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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.

  • Dollar retreats to Rs159.81

    Dollar retreats to Rs159.81

    KARACHI: The Pak Rupee gained 16 paisas against the dollar on Wednesday owing to lower imports and inflows of export receipts and workers remittances, dealers said.

    The rupee ended Rs159.81 to the dollar from the previous day’s close of Rs159.97 in the interbank foreign exchange market.

    The dealer said that the importers were cautious over the upsurge in coronavirus cases in the country as well as in the world. On the other hand, positive sentiments prevailed in the market over-improved export numbers in October 2020.

    The rupee hit an all-time low of Rs168 on August 26, 2020. Since then the local unit recovered Rs8.62 against the greenback.

    According to the Pakistan Bureau of Statistics (PBS) the exports during the month of October 2020 increased by 3.07 percent to $2.08 billion as compared with $2.02 billion in the same month of the last year.

    Imports for the month fell by 5.73 percent to $3.82 billion as compared with $4.05 billion in the same month of the last year.

    The trade deficit reduced by 14.46 percent to $1.74 billion in October 2020 as compared with a trade deficit of $2.03 billion in the same month of the last year.

  • Dollar eases to Rs159.97

    Dollar eases to Rs159.97

    KARACHI: The Pak Rupee gained 14 paisas against dollar on Tuesday amid inflows of workers’ remittances and export receipts, dealers said.

    The rupee ended at Rs159.97 to the dollar from last day’s closing of Rs160.11 in interbank foreign exchange market.

    Currency experts said that improved receipts of exports and workers’ remittances helped the rupee to make gain.

    They said that the second wave of coronavirus also reduced dollar demand for import payments.

  • Complaints against banks surge by 51 percent: Banking Mohtasib

    Complaints against banks surge by 51 percent: Banking Mohtasib

    KARACHI: The number of complaints has been increased by around 51 percent during first nine months of current calendar year against banks including fraud, forgeries and other irregularities, the office of Banking Mohtasib (Ombudsman) said on Monday.

    Inspite of COVID-19, major increase has been observed in the number of complaints lodged with the Banking Mohtasib Pakistan against the alleged frauds, forgeries and other irregularities during the first nine months of the current calendar year, 2020 as compared to the same period of last year, 2019.

    Almost 19028 complaints were received by the Banking Mohtasib Secretariat from January 01 to September 30, 2020 as against 12624 complaints received in the same period of last year depicting an increase of 50.7%. These also include about 11092 complaints received on the Prime Minister’s Portal relating to banking issues. The increase in number of complaints represents the confidence of general public in the working of the institution of Banking Mohtasib. The Banking Mohtasib Secretaiat disposed of 13488 complaints from January 01, 2020 to September 30, 2020.

    The role of Banking Mohtasib is to resolve the grievances of the banking customers amicably, speedily and free of cost. It also protects the interest of the depositors and ensures that banks not only comply with the prescribed rules and regulations of the State bank of Pakistan, but also apply them in fair and judicious manner.

    The Banking Mohtasib Pakistan, Muhammad Kamran Shehzad has urged the general public to strictly follow the instructions being given by the banks in their public awareness campaigns of not disclosing their personal and financial credentials to any person. In this way they will be able to protect themselves from any fraud, forgeries etc.

  • Rupee advances; Dollar falls to 160.11 in interbank

    Rupee advances; Dollar falls to 160.11 in interbank

    KARACHI: The Pak Rupee made another gain of 15 paisas against dollar on Monday owing to improved economic indicators.

    The rupee ended at Rs160.11 to the dollar from closing of last trading day of October 29, 2020 at Rs160.26 in interbank foreign exchange market.

    Currency experts said that the improved economic indicators and significant inflows of workers’ remittances and export receipts helped the local currency to make gain.

    The State Bank of Pakistan (SBP) said that the remittances increased to $2.3 billion, 31.2 percent higher than the same month last year and 9 percent higher than in August 2020.

    Workers’ remittances remained above $2 billion for the fourth consecutive month in September, the central bank said.

    On a cumulative basis, remittances rose to a record $ 7.1 billion in the first quarter of current fiscal year, 31.1 higher than the same period last year.

    The level of remittances in September was slightly higher than SBP’s projections of $2 billion.

  • Mobile banking registers phenomenal growth; transactions increase to Rs1,764 billion

    Mobile banking registers phenomenal growth; transactions increase to Rs1,764 billion

    KARACHI: The usage of mobile banking has surged phenomenally as transactions worth Rs1,764 billion recorded during fiscal year 2019/2020, which is 104 percent higher over the preceding fiscal year.

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  • Money printing cost rises to Rs13.32 billion in FY20: SBP

    Money printing cost rises to Rs13.32 billion in FY20: SBP

    KARACHI: The State Bank of Pakistan (SBP) has said that cost of printing of money increased to Rs13.32 billion in fiscal year 2019/2020.

    The central bank in its annual performance report said that the banknote printing charges increased to Rs.13.325 billion in 2019/2020 from Rs.11.419 billion in 2018/2019, thereby registering an increase of 17 percent mainly due to larger volumes of printing and increase in printing rates.

    The exchange gains/ (losses) arise on FCY assets and liabilities of the Bank. Major part of the foreign currency assets of the Bank are USD denominated whereas the foreign currency liability exposure is mainly SDR and USD denominated.

    Accordingly, the movement in the PKR/SDR and PKR/USD exchange rates directly affects the exchange account.

    The bank earned a net exchange gain of Rs.66.402 billion during FY20 as against exchange loss of Rs. 506,131 million during FY19.

    The PKR depreciated against USD and SDR during the period however, exchange gain arose due to improvement in net FCY liability exposure as compared to previous year.

    Other operating income include penalties levied on banks/financial institutions, licenses and e-CIB fee, gains/(losses) on sale and re-measurement of investments and other income.

    The other operating income increased to Rs.8.604 billion in FY20 from Rs.4.347 billion in last year. The increase is primarily attributed to increase in income on penalties levied on banks and financial institutions, licenses fee, e-CIB fee and gain on disposal of foreign investments classified as “fair value through profit or loss”.

  • State Bank’s annual profit surges to historic high of Rs1.16 trillion

    State Bank’s annual profit surges to historic high of Rs1.16 trillion

    KARACHI: The State Bank of Pakistan (SBP) has declared profit of Rs1.16 trillion, the highest profit in the history of the bank, for the year ended June 30, 2020.

    The SBP in performance report issued on Thursday said that the stability in the exchange rate allowed SBP to return to profitability after incurring loss in the preceding year. The SBP recorded a loss of Rs846 million for the year ended June 30, 2019.

    “The profit so earned by the SBP in the year ended June 30, 2020 is highest in its history.”

    The high interest rate prevalent in the first three quarters of the year allowed the central bank to accrue significant amount of interest income from the interest sensitive assets, particularly lending to the Government and income from the Bank’s open market operations.

    Further, during the year, the liquidity mopping up operations were relatively on reduced scale and hence the interest expense registered a substantial decline.

    The total assets stood at Rs.12,273 billion as at June 30, 2020 as compared to Rs.11,467 billion on June 30, 2019, registering an increase of Rs.806 billion primarily due to increase in foreign currency accounts and investments.

    Similarly, the total liabilities of the bank stood at Rs.11,219 billion as at June 30, 2020 as compared to Rs.10,761 billion as at June 30, 2019, registering an increase of Rs.458 billion. This rise was primarily led by increase in currency in circulation.

    SBP introduced certain interest free/subsidized refinancing schemes during COVID-19 pandemic. As per the requirements of IFRS-9, the subsidized loans are required to be recorded at fair value.

    Accordingly, an amount of Rs.4,194 million has been recognized as fair valuation adjustment against these loans. This fair valuation adjustment will be amortized and recorded as income over the period of loans.

  • Dollar falls to Rs160.26 as Pak Rupee gains 36 paisas

    Dollar falls to Rs160.26 as Pak Rupee gains 36 paisas

    KARACHI: The Pak Rupee gained another 36 paisas against the dollar on Thursday owing to inflows of workers’ remittances and export receipts offset the demand for import payment.

    The rupee ended Rs160.26 to the dollar from the previous day’s closing of Rs160.62 in the interbank foreign exchange market.

    Currency experts said that due to positive economic indicators and current account surplus the rupee made gain. They said that during the day the market witnessed demand for dollars but the inflows helped the rupee to further appreciate against the greenback.

    The inflow of workers’ remittances has registered a sharp increase of 31.2 percent after making the fourth consecutive month of over $2 billion received in September 2020.

    The State Bank of Pakistan (SBP) said that the remittances increased to $2.3 billion, 31.2 percent higher than the same month last year and 9 percent higher than in August 2020.

    Workers’ remittances remained above $2 billion for the fourth consecutive month in September, the central bank said.

    On a cumulative basis, remittances rose to a record $ 7.1 billion in the first quarter of current fiscal year, 31.1 higher than the same period last year.

    The level of remittances in September was slightly higher than SBP’s projections of $2 billion.

  • SBP imposes penalty of Rs272 million on four banks

    SBP imposes penalty of Rs272 million on four banks

    KARACHI: State Bank of Pakistan (SBP) has imposed a monetary penalty of Rs272 million on four commercial banks for violating regulatory instructions related to Know Your Customer (KYC) and AML/CFT.

    According to details of significant enforcement action by the central bank issued on Wednesday, the SBP imposed penalty on the four banks during first quarter (July – September) 2020/2021.

    The SBP imposed the highest amount of penalty of Rs116.27 million imposed on Bank Islami Limited for procedural violations in the areas of CDD/KYC, General Banking Operations & Asset Quality. The SBP directed the bank to strengthen its processes to avoid recurrence of such violations.

    The central bank imposed an amount of Rs 59.23 million as penalty on Soneri Bank Ltd for procedural violations in the area of CDD/KYC. In addition to penal action the bank has been advised to strengthen its processes to avoid recurrence of such violations.

    The SBP imposed an amount of Rs10 million as penalty on The Bank of Punjab for procedural violations in the area of General Banking Operations. In addition to penal action the bank has been advised to strengthen its processes to avoid recurrence of such violations.

    The central bank imposed Rs86.12 million as monetary penalty on Albaraka Bank (Pakistan) Ltd for violations in the areas of AML/CFT,FX Operations &General Banking Operations.

    In addition to penal action the bank has been advised to conduct an internal inquiry on breaches of regulatory instructions and take disciplinary action against the delinquent officials.

  • Dollar falls to 160.62 as Pak Rupee makes 29 paisas gain

    Dollar falls to 160.62 as Pak Rupee makes 29 paisas gain

    The Pak Rupee experienced a notable appreciation of 29 paisas against the US dollar on Wednesday, closing at Rs160.62 in the interbank foreign exchange market. This marked an improvement from the previous day’s closing rate of Rs160.91 to the dollar.

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