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: State Bank of Pakistan (SBP) on Tuesday directed to banks to observe working hours on May 08, 2021 to facilitate their customers ahead of Eid-ul-Fitr.
The central bank said that in the wake of forthcoming Eid-ul-Fitr holidays from May 10 – May 15, 2021 and to cater the banking needs of public at large, it has been decided that all branches of banks/microfinance banks would remain open on May 08, 2021 (Saturday) from 9:00 am to 2:00 pm (without break).
KARACHI: The government has announced to borrow around $s4,100 billion through auction of market treasury bills (MTBs) during three months in order to meet budget financing.
The State Bank of Pakistan (SBP) on Monday issued schedule for the auction of three-, six- and 12-month treasury bills.
Out of scheduled sale of Rs4,100 billion treasury bills, an amount of Rs3,453 billion for the payment of maturities during the period of May – July 2021.
The SBP to auction the treasury bills on May 05, May 19, June 02, June 16, June 30, July 14 and July 28 of the current year.
The SBP set a target of Rs1,000 billion for the sale of 3-month treasury bills, Rs1,500 billion for the sale of six-month bills and Rs1,600 billion for the sale of 12-month treasury bills during May – July 2021.
KARACHI: The Pak Rupee gained nine paisas against the dollar on Monday owing to improved inflows of export receipts.
The rupee ended Rs153.36 to the dollar from last Friday’s closing of Rs153.45 in the interbank foreign exchange market.
Currency experts said that the inflows of export receipts helped the rupee to make gain on the first day of the week.
The exports have maintained over $2 billion in April 2021. Exports for July-April 2021 grew by 13 percent to $20.879 billion as compared to $18.408 billion during the same period last year.
The experts said that the inflows of exports, remittances and other foreign receipts would help the rupee to maintain levels in coming days.
ISLAMABAD: Regulators are at odds over the last date for conversion/redemption of Rs40,000 denomination national prize bonds, which created distress amongst the prize bondholders.
A public notice was issued by the Central Directorate of National Savings (CDNS) in February 2021, that the government had discontinued the sale of National Prize Bonds (Bearer) of Rs25,000 and Rs40,000. “The deadline for redemption/encashment of these bonds is May 31, 2021.
On the other hand, the State Bank of Pakistan (SBP) through its CMD Circular No. 07 dated December 08, 2020, stated: “the finance division, the government of Pakistan has extended the last date for encashment/replacement / conversion of Rs40,000 denomination National Prize Bonds (Bearer) till December 30, 2021, vide their Notification No. F.16(3)GS-1/2014-1603 dated November 26, 2020.”
The finance division issued notification for withdrawal of Rs25,000 denomination national prize bonds from circulation in December 2020.
Another SBP CMD Circular No. 08 dated December 10, 2020, stated: “National Prize Bonds of Rs25,000 denomination shall not be sold with immediate effect and will not be encashed/redeemed after May 31, 2021.”
The public notice issued by the National Savings warned the holders who have not encashed their bonds so far, to redeem/encash Rs25,000 and Rs40,000 prize bonds before the deadline of May 31, 2021, using the following options:
— Replace with Rs25,000 & Rs40,000 Premium prize bonds (registered)
— replace with special saving certificates (SSC) / Defence Saving Certificate (DSC)
— Encashment through Bank Account
“After the deadline no such bonds will be redeemed/encashed,” it said.
ISLAMABAD: The finance division has issued procedure for government offices to close their accounts with commercial banks and transfer of all available funds to treasury single account (TSA).
According to official documents made available on Sunday, the finance division said that as per the Cash Management and TSA Rules 2020, the government offices are neither allowed to undertake any cash operation outside the TSA nor obliged to open, operate or maintain a bank account in any commercial bank.
They can only operate through the principal government account i.e Central Account No.1 (Non Food) maintained with State Bank of Pakistan for deposit and withdrawal of all public moneys.
However, in contravention of the constitutional and legal provisions as mentioned in clause-1 above and the provisions of Cash Management and ‘NA Rules 2020, the Government Offices are maintaining a large number of commercial bank accounts purportedly to operate various funds, deposits, reserve funds etc, which are otherwise legally required to be maintained in the Public Account/Central Account No.1 (Non food).
Resultantly, considerable amount of public money has been parked in the commercial bank accounts, hence held outside the TSA system.
Therefore, under the Cash Management and TSA Rules 2020, they have been required to close all the bank accounts and transfer the public money held outside the TSA system, to the Central Account No.1 (Non food).
The prime objective of devising this procedure is to facilitate the Government Offices in closure of the commercial bank accounts, transfer of all the available balances to the Public Account/Central Account No.1 (Non food) and undertake further public account transactions through the Government Central Account No.1 (Non food).
It has therefore been found expedient to prescribe a dedicated and hassle free procedure for withdrawal of funds from the Public Account through non-lapsable special assignment account, as the existing Assail assignment account procedure is for withdrawal of funds from the Federal Consolidated Fund only.
Moreover, in order to ensure uniformity in fiscal operations, the Personal Ledger Accounts (PLAs), Special Drawing Accounts (SDAs) and Revolving Fund Accounts (Local Currency) shall be discontinued forthwith as already approved by the Finance Division.
KARACHI: State Bank of Pakistan (SBP) has taken notice of delayed processing of housing loans by banks and issued directives in this regard to ensure speedy process of applications.
The central bank on Friday said that it was receiving a number of complaints especially regarding delayed processing, long turnaround time and no mechanism to track the financing application after submission.
In this regard, banks/DFIs are directed to take the following measures:
a. Immediately start providing to the applicants a receipt with unique tracking number against each housing finance application. Meanwhile, banks/DFIs are advised to put in place within 30 days from the date of this Circular an online e-tracking mechanism and a phone based help line to provide, on query of applicant, status and expected time required for decision on application.
b. Devise a system to monitor 30 days Turn Around Time (TAT) for decision on applications received.
c. Record and convey reasons of rejection of housing finance application to the applicant in simple and clear form.
d. Equip the branch officials, through trainings and alignment of systems and procedures, to perform initial scrutiny and inform the customer about missing requirements/documents at the time of submission of application.
e. Conduct rigorous trainings of branch officials to enhance their knowledge on G-MSS and improve their behavior towards customers.
f. Conduct capacity building of call center officials to adequately address queries of customers.
It has also been observed that complaints lodged on State Bank complaint portal remain pending with banks for unduly long times.
The banks/ DFIs are advised to adopt appropriate measures to resolve complaints in timely manner.
Moreover, policy for designation of focal person for State Bank complaint portal must be reviewed and it should be ensured that at least one focal person is present in each region to handle the complaints.
Furthermore, potential borrowers under G-MSS have complained about exorbitant processing charges. Accordingly, banks/DFIs are advised to review and rationalize their processing fee for financing considering their actual costs and provide breakup of these charges to the applicants at the time of receipt of applications.
In order to increase prospects of applicants to avail housing finance under G-MSS, banks/DFIs are advised to guide the applicants regarding the options of 100 percent clubbing of income of up to four co-applicants and enhancing their credit worthiness through third party guarantee as allowed vide IH&SMEFD Circular No. 01 of 2021.
KARACHI: The Pak Rupee made a gain of 17 paisas against the dollar on Friday owing to improved external position of the country.
The rupee ended Rs153.45 to the dollar from previous day’s closing of Rs153.62 in the interbank foreign exchange market.
Currency experts said that the rupee further made recovery despite dollar demand for import and corporate payments.
They said that the rupee likely to maintain its recovery against the greenback owing to strong external position such as: current account surplus, improved workers’ remittances and export receipts.
ISLAMABAD: The finance ministry on Thursday announced that national prize bonds of denominations Rs7,500 and Rs15,000 shall not be sold with immediate effect.
In different notifications the finance division announced to withdraw the prize bonds of denominations Rs7,500 and Rs15,000 from circulation with immediate effect.
According to the notifications:
“… Prize bonds of Rs7,500 denominations shall not be sold with immediate effect and will not be encahsed / redeemed after December 31, 2020 … “
“ … Prize bonds of Rs15,000 denomination shall not be sold with immediate effect and will not be encahsed / redeemed after June 30, 2021 … “
The finance divisions also issued the procedure for redemption/conversion of bonds.
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, 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.
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 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 banking services corporation well as the authorized commercial bank branches and to the Saving Accounts at National Savings Centers.
KARACHI: The Pak Rupee gained 26 paisas against the dollar on Thursday owing to improved economic indicators and suspension of loan repayment for Pakistan.
The rupee ended Rs153.62 to the dollar from previous day’s closing of Rs153.88 in the interbank foreign exchange market.
Currency experts said that market was remained optimistic owing to current account surplus during first nine months of the current fiscal year.
Besides, sentiments were also improved owing to suspension of loan repayment by G-20 countries.
KARACHI: State Bank of Pakistan (SBP) on Wednesday revised the office and public dealing hours of banks.
The SBP said that in line with the decision of National Command & Operation Centre (NCOC) to contain the spread of COVID-19, the SBP will observe the following office hours, which will also be followed by all banks / DFIs / MFBs till further orders:
Bank office hours:
Monday to Thursday from 9:00 a.m. to 2:00 p.m. (without break)
Friday from 9:00 a.m. to 1:00 p.m. (without break)
Banks / MFBs have been advised to observe the following business (banking) hours for public dealing:
Monday to Thursday from 9:00 a.m. to 1:00 p.m. (without break)
Friday 9:00 a.m. to 12:30 p.m. (without break)
Previously, the SBP issued bank timings during Ramazan on April 12, 2021. However, new timings shall supersede the instructions contained in BPRD Circular Letter No.10 dated April 12, 2021.