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: The Pak Rupee strengthened by 29 paisas against the dollar on Thursday owing to reports of growth in exports of the country.
The rupee ended Rs160.17 to the dollar from previous day’s closing of Rs160.46 in the interbank foreign exchange market.
Currency dealers said that the market witnessed supply of the foreign currency that was more than the demand for import and corporate payments.
They said that reportedly exports were had maintained over $2 billion value in November 2020.
KARACHI: State Bank of Pakistan (SBP) on Wednesday issued guidelines for e-commerce exporters in order to promote such exports from Pakistan.
The SBP said that in order to promote Business-to-Consumer (B2C) e-Commerce exports from Pakistan, State Bank of Pakistan has reviewed the aforementioned instructions to align these with the changing business dynamics of e-commerce exports.
For this purpose, a separate Module to implement e-commerce exports has also been developed in WeBOC in collaboration with Pakistan Customs and other relevant stakeholders.
Accordingly, a revised regulatory framework has been developed keeping in view the current business needs of e-commerce exports, which would replace the existing Para 39 Chapter 12 of FE Manual.
The revised framework is given hereunder:
Business-to-Consumer (B2C) E-Commerce Exports
(i) Forms Prescribed for Declaring E-Commerce Exports:
As per Federal Government Notification No. I(6)-ECS/48, dated the July 1, 1948, a declaration is required to be furnished by the exporter at the time of exports to the Collector of Customs that an amount representing the full export value of the goods has been or will be disposed of in a manner and within a period specified by the State Bank of Pakistan. In case of e-commerce exports, the declaration required to be furnished by the exporter shall be filed by the courier, in the prescribed format, on behalf of the exporter in the E-Commerce export module of the WeBOC. For exports other than through E-Commerce module of WeBOC, Form-E shall continue to be issued by Authorized Dealers at the request of the exporters as per the existing prescribed instructions.
(ii) Registration/ Due Diligence of the E-Commerce Exporters in WeBOC by Authorized Dealer
Authorized Dealer, upon receipt of request along with an undertaking from the exporter as per Annexure-A, shall register the exporter in the B2C E-Commerce module in WeBOC after performing the due diligence of the customer, as per applicable instructions on managing ML / FT risk.
Authorized Dealers handling the E-Commerce export related transactions are responsible to carry out customer’s Risk Profiling and its periodical monitoring to ensure that any ML/ FT risk is timely and appropriately identified and managed in accordance with the risk management policy of the authorized dealer. The ADs may add a separate section for e-Commerce in their Risk Management Policy to manage ML/ FT risk.
(iii) Shipment in WeBOC through Couriers registered by Pakistan Customs
The exporter shall submit their export consignment along with required details to any courier of their choice, registered with Pakistan Customs in WeBOC. The courier handling the export shipment shall file the Goods Declaration to Pakistan Customs on behalf of the exporter. Each individual consignment shall be identified on the basis of unique House Airway Bill (HAWB) Number as per the format prescribed by Pakistan Customs. The value of each consignment should be based on the actual price of the product as per the invoice issued to customer and must not exceed USD 5,000. The detail of export shipments shall be accessible to the Authorized Dealer in the E-Commerce profile of the exporter in WeBOC after the shipment of goods from Pakistan.
(iv) Method and Period for Realization of Export Proceeds
Full export value of goods exported from Pakistan and declared to the Customs authorities by courier companies on behalf of E-Commerce exporters, adjusted for any permissible discount as per sub-para vi below, should be received on the due date for payment or within 60 days from the date of shipment, whichever is earlier. The export proceeds should be received from abroad by an Authorized Dealer, through banking channel or international payment scheme/gateway, either in foreign currency, in which the Authorized Dealer maintains accounts, or in Pakistan Rupee from Non-Resident Rupee Account Repatriable or NRP Rupee Value Account.
(v) Monthly Reconciliation Statement of E-Commerce Exporters
Exporter shall be required to submit a monthly statement to the Authorized Dealers, in physical/electronic form, giving details of proceeds realized against the export shipments as per prescribed format given at Annexure-Balong with the relevant invoices. The Authorized Dealer will use the data provided in the format to mark the realization of outstanding export shipments in WeBOC, as per procedure given in sub-para vii below. The statement shall be submitted by the exporters within five (5) working days from the end of month to which the statement pertains. Authorized Dealer would promptly follow up with the exporter if the statement is not submitted as per prescribed timeline.
(vi) Remittance of Foreign Expenses and Retention in Exporters’ Special Foreign Currency Account
Authorized Dealers are permitted to allow payment of commission/charges/discounts/bank charges due to foreign importers/agents/financial institutions by E-Commerce exporters in Pakistan up to 10% of the invoice value of goods. In cases where the exporter is not required to pay any of the above expense or pay an amount less than above mentioned maximum permissible limit such amounts of commission/discount etc. or differential, not exceeding the 10% limit, can be retained in exporter’s foreign currency retention account with Authorized Dealers in Pakistan. The funds held in such foreign currency accounts can be used by the exporters for payment abroad on account of marketing /promotion and other services related to e-commerce exports. The account can also be used for settlement of overdue/ shortfall export proceeds, replacements etc., and other permissible purposes under the relevant regulations.
(vii) Realization against E-Commerce Export Shipments
Authorized Dealer will record proceeds realization against each HAWB in E-Commerce Bankers’ Credit Advice (BCA) module in WeBOC through the following options:
Settlement against 100% Realization.
Settlement with discount/commission etc. (up to 10%).
Settlement with Proceeds from Exporters Foreign Currency Retention Account including partial/ short realization.
Settlement against Advance Payments.
Settlement against replacement/ repaired/ faulty goods.
(viii) Handling of Overdue Cases
Authorized Dealers shall monitor the non-realization or delay in realization of export proceeds by E-Commerce exporters beyond the prescribed period of 60 days from the date of shipment of goods through WeBOC.
In case the outstanding export bills aggregating to USD 20,000/- or above are not realized within 60 days from the date of shipment (as per WeBOC data), as at the end of respective month, Authorized Dealer shall mark the exporter’s status as ‘Suspended’ in the E-Commerce module of WeBOC. This ‘Suspended’ status shall be marked by 15th of the following month after taking into account the monthly statement of proceeds realization filed by the exporter, as per Para v above. This would debar the exporter from further exports through E-Commerce module.
The status of exporter may be restored by Authorized Dealer to ‘Active’ in the WeBOC at any time during the month subject to realization of outstanding export bills, unrealized for 60 days or more from the date of shipment, provide the aggregate amount of such outstanding bills becomes less than USD 20,000/-.
In case of non-realization or delay in realization of export proceeds beyond 90 days from the date of shipment (as per WeBOC data), as of month end date, the same shall be reported as ‘overdue’ to SBP-Banking Services Corporation (Annexure C), as per guidelines prescribed in Para 33, Chapter 12 of FE Manual. However, the shipments overdue on month end and subsequently marked realized in the WeBOC, on the basis of monthly proceeds realization statement submitted by the exporter, should be excluded from such reporting.
KARACHI: The Pak Rupee fell by 64 paisas against the dollar on Wednesday owing to payment demand for import and corporate payments.
The rupee ended 160.46 to the dollar from the previous day’s closing of Rs159.82 in the interbank foreign exchange market.
Currency dealers said that the demand for import and corporate payments was higher during the day.
They said that the market had also seen supply of the dollar but was not sufficient to help the local currency.
KARACHI: The Pak Rupee fell by 40 paisas against the dollar on Tuesday owing to payment demand for import and corporate payments.
The rupee ended 159.82 to the dollar from the previous day’s closing of Rs159.42 in the interbank foreign exchange market.
Currency dealers said that the demand for import and corporate payments was higher during the day.
They said that the market had also seen supply of the dollar but was not sufficient to help the local currency.
KARACHI: State Bank of Pakistan (SBP) on Monday made it mandatory for all banks to construct ramps at their branches for persons with disabilities.
The SBP said it had decided to make it mandatory for all banks/ MFBs/ DFIs to construct ramps at all newly opened and existing place of business (excluding Mobile Banking Units) to make it accessible for persons with disabilities and wheelchair users.
For the purpose, a 2-year time-bound action plan to construct ramps at your all-existing places of business shall be submitted to SBP by December 31, 2020.
In addition, a senior level management committee of the respective banks, MFBs and DFIs shall be constituted who will be responsible for monitoring the overall progress on the action plan.
Further, the quarterly implementation report should be submitted within 15 days after the end of each quarter.
The SBP further said that instructions issued vide CPD Circular No. 06 of 2014 requiring banks/MFBs to provide visually impaired/blind persons with equitable access to banking and financial services, the banks have also been advised to submit the compliance status by December 31, 2020.
KARACHI: The Pak Rupee gained four paisas against the dollar on Monday despite demand for import and corporate payments.
The rupee ended Rs159.42 to the dollar form last Friday’s close of Rs159.46 in the interbank foreign exchange market.
Currency dealers said that the market witnessed demand for the dollars because of the first trading day of the week and the market opened after two weekly holidays.
They said that the supply of the greenback was sufficient to offset the demand and helped the local currency to make gain.
The dealers said that the local currency likely to make gain in coming days owing to improved economic indicators, including the foreign exchange reserves of the country.
The liquid foreign exchange reserves of the country have increased by $467 million to $20.552 billion by week ended November 20, 2020. The foreign exchange reserves of the country were at $20.085 billion by week ended November 13, 2020.
The official reserves of the SBP increased by $484 million to $13.415 billion by week ended November 20, 2020 as against $12.931 billion a week ago. The SBP attributed the increase to official government inflows.
KARACHI: State Bank of Pakistan (SBP) on Sunday directed all banks to observe extended working hours to facilitate collection of duty and taxes on Monday November 30, 2020.
A notification issued by the central bank, stated that in order to facilitate the collection of government receipts / duties / taxes, it has been decided that the field offices of SBP Banking Services Corporation (SBP-BSC) and authorized branches of National Bank of Pakistan (NBP) will observe extended banking hours till 9:00 PM on November 30, 2020 (Monday) for which purpose a special clearing has been arranged at 6:00 P.M. on the same day by the NIFT.
All banks are, therefore, advised to keep their concerned branches open on November 30, 2020 (Monday) till such time that is necessary to facilitate the special clearing for Government transactions by the NIFT.
KARACHI: The Pak Rupee fell by 20 paisas against the dollar on Friday owing to higher demand of the foreign currency for import and corporate payments.
The rupee ended at Rs159.46 to the dollar from the previous day’s closing of Rs159.26 in the interbank foreign exchange market.
Currency dealers said that the higher demand of the greenback was seen due to upcoming weekly holidays.
Experts believed that the rupee is likely to gain value against the dollar in coming days due to improved economic indicators and increase in the foreign exchange reserves.
The liquid foreign exchange reserves of the country have increased by $467 million to $20.552 billion by week ended November 20, 2020, State Bank of Pakistan (SBP) said a day earlier.
The foreign exchange reserves of the country were at $20.085 billion by week ended November 13, 2020.
The official reserves of the SBP increased by $484 million to $13.415 billion by week ended November 20, 2020 as against $12.931 billion a week ago.
The SBP attributed the increase to official government inflows.
The reserves held by commercial banks eased by $17 million to $7.137 billion by week ended November 20, 2020 as against $7.154 billion a week ago.
KARACHI: The Pak Rupee ended firmer against the dollar on Thursday as inflows were sufficient to meet the demand for import and corporate payments.
The rupee ended Rs159.26 to the dollar from previous day’s closing of Rs159.27 in the interbank foreign exchange market.
Currency dealers said that the supply of the foreign currency was sufficient to meet the demand for import and corporate payments.
KARACHI: The Pak Rupee gained another 82 paisas against dollar on Wednesday owing to ease in demand for import payment and improved economic indicators.
The rupee ended Rs159.27 to the dollar from previous day’s closing of Rs160.09 in interbank foreign exchange market.
Currency dealers said that due to second phase of covid pandemic globally and subsequent lockdowns discouraged importers to place new orders.
Further the improved foreign exchange reserves and current account surplus also supported the rupee to make gain.
The local currency recovered Rs1.72 against dollar during past three trading days.