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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.

  • Rupee ends firmer against dollar

    Rupee ends firmer against dollar

    KARACHI: The Pak Rupee ended firmer against dollar on Thursday as sufficient inflows of the foreign currency were available to meet import payment demand.

    The rupee ended Rs167.62 to the dollar from previous day’s closing f Rs167.63 in interbank foreign exchange market.

    Currency experts said that after ease in lockdown which resulted in improved economic activities the demand for foreign currency was increased especially for the import payment.

    They however said that the inflows in terms of remittances and export receipts helped the rupee to maintain levels.

    The workers’ remittances rose by a significant 50.7 percent during June 2020 to reach monthly record high $2.46 billion compared with $1.63 billion in June 2019.

    Similarly, on a cumulative basis, workers’ remittances increased to a historic high level of $23.12 billion during FY20, witnessing a growth of 6.4 percent over $21.74 billion during FY19.

    According to Pakistan Bureau of Statistics (PBS) the import bill of the country fell by 18.6 percent to $44.57 billion as compared with $54.76 billion in the preceding fiscal year.

    This helped the country to curtail the trade deficit for the year. The trade deficit of the country shrank by 27 percent to $23.18 billion during fiscal year 2019/2020 as compared with the deficit of $31.8 billion in the preceding fiscal year.

  • SBP enhances financing limit to Rs2 billion for renewable energy schemes

    SBP enhances financing limit to Rs2 billion for renewable energy schemes

    KARACHI: The State Bank of Pakistan (SBP) has increased cumulative financing limit to Rs2 billion and also enhanced project size to 5MW.

    According to a statement issued on Wednesday, the central bank said it had enhanced the scope of its Refinance Scheme for Renewable Energy by allowing financing under category III of the scheme to solar and wind based energy sale companies.

    In light of the feedback received from stakeholders, the size of the project established by vendor/ supplier/ energy sale company has been enhanced from 1 MW to 5 MW. Accordingly, the cumulative financing limit has also been increased from Rs.1 billion to Rs.2 billion.

    SBP Financing Scheme for Renewable Energy was announced in June 2016with an aim to help addressing the challenges of energy shortages and climate change in the country.

    The scheme comprised of two categories: Category 1 allowed financing for setting up of renewable energy power projects with capacity ranging from 1 MW to 50 MW for own use or selling of electricity to the national grid or combination of both.

    Category II allowed financing to domestic, agriculture, commercial and industrial borrowers for installation of renewable energy based projects/ solutions of up-to 1 MW to generate electricity for own use or selling to the grid/distribution company under net metering.

    Later, in July 2019, SBP introduced a new Category III for facilitating financing to vendors/suppliers for installation of wind and solar systems/solutions of upto 1 MW. SBP also launched a Shariah complaint version of the scheme in August 2019.

    Since the introduction of the scheme, total outstanding financing under the Scheme has reached to Rs.15.6 billion for 217 projects having potential of adding 292 MW of energy supply.

    This revision in the scheme is expected to not only attract fresh local and foreign investment in the sector but also facilitate production of clean energy in the country, helping in managing climate change.

  • Rupee gains 27 paisas against dollar on improved inflows

    Rupee gains 27 paisas against dollar on improved inflows

    KARACHI: The Pak Rupee gained 27 paisas against dollar on Wednesday owing to improved inflows of export receipts and remittances.

    The rupee ended Rs167.63 to the dollar from previous day’s closing of Rs167.90 in interbank foreign exchange market.

    Currency experts said that improved inflows of export receipts and remittances helped the rupee to gain the value.

    The workers’ remittances rose by a significant 50.7 percent during June 2020 to reach monthly record high $2.46 billion compared with $1.63 billion in June 2019.

    Similarly, on a cumulative basis, workers’ remittances increased to a historic high level of $23.12 billion during FY20, witnessing a growth of 6.4 percent over $21.74 billion during FY19.

    According to Pakistan Bureau of Statistics (PBS) the import bill of the country fell by 18.6 percent to $44.57 billion as compared with $54.76 billion in the preceding fiscal year.

    This helped the country to curtail the trade deficit for the year. The trade deficit of the country shrank by 27 percent to $23.18 billion during fiscal year 2019/2020 as compared with the deficit of $31.8 billion in the preceding fiscal year.

  • Rupee recovers 40 paisas against dollar on shrinking CAD

    Rupee recovers 40 paisas against dollar on shrinking CAD

    KARACHI: The Pak Rupee recovered 40 paisas against dollar on Tuesday owing to significant reduction in current account deficit (CAD) and lower demand for import payments.

    The rupee ended Rs167.90 to the dollar from previous day’s closing of Rs168.30 in interbank foreign exchange market.

    Currency experts said that sharp contraction in annual current account deficit reported by State Bank of Pakistan (SBP) helped the rupee to recover.

    Further the lower import payment demand also helped the rupee to appreciate value.

    On the other hand workers’ remittances rose by a significant 50.7 percent during June 2020 to reach monthly record high $2.46 billion compared with $1.63 billion in June 2019.

    Similarly, on a cumulative basis, workers’ remittances increased to a historic high level of $23.12 billion during FY20, witnessing a growth of 6.4 percent over $21.74 billion during FY19.

    According to Pakistan Bureau of Statistics (PBS) the import bill of the country fell by 18.6 percent to $44.57 billion as compared with $54.76 billion in the preceding fiscal year.

    This helped the country to curtail the trade deficit for the year. The trade deficit of the country shrank by 27 percent to $23.18 billion during fiscal year 2019/2020 as compared with the deficit of $31.8 billion in the preceding fiscal year.

  • Rupee weakens by 97 paisas on import payment demand

    Rupee weakens by 97 paisas on import payment demand

    KARACHI: The Pak Rupee weakened by 97 paisas to the dollar on Monday owing to higher demand for import and corporate payments.

    The rupee ended Rs168.30 to the dollar from last Friday’s closing of 167.33 in interbank foreign exchange market.

    Currency experts said that the due to first working day of the week the demand for greenback was remained higher. They said that the due to global economic slowdown owing to coronavirus the inflows of worker remittances and exports receipts were also reduced.

    They, however, believed that the local currency may rebound in coming days owing to sufficient inflows.

    State Bank of Pakistan (SBP) has said that the workers’ remittances rose by a significant 50.7 percent during June 2020 to reach monthly record high $2.46 billion compared with $1.63 billion in June 2019.

    Similarly, on a cumulative basis, workers’ remittances increased to a historic high level of $23.12 billion during FY20, witnessing a growth of 6.4 percent over $21.74 billion during FY19.

    According to Pakistan Bureau of Statistics (PBS) the import bill of the country fell by 18.6 percent to $44.57 billion as compared with $54.76 billion in the preceding fiscal year.

    This helped the country to curtail the trade deficit for the year. The trade deficit of the country shrank by 27 percent to $23.18 billion during fiscal year 2019/2020 as compared with the deficit of $31.8 billion in the preceding fiscal year.

  • Rupee depreciates by 33 paisas on growing demand for imports

    Rupee depreciates by 33 paisas on growing demand for imports

    KARACHI: The Pak Rupee depreciated by another 33 paisas against dollar on Friday owing to rising demand of the foreign currency for import payments.

    The rupee ended Rs167.33 to the dollar from previous day’s closing of Rs167.00 in interbank foreign exchange market.

    Currency experts said that due to economic normalcy return after ease in lockdown the domestic demand for imported goods had increased.

    They further said that due to weekly holidays ahead also escalated the demand for the foreign currency.

    The local unit fell by around 70 paisas during the outgoing week.

    The experts believed that the rupee would rebound in coming days owing to sufficient inflows.

    State Bank of Pakistan (SBP) has said that the workers’ remittances rose by a significant 50.7 percent during June 2020 to reach monthly record high $2.46 billion compared with $1.63 billion in June 2019.

    Similarly, on a cumulative basis, workers’ remittances increased to a historic high level of $23.12 billion during FY20, witnessing a growth of 6.4 percent over $21.74 billion during FY19.

    According to Pakistan Bureau of Statistics (PBS) the import bill of the country fell by 18.6 percent to $44.57 billion as compared with $54.76 billion in the preceding fiscal year.

    This helped the country to curtail the trade deficit for the year. The trade deficit of the country shrank by 27 percent to $23.18 billion during fiscal year 2019/2020 as compared with the deficit of $31.8 billion in the preceding fiscal year.

  • Rupee weakens by 33 paisas on import payment demand

    Rupee weakens by 33 paisas on import payment demand

    KARACHI: The Pak Rupee weakened by 33 paisas against dollar on Thursday owing to rising demand of the foreign currency for import payments.

    The rupee ended Rs167 to the dollar from previous day’s closing of Rs166.67 in interbank foreign exchange market.

    Currency experts said that due to economic normalcy return after ease in lockdown the domestic demand for imported goods had increased.

    The experts believed that the rupee would rebound in coming days owing to sufficient inflows.

    State Bank of Pakistan (SBP) has said that the workers’ remittances rose by a significant 50.7 percent during June 2020 to reach monthly record high $2.46 billion compared with $1.63 billion in June 2019.

    Similarly, on a cumulative basis, workers’ remittances increased to a historic high level of $23.12 billion during FY20, witnessing a growth of 6.4 percent over $21.74 billion during FY19.

    According to Pakistan Bureau of Statistics (PBS) the import bill of the country fell by 18.6 percent to $44.57 billion as compared with $54.76 billion in the preceding fiscal year.

    This helped the country to curtail the trade deficit for the year. The trade deficit of the country shrank by 27 percent to $23.18 billion during fiscal year 2019/2020 as compared with the deficit of $31.8 billion in the preceding fiscal year.

  • SBP fixes mandatory housing loan targets for banks

    SBP fixes mandatory housing loan targets for banks

    KARACHI: State Bank of Pakistan (SBP) on Wednesday fixed mandatory targets of housing loan disbursement for banks in order to promote housing and construction of buildings in the country.

    The central bank in a notification said that with a view to promote housing and construction of buildings (Residential and Non-Residential) in Pakistan, the SBP decided to advise mandatory targets to the banks.

    “Accordingly, each bank shall ensure that the financing for housing and construction of buildings (Residential and Non-Residential) shall be at least 5 percent of their domestic private sector credit by December, 2021,” the notification stated.

    The banks are advised to gear up their infrastructure and capacity to ensure compliance of meeting these targets.

    Accordingly, each bank is required to develop a concrete action plan with detailed measures and their timelines to achieve its housing and construction finance targets.

    This action plan should contain breakdown of overall targets into quarterly targets, development of suitable products, launching of media campaigns, development of internal technology, capacity building of staff, and other actions needed to ensure the 5 percent target is met.

    The SBP directed the banks to submit their concrete action plans to this department within 15 working days.

    Banks will be required to report data of approvals and disbursements against these targets on monthly basis starting from September 2020.

    The central bank said that it will keep a close monitoring of progress on the mandatory targets. Non-compliance in meeting the targets shall attract punitive action under the relevant provisions of the Banking Companies Ordinance, 1962.

  • Rupee ends firmer on improved inflows

    Rupee ends firmer on improved inflows

    KARACHI: The Pak Rupee ended firmer against dollar on Wednesday as stock of foreign currency was sufficient to meet import payment demand.

    The rupee ended Rs166.67 to the dollar from the previous day’s close of Rs166.68 in interbank foreign exchange market.

    Currency experts said that the inflows of dollars were sufficient to meet the demand for import and corporate payments.

    They said that the improved inflows of remittances and lower import payments had helped the rupee to maintain levels.

    State Bank of Pakistan (SBP) has said that the workers’ remittances rose by a significant 50.7 percent during June 2020 to reach monthly record high $2.46 billion compared with $1.63 billion in June 2019.

    Similarly, on a cumulative basis, workers’ remittances increased to a historic high level of $23.12 billion during FY20, witnessing a growth of 6.4 percent over $21.74 billion during FY19.

    According to Pakistan Bureau of Statistics (PBS) the import bill of the country fell by 18.6 percent to $44.57 billion as compared with $54.76 billion in the preceding fiscal year.

    This helped the country to curtail the trade deficit for the year. The trade deficit of the country shrank by 27 percent to $23.18 billion during fiscal year 2019/2020 as compared with the deficit of $31.8 billion in the preceding fiscal year.

  • NBMFCs borrowers reschedule loans worth Rs36bn: SECP

    NBMFCs borrowers reschedule loans worth Rs36bn: SECP

    ISLAMABAD: The Non-bank Microfinance Companies (NBMFCs) have reschedule loans of worth Rs36billion of total 2,244,605 individuals and micro-enterprises as of June 30, 2020, Securities and Exchange Commission of Pakistan (SECP) said on Tuesday.

    The SECP said that it had relaxed the regulatory requirements for non-bank finance sector allowing them to defer or reschedule the loan repayments of their borrowers during COVID-19 pandemic.

    Out of these, 1,379,330 borrowers were facilitated through deferment of principal repayments of Rs27.778 billion by twelve NBMFCs, while 865,275 borrowers benefited through rescheduling of loans of 7.998 billion rupees by nine NBMFCs.

    The SECP has already extended the time by three months for NBMFCs to accept deferment requests of borrowers till September 30, 2020.

    Earlier, the SECP had urged the NBMFCs to adopt a considerate approach to accommodate their borrowers who belong to unprivileged segments of the society.

    The SECP had also allowed NBMFCs to accept borrowers requests made through electronic means or phone calls. It is part of SECP’s efforts to provide relief for mitigating adverse effects of COVID-19 pandemic that has resulted in slowdown in business and livelihood activity.