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.
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Friday approved incentive program for exchange companies on surrendering dollars in interbank.
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KARACHI: The US dollar retreated by Re1 on the last day of the year 2021 on Friday to close the trading at Rs176.51 at interbank foreign exchange market.
The rupee ended at Rs177.51 to the dollar a day earlier in the interbank foreign exchange market.
The rupee recorded an all-time low of Rs178.24 to the dollar on December 29, 2021.
READ MORE: Rupee falls to new historic low of Rs178.24 to dollar
Currency experts said that the measures taken through the mini-budget had given some respite to the local currency.
They said that the State Bank of Pakistan (SBP) had closely watched the currency movement on the last day of the year.
The experts said that rising import bill and current account deficit however big challenges for the rupee stability in the coming days.
READ MORE: Bank holiday on January 03, 2022 announced
Furthermore, the decline in foreign exchange reserves also threatened rupee stability.
The official foreign exchange reserves of the central bank slipped by $299 million to $17.85 billion by week ended December 24, 2021 when compared with $18.15 billion a week ago.
READ MORE: Pakistan’s forex reserves decline by $395 million in week
KARACHI: The Pak Rupee (PKR) made a sharp recovery of 73 paisas against the dollar on Thursday owing to sufficient supply of the foreign currency in the market.
The rupee ended Rs177.51 to the dollar from previous day’s closing of Rs178.24 in the interbank foreign exchange market.
READ MORE: Rupee falls to new historic low of Rs178.24 to dollar
The last day’s closing was the lowest level of the rupee.
Currency experts said that the market witnessed high dollar demand earlier in the day and the rupee fell to intraday low of Rs178.35.
However, they said that the State Bank of Pakistan (SBP) intervened to support the local currency. They claimed sufficient liquidity provided by the central bank to meet the foreign payments.
READ MORE: Bank holiday on January 03, 2022 announced
The experts said that the action was taken to support the local unit and keep the value below the lowest level by end the year. Today was second last trading of the year.
They said that due to year end the demand for dollar remained high as corporate buyers and importers were seen active during the day.
READ MORE: Pakistan’s forex reserves decline by $395 million in week
Since the start of the current fiscal year the rupee has witnessed sharp decline owing to large import bill and widening of current account deficit.
KARACHI: The State Bank of Pakistan (SBP) on Thursday announced bank holiday on Monday January 03, 2022.
Through communication, the SBP said it will remain closed for public dealing on Monday, January 3, 2022, which will be observed as ‘Bank Holiday’.
All banks / Development Financial Institutions (DFIs) / Microfinance Banks (MFBs) shall, therefore, remain closed for public dealing on the aforementioned date.
However, employees of banks / DFIs / MFBs will attend the office as usual, the SBP added.
KARACHI: The State Bank of Pakistan (SBP) on Wednesday introduced Shariah Compliant Standing Ceiling facility and Open Market Operations (OMO) injections for Islamic banking Institutions (IBIs).
As the size of the Islamic banking industry is increasing, SBP recognizes the need to introduce Shariah compliant liquidity facilities for IBIs. With a view to bring IBIs at par vis-à-vis their conventional counterparts in terms of liquidity management avenues, and to enhance SBP’s tools for managing market’s liquidity as part of its monetary policy objective, SBP has introduced the aforementioned facilities.
READ MORE: Bank Alfalah tops in house financing under MPMG
The structure and broad features of these facilities are as under:
Shariah Compliant Standing Ceiling Facility is a Mudarabah based Financing Facility (MFF) whereby SBP will provide financing to IBIs on an overnight basis against Shariah compliant collateral. IBIs shall place the funds received from SBP in a special pool consisting of high quality assets. The MFF will be offered at an ‘Expected Rate’ – equivalent to conventional overnight reverse repo rate – based on a Profit Sharing Ratio agreed between the SBP and IBI at the onset of the transaction.
For Shariah Compliant Open Market Operations (Injections), Mudarabah mode of financing will be used. It would be pertinent to mention here that this open market operations (OMO) facility will currently be available for ‘injection’ i.e. provision of liquidity purposes only.
READ MORE: RDA: SECP exempts banks from obtaining license
Similar to conventional OMOs, SBP will be conducting Shariah Compliant OMOs (Injections) based on market liquidity conditions through a multiple price competitive bidding process for tenors as announced by SBP from time to time, against collateral. Once the expected rate of return is finalized through a competitive bidding process, the funds provided by SBP shall be invested in a pool of high quality assets by the respective IBI. SBP and IBI shall agree a Profit Sharing ratio at the onset of the transaction.
Islamic banking industry in Pakistan has become systemically an important component of the banking industry registering remarkable growth over the last two decades. Currently there are five (5) full-fledged Islamic banks and seventeen (17) conventional banks operating with standalone Islamic banking branches offering a wide array of Shariah compliant financial solutions.
READ MORE: Meezan Bank starts Islamic financing scheme for SMEs
At the end of June 2021, the market share of the Islamic banking industry assets and deposits in the overall banking sector stood at 17 per cent and 18.7 per cent respectively and the branch network of Islamic banking institutions comprised over 3,583 branches and 1,562 windows.
Introduction of aforesaid liquidity facilities will bring Islamic Banking industry at par with their conventional counterparts and enable them to effectively manage their short-term liquidity.
This would strengthen financial intermediation by IBIs and enable them to offer better returns and rates to their customers on deposits and loans. Further, introduction of proposed facilities will also strengthen monetary policy transmission mechanism & enhance the effectiveness of monetary policy implementation by SBP to achieve the ultimate objective of price stability.
KARACHI: The Pak Rupee (PKR) fell to new historic low of Rs178.24 to the dollar on Wednesday owing to higher demand for import and corporate payments.
The rupee fell by five paisas against the dollar from last day’s closing of Rs178.19, the previous record low of the rupee, in the interbank foreign exchange market.
Currency experts said that due to last days of month of December and year closing the dollar demand was high for import and corporate payments.
The experts said that the rising prices of oil in international markets and corporate payment pushed the demand for dollars.
They said that surge in import bill and widening current account deficit are major challenges for the rupee in coming days.
The import bill of the country surged to $33 billion during the first five months (July – November) 2021/2022.
This resulted in widening of trade deficit resulted in $7 billion current account deficit during the first five months (July – November) 2021/2022.
READ MORE: SBP sets limits for sale of foreign exchange to individuals
KARACHI: Meezan Bank and Pak Suzuki Motor Company Limited have signed a Memorandum of Understanding (MoU) to offer Sharia-compliant car financing.
Arshad Majeed, Group Head Consumer Finance, Meezan Bank signed the MoU with Aamir Shaffi, Executive Officer, Marketing and Sales, Pak Suzuki Motor Company Limited.
READ MORE: Meezan Bank starts Islamic financing scheme for SMEs
In an effort to ease access to Shariah-compliant car financing solutions, Meezan Bank will facilitate its customers with additional Residual Value features which will include affordable monthly rentals that will be lower than regular installments.
Customers will be able to opt for a new vehicle option every three years through this Scheme on selected variants. In addition customers can also avail preferred delivery of Suzuki vehicles Suzuki Alto (VX & VXR), Suzuki Wagon R (VXR, VXL & AGS) & Suzuki Cultus (VXL & AGS) with free registration (excluding taxes) and buyback guarantee of up to three years as well as after-sales support services across Pakistan.
READ MORE: Meezan Bank, Retailo sign agreement to finance youth
Commenting on the occasion, Arshad Majeed, said: “Meezan Bank has always strived to offer affordable and accessible Shariah-compliant car financing solutions to its customers.
“Through the Residual Value Module, we are making the process of car purchasing much easier for individuals and families, especially in the current scenario where prices of vehicles and interest rates are an increasing trend. We are pleased to partner with Pak Suzuki Motor Company Ltd. for offering preferred vehicle delivery that will boost the vehicle buying experience of our customers.”
READ MORE: Pak Suzuki posts sharp 285pc growth in gross profit during first quarter
Aamir Shaffi, while speaking at the occasion, said: “Residual Value Module will attract young generation and create customer trend to change the car every 2-3 years through RV financing, in which the customer can defer/postpone up to 50% of value amount of vehicle at end of financing period and enjoy the benefit of reduced rentals.
“The scheme will enhance our brand image and help retain financing customers for life at Pak Suzuki Motor Company dealerships by providing them right market value with buyback guarantee up to 3 years based on car condition criteria.”
KARACHI: The Pak Rupee hit a fresh low at Rs178.19 to the dollar on Tuesday after falling two paisas in the interbank foreign exchange market.
The local currency further declined from the last day’s closing of Rs178.17, which was the previous historic low.
The foreign exchange market witnessed dollar demand for import and corporate payment during the day. However, banks assured dollar supply against the demand, currency experts said.
They said that following restriction imposed by the central bank on buying of the foreign exchange by individuals from open market, the fall in rupee value was slowed down but continued.
The State Bank of Pakistan (SBP) last week imposed curbs on foreign exchange buying by individuals from the open market in order to discourage speculative gains. As per restrictions an individual can buy a maximum of $10,000 per day and $100,000 in a year.
The currency experts said that rising import bills and widening of the current account deficit remained a major threat to rupee value.
READ MORE: SBP sets limits for sale of foreign exchange to individuals
KARACHI: The US dollar recorded a new record high against Pak Rupee (PKR) at Rs178.17 on Monday. The rupee ended by four paisas against the dollar from last Friday’s closing of Rs178.13 in the interbank foreign exchange market.
The dollar previously recorded the highest level at Rs178.15 on December 22, 2021.
Currency experts said that the dollar demand was high due to opening of market after two weekly holidays. They said that year-end demand for corporate payment also put pressure on rupee value.
They said that the widening of trade deficit and current account deficit are major threats to rupee stability.
Pakistan’s current account deficit has ballooned to $7 billion during the first five months (July – November) 2021/2022. The current account posted a surplus of $1.87 billion in the same period of the last fiscal year.
The trade deficit widened by 112 per cent to $20.65 billion during the period under review as compared with $the deficit of 9.72 billion in the same period of the last fiscal year.
KARACHI: Bank Alfalah has secured the top position in house financing under the government’s flagship Mera Pakistan Mera Ghar (MPMG).
According to a statement issued by the State Bank of Pakistan (SBP), Bank Alfalah secured the top position followed by Meezan Bank Limited and Standard Chartered Bank Limited.
A ceremony was held on Friday at Prime Minister House, Islamabad to mark Rs 100 billion in home finance approvals of the Governments flagship Mera Pakistan Mera Ghar (MPMG) program under the theme “ Khawab ke tabeer ab tez ter”.
READ MORE: Financing for Mera Pakistan Mera Ghar gains momentum
The Prime Minister lauded the leading role of the State Bank of Pakistan and the efforts of the banking industry in the implementation of MPMG. He also witnessed ceremonial keys being handed over to six beneficiaries of MPMG who were from different regions and represented a variety of segments of Pakistan.
Over 20 other beneficiaries of MPMG also participated in the ceremony. The Prime Minister expressed his pleasure to see that low and middle-income citizens who were completely ignored earlier are now being served by the banks in obtaining home finance. While distributing awards among top-performing banks with respect to approvals and disbursements, he urged banks to accelerate their efforts to help realize the dream of every Pakistani to own their own homes.
The ceremony was attended by Ali Amin Gandhapur-Federal Minister for Kashmir Affairs & Gilgit Baltistan, Dr. Shahbaz Gill-Special Assistant to Prime Minister on Political Communication, Senator Shaukuat Tareen-Adviser to Prime Minister on Finance & Revenue, Governor State Bank of Pakistan, Chairman NAPHDA, Dr. Amjad Ali-Minister for Housing Khyber Pakhtunkhwa and Presidents/CEOs of banks.
READ MORE: SBP launches webpage for promoting house financing
Dr. Reza Baqir, Governor State Bank of Pakistan, shared the progress of MPMG since inception, highlighting that all stakeholders are taking steps in the right direction to translate the Prime Minister’s vision of increasing homeownership into reality. Till December 20, 2021, banks have received applications of Rs. 263 billion while approvals of Rs. 109 billion have already been made. Over the last nine months, the approved amount increased by Rs. 98 billion. Disbursement has also increased from almost zero in March 2021 to Rs. 32 billion by December 20, 2021. While shedding light on the theme of the event, he mentioned that during the last month, banks on average approved Rs. 4 billion and disbursed Rs. 1.6 billion on weekly basis. He underscored the need to maintain and accelerate this momentum. There are six banks that disbursed over Rs. 2 billion each and seven banks have disbursed over Rs. 1 billion each in the span of 9 months under MPMG.
The Governor said that growth in MPMG is attributed to various measures taken by the Government, SBP, and NAPHDA to provide a conducive environment for the banking industry to enter the untapped market of housing and construction finance. He mentioned the simplification of complex procedures, a significant reduction in documentation requirement, development of a model to assess informal income, effective redressal mechanism as examples of this support. Communication initiatives like Mera Pakistan Mera Ghar Meri Kahani –a series of testimonials of MPMG beneficiaries have also been instrumental in encouraging others to apply.
READ MORE: PM launches house financing scheme for NRPs
Earlier, in a meeting of the National Coordination Committee on Housing, Construction, and Development (NCCHCD), Governor SBP apprised the Prime Minister on developments in housing and construction finance. He recalled that in July 2020, in line with the Government’s vision of boosting economic activity, SBP mandated banks to increase their housing and construction finance to at least 5 percent of their domestic private sector advances by December 31, 2021. Five banks have already achieved their December 2021 targets. The best performing banks in this regard were Albaraka Bank followed by Meezan Bank and Dubai Islamic Bank. He highlighted that as of December 17, 2021, banks have lent Rs. 321 billion which is Rs. 173 billion more than their financing as of June 30, 2020, reflecting a growth of 117 percent since June 2020. He praised Bank Al Habib, National Bank, and Bank Alfalah for a significant increase in their housing and construction finance portfolio since June 2020 till date.
In conclusion, Governor Baqir expressed SBPs confidence that the banking industry will continue to pace up its performance rapidly to meet the objectives of Mera Pakistan Mera Ghar and to reach targets mandated for Housing and Construction Finance.
READ MORE: Meezan Bank becomes pioneer in Sharia financing for low cost housing
The MPMG event also witnessed speeches from Senator Shaukat Tareen, Adviser to Prime Minister on Finance & Revenue, and Lt Gen Anwar Ali Hyder, Chairman NAPHDA. The Finance Adviser reiterated the Government commitment to MPMG and assured banks to provide all needed support. Chairman NAPHA requested banks to demonstrate commitment in providing housing finance to individuals in NAPHDAs LDA City and Peri Urban projects.