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.
The rupee is gradually making recovery against the dollar for the last eight consecutive days. The local currency recovered Rs2.50 against the dollar since recording at Rs176.98 to the dollar on January 26, 2022.
Currency experts said that the rupee remained positive during the day after the decision of the IMF Executive Board to release $1 billion 6th tranche of EFF program for Pakistan.
Analysts said that the transfer of IMF tranche would help the country to boost foreign exchange reserves and support the local currency.
The foreign exchange reserves of the country deteriorated sharply. Pakistan’s liquid foreign exchange reserves fell by $482 million to $22.085 billion by week ended January 28, 2022 as against $22.482 billion by week ended January 21, 2022.
KARACHI: The State Bank of Pakistan (SBP) on Thursday introduced an incentive scheme of surrendering dollars of home remittances for exchange companies.
The scheme is operational from February 04, 2022, the SBP said in a circular.
Home remittances are a major source of income for families of expatriate Pakistanis and contribute significantly in country’s economic activities.
The SBP together with the government has introduced various policy initiatives, from time to time, to increase the flow of home remittances through formal channels.
In order to further encourage the exchange companies to mobilize home remittances, the government has decided that the exchange companies will be provided an incentive of Re1 for each US dollar of home remittances surrendered in interbank market provided that the exchange companies surrender 100 per cent of the foreign exchange received as inward home remittances.
The incentive of Re 1 for each US dollar surrendered in interbank market will be fixed irrespective of exchange rate, however, it is clarified that the incentive will not be allowed to exceed one per cent of exchange rate in case of Pak Rupee appreciation.
In order to become eligible for the incentive, the exchange companies shall open and maintain a separate foreign currency account for receiving inward home remittances through Money Transfer Operators (MTOs) and surrendering the foreign exchange in the interbank market.
The said foreign currency account will be used for transactions related to inward home remittances only and any amount received as commission or exchange gain etc. from MTOs shall not be credited in this account.
The requirement for surrendering foreign exchange vide Para 9 (ii) (d), Chapter 3 of Exchange Companies Manual, has been amended accordingly, as follows, to effect above mentioned incentive scheme: “(d) Exchange Companies shall surrender 100 per cent of foreign currencies received on account of inward home remittances, in equivalent US Dollars, in the interbank market on the same day.”
The exchange companies shall maintain complete record of transactions related to inward home remittances, amount surrendered in the interbank market and claims submitted to the State Bank of Pakistan under this scheme.
The Standard Operating Procedures regarding submission of claims by the Exchange Companies will be issued separately.
The exchange companies will ensure availability of all relevant record for examination by State Bank’s inspection teams. The violation of any instruction on the part of Exchange Companies would attract enforcement action under the relevant provisions of the Foreign Exchange Regulation Act, 1947, the SBP added.
KARACHI: State Bank of Pakistan (SBP) has issued instructions that will enable Person-to-Person (P2P) free fund transfers in the country through Raast, Pakistan’s Instant Payment System developed by the State Bank.
Raast—an Urdu word which means correct and direct—offers an instant, reliable and zero-cost digital payment system to the people of Pakistan, the SBP said in a statement on Thursday.
SBP believes that the launch of Raast P2P service will not only provide a convenient and hassle free digital fund transfer service to customers but will also provide an efficient and enabling payments infrastructure that would pave the way for digitization of the economy and promotion of digital financial services in the country.
SBP has provided an explanatory video on YouTube and SBP’s website that explains to the public in simple terms how to make payments and transfer funds using Raast.
Under Raast Person-to-Person (P2P) fund transfers and settlement services, bank customers would be able to send and receive funds in their accounts using their bank’s mobile application, internet banking or over the counter services.
For customers’ facilitation, they can set their registered mobile phone number as their Raast ID and link it to their preferred International Bank Account Number (IBAN) using the bank’s mobile application, internet banking, or visiting their bank branch. Once a customer has set her/his mobile phone number as the Raast ID, others can send money to her/him using her/his mobile phone number without the need to know the account number or any other details.
Bank customers can still use Raast service for sending or receiving funds using their IBANs even if they do not have a Raast ID or prefer to use their IBAN.
SBP has directed all banks to make Raast Person-to-Person fund transfer service available on at least three customer channels including mobile application, internet banking and branch counters.
The list of banks that have completed the necessary technological upgrades and other needed preparations and are offering Raast P2P services to their account holders as of today is given below.
More banks will start offering Raast P2P services after completing their needed technological upgrades and other preparations to offer Raast P2P.
The up-to-date version of the above table will remain available at the SBP’s landing page for Raast and will show the progress of remaining banks to integrate with Raast: https://www.sbp.org.pk/dfs/Raast-P2P.html
Status of Banks Offering Raast P2P as of February 03, 2022
Banks
Mobile App
Internet Banking
Over the Counter (OTC)
Standard Chartered Bank
Yes
Yes
Yes
Allied Bank
Yes
Yes
Askari Bank
Yes
Yes
Bank Alfalah
Yes
Yes
Habib Bank
Yes
Yes
Khushhali MFB
Yes
Yes
United Bank
Yes
Yes
Faysal Bank Limited
Yes
JS Bank
Yes
NRSP
Yes
Summit Bank
Yes
Telenor MFB
Yes
Meezan Bank
Yes
Bank Al Habib
Yes
Habib Metro Bank
Yes
Bank of Punjab
Yes
Soneri Bank
Yes
Bank of Khyber*
MCB Bank*
HBL Microfinance Bank*
Samba Bank*
Dubai Islamic Bank*
* These banks will soon be offering Raast P2P services. Meanwhile their customers can receive funds from Raast.
SBP has directed banks to ensure that funds successfully transferred through Raast should be credited into the recipients’ accounts within 20 seconds of receiving the credit advice from Raast system.
In order to promote the use of digital financial services in the country, banks have been advised not to levy any charges on Raast related services and all transactions conducted through Raast would be free for end customers.
To facilitate banks in this regard, SBP will also offer free of cost Raast services to banks. Further, to facilitate their customers, banks shall not assign minimum transaction size. In general, banks shall allow maximum transaction limits of PKR 200,000 per transaction or higher depending on the bank’s assessment of the risk profile of the customer.
For particular account types where the SBP has prescribed limits from time to time, the maximum transaction limit could be lower than PKR 200,000 per transaction. SBP has advised banks to provide a smooth, convenient and hassle-free user experience to their customers using Raast.
Banks are required to ensure continuous and uninterrupted availability of all channels on which Raast services are being offered. For this purpose, banks shall strengthen their Service Level Agreements (SLAs) with their vendors and service providers. Banks have also been advised to ensure availability of fully equipped 24/7 Network Operations Center (NOC), Security Operations Center (SOC) and call center /helpdesk fully equipped with agents who are well versed with Raast functionality, and an effective customer complaints and disputes resolution mechanism for timely resolution of customer issues.
Banks have also been advised to take all measures to encourage their customers to use Raast services and facilitate them in its usage. In this regard, they shall ensure that customer awareness messages are broadcasted through SMS, emails and digital/social media platforms. The enabling instructions for Raast’s person-to-person transfers have been issued to all banks, Electronic Money institutions, Payment System Operators (PSOs) and Payment System Providers (PSPs) and mark the second phase of the rollout of the instant payment system.
Raast is being developed in collaboration with Karandaaz, Pakistan and introduced in phases. The first phase of Raast, Bulk Payments, was launched by the Prime Minister in January 2021. With the launch of Raast, Pakistan joined a select club of countries who have either launched or are in the process of launching Instant Payment Systems. Raast is fully owned and operated by State Bank of Pakistan.
KARACHI: The Pak Rupee (PKR) gained 89 paisas against the dollar on Thursday after the International Monetary Fund (IMF) has approved 6th tranche under Extended Fund Facility (EFF) for Pakistan.
The rupee ended Rs175.52 to the dollar from previous day’s closing of Rs176.41 in the interbank foreign exchange market.
The rupee is gradually making recovery against the dollar for the last seven consecutive days. The local currency recovered Rs1.46 against the dollar since recording at Rs176.98 to the dollar on January 26, 2022.
Currency experts said that the rupee remained positive during the day after the decision of the IMF Executive Board to release $1 billion 6th tranche of EFF program for Pakistan.
Analysts said that the transfer of IMF tranche would help the country to boost foreign exchange reserves and support the local currency.
The foreign exchange reserves of the country deteriorated sharply. Pakistan’s liquid foreign exchange reserves plunged by $866 million to $22.482 billion by week ended January 21, 2022 as against $23.35 billion by week ended January 14, 2022.
KARACHI: The State Bank of Pakistan (SBP) on Thursday announced bank holiday on account of Kashmir Day on February 05, 2022.
The SBP in a statement said that the central bank will remain closed on Saturday, February 05, 2022 on the occasion of Kashmir Day, as declared by the government of Pakistan.
KARACHI: Bank Alfalah Limited on Wednesday declared 33.4 per cent surge in net profit for the year 2021.
According to financial results submitted to Pakistan Stock Exchange (PSX) on Wednesday, the bank announced Rs14.46 billion as consolidated profit after tax earnings for the year ended December 31, 2021 as compared with Rs10.84 billion in the preceding year.
Bank Alfalah declared earnings per share at Rs8.12 for the year under review as compared with EPS of Rs6.10 during the preceding year.
The Board of Directors of the bank met on February 02, 2022 at Dubai, UAE and recommended final cash dividend for the year ended December 31, 2021 at Rs2 per share i.e. 20 per cent. This is in addition to interim cash dividend already paid at Rs2 per share i.e. 20 per cent.
The board has not approved any bonus share, right share or any other entitlement / corporate action.
The board of directors authorized the bank to acquire 521,739 additional ordinary shares of Rs10 each (representing 1.3 per cent of the share capital) of its subsidiary, Alfalah CLSA Securities (Pvt) Limited from minority shareholders of the company. As a result, the total shareholding of the bank in the company will stand at 24,999,912 ordinary shares. Such purchase shall be subject to obtaining of all necessary corporate and regulatory approvals and completion of related formalities.
According to the results, the net mark-up / interest income of the bank rose to Rs46.04 billion for the year ended December 31, 2021 as compared with Rs44.69 billion in the preceding year.
Total non-mark-up/interest income of the bank grew to Rs17.23 billion in the year 2021 as compared with Rs13.54 billion in the preceding year.
KARACHI: The Pak Rupee (PKR) gained two paisas against the dollar on Wednesday as market sentiments were positive due to expected inflows from the IMF.
The rupee ended Rs176.41 to the dollar from previous day’s closing of Rs176.43 in the interbank foreign exchange market.
The dealers said that the local currency recovered due to inflows of export receipts and worker remittances. Besides, the expected inflows from the IMF also helped the rupee to stay stable.
The IMF executive board is scheduled to meet on February 02, 2022 to review Pakistan’s Extended Fund Facility and to approve next tranche of $1 billion.
The foreign exchange reserves of the country fell significantly last week. The liquid foreign exchange reserves plunged by $866 million to $22.482 billion by week ended January 21, 2022 as against $23.35 billion by week ended January 14, 2022.
KARACHI: The State Bank of Pakistan (SBP) on Tuesday relaxed the deadline for realization of export proceeds by making changes in its earlier notification.
The SBP issued EPD Circular No. 02 of 2022 and invited attention of authorized dealers in foreign exchange to FE Circular No. 1 dated January 5, 2022 in terms of which the period of realization of export proceeds was reduced from 180 days to 120 days.
The central bank said that in view of the representation received from various Authorized Dealers, Chambers of Commerce & Industries and Exporters’ Associations, and to help exporters to fulfill their commitments, it is clarified that amendments introduced through the subject FE circular shall not be applicable on such exports where irrevocable letters of credit with usance period up to 180 days were issued or established up to the date of issuance of above instructions.
However, in all such cases authorized dealers shall not allow any change beyond 180 days in shipment date/expiry of LC/ enhancement in LC or shipment against expired LCs or any other terms and conditions relating to tenure of the LC after the issuance of the above circular.
Moreover, where the terms of sale/ irrevocable letter of credit provide for payment on 120 days’ usance from the date of shipment, it shall be permissible for the exporter to repatriate the export proceeds within 135 days from shipment date.
”Full export value of goods exported from Pakistan and declared to the Customs authorities should be received in an approved manner, as embodied in State Bank of Pakistan’s (SBP) Notification No. F.E. 1/2022-SB dated the January 5, 2022 on the due date for payment or within one hundred and twenty (120) days from the date of shipment, whichever is earlier, or within such period as may be prescribed by SBP through specific or general instruction, through an Authorized Dealer either in convertible foreign currency in which the Authorized Dealer maintains accounts or in Pakistan rupee from a repatriable rupee account of a nonresident. In case of shipment on DP/CAD/ sight basis the payment should be received within 45 days from date of shipment.
“However, where the terms of sale/irrevocable letter of credit provide for payment on 120 days’ usance from the date of shipment, it shall be permissible for the exporter to repatriate the export proceeds within 135 days from shipment date. Prior approval of the Exchange Policy Department, SBP should be obtained before arranging for payment in any manner other than that mentioned above.”
The IMF executive board is scheduled to meet on February 02, 2022 to review Pakistan’s Extended Fund Facility and to approve next tranche of $1 billion.
The foreign exchange reserves of the country fell significantly last week. The liquid foreign exchange reserves plunged by $866 million to $22.482 billion by week ended January 21, 2022 as against $23.35 billion by week ended January 14, 2022.
KARACHI: The US dollar slipped by five paisas against the Pak Rupee (PKR) on Monday as sufficient supply of the foreign currency was seen during the day.
The rupee ended Rs176.72 to the dollar from last Friday’s closing of Rs176.77 in the interbank foreign exchange market.
Currency experts said that the market witnessed inflows of export receipts and remittances during the day. It helped the rupee to make gain against the foreign currency.
The experts said that the rupee witnessed decline earlier in the day due to reports of massive fall in foreign exchange reserves of the country.
Pakistan’s liquid foreign exchange reserves plunged by $866 million to $22.482 billion by week ended January 21, 2022 as against $23.35 billion by week ended January 14, 2022.
