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.
The Pakistani Rupee demonstrated resilience in the foreign exchange market on Wednesday, making a noteworthy advancement of 04 paisas against the US Dollar.
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KARACHI: MCB Bank on Wednesday announced an impressive 21 percent increase in net profit for the year ending December 31, 2020, primarily driven by remarkable growth in gains on securities.
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KARACHI: The lending of commercial banks to private sector has surged by 62 percent in the first seven months (July – January) 2020/2021 owing to accelerated economic activities following reduction in coronavirus cases.
The private sector borrowing increased to Rs283.45 billion during the first seven months of the current fiscal year as compared with Rs175 billion in the corresponding months of the last fiscal year, according to data released on Tuesday.
Industry sources said that due to fall in coronavirus cases and availability of vaccine had helped to boost industrial and commercial activities.
The lending to private sector by branches of conventional banks registered phenomenal growth of 98 percent to Rs152 billion during the first seven months of the current fiscal year as compared with Rs76.7 billion in the corresponding months of the last fiscal year.
The private sector borrowing from Islamic banks increased to Rs57.3 billion during the period under review as compared with Rs20.2 billion in the corresponding period of the last fiscal year.
The Islamic banking branches of conventional banks extended loan facilities to private sector to the tune of Rs74.46 billion during July – January 2020/2021, which fell from Rs78 billion in the same period of the last fiscal year.
KARACHI: The government borrowing from commercial banks has sharply increased by 26 percent during first seven months of the current fiscal year mainly due to financing the ballooning budget deficit.
The government borrowing from commercial banks increased to Rs906.54 billion during first seven months (July – January) of 2020/2021 as compared with Rs720.68 billion in the corresponding period of the last fiscal year, according to statistics released by the State Bank of Pakistan (SBP) on Tuesday.
The federal government borrows from scheduled banks through fortnightly auctioning of Market Treasury Bills (MTBs) of 3-, 6- and 12-month maturities. The federal also borrows long-term by quarterly auctioning of Pakistan Investment Bonds (PIBs)/Sukuk of 3, 5, 10, 15, 20 and 30 years maturities.
The budget deficit for the first half of the current fiscal year widened to 2.5 percent of the GDP as the budget deficit was 2.3 percent in the same half of the last fiscal year, according to fiscal operation for first half of the fiscal year 2020/2021 issued by the finance ministry.
The government financed the budget deficit with the domestic borrowing to the tune of Rs683.48 billion during the first half of the current fiscal year. Likewise, the government borrowing was Rs481.13 billion in the same half of the last fiscal year.
Since there is restriction of borrowing from State Bank of Pakistan (SBP) the government is heavily dependent on commercial banks. During the period the government retired borrowing from SBP to the tune of Rs317.7 billion as against the retirement of Rs266 billion in the same period of the last fiscal year.
KARACHI: The Pak Rupee appreciated by 21 paisas against the dollar on Tuesday as positive sentiments prevailed after inflows of export receipts.
The rupee ended Rs159.35 to the dollar from previous day’s close of Rs159.56 in the interbank foreign exchange market.
Currency experts said that better exports had supported the local currency.
Pakistan’s exports have crossed over $2 billion for the fourth consecutive months in January 2021 for the first time in last eight years, a official statement said.
KARACHI: A withdrawal of Rs790 billion has been seen from the banking system during January 2021 owing to higher demand following acceleration in the economy on ease in coronavirus related restrictions, experts said.
(more…)KARACHI: The Pak Rupee gained 43 paisas against the dollar on Monday owing to record export receipts during the last four months.
The rupee ended Rs159.56 to the dollar from last Thursday’s closing of Rs159.99 in the interbank foreign exchange market.
It is interesting to note that the rupee made gains despite closure of the market for the last three days as last Friday February 05, 2021 was declared as Kashmir Solidarity Day.
Pakistan’s exports have crossed over $2 billion for the fourth consecutive months in January 2021 for the first time in last eight years, a official statement said.
KARACHI: The Pak Rupee gained 19 paisas against the dollar on Thursday despite the higher demand for dollar ahead of holidays.
The rupee ended Rs159.99 to the dollar from the previous day’s closing of Rs160.18 in the interbank foreign exchange market.
Currency dealers said that the market witnessed sufficient supply of the foreign currency in the shape of export receipts and workers’ remittances.
They said the demand for import and corporate payments was also high because of upcoming three straight holidays.
The government has announced public holiday on Friday February 05, 2021 on account of Kashmir Solidarity Day. It will follow with two weekly holidays, making three straight holidays.
KARACHI: Bank Alfalah Limited on Wednesday declared 18 percent decline in its annual net profit for year ended December 31, 2020 despite healthy growth in gain on securities.
The after tax profit of the bank fell to Rs10.47 billion for the year 2020 as compared with Rs12.69 billion in the preceding year.
The net mark-up and interest income was remained flat at Rs44.7 billion for the year under review as compared with Rs44.89 billion a year ago.
The posted growth in non-markup/interest income to Rs12.79 billion for the year 2020 as compared with Rs10.35 billion in the preceding year. Under this head, the gain on securities sharply increased to Rs2.28 billion as compared with Rs64.79 million.
The bank paid Rs7.4 billion as tax for the year as compared with Rs9.68 billion paid tax liability in the preceding year.
The earnings per share of the bank fell to Rs5.89 from last year’s Rs7.15.
Final cash dividend for the year ended December 31, 2020 has been announced at Rs2 percent share i.e. 20 percent. This is in addition to the interim cash dividend already paid at Rs2 per share i.e. 20 percent.
KARACHI: The Pak Rupee ended down by two paisas against the dollar on Wednesday owing to escalating demand for the foreign currency for import and corporate payments.
The rupee ended Rs160.18 to the dollar from the previous day’s closing of Rs160.16 in the interbank foreign exchange market.
Currency dealers said that the market witnessed higher demand of the foreign currency for import and corporate payments ahead of long week-end holidays.
The government has announced a public holiday on February 05 (Friday) to mark Kashmir solidarity day. It will be along with two weekly holidays ahead making three holidays.
The dealers remained optimistic that the rupee would regain the values in coming days owing to lower growth in headline inflation and improved exports numbers.
The growth in headline inflation contracted by 5.7 percent on a year on year basis in January 2021 as compared to an increase of 8.0 percent in the previous month and 14.6 percent in January2020.
On a month-on-month basis, it decreased by 0.2 percent in January 2021 as compared to a decrease of 0.7 percent in the previous month and an increase of 2.0 percent in January 2020.