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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.

  • 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.

  • Rupee gains 19 paisas against dollar

    Rupee gains 19 paisas against dollar

    The Pakistani Rupee gained 19 paisas against the US Dollar on Monday, closing at Rs164.32 compared to the previous closing rate of Rs164.51 on October 2, 2020, in the interbank foreign exchange market. This appreciation is attributed to reduced demand for import payments, market dealers reported.

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  • Rupee gains 49 paisas against dollar on inflows of export receipts, remittances

    Rupee gains 49 paisas against dollar on inflows of export receipts, remittances

    KARACHI: The Pak Rupee gained 49 paisas against dollar on Friday owing to improved inflows of workers’ remittances, dealers said.

    The rupee ended Rs164.51 to the dollar from previous day’s closing of Rs165.00 in interbank foreign exchange market.

    Currency experts said that during the day the market had witnessed supply from banks in the shape of export receipts and workers’ remittances.

    They said that during the week the positive sentiments and improved inflows helped the local units to make gain.

    The local currency gained around Rs1.28 against the dollar during the week. The experts said that the rupee had support from inflows besides surplus current account and reduction in trade deficit.

  • SBP softens quarantine for banknotes processed through certified machines

    SBP softens quarantine for banknotes processed through certified machines

    KARACHI: State Bank of Pakistan (SBP) on Friday relaxed the condition for banks of ensuring 14-day quarantine period for those banknotes processed through machines certified by Pakistan Council of Scientific and Industrial Research (PCSIR).

    The SBP said that it had imposed a condition on May 04, 2020 under which banks were advised to quarantine cash collected from the public for fourteen (14) days before re-issuing the same.

    The SBP further said that the 14- day quarantine for banknotes was introduced in line with the international practices and World Health Organization (WHO) guidelines.

    In view of availability of a number of banknote disinfection machines and technologies, it has been decided that the banks shall have the option to either continue with the fourteen (14) days quarantine requirements or process banknotes through Pakistan Council of Scientific and Industrial Research (PCSIR) certified machines in lieu of the fourteen (14) days quarantine.

    The banks procuring such machines shall ensure that the PCSIR certificate specifically mentions the capacity of the machine to disinfect Bacteria and Viruses including the SARS-CoV-2 that causes COVID-19.

  • Rupee gains 70 paisas against dollar

    Rupee gains 70 paisas against dollar

    KARACHI: The Pak Rupee gained 70 paisas against dollar on Thursday owing to inflows of export receipts and workers’ remittances, dealers said.

    The rupee ended Rs165.00 to the dollar from previous day’s closing of Rs165.70 in interbank foreign exchange market.

    Currency dealers said that the inflows of export receipts and workers’ remittances had supported the rupee to make gain.

    On the other hand, the demand for the greenback was eased after the quarter end (July – September), which also supported the rupee.

    The currency experts said that the rupee may strengthen further in coming days owing to positive economic indicators.