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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.

  • Rupee plummets to Rs232 against dollar in midday trading

    Rupee plummets to Rs232 against dollar in midday trading

    KARACHI: The Pakistani Rupee (PKR) fell to record low at Rs232 against the US dollar during midday trading of foreign exchange market on Tuesday.

    The dollar is being traded at Rs232 after gaining another Rs2.12 so far as compared with last day’s closing of Rs 229.88 in the interbank foreign exchange market.

    Currency experts said that the deepening political crisis had created panic in the currency market and rise in dollar demand.

    READ MORE: Dollar hits new high Rs229.86 on political crisis

    The recent election for the chief minister in the Punjab Assembly was challenged by PTI and PML (Q) seeking relief from the Supreme Court. Meanwhile, other coalition partners are demanding the Supreme Court to form a full court to decide the case.

    Currency experts said that the rupee under severe pressure due to high dollar demand for external payments.

    The foreign exchange reserves of the country have further declined.

    READ MORE: Dollar hits new high at Rs228.37 at interbank closing

    Pakistan’s foreign exchange reserves have declined by $368 million to $15.242 billion by week ended July 15, 2022. The foreign exchange reserves of the country were $15.61 billion a week ago i.e. July 07, 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 $11.986 billion.

    The official reserves of the State Bank also depleted by $388 billion to $9.329 billion by week ended July 15, 2022 as compared with $9.717 billion a week ago.

    READ MORE: Rupee ends to new low at Rs226.81 against dollar in interbank

    The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021. Since then the official reserves of the SBP declined by $10.817 billion.

    The SBP on July 07, 2022 announced a hike of 125 basis points in policy rate to bring it to 15 per cent. The purpose of increasing the interest rate was to curb the demand and support the rupee value. However, the effort of the SBP failed to support the rupee value.

  • Dollar hits new high Rs229.86 on political crisis

    Dollar hits new high Rs229.86 on political crisis

    KARACHI: The US dollar on Monday recorded a new historic high at Rs229.86 against the Pakistan Rupee (PKR) due to rising political crisis.

    The exchange rate recorded a decline of Rs1.49 in rupee value to end at Rs229.86 against the dollar from last Friday’s closing of Rs228.87 in the interbank foreign exchange market.

    READ MORE: Dollar hits new high at Rs228.37 at interbank closing

    The previous historic high of the dollar was Rs228.37 on July 22, 2022 in interbank foreign exchange market.

    Currency experts said that the deepening political crisis had created panic in the currency market and rise in dollar demand.

    The recent election for the chief minister in the Punjab Assembly was challenged by PTI and PML (Q) seeking relief from the Supreme Court. Meanwhile, other coalition partners are demanding the Supreme Court to form a full court to decide the case.

    READ MORE: Rupee ends to new low at Rs226.81 against dollar in interbank

    Currency experts said that the rupee under severe pressure due to high dollar demand for external payments.

    The foreign exchange reserves of the country have further declined.

    Pakistan’s foreign exchange reserves have declined by $368 million to $15.242 billion by week ended July 15, 2022. The foreign exchange reserves of the country were $15.61 billion a week ago i.e. July 07, 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 $11.986 billion.

    READ MORE: PKR plunges Rs227 to dollar at interbank midday trading

    The official reserves of the State Bank also depleted by $388 billion to $9.329 billion by week ended July 15, 2022 as compared with $9.717 billion a week ago.

    The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021. Since then the official reserves of the SBP declined by $10.817 billion.

    The SBP on July 07, 2022 announced a hike of 125 basis points in policy rate to bring it to 15 per cent. The purpose of increasing the interest rate was to curb the demand and support the rupee value. However, the effort of the SBP failed to support the rupee value.

    READ MORE: Rupee hits fresh low Rs224.92 to dollar at interbank closing

  • Tax imposed on foreign payments made by exchange companies

    Tax imposed on foreign payments made by exchange companies

    ISLAMABAD: The Federal Board of Revenue (FBR) has said that tax has been imposed on foreign payments made by exchange companies.

    The FBR issued Income Tax Circular No. 15 of 2022/2023 to explain important amendments brought through Finance Act, 2022 to the Income Tax Ordinance, 2001.

    READ MORE: Minimum tax for commercial importers enhanced: FBR

    The FBR said that two new sub-sections (1DC) and (1DD) have been inserted in section 152 of the Income Tax Ordinance 2001.

    Under sub-section (DC), service charges/commission/fee, by whatever name called, paid by an exchange company licensed by the State Bank of Pakistan (SBP) to a non-resident person has been brought under the tax net.

    READ MORE: Tax through electricity connections on retailers, service providers

    Now these exchange companies have been made liable to deduct tax at the time of making payment of service charges or commission or fee to the global money transfer operators, international money transfer operators or such other persons engaged in international money transfers or cross-border remittances for facilitating outward remittances.

    READ MORE: FBR explains income tax on export of services

    Similarly, under sub-section (1DD), every banking company has been made liable to deduct tax at the time of making payment to card network company or payment gateway or any other person, on any transaction fee or licensing fee or service charges or commission or fee by whatever name called or interbank financial telecommunication services.

    This final tax on the income of non-resident person and rates have been provided in Division IV of Part I of First Schedule. Corresponding changes in this regard have been made in sections 6 and 8 of the Ordinance.

    READ MORE: FBR restores 100% depreciation deduction

  • Dollar hits new high at Rs228.37 at interbank closing

    Dollar hits new high at Rs228.37 at interbank closing

    KARACHI: The US dollar made a new record high to close at Rs228.37 to the dollar on Friday at closing of interbank foreign exchange market.

    The exchange rate recorded a decline of Rs1.56 in rupee value to end at Rs228.37 to the dollar from previous day’s closing of Rs226.81 in the interbank foreign exchange market.

    READ MORE: Rupee ends to new low at Rs226.81 against dollar in interbank

    Currency experts said that the rupee under severe pressure due to high dollar demand for external payments.

    The foreign exchange reserves of the country have further declined.

    READ MORE: PKR plunges Rs227 to dollar at interbank midday trading

    Pakistan’s foreign exchange reserves have declined by $368 million to $15.242 billion by week ended July 15, 2022. The foreign exchange reserves of the country were $15.61 billion a week ago i.e. July 07, 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 $11.986 billion.

    READ MORE: Rupee hits fresh low Rs224.92 to dollar at interbank closing

    The official reserves of the State Bank also depleted by $388 billion to $9.329 billion by week ended July 15, 2022 as compared with $9.717 billion a week ago.

    The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021. Since then the official reserves of the SBP declined by $10.817 billion.

    READ MORE: Pakistani Rupee crashes to Rs222 against Dollar at closing on July 19, 2022

    The SBP on July 07, 2022 announced a hike of 125 basis points in policy rate to bring it to 15 per cent. The purpose of increasing the interest rate was to curb the demand and support the rupee value. However, the effort of the SBP failed to support the rupee value.

  • Rupee hits new midday low of Rs228.50 against dollar

    Rupee hits new midday low of Rs228.50 against dollar

    KARACHI: The Pakistani Rupee (PKR) made a new midday trading low of Rs228.50 against the US dollar on Friday in interbank foreign exchange market.

    The dollar is being traded at Rs228.50, up Rs1.69 from last day’s closing of Rs226.81 in the interbank foreign exchange market.

    READ MORE: Rupee ends to new low at Rs226.81 against dollar in interbank

    Currency experts said that the rupee under severe pressure due to high dollar demand for external payments.

    The foreign exchange reserves of the country have further declined.

    Pakistan’s foreign exchange reserves have declined by $368 million to $15.242 billion by week ended July 15, 2022. The foreign exchange reserves of the country were $15.61 billion a week ago i.e. July 07, 2022.

    READ MORE: PKR plunges Rs227 to dollar at interbank midday trading

    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 $11.986 billion.

    The official reserves of the State Bank also depleted by $388 billion to $9.329 billion by week ended July 15, 2022 as compared with $9.717 billion a week ago.

    READ MORE: Rupee hits fresh low Rs224.92 to dollar at interbank closing

    The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021. Since then the official reserves of the SBP declined by $10.817 billion.

    The SBP on July 07, 2022 announced a hike of 125 basis points in policy rate to bring it to 15 per cent. The purpose of increasing the interest rate was to curb the demand and support the rupee value. However, the effort of the SBP failed to support the rupee value.

    READ MORE: Pakistani Rupee crashes to Rs222 against Dollar at closing on July 19, 2022

  • Rupee ends to new low at Rs226.81 against dollar in interbank

    Rupee ends to new low at Rs226.81 against dollar in interbank

    KARACHI: The Pakistan Rupee (PKR) fell to a new historic low at Rs226.81 to the US dollar on Thursday due to scarcity of the greenback and further rise in political instability.

    The exchange rate recorded a decline of Rs1.89 in rupee value to end at Rs226.81 to the dollar from previous day’s closing of Rs224.92 in the interbank foreign exchange market.

    Currency dealers said that the importers were running pillars to post for dollars to make payments to their foreign suppliers.

    READ MORE: PKR plunges Rs227 to dollar at interbank midday trading

    They further said that the market remained uncertain due to political instability. The dealers said that the fall in foreign exchange reserves also fueled the uncertainty in the market.

    The foreign exchange reserves of Pakistan have depleted by $454 million to $15.742 billion by the week ended June 30, 2022. The foreign exchange reserves of the country were at $16.196 billion a week ago i.e. June 24, 2022.

    The country’s foreign exchange reserves hit an all-time high of $27.228 billion on August 27, 2021. Since then the foreign exchange reserves have declined by $11.486 billion.

    READ MORE: Rupee hits fresh low Rs224.92 to dollar at interbank closing

    The official reserves of the State Bank also recorded a decline of $493 million to $9.816 billion by the week ended June 30, 2022 as compared with $10.309 billion a week ago.

    The central bank attributed the decline in foreign exchange reserves to external debt repayments.

    It is pertinent to mention that the SBP received about $2.3 billion from Chinese banks for buildup of foreign exchange reserves. However, despite receiving the amount the external debt payment kept the pressure on the reserves.

    The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by the week ended August 27, 2021. Since then the official reserves of the SBP declined by $10.33 billion.

    READ MORE:

    READ MORE: Pakistani Rupee crashes to Rs222 against Dollar at closing on July 19, 2022

    The SBP on July 07, 2022 announced a hike of 125 basis points in policy rate to bring it to 15 per cent. The purpose of increasing the interest rate was to curb the demand and support the rupee value. However, the effort of the SBP failed to support the rupee value.

  • PKR plunges Rs227 to dollar at interbank midday trading

    PKR plunges Rs227 to dollar at interbank midday trading

    KARACHI: The Pakistani Rupee (PKR) on Thursday plunged to a new low of Rs227 against the US dollar during midday trading at interbank foreign exchange market.

    The exchange rate recorded a decline of Rs2.08 in rupee value to trade at Rs227 against the dollar, which is all time low in midday trading from previous day’s closing of Rs224.92 in interbank foreign exchange market.

    READ MORE: Rupee hits fresh low Rs224.92 to dollar at interbank closing

    Currency experts said that the local unit was under pressure due to political instability.

    The experts also believed that the falling foreign exchange reserves also putting pressure on rupee stability.

    The foreign exchange reserves of Pakistan have depleted by $454 million to $15.742 billion by week ended June 30, 2022. The foreign exchange reserves of the country were at $16.196 billion a week ago i.e. June 24, 2022.

    READ MORE: Pakistani Rupee crashes to Rs222 against Dollar at closing on July 19, 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 $11.486 billion.

    The official reserves of the State Bank also recorded a decline of $493 million to $9.816 billion by week ended June 30, 2022 as compared with $10.309 billion a week ago.

    The central bank attributed the decline in foreign exchange reserves to external debt repayments.

    It is pertinent to mention that the SBP received about $2.3 billion from Chinese banks for buildup of foreign exchange reserves. However, despite receiving the amount the external debt payment kept the pressure on the reserves.

    READ MORE: Rupee plummets record low at Rs215.20 to dollar

    The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021. Since then the official reserves of the SBP declined by $10.33 billion.

    The SBP on July 07, 2022 announced a hike of 125 basis points in policy rate to bring at 15 per cent. The purpose of increasing the interest rate was to curb the demand and support the rupee value. However, the effort of the SBP failed to support the rupee value.

    READ MORE: Fitch revises Pakistan’s outlook to negative

  • Rupee hits fresh low Rs224.92 to dollar at interbank closing

    Rupee hits fresh low Rs224.92 to dollar at interbank closing

    KARACHI: The free-fall continued in Pakistan Rupee (PKR) against the dollar on Wednesday as the local currency ended fresh low of Rs224.92 in the interbank foreign exchange market.

    The exchange rate recorded a decline of Rs2.93 to end at Rs224.92 to the dollar from last day’s closing of Rs221.99, the previous historic low of the rupee, in the interbank foreign exchange market.

    READ MORE: Pakistani Rupee crashes to Rs222 against Dollar at closing on July 19, 2022

    Currency experts said that the local unit was under pressure due to political instability.

    Furthermore, the Fitch rating agency has downgraded the Pakistan outlook to negative from positive.

    The experts also believed that the falling foreign exchange reserves also putting pressure on rupee stability.

    The foreign exchange reserves of Pakistan have depleted by $454 million to $15.742 billion by week ended June 30, 2022. The foreign exchange reserves of the country were at $16.196 billion a week ago i.e. June 24, 2022.

    READ MORE: Rupee plummets record low at Rs215.20 to dollar

    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 $11.486 billion.

    The official reserves of the State Bank also recorded a decline of $493 million to $9.816 billion by week ended June 30, 2022 as compared with $10.309 billion a week ago.

    The central bank attributed the decline in foreign exchange reserves to external debt repayments.

    READ MORE: Fitch revises Pakistan’s outlook to negative

    It is pertinent to mention that the SBP received about $2.3 billion from Chinese banks for buildup of foreign exchange reserves. However, despite receiving the amount the external debt payment kept the pressure on the reserves.

    The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021. Since then the official reserves of the SBP declined by $10.33 billion.

    The SBP on July 07, 2022 announced a hike of 125 basis points in policy rate to bring at 15 per cent. The purpose of increasing the interest rate was to curb the demand and support the rupee value. However, the effort of the SBP failed to support the rupee value.

    READ MORE: PKR slips to Rs210.95 against dollar despite IMF agreement

  • Mastercard partners with MCB Bank to empower SMEs in Pakistan

    Mastercard partners with MCB Bank to empower SMEs in Pakistan

    LAHORE: Mastercard and MCB Bank have signed an agreement to boost financial inclusion and empower Small and Medium Enterprises (SMEs) in Pakistan.

    The agreement was signed between J.K. Khalil, Cluster General Manager, MENA East, Mastercard and Shoaib Mumtaz, President & CEO, MCB Bank at MCB House, Lahore. Senior members from both organizations were also present at the ceremony.

    READ MORE: Mastercard, Bank Alfalah enter strategic partnership

    Simplify Commerce, powered by Mastercard Payment Gateway Services, is specifically designed to be easy to use, making it possible for merchants with only a minimal amount of digital experience to access a convenient and secure acceptance solution and receive payments within a matter of minutes.

    The partnership allows businesses to sign up for an innovative and cost-effective application that allows them to quickly embrace electronic acceptance. Extremely easy to set up, the technology enables SMEs with a suite of powerful payments and business management features that help simplify backend processes, helping MCB partner merchants to focus on core business functions as they enter and thrive in the digital marketplace.

    The solution benefits small businesses who want to build their own webstores without coding knowledge, use advance payment options such as e-invoicing, integrate with social media, take informed business decision using the powerful reporting module or build payments into existing websites with hosted payment or shopping cart payment plug-ins.

    READ MORE: Bank Alfalah posts 45% growth in profit after tax

    J. K. Khalil, Cluster General Manager, MENA East, Mastercard, said: “Small businesses play a vital role in uplifting communities and building inclusive economies. As SMEs navigate a changing digital world, it is crucial to have access to the right insights, technologies, and solutions to grow and scale. Together with MCB Bank, we are supporting Pakistan’s SME community and providing these businesses with the digital tools and resources to help them thrive.”

    Shoaib Mumtaz, President & CEO at MCB Bank, said: “Our alliance with Mastercard will provide small and medium enterprises a powerful suite of business management tools to better manage the financial and administrative aspects of their enterprises. We are confident that Simplify Commerce will greatly streamline backend processes, providing MCB partner merchants the freedom to focus on what’s important, growing their businesses in the ecommerce arena. This partnership will go a long way towards empowering entrepreneurs and fostering financial inclusion, both critical drivers of sustainable economic growth.”

    READ MORE: Meezan Bank announces direct payment integration with VISA Card

    According to the Pakistan Bureau of Statistics, in 2019, SMEs constitute nearly 90% of entirely private businesses and employ almost 78% of the non-agricultural labor force in Pakistan reflecting the huge potential for digitalization of these businesses to boost the nation’s economy.

    The announcement builds on Mastercard’s longstanding relationship with MCB Bank and its ongoing support to SMEs in Pakistan and across the MENA region. Globally, Mastercard has pledged to connect one billion people and 50 million micro, medium and small businesses to the digital economy by 2025 – with a direct focus on 25 million women entrepreneurs.

  • Pakistani Rupee crashes to Rs222 against Dollar at closing on July 19, 2022

    Pakistani Rupee crashes to Rs222 against Dollar at closing on July 19, 2022

    KARACHI: The Pakistani Rupee (PKR) crashed against the US dollar to make new historic low at around Rs222 on Tuesday at closing of interbank foreign exchange market.

    The exchange rate recorded a decline of Rs6.79 and ended at Rs221.99 to the dollar from previous day’s closing of Rs215.20 in the interbank foreign exchange market.

    READ MORE: Rupee plummets record low at Rs215.20 to dollar

    The rupee fell to the record low of Rs215.20 at interbank closing on July 18, 2022.

    Currency experts said that the local unit was under pressure due to political instability.

    Furthermore, the Fitch rating agency has downgraded the Pakistan outlook to negative from positive.

    READ MORE: Fitch revises Pakistan’s outlook to negative

    The experts also believed that the falling foreign exchange reserves also putting pressure on rupee stability.

    The foreign exchange reserves of Pakistan have depleted by $454 million to $15.742 billion by week ended June 30, 2022. The foreign exchange reserves of the country were at $16.196 billion a week ago i.e. June 24, 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 $11.486 billion.

    The official reserves of the State Bank also recorded a decline of $493 million to $9.816 billion by week ended June 30, 2022 as compared with $10.309 billion a week ago.

    READ MORE: PKR slips to Rs210.95 against dollar despite IMF agreement

    The central bank attributed the decline in foreign exchange reserves to external debt repayments.

    It is pertinent to mention that the SBP received about $2.3 billion from Chinese banks for buildup of foreign exchange reserves. However, despite receiving the amount the external debt payment kept the pressure on the reserves.

    The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021. Since then the official reserves of the SBP declined by $10.33 billion.

    READ MORE: Rupee recovers 30 paisas to dollar on IMF agreement

    The SBP on July 07, 2022 announced a hike of 125 basis points in policy rate to bring at 15 per cent. The purpose of increasing the interest rate was to curb the demand and support the rupee value. However, the effort of the SBP failed to support the rupee value.