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.
KARACHI: Meezan Bank Limited, in collaboration with the Sindh government and DHA Karachi, has launched second COVID-19 drive-through vaccination centre.
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Mian Anjum Nisar, Chairman, Businessmen Panel and former president of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has said that economic growth is not possible without stability of Pak Rupee (PKR).
In a statement issued on Saturday, he urged the government to control instability of rupee against the US dollar, as the greenback has appreciated 7.15 per cent since May this year, hitting 10 months high to cross the Rs164 mark.
FPCCI’s Businessmen Panel Chairman Mian Anjum Nisar observed that the industrial expansion and economic growth is not possible without stability of local currency, as the dollar has been appreciating against the rupee for the last more than 10 months because of the higher current account deficit and burgeoning import bills.
FPCCI former president observed that the market-based flexible exchange rate system, resilience in remittances and other factors can help contain the current account deficit in a sustainable range of 2-3 percent of GDP in FY22.
He said that the rising of dollar is not logical despite the fact that the State Bank says Pakistan’s external position was at its strongest in 10 years with 0.6 per cent current account deficit in FY21.
Since the May this year, the dollar has been appreciated by 7.15 per cent against the local currency which lifted the cost of imported products and created uncertainty about the exchange rate stability.
The dollar was at Rs164 in October 2020 and now again hovering in the range of Rs164 in Aug 2021.
Since the beginning of the new financial year the exchange rate looked a shaky as the local currency lost almost 4 per cent against the US dollar. The market reacted over the policy-makers’ announcement about 2-3 per cent current account deficit, while the importers rushed for higher amount.
He said that trade and industry have no idea as to what is the real exchange rate needed by the central bank and which is the end point for depreciation of rupee. Though the exporters would get some benefit against their export proceeds but the overall economy would face a tough time as the cost has been rising and finally it would affect consumption, which is the main wheel to run the economy.
Although the central banks’ foreign exchange reserves are in a better shape, but it has to rely heavily on borrowing to keep it at around $18 billion which affects the local currency value negatively.
He said that Pakistan has received record $29.4 billion remittances in fiscal year 2020-21 and it again received $2.7 billion in July FY22, indicating that the new financial year would also get help larger than the entire exports of the country, which is not long-term solution.
Besides increasing exports and controlling imports the government will have to take administrative measures, as a large demand of cash dollars are seen in the market. Mian Mian Anjum Nisar appreciated the positive development related to economic indicators, urging the government to control volatility of rupee against the US dollar, showing that exchange rate is not managed by the State Bank of Pakistan (SBP) but it also indicates the exchange rate is not stable.
He said that the end of previous fiscal year with rising current account deficit was a serious blow to the exchange rate while the fear of higher demand of dollars further exacerbated with the information of the SBP that the county would need $20 billion to repay loans.
Nisar said that the import bill of $6 billion in June this year was enough to signal the market that demand of dollar was very high. He said that the rising instability in Afghanistan has stirred fear within Pakistan that may hurt the normal economic life in the country, motivating people to buy dollars. At the same time, exports to Afghanistan have come down to almost zero level.
Formal and informal exports to the country are in the range of $1.5 billion to $2 billion per year. Mian Anjum said that the fourth wave of Covid-19 is another negative force to depreciate the local currency and shatter the confidence.
Terming rupee depreciation against dollar a mysterious development, he said that continued fall of rupee is not understandable with the fact that there was no fundamental change in the country’s economic indicators.
KARACHI: State Bank of Pakistan (SBP) on Friday issued following Karachi Interbank Offered Rates (KIBOR) on August 13, 2021.
| Tenor | BID | OFFER |
| 1 – Week | 6.91 | 7.41 |
| 2 – Week | 6.94 | 7.44 |
| 1 – Month | 7.01 | 7.51 |
| 3 – Month | 7.14 | 7.39 |
| 6 – Month | 7.29 | 7.54 |
| 9 – Month | 7.43 | 7.93 |
| 1 – Year | 7.50 | 8.00 |
KARACHI: The US dollar remained at Rs164 to the dollar on Friday as demand for import payments persisted.
The Pak Rupee closed at Rs164 to the dollar from the previous day’s closing of Rs164.01 in the interbank foreign exchange market.
Currency experts said that the market witnessed higher demand for the dollar on the last trading day. However, the statements of the finance minister made a day earlier had sent positive signals to the market.
The finance minister on August 12, 2021 at a press conference said that Pakistan would receive $2.77 billion from the International Monetary Fund (IMF) on August 23, 2021.
He said that the inflows would ease pressure on the external sector. The local currency is still at a 10-month low against the dollar.
KARACHI: Meezan Bank Limited has reported a significant increase in its net profit, reaching Rs 12.6 billion for the first half of the calendar year 2021 (January–June). This reflects an 8% growth compared to the Rs 11.7 billion net profit recorded during the same period last year, according to the bank’s financial results announced on Thursday.
(more…)KARACHI: State Bank of Pakistan (SBP) on Thursday issued following Karachi Interbank Offered Rates (KIBOR) on August 12, 2021.
| Tenor | BID | OFFER |
| 1 – Week | 6.87 | 7.37 |
| 2 – Week | 6.93 | 7.43 |
| 1 – Month | 6.99 | 7.49 |
| 3 – Month | 7.14 | 7.39 |
| 6 – Month | 7.32 | 7.57 |
| 9 – Month | 7.43 | 7.93 |
| 1 – Year | 7.51 | 8.01 |
KARACHI: The Pak Rupee ended down by nine paisas against the dollar on Wednesday owing to higher import payment demand.
The rupee ended Rs164.01 to the dollar from the previous day’s closing of Rs163.92 in the interbank foreign exchange market.
Currency experts said that the ease in coronavirus restrictions had increased the demand for import payment.
They further said that there is a big pressure on the local currency because of the upcoming public holidays on account of August 14 as Independence Day and Ashura Muharram.
The experts said that the rupee might improve in the coming days because there is an improvement in the inflows of remittances and export receipts.
KARACHI: State Bank of Pakistan (SBP) on Wednesday issued following Karachi Interbank Offered Rates (KIBOR) on August 11, 2021.
| Tenor | BID | OFFER |
| 1 – Week | 6.91 | 7.41 |
| 2 – Week | 6.95 | 7.45 |
| 1 – Month | 7.00 | 7.50 |
| 3 – Month | 7.15 | 7.40 |
| 6 – Month | 7.35 | 7.60 |
| 9 – Month | 7.44 | 7.94 |
| 1 – Year | 7.52 | 8.02 |
KARACHI: MCB Bank on Wednesday announced a profit after tax of Rs7.9 billion for second quarter ended June 30, 2021.
Analysts at Khadi Ali Shah Bukhari (KASB) said that the result is above estimates and street consensus.
The deviation is mainly on account of recognition of provisioning reversal worth Rs1.8 billion during the quarter. The result was accompanied with an interim cash dividend of Rs5.0 per share.
MCB’s profitability increased 12 per cent YoY during second quarter April – June of 2021 attributed to provisioning reversal.
However, NII declined by 17 per cent YoY as the policy rate remained unchanged during the period under review.
NFI increased by 46 per cent YoY in 2QCY21 as lockdown restrictions were eased off and economic activity picked up.
Major support came from 17 per cent YoY jump in fee income that clocked in at PKR 3.0 billion as against PKR 2.5 billion. Additionally, other income increased to PKR 661mn as opposed to PKR 61mn in corresponding period last year.
Notably, the bank recognized a provisioning reversal of PKR 1.8 billion that resulted in expansion in bottom-line. We expect a similar momentum in coming quarters with lower risk of provisioning as business activity has normalized.
The bank recorded higher effective tax rate of 45 per cent which we believe is attributed to new taxation measures introduced in Budget FY22. This is in-line with industry’s ETR as banks have shown prudence.
Additionally, C/I improved to 43 per cent as opposed to 45 per cent in corresponding period last year that lent support to MCB’s profitability.
We have an Outperform stance on the stock and our target price stands at PKR 220/sh. The stock is trading at a forward P/B of 1.13x and offers a dividend yield of 12 per cent
KARACHI: The US Dollar appreciated to Rs163.92 in the interbank foreign exchange market on Wednesday.
The market witnessed higher demand for the foreign currency for import payment.
The closing rate of the dollar in the interbank foreign exchange market was Rs163.75.
Currency experts said that value of the Pak Rupee (PKR) eased against the dollar because of ease in coronavirus restrictions. They said ease in restrictions encourage importers to purchase dollars for new shipments.
They said that the rising import bill was remain a concerns for exchange rate stability. The imports registered a growth of 48 per cent to $5.43 billion in July 2021 as compared with $3.67 billion in the same month of the last year. Meanwhile, trade deficit ballooned by 85.5 per cent owing to high import bill.