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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’s losing streak continues as dollar tops Rs181.73

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

    KARACHI: The losing streak of Pakistan Rupee (PKR) against dollar for the seventh consecutive session on Tuesday as the foreign currency hit another high of Rs181.73 in the interbank foreign exchange market.

    In today’s trading the rupee fell 48 paisas against the dollar from previous day’s closing of Rs181.25 in the interbank foreign exchange market.

    READ MORE: Rupee collapses to dollar at record low Rs181.25

    The local currency depreciated by Rs3.22 or 1.80 per cent during the past seven trading sessions.

    Currency experts said political uncertainty, current account deficit and trade deficit put pressure on the rupee value.

    They said that a no-confidence motion moved against the prime minister by the opposition parties had resulted in negative sentiments in the market.

    READ MORE: Dollar continues to make historic high; hits Rs180.57

    The dollar demand was also rising due to import of commodities related to the holy month of Ramzan.

    The local forex market is also uncertain due to volatile oil prices in the international markets.

    Further, the external payments, foreign exchange reserves declined and it pushed the rupee to fall sharply.

    READ MORE: Dollar climbs new peak PKR 180.07 at interbank closing

    The foreign exchange reserves of the country fell by $386 million to $22.283 billion by the week ended March 11, 2022 as against $22.669 billion a week ago. The official reserves of the State Bank fell by $381 million to $15.831 billion by the week ended March 11, 2022 as compared with $16.212 billion a week ago.

    READ MORE: Dollar advances to fresh high at Rs179.44

    The country spent $11.69 billion for the import of petroleum products during the first seven months (July – February) 2021/2022 as compared with $5.64 billion in the corresponding period of the last fiscal year, showing an increase of 107 per cent.

  • SBP launches challenge fund for SMEs

    SBP launches challenge fund for SMEs

    KARACHI: The State Bank of Pakistan (SBP) on Monday March 21, 2022, launched challenge fund for Small and Medium Enterprises (SMEs) to support innovative solutions for SME banking in the country.

    The central bank through a circular issued procedure for the challenge fund for SMEs (CFS).

    This fund in form of grant will facilitate banks in developing innovative technological solutions to cater the banking needs of SME sector.

    READ MORE: Meezan Bank starts Islamic financing scheme for SMEs

    This will also enable to increase the access and usage of digital financial services by SME sector.

    The scope of CFS will focus, however, it will not be limited to the following areas:

    i. Developing SME banking solutions

    ii. Developing digital payment solutions for SMEs

    iii. Developing E-Commerce / market place

    iv. Digitizing loans application and credit management

    READ MORE: Computation of income tax on profit and gains for SMEs

    The SBP said that commercial banks (conventional & Islamic) are eligible to apply for grant under CFS. Banks can also apply in partnership with Non-banking financial Institutions (NBFIs), Fintechs, Electronic Money Institutions (EMI) and software houses. However, lead responsibility will rest with the applicant bank.

    The SBP said that grant size will be determined according to the financing requirements of the proposal under consideration. However, each grantee will contribute 15 per cent of the total cost. Depending upon the quality and innovations of proposal, the grant size can vary, however one bank will get only one grant. The duration of the projects to be implemented through CFS grant should not exceed 8 months.

    SBP invites interest of banks through Expression of interest (EOI) placed at Annexure A for availing grant under CFS to improve their SME financing portfolio. Banks proposals will be evaluated as per technical criteria developed by SBP.

    Banks are encouraged to apply as per EOI on prescribed format placed at Annexure-B to SBP latest by April 18, 2022.

  • Banks approve housing loans worth Rs7.4 billion in event

    Banks approve housing loans worth Rs7.4 billion in event

    The Mera Pakistan Mera Ghar (MPMG) housing scheme received an astounding response during a two-day event in Faisalabad, where banks granted conditional approvals for housing loans totaling approximately Rs7.4 billion.

    (more…)
  • Court hearing on Riba-free banking in Pakistan

    Court hearing on Riba-free banking in Pakistan

    ISLAMABAD: The Federal Shariat Court on Monday continued hearing on the case of Riba in the country.

    The full bench of the court comprising of Justice Muhammad Noor Meskanzai Chief Justice, Justice Dr. Syed Muhammad Anwar and Justice Khadim Hussain M. Shaikh, in exercise of power under Article 203-D of the Constitution of Islamic Republic of Pakistan continued hearing of the Riba case.

    Dr. Waqar Masud Ex. Secretary Finance Government of Pakistan, after detail arguments, suggested two years for conversion of the existing banking system into Riba free Islamic Banking system.

    Dr. Ijaz Ahmad Samadani, Chairman Shariah Board Maldives Islamic Bank, appeared before the Court and argued that gradual conversion of the existing system into Islamic one is possible.

    Dr Atiqul Zafar jurisconsult on the previous date of hearing had suggested that five years is sufficient for conversion of the existing system.

    Shahzad Shaukat, a chartered accountant continued his arguments on the Islamic Economic System. The next hearing will be at Karachi Bench Registry in Sindh High Court Building Karachi on March 25, 2022.

    The State Bank of Pakistan (SBP) defines Riba as:

    The word “Riba” means excess, increase or addition, which correctly interpreted according to Shariah terminology, implies any excess compensation without due consideration (consideration does not include time value of money). This definition of Riba is derived from the Quran and is unanimously accepted by all Islamic scholars.

    The meaning of Riba has been clarified in the following verses of Quran (Surah Al Baqarah 2:278-9)

    “O those who believe; fear Allah and give up what still remains of the Riba if you are believers. But if you do not do so, then be warned of war from Allah and His Messenger. If you repent even now, you have the right of the return of your principal; neither will you do wrong nor will you be wronged.”

    The origination of term interest dates back to 17th century with the emergence of banking system at global level. Interest means giving and/or taking of any excess amount in exchange of a loan or on debt. Hence, it carries the same meaning/value as that of Riba as defined in the previous question. Further, it is narrated that “the loan that draws interest is Riba”.

    There is consensus among the Muslim scholars of all the fiqhs that interest is Riba in all its forms and manifestations.

  • Rupee collapses to dollar at record low Rs181.25

    Rupee collapses to dollar at record low Rs181.25

    KARACHI: The Pakistan Rupee (PKR) collapsed against dollar for sixth consecutive sessions on Monday and fell to new record low at Rs181.25 to the dollar.

    The rupee lost 68 paisas against the dollar from last Friday’s closing of Rs180.57, which was the previous record low of the rupee against the dollar, in the interbank foreign exchange market.

    READ MORE: Dollar continues to make historic high; hits Rs180.57

    Currency experts said that external payment pressure had kept pressure on dollar demand.

    The massive outflows of the dollar had resulted in over $12 billion current account deficit during first eight months of the current fiscal year.

    Further, the external payments, foreign exchange reserves declined and it pushed the rupee to fall sharply.

    READ MORE: Dollar climbs new peak PKR 180.07 at interbank closing

    The foreign exchange reserves of the country fell by $386 million to $22.283 billion by the week ended March 11, 2022 as against $22.669 billion a week ago. The official reserves of the State Bank fell by $381 million to $15.831 billion by the week ended March 11, 2022 as compared with $16.212 billion a week ago.

    READ MORE: Dollar advances to fresh high at Rs179.44

    The oil prices in the international markets are highly volatile since the Russia-Ukraine war began on February 24, 2022. The benchmark Brent crude is currently trading at around $108 per barrel (March 18, 2022 at 4:30 PM PST), which fell below $100 per barrel a few days ago, after making $140 per barrel.

    The country spent $11.69 billion for the import of petroleum products during the first seven months (July – February) 2021/2022 as compared with $5.64 billion in the corresponding period of the last fiscal year, showing an increase of 107 per cent.

    READ MORE: Dollar makes new record high at PKR 179.22

    Similarly, dollar demand will rise due to imports related to holy month of Ramzan. The country usually imports palm oil and soybean oil for domestic consumption. The edible oil has also witnessed a sharp increase in prices during past few months.

  • Dollar continues to make historic high; hits Rs180.57

    Dollar continues to make historic high; hits Rs180.57

    KARACHI: The US dollar remained unabated against the Pakistan Rupee (PKR) on Friday as the foreign currency made five-day streak of making historic high to reach at Rs180.57.

    The rupee declined by 50 paisas to end at Rs180.57 to the dollar from previous day’s close of Rs180.07.

    The dollar for the last five trading sessions making a new high against the local currency.

    READ MORE: Dollar climbs new peak PKR 180.07 at interbank closing

    Currency experts said that the rupee was under pressure due to political uncertainty, external payment demand and volatile international oil prices.

    A no-confidence motion moved against the prime minister by the opposition parties had resulted in negative sentiments in the market.

    The dollar demand was also mounting due to import of commodities related to the holy month of Ramzan.

    READ MORE: Dollar advances to fresh high at Rs179.44

    The local currency market is also uncertain due to volatile oil prices in the international markets. The oil prices have seen continuous fluctuation since the Russia-Ukraine war began on February 24, 2022.

    Pakistan is a net importer of petroleum products and changes in the prices directly affects the oil import bill. The import of petroleum products recorded over 100 per cent increase to $12.94 billion during the first eight months (July – February) 2021/2022 as compared with Rs6.44 billion in the corresponding months of the last fiscal year.

    READ MORE: Dollar makes new record high at PKR 179.22

    The dealers said that the decline in foreign exchange reserves was also another reason behind rupee depreciation.

    The foreign exchange reserves of the country fell by $386 million to $22.283 billion by the week ended March 11, 2022 as against $22.669 billion a week ago. The official reserves of the State Bank fell by $381 million to $15.831 billion by the week ended March 11, 2022 as compared with $16.212 billion a week ago.

    READ MORE: Dollar jumps to historic high at PKR 178.98

  • Crypto investors may fall prey to scams: EU regulators

    Crypto investors may fall prey to scams: EU regulators

    LONDON: EU regulators Thursday warned consumers may lose all their money invested in crypto currency and could fall prey to scams.

    The European Union’s securities, banking and insurance watchdogs have issued the warning in a joint statement.

    Bitcoin to Pak Rupee on March 17, 2022

    “Consumers face the very real possibility of losing all their invested money if they buy these assets,” according to the statement.

    It marks a racheting up of direct warnings to consumers about cryptoassets by EU authorities, spelling out that consumers have no protections or recourse to compensation under existing EU financial services law.

    Bitcoin to Pak Rupee on March 16, 2022

    An international new agency noted that regulators are increasingly worried that more consumers are buying 17,000 different cryptoassets, including bitcoin and ether, which account for 60 per cent of the market, without being fully aware of the risks, the regulators said.

    Bitcoin to Pak Rupee on March 15, 2022

    “Consumers should be alert to the risks of misleading advertisements, including via social media and influencers. Consumers should be particularly wary of promised fast or high returns, especially those that look too good to be true,” according to the said.

    Consumers should also be aware of that energy consumption for producing some cryptoassets is high and the environmental impact this has, the statement said.

    Bitcoin to Pak Rupee on March 14, 2022

  • Dollar climbs new peak PKR 180.07 at interbank closing

    Dollar climbs new peak PKR 180.07 at interbank closing

    KARACHI: The US dollar climbed to new peak against Pakistan Rupee (PKR) to close at Rs180.07 at interbank foreign exchange market on Thursday.

    The rupee plunged by 63 paisas to end at Rs180.07 to the dollar from previous day’s closing of Rs179.44.

    Rupee depreciated for the fourth consecutive day and lost Rs1.56 against the dollar.

    READ MORE: Dollar advances to fresh high at Rs179.44

    The rupee was declining due political uncertainty and high commodity prices in the international markets.

    Currency experts said that a no-confidence motion moved against the prime minister by the opposition parties had resulted in negative sentiments in the market.

    They said that the dollar demand was also mounting due to import of commodities related to the holy month of Ramzan.

    READ MORE: Dollar makes new record high at PKR 179.22

    The local forex market is also uncertain due to volatile oil prices in the international markets.

    The oil prices have seen continuous fluctuation since the Russia-Ukraine war began on February 24, 2022.

    Pakistan is a net importer of petroleum products and changes in the prices directly affects the oil import bill.

    READ MORE: Dollar jumps to historic high at PKR 178.98

    The import of petroleum products recorded over 100 per cent increase to $12.94 billion during the first eight months (July – February) 2021/2022 as compared with Rs6.44 billion in the corresponding months of the last fiscal year.

    Furthermore, the fall in foreign exchange reserves also put pressure on the rupee value. The liquid foreign exchange reserves of the country slipped by $206 million to $22.669 billion by the week ended March 04, 2022 as against $22.875 billion a week ago.

    READ MORE: Dollar eases by 12 paisas to PKR in interbank

  • SBP’s event to provide house financing information

    SBP’s event to provide house financing information

    KARACHI: The State Bank of Pakistan (SBP), in collaboration with banks, is organizing a two-day exhibition in Faisalabad on March 19, 2022 to provide information on house financing.

    The State Bank of Pakistan is organizing a two-day Mera Pakistan Mera Ghar (MPMG) Mela at Circle Club Faisalabad on March 19 and 20, 2022, a statement said on Thursday.

    READ MORE: SBP relaxes financing for under construction houses

    The Mela will remain open for public from 11:00 am to 08:00 pm on both days. SBP is organizing this event in collaboration with banks and NAPHDA.

    READ MORE: Bank Alfalah tops in house financing under MPMG

    In the Mela banks will provide information on the MPMG financing facility whereas builders, developers and real estate agents will showcase the various projects in which the people could purchase housing units or apartments using the financing facility.

    The residents of Faisalabad who want to purchase/construct their own house will have an opportunity to obtain information about their eligibility for availing the subsidized housing finance, their monthly installments based on amount of financing and monthly income.

    READ MORE: SBP launches webpage for promoting house financing

    They will also be able to apply for financing from the banks, which may give an in-principal approval then and there provided the required information is provided to them.

    The Mela offers free entry and parking for the families besides other attractions including opportunities to win valuable prizes through open draw, daily live music concert by renowned singers, food stalls, and an activity packed fun-area for kids and young ones.

    READ MORE: SBP launches electronic warehouse receipt financing

  • Dollar tops PKR 180 in midday trading at interbank

    Dollar tops PKR 180 in midday trading at interbank

    KARACHI: The Pakistan Rupee (PKR) fell to Rs180 against the dollar to make a new record low in interbank foreign exchange market.

    The rupee slipped by 56 paisas against the dollar in midday trading on Thursday March 17, 2022 from previous day’s closing of Rs179.44, which is the record low of the rupee at closing, in the interbank foreign exchange market.

    READ MORE: Dollar makes new record high at PKR 179.22

    The major reasons for the rupee decline may be political unrest, volatile international oil prices and higher commodity import payments.

    READ MORE: Dollar jumps to historic high at PKR 178.98

    The dollar demand was also rising due to import of commodities related to the holy month of Ramzan.

    Besides, the oil prices have seen continuous fluctuation since Russia-Ukraine war begun on February 24, 2022.

    READ MORE: Dollar eases by 12 paisas to PKR in interbank

    Pakistan is net importer of petroleum products and changes in the prices directly affects the oil import bill.

    The import of petroleum products recorded over 100 per cent increase to $12.94 billion during first eight months (July – February) 2021/2022 as compared with Rs6.44 billion in the corresponding months of the last fiscal year.

    READ MORE: Rupee ends flat to dollar, maintains all-time low level

    Furthermore, the fall in foreign exchange reserves also put pressure on the rupee value. The liquid foreign exchange reserves of the country slipped by $206 million to $22.669 billion by the week ended March 04, 2022 as against $22.875 billion a week ago.