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: Banks will remain closed on May 01, 2020 on the occasion of Labour Day as declared holiday by the government.
State Bank of Pakistan (SBP) on Tuesday issued a circular informing the presidents and chief executives of all banks, development financial institutions and microfinance banks that the central bank will remain closed on May 01, 2020 (Friday) on the occasion of Labour Day as declared by the government.
KARACHI: The Pak Rupee ended down by Rs1.17 against dollar on Tuesday as the local currency was seen under pressure on import payment demand.
The rupee ended at Rs161.65 to the dollar from last trading day on April 24, 2020 at Rs160.48 in interbank foreign exchange market.
The currency dealers said that the market was opened after three days including two weekly holidays and Zakat deduction on April 27, 2020,
The prolong holidays enhanced the demand for dollar for import and corporate payments.
They said that local currency would gain in coming trading days due to fall in international oil prices and improved external accounts.
They said that that improved foreign direct investment and shrinking current account deficit helped the local currency to make gain.
The inflow of Foreign Direct Investment (FDI) into Pakistan has witnessed sharp growth of 137 percent during first nine months (July – March) 2019-2020.
The FDI increased to $2.15 billion during first nine months of current fiscal year as compared with $905 million in the corresponding period of the last fiscal year.
Current account deficit (CAD) has contracted by 73 percent during first nine months (July – March) 2019/2020 due to significant decline in import bill.
The current account deficit fell to $2.77 billion during first nine months of current fiscal year as compared with $10.28 billion in the corresponding period of the last fiscal year.
KARACHI: Banks to remain closed for public dealing on Monday due to deduction of Zakat.
The State Bank of Pakistan (SBP) in a statement said that it will remain closed for public dealing on Monday, April 27, 2020, which shall be observed as “Bank Holiday” for the purpose of deduction of Zakat.
All banks / DFIs / MFBs shall, therefore, remain closed for public dealing on Monday, April 27, 2020.
However, all employees of the banks / DFIs / MFBs will attend to their official assignments (in-office or work-from-home, as designated under the current COVID-19 situation) on Bank Holiday treating it as a normal working day (except for public dealing).
KARACHI: State Bank of Pakistan (SBP) on Friday advised banks, microfinance banks and development financial institutions (DFIs) to register their security interest under secured transaction laws.
The SBP in a circular said that with a view to provide for registration of charge on security/collateral offered by un-incorporated entities including sole proprietorships and partnerships and thereby enhancing their access to finance, The Financial Institutions (Secured Transactions) Act, 2016 (STA) was promulgated on July 1, 2016.
The government has authorized the Securities and Exchange Commission of Pakistan (SECP) to operate Secured Transactions Registry (STR) to record statements in relation to security interests created by entities under STA. SECP is going to launch the Secured Transactions Registry (STR) under the STA on April 27, 2020 for registration of security interests on movable assets of entities, other than companies.
In view of the above, all the banks, microfinance banks and DFIs are advised to register their security interests against movable assets of entities for future as well as prior security interests (i.e. security interests created before the operationalization of the STR as provided under section 73 of the STA) in the STR.
The security interest has been defined as: “a right, title, encumbrance or interest of any kind upon movable property created or provided for by a security agreement in relation to a transaction that in substance secures the payment or performance of a customer’s obligation under a finance without regard to the form of the transaction or the terminology used by the parties or the identity of the person who title to the movable property, and includes any charge, mortgage, hypothecation, fixed charge, floating charge, assignment, lien, pledge, assignment of receivable by way of security and transactions under which a secured creditor retains title such as a finance lease, hire purchase agreement, sale and lease back arrangement, conditional sale agreement and retention of title arrangement, having similar effect.”
KARACHI: The Pak Rupee recorded 50 paisas decline against dollar on Friday after maintaining appreciation for four straight days.
The rupee ended Rs160.48 to the dollar from previous day’s closing of Rs159.98 in interbank foreign exchange market.
The rupee eased against dollar this week for the first time. The rupee started the week with gain to Rs163.49 on April 20, 2020 from Rs163.58 on Friday April 17, 2020.
Currency experts said that the rupee fell due to advance buying on the back of weekly holidays and closure of banks’ public dealing on April 27 due to deduction of Zakat.
They said that local currency would gain in coming trading days due to fall in international oil prices and improved external accounts.
They said that that improved foreign direct investment and shrinking current account deficit helped the local currency to make gain.
The inflow of Foreign Direct Investment (FDI) into Pakistan has witnessed sharp growth of 137 percent during first nine months (July – March) 2019-2020.
The FDI increased to $2.15 billion during first nine months of current fiscal year as compared with $905 million in the corresponding period of the last fiscal year.
Current account deficit (CAD) has contracted by 73 percent during first nine months (July – March) 2019/2020 due to significant decline in import bill.
The current account deficit fell to $2.77 billion during first nine months of current fiscal year as compared with $10.28 billion in the corresponding period of the last fiscal year.
KARACHI: State Bank of Pakistan (SBP) on Friday announced timings for public dealing by banks during the holy month of Ramazan ul Mubarak.
| Days | Business (Banking) Hours for Public Dealing |
| Monday to Thursday | 10:00 a.m. to 1:30 p.m. (without break) |
| Friday | 10:00 a.m. to 1:00 p.m. (without break) |
The SBP said that in modification of BPRD Circular Letter No.18 dated April 14, 2020 regarding office timings under measures against COVID-19, it has been decided that SBP will continue to observe the following office hours during the month of Ramazan-ul-Mubarak 1441 A.H., which will also be followed by all banks / DFIs / MFBs:
| Days | Office Hours |
| Monday to Thursday | 10:00 a.m. to 4:00 p.m. (with prayer break from 2:00 p.m. to 2:15 p.m.) |
| Friday | 10:00 a.m. to 1:00 p.m. (without break) |
KARACHI: State Bank of Pakistan (SBP) on Friday announced that banks will remain closed for public dealing for the purpose of deduction of Zakat.
The central bank said that it will remain closed for public dealing on Monday, April 27, 2020, which shall be observed as “Bank Holiday” for the purpose of deduction of Zakat.
All banks / DFIs / MFBs shall, therefore, remain closed for public dealing on Monday, April 27, 2020.
However, all employees of the banks / DFIs / MFBs will attend to their official assignments (in-office or work-from-home, as designated under the current COVID-19 situation) on Bank Holiday treating it as a normal working day (except for public dealing).
The State Bank of Pakistan (SBP) has issued comprehensive guidelines to help Islamic Banking Institutions (IBIs) mitigate the economic impact of COVID-19 on their customers.
(more…)KARACHI: The Pak Rupee further appreciated by 38 paisas against dollar on Thursday owing to improved external account.
The rupee ended Rs159.98 to the dollar from previous day’s closing of Rs161.36 in interbank foreign exchange market.
Currency dealers said that that improved foreign direct investment and shrinking current account deficit helped the local currency to make gain.
The inflow of Foreign Direct Investment (FDI) into Pakistan has witnessed sharp growth of 137 percent during first nine months (July – March) 2019-2020.
The FDI increased to $2.15 billion during first nine months of current fiscal year as compared with $905 million in the corresponding period of the last fiscal year.
Current account deficit (CAD) has contracted by 73 percent during first nine months (July – March) 2019/2020 due to significant decline in import bill.
The current account deficit fell to $2.77 billion during first nine months of current fiscal year as compared with $10.28 billion in the corresponding period of the last fiscal year.
KARACHI: State Bank of Pakistan (SBP) has allowed banks to suspend distribution of dividends for two quarters as financial institutions may face loan infection amid COVID-19.
The central bank in a statement on Wednesday said that the banks/DFIs in Pakistan have much higher capital levels than prescribed globally or minimum levels advised by the SBP.
Accordingly, SBP sees no immediate signs of systemic capital fragility across the banking industry. “However, banks/DFIs have been advised to suspend the dividend distribution for the next two quarters.”
The banks/DFIs that have approved dividend declaration for quarter ended March 2020 by 22nd April 2020 have been advised to suspend dividend distribution for June and September quarters 2020.
“All other banks have been advised to suspend dividend distribution for March and June 2020 quarters.”
“This important decision has been taken keeping in view uncertainty arising out of COVID 19 pandemic and probability of higher infections in loan portfolios of banks as a result of that,” the SBP said.
This measure will also enhance loss absorption capacity of the banking system and will enable them to further support the real sector in Pakistan.
Notably, while releasing prescribed capital buffers and taking other regulatory relief measures, a number of other jurisdictions across the globe have also placed moratorium on dividend distribution and payment of cash bonuses to senior/executive officers and material risk takers.
The SBP is confident that the suspension of dividend payout will further increase the resilience of banking sector and improve their ability to provide much needed credit support to the real economy.
SBP will keep on closely monitoring the performance of banks/DFIs under its regulatory domain and take appropriate action as needed to ensure safety and soundness of individual banks/DFIs and the overall banking system.
The central bank in a statement on Wednesday said that amid the growing concerns of COVID – 19 pandemic, the SBP, thus far, announced a number of regulatory relief measures for the financial sector and real economy.
These measures are primarily aimed at ensuring the safety and soundness of banking sector while enhancing their lending capacity to support the economic activities in the country.