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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 continues falling spree; dollar at Rs183.48

    Rupee continues falling spree; dollar at Rs183.48

    KARACHI: The Pakistan Rupee (PKR) witnessed major fall of 84 paisas against the dollar on Thursday to continue its spree of making new historic lows.

    The rupee ended Rs183.48 to the dollar from the last day’s closing of Rs182.64 in the interbank foreign exchange market.

    READ MORE: Rupee falls to new historic low to dollar at 182.64

    The rupee has fallen non-stop against the dollar for the last 13 trading sessions. The local currency recorded Rs178.51 at interbank closing on March 11, 2022 and since then the dollar run was unabated.

    Currency experts said that the dollar demand remained high during the day due to falling foreign exchange reserves, volatiles commodity prices in international markets and political uncertainty.

    READ MORE: Rupee deteriorates record low to dollar at 182.34

    Large external payments against foreign debts depressed the rupee value. Pakistan’s foreign exchange reserves fell by $2.28 billion to $21.44 billion by March 18, 2022 as compared with $23.72 billion as of February 4, 2022.

    READ MORE: Dollar jumps to new record high at PKR 182.19

    The foreign exchange reserves of the country hit record high at $27.23 billion on August 27, 2021.

    The ballooning current account deficit escalated the dollar value. Pakistan’s current account deficit ballooned to $12 billion during first eight months (July – February) 2021/2022 against a surplus of $994 million in the corresponding months of the last fiscal year.

    READ MORE: Dollar continues historic journey; tops at PKR 181.78

    Although the current account deficit narrowed to $545 million in February 2022 as compared with the deficit of $2.53 billion in January 2022, scheduled external repayments are still a threat to balance of payment.

  • Dollar hits new high PKR 183.50 in interbank early trade

    Dollar hits new high PKR 183.50 in interbank early trade

    KARACHI: The US dollar crossed 183 mark against the Pakistan Rupee (PKR) for the first time in the history and is traded at Rs183.50 on Thursday.

    The rupee so far fell 86 paisas against the dollar from previous day’s closing of Rs182.64 in the interbank foreign exchange market.

    READ MORE: Rupee falls to new historic low to dollar at 182.64

    Currency experts said political uncertainty and repayment against external debt kept the rupee under pressure.

    READ MORE: Rupee deteriorates record low to dollar at 182.34

    Large external payments against foreign debts depressed the rupee value. Pakistan’s foreign exchange reserves fell by $2.28 billion to $21.44 billion by March 18, 2022 as compared with $23.72 billion as of February 4, 2022. The foreign exchange reserves of the country hit record high at $27.23 billion on August 27, 2021.

    READ MORE: Dollar jumps to new record high at PKR 182.19

    The ballooning current account deficit escalated the dollar value. Pakistan’s current account deficit ballooned to $12 billion during first eight months (July – February) 2021/2022 against a surplus of $994 million in the corresponding months of the last fiscal year. Although the current account deficit narrowed to $545 million in February 2022 as compared with the deficit of $2.53 billion in January 2022, scheduled external repayments are still a threat to balance of payment.

    READ MORE: Dollar continues historic journey; tops at PKR 181.78

  • SBP issues electronic money license to Careem Pay

    SBP issues electronic money license to Careem Pay

    KARACHI: State Bank of Pakistan (SBP) has granted Careem Pay with an In-Principle-Approval (IPA) for an Electronic Money Institution license (EMI).

    Careem has launched Careem Pay, its fintech affiliate, in Pakistan as an independent entity which plans to invest $50 million to leapfrog the fintech ecosystem in Pakistan. It will be led by Noman Khurshid as its General Manager.

    This paves the way for Careem Pay to bring convenient and accessible financial services to 9+ million Customers, 800,000 Captains and 3000+ merchants both on and beyond the Careem App, subject to SBP final approval.

    Once Careem Pay achieves operational readiness from SBP, it will offer services ranging from bill payments including utilities, government and education fees, peer-to-peer (P2P) transfer and wallet cash-outs.

    READ MORE: Careem signs agreement to provide logistic solution to Unilever

    In subsequent phases and subject to approvals from SBP, Careem Pay aims to provide cards, inward international remittance services as well as services that will enable Customers and merchants to make and accept online or offline payments.

    This adds to the existing services available through Careem Pay which supports payment across all Careem services including ride-hailing and food delivery, as well as P2P credit transfer and mobile top-ups within the app.

    Mudassir Sheikha, CEO and Co-founder of Careem said: “Careem Pay aims to simplify and improve lives by making everyday payments easier and more accessible for our Customers, Captains and merchants.

    “We are thankful to the SBP for trusting us with an IPA for the EMI license which gives us an immense opportunity to empower people by delivering innovative payment experiences. With approximately 30 per cent of the total population and 18 per cent of women banked in Pakistan, we see this as an enormous opportunity to leapfrog cash payments into digital transactions. Chalo ‘Careem Pay’!”

    READ MORE: Careem Pakistan asked to facilitate expatriates availing services in country

    Noman Kurshid, GM Pakistan, Careem Pay added: “Careem is uniquely positioned to tap into the digital financial opportunity in Pakistan. With a massive Customer, Captain and merchant base across the country, conducting high frequency transactions on our platform, we understand the pain points and are well placed to deliver solutions to address them. We are excited to play our role in the digitization of Pakistan’s financial ecosystem and enhancing financial inclusion.”

    Pakistan is bracing itself for a fintech revolution as the fifth most populous country in the world. Safe digital payment providers will be crucial to reducing Pakistan’s high levels of cash circulation which amounts to Rs7 trillion and 85 per cent cash-on-delivery via e-commerce.

    With the significant growth in smartphone penetration in Pakistan, Careem Pay will enable Customers, Captains and merchants to access more simplified and convenient payment services.

  • Nisab of Zakat fixed at Rs88,927

    Nisab of Zakat fixed at Rs88,927

    KARACHI: The federal government on Wednesday announced an amount of Rs88,927 as deduction of Zakat from bank accounts and deposits on the first day of the holy month of Ramzan.

    According to a notification issued by the Cabinet Secretariat the administrator General Zakat had notified the ‘Nisab of Zakat’ for the Zakat Year 1442-43 AH at Rs88,927.

    No deduction of Zakat at source shall be made, in case the amount standing to the credit of an account in respect of the assets mentioned in column 2 of Serial No. 1 of the first schedule of Zakat and Ushr Ordinance, 1980, is less than Rs88,927 on the first day of Ramzan ul Mubarak 1443 AH.

    First day of Ramzan has already been notified as the deduction date likely to fall on April 3 or 4, 2022 (subject to appearance of the moon) for deduction of Zakat from saving bank accounts, profit and loss sharing accounts and other similar accounts having credit balance of Rs88,927.

    All the Zakat collection controlling agencies have been asked to deduct the Zakat accordingly.

    READ MORE: Nisab of Zakat fixed at Rs80,933

  • Rupee falls to new historic low to dollar at 182.64

    Rupee falls to new historic low to dollar at 182.64

    KARACHI: The Pakistan Rupee (PKR) made new record low against dollar at Rs182.64 on Wednesday.

    The rupee fell by 30 paisas against the dollar from previous day’s closing of Rs182.34 in the interbank foreign exchange market.

    READ MORE: Rupee deteriorates record low to dollar at 182.34

    Currency experts said that the dollar demand remained high during the day due to falling foreign exchange reserves, volatiles commodity prices in international markets and political uncertainty.

    READ MORE: Dollar jumps to new record high at PKR 182.19

    Large external payments against foreign debts depressed the rupee value. Pakistan’s foreign exchange reserves fell by $2.28 billion to $21.44 billion by March 18, 2022 as compared with $23.72 billion as of February 4, 2022. The foreign exchange reserves of the country hit record high at $27.23 billion on August 27, 2021.

    READ MORE: Dollar continues historic journey; tops at PKR 181.78

    The ballooning current account deficit escalated the dollar value. Pakistan’s current account deficit ballooned to $12 billion during first eight months (July – February) 2021/2022 against a surplus of $994 million in the corresponding months of the last fiscal year. Although the current account deficit narrowed to $545 million in February 2022 as compared with the deficit of $2.53 billion in January 2022, scheduled external repayments are still a threat to balance of payment.

    READ MORE: Dollar maintains record high against PKR at Rs181.73

  • Date extended for encashment of bearer prize bonds

    Date extended for encashment of bearer prize bonds

    KARACHI: The federal government has extended the last date for converting or exchanging the bearer prize bonds up to June 30, 2022.

    The last date for encashment of the bearer prize bonds was March 31, 2022, the State Bank of Pakistan (SBP) said on Wednesday.

    Through a circular, the SBP announced the extension in last date for Encashment/Conversion/Redemption of Rs.40,000/-, Rs.25,000/-, Rs.15,000/- and Rs.7500/- Denomination National Prize Bonds Withdrawn from Circulation.

    Earlier, the last date for exchanging the bearer prize bonds was March 31, 2022.

    READ MORE: SBP directs banks to accept bearer prize bonds

    The SBP instructed the banks to accept requests for encashment / conversion / redemption of cited denominations from general public till June 30, 2022.

    “Further, the banks shall submit branch / region wise consolidated data of cited denomination national prize bonds held by them on last date i.e.June 30, 2022 latest by July 04, 2022, as per the instructions stipulated in aforementioned CMD Circulars.

    READ MORE: Prize bond (bearer) holders given 3 months to document

    The finance ministry launched the withdrawal of the unregistered prize bonds in a phased manner. The federal government on June 24, 2019, announced to discontinue the circulation of Rs40,000 denomination national prize bonds. Similarly, on December 10, 2020, the government announced to discontinue the circulation of Rs25,000 denomination prize bonds. In April 2021, the finance ministry announced that national prize bonds of denominations Rs7,500 and Rs15,000 shall not be sold.

    Since June 2019 the government repeatedly extended the date for exchanging the bearer bonds. Previously, the last date for exchanging the unregistered bonds was December 31, 2021.

    READ MORE: History of Prize Bonds in Pakistan

    The government is aiming to document the bearer bonds so the exchanging the unregistered bond with cash has been prohibited. The ministry of finance issued various procedure to convert the bond without exchanging with the cash.

    The bonds can be converted to premium prize bonds (registered) of denomination of Rs25,000 and Rs40,000 (subject to the adjustment of differential amount) through 16 field offices of State Bank of Pakistan (SBP) Banking Services Corporation (BSC), and branches of six commercial banks i.e. National Bank of Pakistan, Habib Bank Limited, United Bank Limited, MCB Bank Limited, Allied Bank Limited, and Bank Alfalah Limited.

    READ MORE: Income tax on prize bonds, lottery winning

    The bonds can be replaced with Special Saving Certificates/Defence Saving Certificates through the 16 field offices of SBP Banking Services Corporation, authorized commercial banks, and the National Savings Center.

    The bonds will only be encashed by transferring the proceeds to the bonds holder’s bank account through the 16 field offices of SBP BSC as well as the authorized commercial bank branches and to the Saving Accounts at National Savings Centers.

  • Last date March 31 for exchanging bearer prize bonds

    Last date March 31 for exchanging bearer prize bonds

    KARACHI: The holders of bearer prize bonds can exchange or convert the securities with documented ways by March 31, 2022.

    Through a circular issued by the State Bank of Pakistan (SBP) on December 21, 2021 the date for exchanging the bearer prize bonds with denominations of Rs40,000, Rs25,000, Rs15,000 and Rs7,500 was extended up to March 31, 2022.

    READ MORE: SBP directs banks to accept bearer prize bonds

    Earlier, the last date for exchanging the bearer prize bonds was December 31, 2021.

    The SBP instructed the banks to accept requests for encashment / conversion / redemption of cited denominations from general public till March 31, 2022.

    “Further, the banks shall submit branch / region wise consolidated data of cited denomination national prize bonds held by them on last date i.e. March 31, 2022 latest by April 1, 2022, as per the instructions stipulated in aforementioned CMD Circulars.

    READ MORE: Prize bond (bearer) holders given 3 months to document

    The finance ministry launched the withdrawal of the unregistered prize bonds in a phased manner. The federal government on June 24, 2019, announced to discontinue the circulation of Rs40,000 denomination national prize bonds. Similarly, on December 10, 2020, the government announced to discontinue the circulation of Rs25,000 denomination prize bonds. In April 2021, the finance ministry announced that national prize bonds of denominations Rs7,500 and Rs15,000 shall not be sold.

    Since June 2019 the government repeatedly extended the date for exchanging the bearer bonds. Previously, the last date for exchanging the unregistered bonds was December 31, 2021.

    READ MORE: History of Prize Bonds in Pakistan

    The government is aiming to document the bearer bonds so the exchanging the unregistered bond with cash has been prohibited. The ministry of finance issued various procedure to convert the bond without exchanging with the cash.

    The bonds can be converted to premium prize bonds (registered) of denomination of Rs25,000 and Rs40,000 (subject to the adjustment of differential amount) through 16 field offices of State Bank of Pakistan (SBP) Banking Services Corporation (BSC), and branches of six commercial banks i.e. National Bank of Pakistan, Habib Bank Limited, United Bank Limited, MCB Bank Limited, Allied Bank Limited, and Bank Alfalah Limited.

    READ MORE: Income tax on prize bonds, lottery winning

    The bonds can be replaced with Special Saving Certificates/Defence Saving Certificates through the 16 field offices of SBP Banking Services Corporation, authorized commercial banks, and the National Savings Center.

    The bonds will only be encashed by transferring the proceeds to the bonds holder’s bank account through the 16 field offices of SBP BSC as well as the authorized commercial bank branches and to the Saving Accounts at National Savings Centers.

  • Mastercard, Bank Alfalah enter strategic partnership

    Mastercard, Bank Alfalah enter strategic partnership

    KARACHI: Mastercard and Bank Alfalah have entered into a strategic partnership to empower businesses in Pakistan through the launch of two of Mastercard’s market-leading solutions powered by Mastercard Payment Gateway Services  – Tap on Phone and Simplify Commerce – leveraging the power of technology to catalyze success and boost financial inclusion for businesses across the market, with a special focus on small enterprises.

    The partnership allows businesses of all sizes to sign up for Mastercard Tap on Phone – an innovative, intuitive, and cost-effective application that allows businesses to embrace electronic acceptance through their smart mobile or tablet device.

    Once downloaded, businesses can immediately offer it to their customers, providing consumers with a flexible, seamless, intuitive, and secure checkout experience.

    Tap on Phone turns Android smartphones into secure payment acceptance devices for contactless cards, mobile wallets and smartwatches – with no additional equipment or setup-related costs, making it ideal for SMEs.

    The partnership with Bank Alfalah will also see the first-ever launch of Mastercard Simplify Commerce in Pakistan.

    The technology provides businesses with a suite of powerful payments and business management features that help simplify backend processes, allowing merchants to focus on core business functions as they enter and thrive in the digital marketplace.

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

    Atyab Tahir, Pakistan Country Manager, Mastercard, said: “By partnering with Bank Alfalah, Mastercard is making it possible for businesses to realize their full potential with two of its most innovative digital payment solutions for the first time in Pakistan – Mastercard Tap on Phone, and Simplify Commerce.

    “The provision of smartphone-based acceptance solutions is a much-needed development in the pursuit of financial inclusion, particularly in Pakistan whose population of 220 million people is significantly underserved by digital point-of-sale solutions and platforms.”

    Mastercard simplify is specifically designed to be easy to set up, 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.

    Mehreen Ahmed, Group Head – Retail Banking, Bank Alfalah, said: “The integration of the Mastercard Tap on Phone and Simplify Commerce platform is a gamechanger for Bank Alfalah SME customers and millions of consumers who will now gain access to a seamless, secure and intuitive checkout experience through their contactless cards and devices.

    “By providing merchants in Pakistan with the ability to affordably turn their Android phones into secure payment acceptance devices, Bank Alfalah is making a significant contribution to SME growth and inclusion within Pakistan’s flourishing digital economy.”

    The announcement builds on Mastercard’s longstanding relationship with Bank Alfalah 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.

  • Five-year old enterprise to be treated as start-up

    Five-year old enterprise to be treated as start-up

    KARACHI: The State Bank of Pakistan (SBP) has revised its regulatory framework concerning small and medium enterprises (SMEs), including a significant redefinition of what constitutes a start-up.

    (more…)
  • Rupee deteriorates record low to dollar at 182.34

    Rupee deteriorates record low to dollar at 182.34

    KARACHI: The Pakistan Rupee (PKR) deteriorated to another record low against dollar at Rs182.34 on Tuesday.

    The rupee fell by 34 paisas against the dollar from previous day’s closing of Rs182.19 in the interbank foreign exchange market.

    READ MORE: Dollar jumps to new record high at PKR 182.19

    Currency experts said that the dollar demand remained high during the day due to falling foreign exchange reserves, volatiles commodity prices in international markets and political uncertainty.

    READ MORE: Dollar continues historic journey; tops at PKR 181.78

    Large external payments against foreign debts depressed the rupee value. Pakistan’s foreign exchange reserves fell by $2.28 billion to $21.44 billion by March 18, 2022 as compared with $23.72 billion as of February 4, 2022. The foreign exchange reserves of the country hit record high at $27.23 billion on August 27, 2021.

    READ MORE: Dollar maintains record high against PKR at Rs181.73

    The ballooning current account deficit escalated the dollar value. Pakistan’s current account deficit ballooned to $12 billion during first eight months (July – February) 2021/2022 against a surplus of $994 million in the corresponding months of the last fiscal year. Although the current account deficit narrowed to $545 million in February 2022 as compared with the deficit of $2.53 billion in January 2022, scheduled external repayments are still a threat to balance of payment.

    READ MORE: Rupee’s losing streak continues as dollar tops Rs181.73