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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.

  • Dollar falls for ten straight days against Pakistani Rupee; ends at Rs213.98

    Dollar falls for ten straight days against Pakistani Rupee; ends at Rs213.98

    KARACHI: The US dollar continued to fall against the Pakistani Rupee (PKR) for ten straight trading days on Monday to end at Rs213.98 in the interbank foreign exchange market.

    The exchange rate recorded a gain of Rs1.51 to end at Rs213.98 against the dollar from last Friday’s closing of Rs215.49 in the interbank foreign exchange market.

    READ MORE: Dollar plummets to Rs215.49 against Pakistani Rupee on August 12, 2022

    The local units gained about Rs25.96 or 10.82 per cent during past nine trading days. The rupee is continuously making recovery against the green back since making a historic low of Rs239.94 to the dollar on July 28, 2022.

    Currency experts said that reports of renewal of Saudi financial assistance helped to improve sentiments in the currency market.

    Further, Pakistani authorities are confident about release of $1.2 billion tranche by the International Monetary Fund (IMF) in next few days.

    READ MORE: Dollar continues to fall against PKR; ends at Rs218.88

    Besides, they said that the tight monitoring of the State Bank of Pakistan (SBP) had eased the pressure on exchange rate.

    It is worth mentioning that the foreign exchange reserves of the country depleted massively.

    Pakistan’s foreign exchange reserves have declined 43-month low at $13.56 billion by week ended August 05, 2022. The foreign exchange reserves of country fell by $648 million as those were $14.21 billion a week ago i.e. July 29, 2022.

    READ MORE: Rupee jumps to Rs221.91 against dollar

    Pakistan’s foreign exchange reserves were seen at $13.597 billion on January 2019. 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 $13.668 billion.

    However, the recent recovery in rupee value may be attributed to the efforts of the central bank.

    The State Bank of Pakistan (SBP) initiated inspection against the exchange companies on August 01, 2022. On August 2, 2022, the SBP suspended the operations of four branches of two ECs (Galaxy Exchange Co and Al-Hameed International Money Exchange Co) for violation of SBP regulations.

    The central bank also imposed monetary penalties on some ECs in the recent past. Besides, due to violations of SBP instructions, arrangements of 13 franchises have been terminated by six different ECs in the recent past.

    READ MORE: Pakistani rupee extends gain to dollar for sixth session

    The dealers said that after assurance from the International Monetary Fund (IMF) that Pakistan had met all the requirement for the disbursement of $1.2 billion tranche under Extended Fund Facility (EFF).

    The currency experts said that the rupee was also supported by reduction in trade deficit during the first month of the current fiscal year.

    The trade deficit narrowed by 18.33 per cent to $2.62 billion for the month of July 2022 as compared with the deficit of $3.23 billion in the same month of the last year.

    READ MORE: Dollar plunges to Rs226.15 at interbank closing on August 4, 2022

    The trade deficit was mainly contracted due to 12.8 per cent decline in import bill during the month under review. The import bill of the country was reduced to $4.86 billion in July 2022 as compared with $5.57 billion in the same month of the last year.

  • Faysal Bank celebrates 75th Pakistan Independence Day

    Faysal Bank celebrates 75th Pakistan Independence Day

    KARACHI: Faysal Bank Limited (FBL) celebrated Pakistan’s 75th Independence Day by organizing flag hoisting ceremony on Sunday.

    The heartwarming ceremony took place on the bank’s iconic branch located at Abdullah Haroon Road.

    The celebrations of the 75th anniversary required a platinum edge, therefore FBL decided to showcase Pakistan’s inclusivity by inviting the Special Olympic athletes to grace the occasion.

    READ MORE: Pakistan unveils first locally made electric car

    Athletes from Pakistan chapter of Special Olympics were invited to join FBL in this grand celebration of Pakistan’s Independence Day.

    FBL is enthusiastic to have these special champions shine with equal resonance.  The reverberation of their achievements becomes equally treasurable.

    Sports in Pakistan may have carried a national Flag, but their emotional impact far outweighs any other effect.

    READ MORE: Pakistan issues Rs75 banknote to celebrate Independence Day

    40 members of the athletic team joined the FBL families on Sunday morning to be part of flag hoisting ceremony along with cake cutting ceremony and Prizes were also distributed among special athletes to recognize their efforts in the field of sports despite having challenges. Each person held on to a mini flag to flutter and add cheer to an already vibrant environment.

    The President and CEO of FBL said, “Faysal Islami strongly believes in inclusion from all segments of the society.”

    READ MORE: Donald Blome visits Karachi to support US-Pakistan trade ties

    He also added that, “on this special day of 75th year of our independence it is important to remember that we have to work towards the shining Pakistan, FBL plays its role by providing economic opportunities in a Shariah Compliant manner.’’

    He further elaborated on the importance for society to endorse this need for inclusion and allow youth to aim for their dreams irrespective of their challenges.

    READ MORE: Pakistan Met office issues thundershower alert from August 14

  • Pakistan issues Rs75 banknote to celebrate Independence Day

    Pakistan issues Rs75 banknote to celebrate Independence Day

    KARACHI: State Bank of Pakistan (SBP) on Sunday issued Rs75 commemorative banknote to celebrate 75th Independence Day.

    Acting Governor State Bank of Pakistan (SBP) Dr. Murtaza Syed unveiled the Rs75 Commemorative Banknote to mark the 75 years of Pakistan’s Independence in a graceful ceremony held at the SBP Museum, Karachi on August 14, 2022.

    He also inaugurated the Roshan Pension Plan (RPP) to augment the lifestyle banking under Roshan Digital Account (RDA) initiative for overseas Pakistanis.

    READ MORE: SBP automates verification of refinance claims

    Governor Dr. Murtaza Syed commenced the formal proceedings by hoisting the national flag in the presence of jubilant officers of the Bank and their families followed by playing of national anthem.

    Dr. Murtaza Syed unveiled the design of Rs75 Commemorative Banknote. He noted that while issuance of coins and postage stamps is a regular and recurring feature to mark days of national importance, it is relatively rare that the SBP issues a commemorative banknote.

    It is worth noting that the Rs75 Commemorative Banknote is the second such banknote to be issued by the SBP.

    READ MORE: Interest rates on export, business loans enhanced to 10%

    Earlier, the SBP issued the first and so far the only commemorative banknote in 1997 to mark the Golden Jubilee of Pakistan’s Independence. He also elaborated the features of the Banknote.    

    Paying tribute to the overseas Pakistanis for their relentless contributions towards the country, Governor (A) also inaugurated the Roshan Pension Plan (RPP) scheme, as a part of SBP’s resolve to augment the lifestyle banking under RDA initiative that is being added to the RDA product suite.

    He said the overseas Pakistani’s can now avail the benefits of financial planning for their post-retirement life in Pakistan through RPP and enjoy exclusive pension plan.

    READ MORE: Pakistan hikes key policy rate by 125 basis points to 15%

    Soft launch of the product will start from August 15, 2022 with collaboration of RDA banks and Asset Management Companies.

    Dwelling on the latest economic developments and challenges faced by the economy, Dr. Syed shared his thought-provoking views with the audience.

    From the onset he separated on-ground facts from negative fake news making rounds on social media, which projected a doomsday scenario for Pakistan and advised citizens to not pay heed on such rumors.

    He spoke on forthcoming IMF bailout package and Pakistan’s prospects amidst troubled economic scenario internationally.

    READ MORE: PHMA cries foul on gas suspension to textile industry

    The Governor brushed aside perception that Pakistan’s economy was in dire straits and said that economically weak and developing economies may undergo drastic challenges in next 12 months and Pakistan is no exception.

    He reminded the audience that administrative infrastructure in countries like Pakistan is not very strong and resultantly, effects of price hike become more pronounced here.

    He hoped the crucial IMF bailout program would provide reprieve to the country and Pakistan will not be vulnerable as compared to the countries that do not have the IMF program.

    In the end, Dr. Syed inaugurated exhibition of rare photographs of Quaid e Azam in collaboration with Press Information Department (PID). Governor took keen interest in the photographs and appreciated the hard work of officials of PID and the SBP Museum.

    Features of Rs75 Banknote:

    The Banknote is predominantly green, complemented by white shades and some yellowish tone to enrich its appeal.

    The green color represents growth and development and derives inspiration from the Islamic identity of the country, whereas the white color emphasises the religious diversity of population.

    The distinctive feature of this Banknote is multiple portraits on its front side. The personalities to grace the banknote are Quaid-i-Azam Muhammad Ali Jinnah, Sir Syed Ahmed Khan, Allama Muhammad Iqbal and Mohtarma Fatima Jinnah.

    The Markhor and Deodar trees pictures on the reverse of the Banknote highlights our national commitment to address climate change and its repercussions.

    Both Markhor and Deodar trees serve as symbols of the devastations wrought by these changes and call for urgent measures to combat and reverse environmental degradation.

    Finance Department of the SBP bent over backwards for timely completion of this important project and I appreciate their efforts,’ said Dr. Syed.

  • SBP automates verification of refinance claims

    SBP automates verification of refinance claims

    KARACHI: The State Bank of Pakistan (SBP) on Friday announced the automation of verification of refinance clams under the Export Finance Scheme (EFS).

    Automated verification will significantly enhance the efficiency of refinance operations and improve exporters’ access to liquidity, the central bank added.

    READ MORE: Interest rates on export, business loans enhanced to 10%

    With this move, refinance claims can now be verified through an online system by banks and can be made available for performance calculation and loan entitlement within minutes.

    After a brief parallel run, this automated verification of refinance claims will permanently replace the existing manual verification being performed by Foreign Exchange Operation Department (FEOD) and Development Finance Divisions (DFDs) in SBP-BSC offices.

    READ MORE: Pakistan hikes key policy rate by 125 basis points to 15%

    The new automated system allows banks to generate provisional export performance of their exporters during the concluded financial year, review it with the exporter and submit the finalized performance to the system electronically. Subsequently, the system will verify the finalized performance and calculate loan entitlement, which will be granted by SBP-BSC upon banks’ request.

    READ MORE: PHMA cries foul on gas suspension to textile industry

    The automated verification of refinance claims is expected to conserve resources and enhance efficiency by reducing turnaround time and change of hands. This will ensure swift processing of export refinance to exporters and provide them easier access to liquidity, ultimately benefiting export earnings of the country.

    This initiative is part of SBP’s long term vision of digitizing banking operations and bringing ease of doing business in the country.

    READ MORE: Pakistan’s textile exports hit record high at $19.33 bn in FY22

  • Dollar plummets to Rs215.49 against Pakistani Rupee on August 12, 2022

    Dollar plummets to Rs215.49 against Pakistani Rupee on August 12, 2022

    KARACHI: The US dollar plummeted by Rs3.39 against the Pakistani Rupee to Rs215.49 on Friday August 12, 2022 in interbank foreign exchange market.

    (more…)
  • Meezan Bank posts 36% growth in half year profit

    Meezan Bank posts 36% growth in half year profit

    KARACHI: Meezan Bank Limited on Thursday declared 36 per cent increase in after tax profit for the half year ended June 30, 2022.

    The bank announced its financial results for the first half (January – June) 2022 where the bank reported consolidated net profit after tax of Rs17.1 billion compared to Rs12.7 billion in the same half of the last year.

    READ MORE: Philip Morris Pakistan declares 11% fall in half year profit

    Analysts at AKD Securities said that the results came in above the expectations on account of higher than anticipated non funded income.

    Along with the result, the bank announced a dividend per share of Rs1.75 and a bonus of 10 per cent.

    The bank’s core income increased by 46 per cent year on year (YoY) during the period under review. The growth can be explained by robust book growth as well as better asset pricing.

    READ MORE: Lucky Cement posts record Rs36.42 billion profit

    The non core income grew by 47 per cent YoY during the same period to Rs11.1 billion owing to phenomenal growth in foreign exchange income. Other notable contribution came from fee income which increased to Rs6.8 billion, up 40 per cent YoY.

    The bank recorded provisioning cost of Rs961 million, which contained the profitability growth somewhat. This took the total provisioning cost during the first half of the year 2022 to Rs1.2 billion, up 2.7x.

    READ MORE: Mari Petroleum declares Rs33 billion as annual profit for FY22

    Administrative expenses grew by 25.8 per cent year on year during the first half of the year 2022, which took the bank’s cost-to-income ratio during the period to 40 per cent as opposed to 45 per cent it clocked during same period last year.

    Effective taxation during the quarter clocked in at 57.5 per cent, which took the effective taxation during the period of January – June 2022 to 49.3 per cent. The effective taxation was lower than the estimate and was the key reason behind the earnings surprise.

    READ MORE: UBL declares 21% decline in half year net profit

  • Dollar continues to fall against PKR; ends at Rs218.88

    Dollar continues to fall against PKR; ends at Rs218.88

    KARACHI: The US dollar continued to fall against the Pakistan Rupee (PKR) on Thursday and ended at Rs218.88 in the interbank foreign exchange market.

    The exchange rate witnessed an increase of Rs3.06 in the rupee value to end at Rs218.88 from previous day’s closing of Rs221.94 in the interbank foreign exchange market.

    READ MORE: Rupee jumps to Rs221.91 against dollar

    The local units gained about Rs21.06 or 8.78 per cent during past eight trading days.

    Currency dealers said that the tight monitoring of the State Bank of Pakistan (SBP) had eased the pressure on exchange rate.

    The SBP initiated inspection against the exchange companies on August 01, 2022. On August 2, 2022, the SBP suspended the operations of four branches of two ECs (Galaxy Exchange Co and Al-Hameed International Money Exchange Co) for violation of SBP regulations.

    READ MORE: Pakistani rupee extends gain to dollar for sixth session

    The central bank also imposed monetary penalties on some ECs in the recent past. Besides, due to violations of SBP instructions, arrangements of 13 franchises have been terminated by six different ECs in the recent past.

    The dealers said that after assurance from the International Monetary Fund (IMF) that Pakistan had met all the requirement for the disbursement of $1.2 billion tranche under Extended Fund Facility (EFF).

    The currency experts said that the rupee was also supported by reduction in trade deficit during the first month of the current fiscal year.

    READ MORE: Dollar plunges to Rs226.15 at interbank closing on August 4, 2022

    The trade deficit narrowed by 18.33 per cent to $2.62 billion for the month of July 2022 as compared with the deficit of $3.23 billion in the same month of the last year.

    The trade deficit was mainly contracted due to 12.8 per cent decline in import bill during the month under review. The import bill of the country was reduced to $4.86 billion in July 2022 as compared with $5.57 billion in the same month of the last year.

    The experts, however, expressed concerns over massive decline in foreign exchange reserves. They said that expected inflows from IMF would help the country’s external sector.

    READ MORE: Pakistani Rupee makes historic recovery; dollar ends at Rs228.80

  • Rupee jumps to Rs221.91 against dollar

    Rupee jumps to Rs221.91 against dollar

    KARACHI: The Pakistani rupee recovered Rs2.13 against the US dollar on Wednesday to close at Rs221.91 at closing of interbank foreign exchange market.

    Previously, the exchange rate closed at Rs224.04 to the dollar on August 05, 2022.

    READ MORE: Pakistani rupee extends gain to dollar for sixth session

    The rupee continued the gain for seventh straight session after falling to historic low. The rupee witnessed record low at Rs239.94 on July 28, 2022. However, since then the rupee is continuously gaining to the dollar.

    The local units gained about Rs18.75 or 7.51 per cent during past seven trading days.

    Currency dealers said that the tight monitoring of the State Bank of Pakistan (SBP) had eased the pressure on exchange rate.

    READ MORE: Dollar plunges to Rs226.15 at interbank closing on August 4, 2022

    The SBP initiated inspection against the exchange companies on August 01, 2022. On August 2, 2022, the SBP suspended the operations of four branches of two ECs (Galaxy Exchange Co and Al-Hameed International Money Exchange Co) for violation of SBP regulations.

    The central bank also imposed monetary penalties on some ECs in the recent past. Besides, due to violations of SBP instructions, arrangements of 13 franchises have been terminated by six different ECs in the recent past.

    The dealers said that after assurance from the International Monetary Fund (IMF) that Pakistan had met all the requirement for the disbursement of $1.2 billion tranche under Extended Fund Facility (EFF).

    READ MORE: Pakistani Rupee makes historic recovery; dollar ends at Rs228.80

    The currency experts said that the rupee was also supported by reduction in trade deficit during the first month of the current fiscal year.

    The trade deficit narrowed by 18.33 per cent to $2.62 billion for the month of July 2022 as compared with the deficit of $3.23 billion in the same month of the last year.

    READ MORE: Rupee makes recovery against dollar for 3rd straight day

    The trade deficit was mainly contracted due to 12.8 per cent decline in import bill during the month under review. The import bill of the country was reduced to $4.86 billion in July 2022 as compared with $5.57 billion in the same month of the last year.

    The experts, however, expressed concerns over massive decline in foreign exchange reserves. They said that expected inflows from IMF would help the country’s external sector.

  • US Treasury sanctions virtual currency mixer Tornado Cash

    US Treasury sanctions virtual currency mixer Tornado Cash

    WASHINGTON: The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) Monday sanctioned virtual currency mixer Tornado Cash, which has been used to launder more than $7 billion worth of virtual currency since its creation in 2019.

    (more…)
  • National Savings stops profit coupons after August 31, 2022

    National Savings stops profit coupons after August 31, 2022

    ISLAMABAD: The Central Directorate of National Savings (CDNS) has announced that it will not issue profit for various savings schemes through coupons.

    In a public notice, the CDNS said that laws have been amended related to regular income certificates, Behbood Saving Certificates and Pensioners Benefit Account.

    READ MORE: Pakistan increases profit rates for saving accounts

    According to the amendments, the investors of saving schemes are required to open saving accounts for receiving profits directly to their accounts.

    The CDNS advised the investors to visit their nearest national saving branches and open their saving accounts by August 31, 2022.

    The national savings said that it will not allow to release profit through coupons.

    READ MORE: Pakistan hikes key policy rate by 125 basis points to 15%

    Recently, the CDNS has increased profit rates for saving accounts to 13.50 per cent per annum from 12.25 per cent.

    According to Arif Habib Limited, the authority announced the increase in profit rates for two schemes.

    The profit rate of savings accounts has been increased by 125 basis points to 13.50 per cent from 12.25 per cent.

    READ MORE: Pakistan may see further 100bps hike in policy rate

    Similarly, the profit rate has been increased for regular income certificates by 24 basis points to 12.60 per cent from 12.36 per cent.

    However, profit rates for other schemes are remained unchanged. The profit rates for the other scheme are: Defence Saving Certificate at 12.40 per cent; Behbood Saving Certificate at 14.16 per cent; Special Saving Certificates at 13 per cent; and Pensioner Benefit Account at 14.16 per cent.

    READ MORE: SBP increases interest rate by 150bps to 13.75%