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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.

  • FOREIGN CURRENCY ACCOUNTS: SBP says new regulations to strengthen forex regime

    FOREIGN CURRENCY ACCOUNTS: SBP says new regulations to strengthen forex regime

    KARACHI: State Bank of Pakistan (SBP) has said that recently issued regulations related to foreign currency account have been aimed to strengthen the foreign exchange regime in the country.

    “The recently issued rules aim to provide a regulatory framework for the operation of individual foreign currency accounts,” the SBP said in a statement issued on Saturday-Sunday midnight.

    Such a framework represents a continuation of the State Bank of Pakistan’s efforts to strengthen the foreign exchange regime and make it more market-oriented.

    Looking ahead, SBP will continue to take steps to facilitate greater use of banking channels for individuals to meet all their foreign exchange needs.

    The SBP said that on October 06, 2020, the Federal Government issued Foreign Currency Accounts Rules, 2020 under the provisions of Protection of Economic Reforms Act, 1992.

    There has been no change in the general or special permissions given by the State Bank to individuals under the foreign exchange regulations. According to paragraph iv, Chapter 6 of the Foreign Exchange Manual, foreign currency accounts can be fed by remittances received from abroad, travelers’ cheques issued outside Pakistan and encashment of securities issued by Govt. of Pakistan.

    A foreign currency account of a citizen of Pakistan resident in Pakistan can also be fed with cash foreign currency only if the account holder is a filer as defined in Income Tax Ordinance, 2001.

  • No restriction on withdrawal, transfers from foreign currency accounts: ministry

    No restriction on withdrawal, transfers from foreign currency accounts: ministry

    ISLAMABAD: The ministry of finance on Friday issued rules governing foreign currency accounts of individuals under which there shall be no restriction on cash withdrawal or transfers from the foreign currency account.

    The ministry issues rules governing foreign currency accounts of individuals, under which a foreign currency account of an individual may be credited with the remittances received from abroad through banking channel except:

    — payment for goods exported from Pakistan;

    — payment for services rendered in or from Pakistan;

    — proceeds of securities issued or sold to non-residents; and

    — any foreign exchange borrowed from abroad under any general or special permission of the State Bank of Pakistan (SBP).

    It said that the SBP may issue any general or special permission for credit to the account.

    The rules however, stated that a foreign currency account may be credited through transfer from other individual foreign currency account.

    “Proceeds realized on account of profit, return and principal amount of investment made in any foreign currency dominated or foreign currency linked scheme of Government of Pakistan may be credited into the account,” it said.

    A foreign currency account shall not be credited with any foreign exchange purchased from an authorized dealer, exchange company or money changer except as allowed by the SBP through general or special permission under any law. However, foreign currency brought in from abroad and duly declared at the point of entry into Pakistan with Pakistan Customs may be credited in the account.

    The rules explained that there shall be no restriction on cash withdrawal or transfers from the foreign currency account.

  • Rupee falls 12 paisas on dollar demand for import payment

    Rupee falls 12 paisas on dollar demand for import payment

    The Pakistani rupee experienced a slight decline against the US dollar on Friday, falling by 12 paisas due to increased demand for import and corporate payments. The rupee closed at Rs163.84 to the dollar in the interbank foreign exchange market, down from the previous day’s closing of Rs163.72.

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  • Rupee gains 25 paisas against dollar

    Rupee gains 25 paisas against dollar

    KARACHI: The Pak Rupee gained 25 paisas against the dollar on Thursday owing to improved economic indicators, dealers said.

    The rupee ended Rs163.72 to the dollar from previous day’s closing of Rs163.97 in interbank foreign exchange market.

    The currency dealers said that the due to lower demand for import and corporate payments and sufficient inflows of export receipts and workers remittances the rupee gained the value.

    They said that the sentiments were remained positive in the market due to escalating economic activities.

    The experts said that the exports registered 18.24 percent growth to $1.873 billion during September 2020 as compared with $1.58 billion in August 2020.

    They hoped that present positivity in the market would help the local unit to make gain further against the greenback.

  • SBP allows banks to outsource cash management function

    SBP allows banks to outsource cash management function

    KARACHI: State Bank of Pakistan (SBP) on Thursday allowed banks to outsource their case processing functions in order to provide more flexibility.

    The SBP said that through Circular No. 03 /2015 dated August 26, 2015, under which the banks required to automate cash processing function and disburse only machine authenticated good quality banknotes of higher denomination to the public.

    Presently all banks are issuing machine processed banknotes (Rs100 and above) to the public.

    The SBP said that the Cash Management System (CMS) has given flexibility to banks to either have their own cash processing facilities or make arrangements with other banks having the required capacity to get their cash processed.

    The outsourcing of processing of higher denominated banknotes was, however, kept restricted to other banks only having the requisite capacity as CMS did not allow outsourcing of this function to commercial cash processing companies.

    In order to further enhance the flexibility for banks to get their cash processed and encourage greater innovation and development of cost effective models for cash processing, it has been decided to allow banks to outsource their cash processing functions.

    “The banks may thus outsource their cash processing functions (sorting, authentication, and packing) for all denominations of banknotes to such cash processing companies having capacity to process the cash in full conformity with the CMS instruction.”

    Banks shall ensure that the cash processing company (service provider), if any engaged, operates in full conformity with the CMS instructions issued vide FD Circulars No. 03 /2015 dated August 26, 2015 and No. 02 / 2017 dated March 10, 2017 as amended from time to time.

    It is reiterated that compliance with the CMS instructions is the responsibility of banks outsourcing cash processing and any non-compliance of instruction by the service provider shall, for all intents and purposes be treated as non-compliance by the concerned bank, making the bank liable to penal action under the CMS.

    Banks shall contractually bind the service provider that SBP may conduct surprise visits of its CPCs, to assess the control environment and regulatory compliance regarding CMS.

    The Banks while engaging the service provider shall ensure compliance with SBP instructions on outsourcing arrangement with third parties, as issued vide BPRD Circular No. 6 of 2019 dated December 17, 2019, as amended from time to time.

    The Banks shall report all such arrangements to Finance Department SBP along with details of branches and ATMs to be fed through the outsourced service providers within seven (7) days of signing of contract with the service provider. The Banks shall also share the address(es) of the cash processing centers of the service provider and contact details of the CEOs and other senior management for SBP’s information and record.

  • Dollar weakens to Rs163.97

    Dollar weakens to Rs163.97

    KARACHI: The US dollar on Wednesday weakened against the Pak Rupee to Rs163.97 as sufficient supply was seen in the currency market.

    The rupee gained six paisas to close at Rs163.97 to the dollar from previous day’s closing of Rs164.03 in interbank foreign exchange market.

    Currency experts said that the market witnessed sufficient supply of the foreign currency to meet demand for import and corporate payments.

    They said that the sentiments were remained positive in the market due to escalating economic activities.

    The experts said that the exports registered 18.24 percent growth to $1.873 billion during September 2020 as compared with $1.58 billion in August 2020.

    They hoped that present positivity in the market would help the local unit to make gain further against the greenback.

  • SBP issues carrot, stick policy for banks on housing loan targets

    SBP issues carrot, stick policy for banks on housing loan targets

    KARACHI: The State Bank of Pakistan (SBP) has adopted a policy of carrot and stick for banks related to mandatory targets for housing/construction financing.

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  • Rupee strengthens by 29 paisas against dollar

    Rupee strengthens by 29 paisas against dollar

    KARACHI: The Pak Rupee strengthened by 29 paisas against dollar on Tuesday owing to improved inflows of export receipts and workers’ remittances.

    The rupee ended at Rs164.03 to the dollar from previous day’s closing of Rs164.32 in interbank foreign exchange market.

    Currency experts said that the market witnessed sufficient supply of the foreign currency to meet demand for import and corporate payments.

    They said that the sentiments were remained positive in the market due to escalating economic activities.

    The experts said that the exports registered 18.24 percent growth to $1.873 billion during September 2020 as compared with $1.58 billion in August 2020.

    They hoped that present positivity in the market would help the local unit to make gain further against the greenback.

  • Meezan Bank honored with many titles at CFA Awards

    Meezan Bank honored with many titles at CFA Awards

    KARACHI: Meezan Bank has been awarded with many titles by the CFA Society of Pakistan, a member society of the CFA Institute, USA at its 17th Annual Excellence Awards ceremony held on October 2, 2020.

    A statement issued on Monday said that the bank had been declared as the ‘Best Bank of the Year’ and ‘Best Islamic Bank of the Year’ – 2019.

    The Bank has also been recognized as the ‘Corporate Finance House of the Year – Debt’ in recognition of its investment banking performance, providing ground-breaking tailored solutions and advisory services to blue chip corporate clients.

    Irfan Siddiqui – President and CEO, Meezan Bank and Ariful Islam – Deputy CEO, Meezan Bank received the awards from Dr. Reza Baqir – Governor, State Bank of Pakistan who graced the occasion as the Chief Guest.

    This is the first time that CFA Society of Pakistan has recognized Meezan Bank on an overall industry basis as the ‘Best Bank of the Year’, competing with some of the largest local and conventional players. The Bank has previously been recognized multiple times by the organization for its excellence in providing Islamic financial services to meet the needs of its diverse set of clients.

    As a pioneer of Islamic banking in Pakistan, Meezan Bank leads the Islamic finance industry, reaching a broad customer base with competitive, Shariah-compliant products and services.

    Commenting on the win, Irfan Siddiqui – President & CEO, Meezan Bank said, “We are honored to receive these awards from the CFA Society of Pakistan. This notable recognition reflects our commitment towards Shariah-compliant banking and the continuous effort and commitment that we have invested in over the years to strengthen our offering.