate bank fraud victim

    He said that the notification issued was in the nature of subordinate or delegated legislation and took effect from the date of its publication in the official Gazette and not from any prior date.

    The President added that the rationale behind it was that only the Parliament/legislative bodies could enact a law from a date prior to its enactment i.e., retrospectively and the Government by itself, unless authorized by the statute, had no such authority or power to issue a notification operative from a date different from the date of its publication in the official Gazette.

    READ MORE: FBR directed to bring entire sugar supply chain into tax net

    The President further highlighted that a person may feel allured by the incentives floated by the Government and act upon it, and it did not behove the Government to recant on its commitment as it may erode the confidence of the general public in the government bodies and may also negatively affect the credibility of the Government.

    He further stated that such law was based on settled legal principles and Quranic injunctions as per the 1st verse of Surah Al-Maida “O ye who believe! Fulfil your undertakings”.

    The President held that it was not only logical, fair and just to fulfil promises, undertakings and agreements but was also a universally accepted norm. He further declared that both sides were bound by the commitments made at the time of issuance of certificates and directed CDNS to pay the profit as per the promised profit rates of 12.7 per cent and 13.9 per cent on the purchased certificates.

    As per details, the citizen’s grievance was that she had purchased the SSCs because of the prevailing profit rate whereas the notification gave retrospective effect to the profit rates and was issued after investment to her disadvantage.

    She approached CDNS and later the Wafaqi Mohtasib for redressal of her grievance but to no avail. She then filed a representation with the President, which he accepted.

  • Dollar rallies for 11th straight session; ends PKR 236.84 at interbank

    Dollar rallies for 11th straight session; ends PKR 236.84 at interbank

    KARACHI: The US Dollar made gain for 11th straight day against Pakistani Rupee (PKR) to reach 236.84 at closing of interbank foreign exchange market on Friday.

    The exchange rate recorded a decline of 96 paisas in rupee value to end at Rs236.84 to the dollar from previous day’s closing of Rs235.88 in the interbank foreign exchange market.

    READ MORE: Rupee devaluation continues; Dollar jumps to PKR 235.88

    The local currency recorded a decline of Rs18.24 or 8.34 per cent during the past 11 sessions from Rs218.60 against the dollar on September 01, 2022.

    Currency experts said that mounting dollar demand for import and corporate payments was pressurizing the local currency.

    Furthermore, the political uncertainty is also destabilizing the local unit against the greenback.

    It is worth mentioning that the rupee recorded all-time low of Rs239.94 on July 28, 2022.

    READ MORE: Pakistani Rupee declines for ninth straight session; Dollar ends at PKR 234.32

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

    The rupee made 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: Dollar surges to PKR 233.50 in midday interbank on September 14, 2022

    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.

    READ MORE: PKR losing streak continues; Dollar ends Rs231.92 at interbank

  • Dollar rises to PKR 236.50 in midday interbank trading

    Dollar rises to PKR 236.50 in midday interbank trading

    KARACHI: The US dollar continued to rise on Friday and went to Pakistani Rupee (PKR) 236.50 during midday interbank foreign exchange market.

    The exchange rate witnessed a decline of 62 paisas in rupee value to reach Rs236.50 to the dollar during intraday trading from previous day’s closing of Rs235.88 in the interbank foreign exchange market.

    READ MORE: Rupee devaluation continues; Dollar jumps to PKR 235.88

    Currency experts said that lack of dollar inflows pressurized the rupee. They said that the reports of delay or no inflows from friends of Pakistan further created panic in the currency market.

    On September 15, 2022, the local currency recorded a decline of Rs16.08 or 8 per cent during the past 10 sessions from Rs218.60 against the dollar on September 01, 2022.

    The experts said that mounting dollar demand for import and corporate payments was pressurizing the local currency.

    READ MORE: Pakistani Rupee declines for ninth straight session; Dollar ends at PKR 234.32

    Furthermore, the political uncertainty is also destabilizing the local unit against the greenback.

    It is worth mentioning that the rupee recorded all-time low of Rs239.94 on July 28, 2022.

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

    READ MORE: Dollar surges to PKR 233.50 in midday interbank on September 14, 2022

    The rupee made 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 losing streak continues; Dollar ends Rs231.92 at interbank

    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.

  • Rupee devaluation continues; Dollar jumps to PKR 235.88

    Rupee devaluation continues; Dollar jumps to PKR 235.88

    KARACHI: The devaluation in Pakistani Rupee (PKR) continued for 10th straight day as the US dollar ended PKR 235.88 in interbank foreign exchange market on Thursday.

    The exchange rate witnessed a decline of Rs1.56 in rupee value to end at Rs235.88 to the dollar from previous day’s closing of Rs234.32 in the interbank foreign exchange market.

    READ MORE: Pakistani Rupee declines for ninth straight session; Dollar ends at PKR 234.32

    The local currency recorded a decline of Rs16.08 or 8 per cent during the past 10 sessions from Rs218.60 against the dollar on September 01, 2022.

    Currency experts said that mounting dollar demand for import and corporate payments was pressurizing the local currency.

    Furthermore, the political uncertainty is also destabilizing the local unit against the greenback.

    READ MORE: Dollar surges to PKR 233.50 in midday interbank on September 14, 2022

    It is worth mentioning that the rupee recorded all-time low of Rs239.94 on July 28, 2022.

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

    The rupee made 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: PKR losing streak continues; Dollar ends Rs231.92 at interbank

    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.

    READ MORE: PKR falls for 7th straight day; dollar jumps to Rs229.82

  • Pakistani Rupee declines for ninth straight session; Dollar ends at PKR 234.32

    Pakistani Rupee declines for ninth straight session; Dollar ends at PKR 234.32

    KARACHI: The Pakistani Rupee (PKR) continued its falling spree for the ninth consecutive session against the dollar as the foreign currency ended at PKR 234.32 at closing of the interbank foreign exchange market on Wednesday.

    The exchange rate witnessed a decline of Rs2.41 in rupee value to end at Rs234.32 to the dollar from previous day’s closing of Rs231.92 in the interbank foreign exchange market.

    READ MORE: Dollar surges to PKR 233.50 in midday interbank on September 14, 2022

    The local currency recorded a decline of Rs15.72 or 7.2 per cent during the past nine sessions from Rs218.60 against the dollar on September 01, 2022.

    Currency experts said that mounting dollar demand for import and corporate payments was pressurizing the local currency.

    Furthermore, the political uncertainty is also destabilizing the local unit against the greenback.

    It is worth mentioning that the rupee recorded all-time low of Rs239.94 on July 28, 2022.

    READ MORE: PKR losing streak continues; Dollar ends Rs231.92 at interbank

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

    The rupee made 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 falls for 7th straight day; dollar jumps to Rs229.82

    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.