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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 crashes to record low at Rs190.02 against dollar

KARACHI: The Pakistan Rupee (PKR) crashed to new record low at Rs190.02 to the dollar in interbank foreign exchange market on Wednesday.

The exchange rate witnessed a decline of Rs1.36 to end at Rs190.02 to the dollar from previous day’s closing of Rs188.66 in the interbank foreign exchange market.

READ MORE: Rupee hits all-time low at Rs188.66 to dollar

Currency experts said that balance of payment crisis were impacting the rupee value.

They said that high import payment and scheduled repayment of foreign debt had increased dollar demand.

The rupee has fallen sharply during first three days of the current week.

READ MORE: Dollar ends Rs187.53 at interbank market close

Pakistan is net importer of petroleum products to meet its domestic demand. The country’s import bill was $14.81 billion during the first nine months (July – March) 2021/2022 as compared with $7.55 billion in the corresponding period of the last fiscal year, showing a massive growth of 96 per cent. The oil bill is around 25 per cent of the total import bill of country.

The depleting foreign exchange reserves are also putting pressure on the local currency.

READ MORE: Rupee falls Rs187.50 to dollar at market open

According to details released by the State Bank of Pakistan (SBP), the official reserves of the central bank fell by $328 million to $10.558 billion by the week ended April 23, 2022 as compared with $10.886 billion a week ago. The net foreign exchange reserves of the SBP also include $3 billion from Saudi Arabia, which was deposited with the central bank to support balance of payment.

The foreign exchange reserves of the country fell to $16.668 billion by week ended April 23, 2022 as compared with $17.045 billion by week ended April 16, 2022.

READ MORE: Rupee falls 94 paisas to dollar in post Eid holidays

Pakistan total import bills recorded an increase of 49 per cent to $58.87 billion during the first nine months of the current fiscal year as compared with $39.49 billion in the corresponding period of the last fiscal year.

This resulted in huge widening in trade deficit of 70 per cent. The trade deficit of the country swelled to $35.39 billion during first nine months of the current fiscal year as compared with the deficit of $20.8 billion in the corresponding months of the last fiscal year.

May 11, 2022
MCB Bank finalizing Easypaisa acquisition

KARACHI: MCB Bank is in final stage for making decision regarding acquisition of Easypaisa, top management of the bank said on Tuesday.

“The bank is in final stages of making a decision on potential Easypaisa acquisition and the announcement in this regard will be made shortly,” the management told at analyst briefing.

Management indicated that it is likely that bank will maintain dividend payout ratio whether the acquisition goes through or not.

MCB Bank conducted its 1Q2022 analyst briefing today where management discussed financial performance and future outlook of the bank.

With rising differential between kibor and policy rates, a 100-150 basis points increase in policy rate in upcoming monetary policy is likely as per management.

A significant chunk of government securities will reprise in 2Q2022 however reprising of advances will continue till 3Q2022 which will continue to support Net Interest Margins (NIMs) of the bank.

MCB remains very selective in its lending policy and it does not see any major uptick in Non Performing loans (NPLs) despite high kibor rate of ~15 per cent. Consumer loans contribute around 6 per cent to the total loan book of the bank.

Current Account Deposit as percentage of total deposits for the bank clocked in at 43 per cent in March 2022 against 40 per cent in December 2021. Rising current accounts (zero cost deposits) will continue to support Net Interest Income (NII) of the bank going forward.

Duration on fixed rate PIBs is close to 3 years where the average yield on such bond is around 10.5 per cent.

Management do not expect any significant impact on bank earnings due to falling Pakistan Eurobond prices as the bank test the instruments for impairment if the value is down by 30 per cent or above.

Exposure in US$ Sri Lankan bonds was gradually phased out by the bank hence no impact of the bond default is anticipated.

The entire banking industry is witnessing strong growth in foreign exchange income led by volatility in exchange rate.

MCB reported 1Q2022 earnings of Rs7.7/share, up 29 per cent YoY led by rise in Net Interest Income (NII) which was up 19 per cent to Rs19bn. Non-interest income of the bank increased by 18 per cent YoY to Rs5.9bn in 1Q2022 also supporting profitability of the bank.

MCB remains one of the leading commercial banks in Pakistan with 1,426 Domestic Branches across Pakistan, over 8.2 million customer accounts, 7 per cent share in industry deposits, and 2nd largest market capitalization.

May 10, 2022
Rupee hits all-time low at Rs188.66 to dollar

KARACHI: The Pakistan Rupee (PKR) fell to an all-time low against dollar on Tuesday as exchange rate ended at Rs188.66 at closing of interbank foreign exchange market.

The local currency fell by Rs1.13 to the dollar to hit the new record low as compared with the previous day’s closing of Rs187.53 in the interbank foreign exchange market.

READ MORE: Dollar ends Rs187.53 at interbank market close

Currency experts said that the local unit was continuously declining due to balance of payment crisis in the country.

They said that due to higher international oil and commodity prices the dollar demand has been seen in the market.

The rupee hit an all-time low at Rs188.18 on April 07, 2022.

Currency experts said that dollar demand was high at market open because of weekly holidays.

READ MORE: Rupee falls Rs187.50 to dollar at market open

Pakistan is net importer of petroleum products to meet its domestic demand. The country’s import bill was $14.81 billion during the first nine months (July – March) 2021/2022 as compared with $7.55 billion in the corresponding period of the last fiscal year, showing a massive growth of 96 per cent. The oil bill is around 25 per cent of the total import bill of country.

The depleting foreign exchange reserves are also putting pressure on the local currency.

According to details released by the State Bank of Pakistan (SBP), the official reserves of the central bank fell by $328 million to $10.558 billion by the week ended April 23, 2022 as compared with $10.886 billion a week ago. The net foreign exchange reserves of the SBP also include $3 billion from Saudi Arabia, which was deposited with the central bank to support balance of payment.

READ MORE: Rupee falls 94 paisas to dollar in post Eid holidays

The foreign exchange reserves of the country fell to $16.668 billion by week ended April 23, 2022 as compared with $17.045 billion by week ended April 16, 2022.

Pakistan total import bills recorded an increase of 49 per cent to $58.87 billion during the first nine months of the current fiscal year as compared with $39.49 billion in the corresponding period of the last fiscal year.

READ MORE: Dollar gains six paisas against PKR in interbank

This resulted in huge widening in trade deficit of 70 per cent. The trade deficit of the country swelled to $35.39 billion during first nine months of the current fiscal year as compared with the deficit of $20.8 billion in the corresponding months of the last fiscal year.

May 10, 2022
Dollar top Rs188.45 in interbank midday trading

KARACHI: The US dollar hit record high at 188.45 to Pakistan Rupee (PKR) by midday trading at the interbank foreign exchange market on Tuesday.

The dollar has appreciated by 92 paisas so far today to reach Rs188.45 as compared with last day’s closing of Rs187.53 in the interbank foreign exchange market.

Currency experts said that the rupee was under pressure during the day due to higher dollar demand for import payments.

READ MORE: Rupee falls Rs187.50 to dollar at market open

They said that due to higher international oil and commodity prices the dollar demand has been seen in the market.

The rupee hit an all-time low at Rs188.18 on April 07, 2022.

Currency experts said that dollar demand was high at market open because of weekly holidays.

READ MORE: Rupee falls 94 paisas to dollar in post Eid holidays

Pakistan is net importer of petroleum products to meet its domestic demand. The country’s import bill was $14.81 billion during the first nine months (July – March) 2021/2022 as compared with $7.55 billion in the corresponding period of the last fiscal year, showing a massive growth of 96 per cent. The oil bill is around 25 per cent of the total import bill of country.

The depleting foreign exchange reserves are also putting pressure on the local currency.

READ MORE: Dollar gains six paisas against PKR in interbank

According to details released by the State Bank of Pakistan (SBP), the official reserves of the central bank fell by $328 million to $10.558 billion by the week ended April 23, 2022 as compared with $10.886 billion a week ago. The net foreign exchange reserves of the SBP also include $3 billion from Saudi Arabia, which was deposited with the central bank to support balance of payment.

The foreign exchange reserves of the country fell to $16.668 billion by week ended April 23, 2022 as compared with $17.045 billion by week ended April 16, 2022.

READ MORE: Rupee gains 24 paisas to dollar in interbank

Pakistan total import bills recorded an increase of 49 per cent to $58.87 billion during the first nine months of the current fiscal year as compared with $39.49 billion in the corresponding period of the last fiscal year.

This resulted in huge widening in trade deficit of 70 per cent. The trade deficit of the country swelled to $35.39 billion during first nine months of the current fiscal year as compared with the deficit of $20.8 billion in the corresponding months of the last fiscal year.

READ MORE: Dollar appreciates 42 paisas against PKR

May 10, 2022
Pak Kuwait Investment, Enertech sign $750 million pact

KARACHI: Pakistan Kuwait Investment Company Pvt. Ltd. (PKIC) and Enertech Holding Company KSC (Enertech), a subsidiary of Kuwait Investment Authority, have signed an agreement worth $750 million to collaborate and jointly explore investment opportunities and business potential primarily within Pakistan, a statement said on Monday.

Embarking on this journey of alliance with this agreement, both PKIC and Enertech have paved the way of future projects to support infrastructure development in Pakistan. In addition, this shall enable advancement in the digital and technology space in tandem with supporting financial inclusion and gender diversity. This alliance would not only bring foreign investment in Pakistan, but shall also support technology and knowledge spill over.

The agreement was inked by Mohammad Al Fares, Chairman PKIC (pictured right) and Abdullah Al Mutairi, CEO Enertech (pictured left). Addressing the signing ceremony, Mohammad Al Fares, Chairman PKIC, said “PKIC has a firm desire to support all important sectors of the economy. The strategic alliance with Enertech, will help identify, invest and materialize viable investment opportunities in Pakistan. Where Both PKIC and Enertech would benefit from individual capabilities and knowledge structure of each other.”

Speaking on this landmark initiative, MD PKIC Mubashar Maqbool expressed his elation “We have cemented this collaboration to support priority sectors of the economy including infrastructure, power, technology, housing and tourism with an objective of social upliftment and poverty alleviation. This strategic alliance would also bring in much needed foreign investment into Pakistan.” Yasser Malik CEO Enertech Pakistan emphasized that “These projects would be critical to energy security and sustainability in Pakistan.”

Previously, PKIC also collaborated with Meezan Bank Limited to design a Sukuk as a quasi-equity instrument to finance the local equity requirement of a 61-kilometre water pipeline to deliver water to coal plants, being developed by Enertech in Thar, Sindh. This transaction, structured for Enertech, received two prestigious awards including ‘Pakistan Deal of the Year’ and ‘Most innovative Deal of the Year’ by Islamic Finance News (IFN) based in Malaysia.

Pakistan Kuwait Investment Company (Pvt) Limited was established in 1979 as a Joint venture between the Governments of Pakistan and Kuwait, it is the largest AAA rated development financial institution engaged in investment and development banking activities in Pakistan. PKIC has played a pivotal role in promoting industrial activity, by way of equity and debt investments. PKIC has been accredited with many successful investments including the establishment of Meezan Bank Limited and Al Meezan Investments in which it presently holds thirty percent shareholding.

Enertech Holding Company, KSC, a company registered in Kuwait, is a fully owned subsidiary of the National Technology Enterprises Company (NTEC), which is a wholly owned subsidiary of the Kuwait Investment Authority (KIA) and is engaged in the business of development and investment in clean energy, water, sustainable infrastructure and digital banking sector.

May 9, 2022
Dollar ends Rs187.53 at interbank market close

KARACHI: The US dollar gained 90 paisas against the Pakistan Rupee (PKR) on Monday owing to higher demand for foreign currency as the market opened after weekly holidays.

The exchange rate ended at Rs187.53 to the dollar from last Friday’s closing of Rs186.63 in the interbank foreign exchange market.

Currency experts said that the rupee was under pressure during the day due to higher dollar demand for import payments.

READ MORE: Rupee falls Rs187.50 to dollar at market open

They said that the market was opened after two weekly holidays which put pressure on the foreign currency demand.

The rupee hit all-time low at Rs188.18 on April 07, 2022.

Currency experts said that dollar demand was high at market open because of weekly holidays.

READ MORE: Rupee falls 94 paisas to dollar in post Eid holidays

The experts said that the rupee was also under pressure after the prices of crude oil rebounded in the international markets.

Pakistan is net importer of petroleum products to meet its domestic demand. The country’s import bill was $14.81 billion during first nine months (July – March) 2021/2022 as compared with $7.55 billion in the corresponding period of the last fiscal year, showing a massive growth of 96 per cent. The oil bill is around 25 per cent of the total import bill of country.

The depleting foreign exchange reserves are also putting pressure on the local currency.

READ MORE: Dollar gains six paisas against PKR in interbank

According to details released by the State Bank of Pakistan (SBP), the official reserves of the central bank fell by $328 million to $10.558 billion by week ended April 23, 2022 as compared with $10.886 billion a week ago. The net foreign exchange reserves of the SBP also include $3 billion from Saudi Arabia, which was deposited with the central bank to support balance of payment.

The foreign exchange reserves of the country fell to $16.668 billion by week ended April 23, 2022 as compared with $17.045 billion by week ended April 16, 2022.

READ MORE: Rupee gains 24 paisas to dollar in interbank

Pakistan total import bills recorded an increase of 49 per cent to $58.87 billion during the first nine months of the current fiscal year as compared with $39.49 billion in the corresponding period of the last fiscal year.

This resulted in huge widening in trade deficit of 70 per cent. The trade deficit of the country swelled to $35.39 billion during first nine months of the current fiscal year as compared with the deficit of $20.8 billion in the corresponding months of the last fiscal year.

READ MORE: Dollar appreciates 42 paisas against PKR

May 9, 2022
Rupee falls Rs187.50 to dollar at market open

KARACHI: The Pakistan Rupee (PKR) fell to Rs187.50 to the US dollar at opening of interbank foreign exchange market on Monday.

The rupee lost 87 paisas at early in the day and is being traded at Rs187.50 to the dollar from last Friday’s closing of Rs186.63 in the interbank foreign exchange market.

READ MORE: Rupee falls 94 paisas to dollar in post Eid holidays

The rupee hit all-time low at Rs188.18 on April 07, 2022.

Currency experts said that dollar demand was high at market open because of weekly holidays.

The experts said that the rupee was also under pressure after the prices of crude oil rebounded in the international markets.

Pakistan is net importer of petroleum products to meet its domestic demand. The country’s import bill was $14.81 billion during first nine months (July – March) 2021/2022 as compared with $7.55 billion in the corresponding period of the last fiscal year, showing a massive growth of 96 per cent. The oil bill is around 25 per cent of the total import bill of country.

READ MORE: Dollar gains six paisas against PKR in interbank

The depleting foreign exchange reserves are also putting pressure on the local currency.

According to details released by the State Bank of Pakistan (SBP), the official reserves of the central bank fell by $328 million to $10.558 billion by week ended April 23, 2022 as compared with $10.886 billion a week ago. The net foreign exchange reserves of the SBP also include $3 billion from Saudi Arabia, which was deposited with the central bank to support balance of payment.

The foreign exchange reserves of the country fell to $16.668 billion by week ended April 23, 2022 as compared with $17.045 billion by week ended April 16, 2022.

READ MORE: Rupee gains 24 paisas to dollar in interbank

Pakistan total import bills recorded an increase of 49 per cent to $58.87 billion during the first nine months of the current fiscal year as compared with $39.49 billion in the corresponding period of the last fiscal year.

This resulted in huge widening in trade deficit of 70 per cent. The trade deficit of the country swelled to $35.39 billion during first nine months of the current fiscal year as compared with the deficit of $20.8 billion in the corresponding months of the last fiscal year.

READ MORE: Dollar appreciates 42 paisas against PKR

May 9, 2022
National Saving Schemes facilitation portal launched

KARACHI: The State Bank of Pakistan (SBP) has launched a portal in order to facilitate investors of national savings schemes.

The SBP highlighted that Special Savings Certificates (SSCs) with a (maturity period of three years) was launched on February 4, 1990 that offers a unique investment opportunity for small and medium savers to meet their periodic financial needs.

SSCs are available in the denominations of Rs. 500/-, Rs.1000/-, Rs. 5,000/-, Rs. 10,000/-, Rs. 50,000/-, Rs. 100,000/-, Rs. 500,000/-, and Rs. 1,000,000/-

Profit Payment Period

Profit is payable on the completion of each period of six months up to 3 years from their date of issuance.

Who Can Invest

All Pakistani Nationals as well as Foreign Nationals can purchase SSCs being a single adult, a minor or two adults jointly where the payments can be received either by the both jointly (Joint-A) or any one of the holders (Joint-B). An adult can also purchase SSCs on behalf of a single minor, two minors jointly or as a joint with a minor.

How to Purchase

SSCs can be purchased from any National Savings Centre (NSC), Pakistan Post Office (PPO) or authorized branch of a Scheduled Bank and the State Bank of Pakistan (SBP) by filling in the SC-1 (Application form). Documents Required with Application Form:

For Adult Pakistanis: Copy of CNIC,

For Overseas Pakistanis: Copy of NICOP or Pakistan Origin Card

For Minors: Copy of Form B or Child Registration Certificate Issued by NADRA,

For Foreign Individuals: Copy of Passport.

Mode of Deposit

SSC can be purchased by depositing cash at the Issuing Office or by presenting a cheque/ draft/ pay-order. The Certificate shall be issued immediately against the cash payment. However, in the case of deposit through cheque/ draft/ pay-order, the Certificate shall be issued with effect from the date of realization of the cheque/ draft/ pay-order after receiving the clearance advice.

Investment Limit

Minimum: Rs.500/-. No maximum investment limit.

Encashment

SSCs are encashable at any time after the date of purchase. However, no profit is payable if the encashment is made before completion of six months. The Certificates issued/purchased/re-invested on or after November 15, 2010 shall not be re-invested on maturity.

Tax

Filers: 15% on profit earned/realized.

Non-Filers: 30% on profit earned/realized.

Zakat shall be collected at source as per rules.

May 8, 2022
SBP to observe five-day working week

KARACHI: The State Bank of Pakistan (SBP) will observe five days working in a week, according to a notification issued on Friday.

The SBP will observe following working days and timings with immediate effect:

Monday to Thursday from 9:00 a.m. to 5:30 p.m. with prayer/ lunch break from 1:30 p.m. to 2:15 p.m. whereas on Friday office hours will be from 9:00 a.m. to 6:00 p.m. with prayer/lunch break from 1:00 p.m. to 2:30 p.m.

READ MORE: Dr. Murtaza assumes acting SBP governor charge

Banks / Microfinance Banks (MFBs) may prescribe business (banking) hours for public dealing as per their business requirements provided the business (banking) hours being observed by the field offices of SBP Banking Services Corporation (SBP-BSC) are complied with as a minimum benchmark for this purpose.

The central bank said, in order to ensure the availability of basic banking facilities to business community and public at large, banks / MFBs may open their selected branches situated in major cities / business centers / commercial markets & hubs / ports etc. on Saturdays as per their business requirements.

READ MORE: Court judgment: Riba is Haram in any form

The collection booths of banks located at Custom Houses / Ports shall remain open 24/7 as per existing practice. However, banks / MFBs shall submit a complete list of branches that will be opened on Saturdays to the Banking Policy & Regulations Department and also place the updated list of such branches on their websites. For the information of customers, banks / MFBs shall prominently display in the concerned branch that this branch will remain open on Saturdays.

The above instructions shall continue to remain in force unless modified or withdrawn.

Previously, on April 13, 2022 the SBP issued timings for six-day working week.

READ MORE: SBP issues bank timings as per six-day working week

The SBP had issued new banking timings after federal government’s announcement of six days working in a week.

The SBP in a statement said that as per decision of the Federal Government the State Bank of Pakistan (SBP) will observe six days working week with the following office hours during the month of Ramadan-ul-Mubarak, which shall also be followed by all banks, Development Finance Institutions and Microfinance Banks:

READ MORE: SBP imposes penalty of Rs109 million on four banks

Monday to Thursday and Saturday from 8:00 am to 3:00 pm with prayer break from 1:00 pm to 1:30 pm whereas on Fridays office hours will be from 8.00 am to 1:00 pm without break.

Banks / Microfinance banks are further advised to observe the following minimum business (banking) hours for public dealing:

Monday to Thursday and Saturday from 8:00 am to 1:00 pm without prayer break whereas on Fridays office hours will be from 8.00 am to 12:00 pm without break.

May 7, 2022
Rupee falls 94 paisas to dollar in post Eid holidays

KARACHI: The Pakistan Rupee (PKR) fell 94 paisas against the dollar on Friday due to higher external payment demand as the market opened after long holidays.

The exchange rate ended at Rs186.63 to the dollar from previous closing on April 30, 2022 of Rs185.69 in the interbank foreign exchange market.

READ MORE: Dollar gains six paisas against PKR in interbank

Currency experts said that dollar demand remained high during the day because the market reopened after Eid holidays. The government announced the public holidays from May 02 to May 05, 2022 on account of Eid-ul-Fitr.

The experts said that the rupee was also under pressure after the prices of crude oil rebounded in the international markets. Brent futures rose $2.08, or 1.88 per cent, to $112.98per barrel by 0922 GMT, while U.S. West Texas Intermediate (WTI) crude climbed $2.00, or 1.85 per cent, to $110.26 a barrel, according to Reuters.

READ MORE: Rupee gains 24 paisas to dollar in interbank

Pakistan is net importer of petroleum products to meet its domestic demand. The country’s import bill was $14.81 billion during first nine months (July – March) 2021/2022 as compared with $7.55 billion in the corresponding period of the last fiscal year, showing a massive growth of 96 per cent. The oil bill is around 25 per cent of the total import bill of country.

The depleting foreign exchange reserves are also putting pressure on the local currency.

According to details released by the State Bank of Pakistan (SBP), the official reserves of the central bank fell by $328 million to $10.558 billion by week ended April 23, 2022 as compared with $10.886 billion a week ago. The net foreign exchange reserves of the SBP also include $3 billion from Saudi Arabia, which was deposited with the central bank to support balance of payment.

READ MORE: Dollar appreciates 42 paisas against PKR

The foreign exchange reserves of the country fell to $16.668 billion by week ended April 23, 2022 as compared with $17.045 billion by week ended April 16, 2022.

Pakistan total import bills recorded an increase of 49 per cent to $58.87 billion during the first nine months of the current fiscal year as compared with $39.49 billion in the corresponding period of the last fiscal year.

READ MORE: Rupee recovers third straight day against dollar

This resulted in huge widening in trade deficit of 70 per cent. The trade deficit of the country swelled to $35.39 billion during first nine months of the current fiscal year as compared with the deficit of $20.8 billion in the corresponding months of the last fiscal year.

The higher foreign outflows caused payment imbalances. The current account deficit ballooned to $12.1 billion during July-February 2021/2022 when compared with a surplus of $994 million in the same period of the last fiscal year.

May 6, 2022