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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 exempts service charges on payment made to PM Corona Relief Fund

    SBP exempts service charges on payment made to PM Corona Relief Fund

    KARACHI: State Bank of Pakistan (SBP) has exempted services charges on donations made to Prime Minister Corona Relief Fund through payment cards.

    The SBP in a statement on Tuesday said that it previously issued a circular on August 06, 2018 on Service Charges on Donations/ Payments to Supreme Court of Pakistan’s Diamer Bhasha and Mohmand Dam Fund through Payment Cards.

    In this regard, it has been decided that the scope of the Circular would also cover Payments/Donations made to the Prime Minister’s as well as provincial governments’ Covid19 Pandemic Relief Funds.

    Accordingly, all issuing and acquiring banks in Pakistan shall not charge any service fee including Interchange Reimbursement Fee (IRF), Merchant Discount Rate (MDR), Merchant ID Fee, on boarding fee or any other fee that may be applicable on any transactions made to the said account.

    The issuing and acquiring banks/microfinance banks/payment schemes are advised to meticulously comply with these instructions.

  • SBP relaxes loan conditions for hospitals combating coronavirus

    SBP relaxes loan conditions for hospitals combating coronavirus

    KARACHI: State Bank of Pakistan (SBP) on Monday further relaxed conditions for refinance facilities for hospitals that are engaged in combating the coronavirus (COVID-19).

    The central bank in a statement said that since the outbreak of COVID‐19, the SBP has taken a number of measures to support the economy. One of the earliest measures taken by SBP was to support the hospitals, which have been at the fore front in combating the disease, by providing them a facility to meet their financial needs namely the SBP Refinance Facility to Combat COVID‐19 (RFCC) on March 17, 2020.

    Since then SBP received several suggestions by stakeholders to further improve it. Keeping in view such suggestions, SBP has provided more flexibility under RFCC to facilitate the health sector further.

    Hospitals and medical centres engaged in fight against COVID‐19 will now be allowed to avail financing against their existing equipment and purchase of refurbished equipment as well, provided the same are used in creation of special facility/isolation ward to deal with COVID‐19.

    Moreover, maximum coverage of 60 percent of civil works for setting up separate /isolation facility, has also been enhanced to 100 percent. Banks have been directed to ensure that financing extended under this facility is utilized for the intended purpose.

    It is believed that above changes would help hospitals/medical centres avail SBP’s refinance facility with much ease.

  • Rupee ends down 23 paisas against dollar

    Rupee ends down 23 paisas against dollar

    KARACHI: The Pak Rupee ended down 23 paisas against dollar on Monday owing to demand for import payments.

    The rupee ended Rs166.99 to the dollar from last Friday’s closing of Rs166.76 in interbank foreign exchange market.

    The dealers said that the rupee was under pressure due to higher demand for import payment. They said that mostly demand was come from foreign buying related to commodities for the month of Ramazan.

    The dealers said that the rupee however likely to gain in future owing to lower import payment demand after decline in international oil prices.

    The import bill of the country has declined by 21 percent in March 2020 over the previous month owing to lockdown to contain coronavirus pandemic.

    The import bill was at $3.3 billion in March 2020 as compared with $4.185 billion in February 2020, according to data released by Pakistan Bureau of Statistics (PBS) on Friday.

    Similarly, the pandemic also adversely affected the country’s exports. The exports fell by 15.56 percent to $1.8 billion in March 2020 as compared with $2.14 billion in February 2020.

    The total import bill during July – March 2019/2020 fell by 14.42 percent to $38.81 billion as compared with $40.68 billion in the corresponding period of the last fiscal year.

    However, the exports registered increase of 2.23 percent during first nine months of current fiscal year to $17.45 billion as compared with $17 billion in the corresponding months of the last fiscal year.

    The trade deficit during first nine months contracted by 26.45 percent to $17.36 billion as compared with the deficit of $23.61 billion in the corresponding period of the last fiscal year.

  • SBP sets up direct helpline to facilitate banking consumers

    SBP sets up direct helpline to facilitate banking consumers

    KARACHI: State Bank of Pakistan (SBP) has facilitated consumers of banks by setting up direct helpline for quick disposal of complaints amid difficult situations due to coronavirus.

    In a statement issued on Monday, the central bank said it had taken additional measures to facilitate bank customers that are faced with extraordinary challenges arising out of COVID-19 situation in the country.

    They can now approach SBP through its helpline service in case their queries or complaints are not being responded by banks.

    The SBP also encourages public to use digital payment services as much as possible to help banks providing their services with minimal staff to ensure their safety.

    SBP has taken notice of phone calls to banks’ customers by fraudsters seeking personal information taking advantage of the current conditions. Following are the details of measures taken.

    To facilitate banking consumers, SBP has advised all banks to ensure that their call centers/helplines are available 24/7 for instant customer support.

    Banking consumers are encouraged to approach banks through helpline for queries or lodging complaints. In case complainants do not get an appropriate response from banks, they may approach SBP helpline at 021-111-727-273, which will remain available during office hours.

    To cater to the needs of the public for facilitation and guidance, SBP has enhanced its helpline capacity by deploying more agents at its call center.

    The general public is encouraged to take appropriate safety measures in the context of the coronavirus and use alternate delivery channels where possible.

    SBP recognizes that the employees of banks and other financial institutions are providing services amid the difficult working conditions arising due to COVID-19.

    For the protection of bank employees and customers, work place safety and to meet the operational challenges in serving the bank customers, banks have been advised to implement guidelines issued by World Health Organization, the Government of Pakistan and the Provincial Governments in letter and spirit.

    Nevertheless, bank employees and customers still facing difficulties or having concerns over arrangements may bring this to the notice of SBP.

    For this purpose, queries, concerns, complaints may be emailed to SBP at [email protected].

    SBP has time and again advised the general public through various channels of communication not to disclose or share any personal information about their bank accounts or credit/debit cards including CNIC number, debit or credit card number, passwords, PINs and one-time password (OTP), etc. on incoming phone calls or messages.

    It has been brought to the notice of SBP that fraudsters, imitating as officials of SBP, bank or any other government agency, have been attempting to seek personal information from the public on the pretext of verification of account due to emergency conditions under COVID-19 pandemic.

    It is reiterated that SBP, banks or any other agency are not collecting information from banking customers regarding their bank accounts or cards.

    The SBP never asks for any personal information directly from bank customers. The general public is, therefore, advised again not to disclose personal information on incoming calls.

    Details of any such call or message received by the public may also be reported to SBP Helpline at 021-111-727-273 or emailed at [email protected]

  • SBP allows relief package relaxations to refinance scheme borrowers

    SBP allows relief package relaxations to refinance scheme borrowers

    KARACHI: State Bank of Pakistan (SBP) on Friday allowed easy loans, as allowed under relief package, to borrowers of refinance schemes.

    In a statement issued the central bank said that it had allowed similar relaxations, as provided under the relief package, on its concessional refinance schemes.

    The SBP is continuously reviewing the challenges arising out of COVID-19 pandemic situation with particular reference to the financial sector and taking measures.

    Expanding the scope of its recently announced relief package for households and businesses, SBP has taken another major step today.

    Under various refinance schemes loans are provided with preferential terms and conditions to promote growth in priority sectors of the economy.

    Now the relaxation allowed for deferment in repayment of principal amount for one year for corporate, consumer, agriculture, SMEs and microfinance sectors, will now be available on financing of banks/ DFIs under SBP’s refinance schemes as well.

    With this deferment of principal, the complete repayment schedule/tenor of the loan will be extended by one year.

    The borrowers will, however, continue servicing their mark up during the period of principal deferment. In case borrowers are not able to service mark-up payment, banks/DFIs may reschedule/restructure the loan in such a manner that tenor of the loan can go up to one year beyond the existing maximum tenor of the respective scheme.

    Borrowers of SBP’s following refinance schemes and their Shariah alternatives would benefit from this relaxation:

    Long Term Financing Facility (LTFF)

    Financing Facility for Storage of Agricultural Produce (FFSAP)

    Refinance Facility for Modernization of SMEs

    Refinance and Credit Guarantee Scheme for Women Entrepreneurs

    Refinance Scheme for Working Capital Financing of Small Enterprises and Low-End Medium Enterprises

    Small Enterprise (SE) Financing and Credit Guarantee Scheme for Special Persons

  • Rupee gains 17 paisas on massive decline in import bill

    Rupee gains 17 paisas on massive decline in import bill

    KARACHI: The Pak Rupee gained 17 paisas against dollar on Friday on reports of significant decline in import bill for the month of March 2020, dealers said.

    The rupee ended Rs166.76 to the dollar from previous day’s closing of Rs166.93 in interbank foreign exchange market.

    The dealers said that importers were seen cautious to place orders for dollars after considering the latest numbers of imports for the month of March 2020.

    The import bill of the country has declined by 21 percent in March 2020 over the previous month owing to lockdown to contain coronavirus pandemic.

    The import bill was at $3.3 billion in March 2020 as compared with $4.185 billion in February 2020, according to data released by Pakistan Bureau of Statistics (PBS) on Friday.

    Similarly, the pandemic also adversely affected the country’s exports. The exports fell by 15.56 percent to $1.8 billion in March 2020 as compared with $2.14 billion in February 2020.

    The total import bill during July – March 2019/2020 fell by 14.42 percent to $38.81 billion as compared with $40.68 billion in the corresponding period of the last fiscal year.

    However, the exports registered increase of 2.23 percent during first nine months of current fiscal year to $17.45 billion as compared with $17 billion in the corresponding months of the last fiscal year.

    The trade deficit during first nine months contracted by 26.45 percent to $17.36 billion as compared with the deficit of $23.61 billion in the corresponding period of the last fiscal year.

  • SBP issues instructions to banks on PM corona relief fund

    SBP issues instructions to banks on PM corona relief fund

    KARACHI: State Bank of Pakistan (SBP) has issued instructions to all commercial banks and microfinance banks regarding receiving payments under newly established PM COVID-19 Pandemic Relief Fund 2020.

    In a circular issued on Thursday, the central bank said that the government had notified establishment of a relief fund, namely, Prime Minister’s COVID-19 Pandemic Relief Fund-2020, for providing relief and assistance to the people of Pakistan affected by the COVID-19 pandemic in the country. The Fund shall accept donations / contributions both from domestic and international sources.

    The government has taken a number of steps with a view to enhance transparency in receipts into and payments out of the fund, including the following:

    Cash balance of the Fund shall be kept separate from and independent of cash balance of the general government account;

    Government shall commission separate audit reports on the receipts and payments of the Fund, including audit report by one of the local affiliates of big-four international accounting and auditing firms; and

    The Fund will be administered by the Poverty Alleviation and Social Safety Division in consultation with the Finance Division.

    The SBP said that a bank account of the Fund has been established for public donations as per the details given below:

    Account Title: Prime Minister’s COVID-19 Pandemic Relief Fund-2020

    Account No: 4162-786-786

    IBAN: PK11NBPA0002004162786786

    SWIFT code: NBPAPKKAMBR

    Bank: National Bank of Pakistan (NBP)

    Branch: Main Branch, I.I. Chundrigar Road, Karachi

    The SBP said that the donors have been provided multiple options for making donation/ contribution to the Fund as described below:

    A. Overseas Donors:

    a. Wire Transfer:

    Overseas donors including overseas Pakistanis may donate to the Fund through wire transfer to the Fund account detailed above. They would simply advise their respective banks to transmit the donation amount in the Fund account by debiting their accounts. The NBP shall transmit the donations received in the Fund account to SBP on daily-basis through ‘Real Time Gross Settlement’ (RTGS) system along with name of donor, country of residence and amount of contribution in both foreign currency and PKR.

    b. E-Payment Gateway:

    Donation / contribution can also be made to the Fund account through a link available at NBP website by using debit / credit cards.

    c. Transfer through Money Service Bureaus, Money Transfer Operators and Exchange Houses:

    Overseas donors may also donate / contribute through Money Service Bureaus (MSBs), Money Transfer Operators (MTOs) (e.g. MoneyGram, Western Union) and Exchange Houses (EHs) in line with the arrangements in place for receiving home remittances. Banks receiving such remittances shall transfer the same through RTGS to the above mentioned account of the NBP every thirty minutes during the banking hours, besides providing the details of their particulars [as specified under A(a) above] to them for the purpose of maintain the register.

    B. Domestic Donors:

    a. Cash Deposits at Banks’ Counters:

    Donors and contributors may make their donations / contributions to the fund in cash at any branch of any bank operating in Pakistan, which shall transfer the amount of donations so received to NBP’s above mentioned account through RTGS after every 30 minutes during the banking hours. Similarly, donations/ contributions may also be made at any of the field offices of SBP Banking Services Corporation.

    b. Deposit of Crossed Cheques in the Name of the Fund in Bank’s Drop Boxes:

    The donors and contributors may make their donations / contributions to the Fund by dropping crossed cheques in the name of the Fund in their respective bank’s drop box. All banks shall make available drop box facility at their selected branches for donors where they may drop their crossed cheques in favor of the Fund. The banks shall, accordingly debit the customer’s account and transfer the proceeds through RTGS/IBFT to the Fund account at NBP.

    c. Alternate Delivery Channels:

    The donor may also use alternate delivery channels e.g. internet banking, mobile banking, automated teller machines (ATMs) and mobile wallets etc. to donate / contribute to the Fund account through Inter-Bank Fund Transfer Facility (IBFT). For this purpose, they will use the IBAN of the Fund given above.

    Note: M/s 1-link will submit on daily basis the report of all donations routed through ADCs and IBFT to NBP by giving the particulars of donors including name, bank and branch of deposit, amount of donations etc.

    d. E-Payment Gateway:

    Donation / contribution can also be made to the Fund account through a link available at NBP website by using debit / credit cards.

    NBP shall transfer all the receipts to SBP through RTGS for credit to the Fund account with SBP on daily basis.

  • Rupee ends down by 10 paisas on import payment demand

    Rupee ends down by 10 paisas on import payment demand

    KARACHI: The Pak Rupee ended down by 10 paisas against dollar on Thursday due to higher import payments and outflow of hot money.

    The rupee ended at Rs166.93 to the dollar from previous day’s closing of Rs166.83 in interbank foreign exchange market.

    Currency experts said that the rupee was remained under pressure due to higher import payment demand. They said that importers were purchasing the foreign currency for importing commodities related to month of Ramazan.

    The experts pointed out that the outflow of funds invested in domestic debt market also put pressure on the local unit.

    The secondary market witnessed outflow of $47.6 million on April 01, 2020 as foreign investors opted to sell treasury bills.

    The currency experts said that the rupee may make recover in coming days due to lower international oil prices and reduced consumption of non-oil imported goods locally.

  • Rupee ends down by 13 paisas on import demand

    Rupee ends down by 13 paisas on import demand

    KARACHI: The Pak Rupee ended down by 13 paisas against dollar on Wednesday owing to higher demand from importers and corporate buyers.

    The rupee closed at Rs166.83 to the dollar form previous day’s closing of Rs166.70 in interbank foreign exchange market.

    The currency experts said that the rupee was remained under pressure due to higher demand from importers and corporate buyers.

    They said that imports related to Ramazan was remained high. They further said that the foreign investors also seen taking out funds from domestic debt market.

    They said that as the central bank reduced the policy rate by 2.25 percent to bring at 11 percent discouraged the foreign investors of domestic debt market.

    A huge fund has been taken out by foreign investors through sale of treasury bills after the reduction in policy rate and also deterioration of international economic conditions after rising pace of coronavirus spread.

  • Date for converting bearer prize bonds of Rs40,000 extended to June 30

    Date for converting bearer prize bonds of Rs40,000 extended to June 30

    KARACHI: People now can surrender Rs40,000 denomination bearer prize bonds by June 30, 2020 and exchange the amount with registered bonds or other given options.

    Finance Division on Tuesday issued a notification to extend the last date for encashment/redemption of Rs40,000 bearer bonds from March 31, 2020 to June 30, 2020.

    The SBP stopped the issuance of Rs40,000 denomination prize bonds on June 24, 2019 and given deadline of March 31, 2020 for exchange the such denomination with other registered mode of investment.

    Since the announcement of the central bank, the holders of bearer bonds had surrendered around Rs238 billion till November 2019.

    The total investment Rs40,000 denomination bearer bonds peaked at Rs258 billion by May 2019, which reduced to around Rs20 billion by November 2019.

    SBP stops banks selling Rs40,000 prize bonds, issues procedure for conversion into registered bonds

    The SBP in a notification issued in June 2019 issued the following instructions regarding handling of Rs.40,000/- denomination National Prize Bonds are issued herewith for information, guidance and meticulous compliance:

    a) National Prize Bonds of Rs.40,000/- denomination shall not be sold after June 24, 2019 and will not be encashed/redeemed after March 31, 2020.

    b) No further draws of Rs.40,000/-denomination National Prize Bonds shall be held.

    c) Cash payment for encashments of bonds is not allowed. However, the bond holder (s) shall have the following options to replace / encash these bonds:

    1. Conversion of premium prize bonds (registered)

    2. Replacement with special saving certificate (SSC)/Defence Saving Certificate (DSC)

    3. Encashment at face value.

    d) Appended below is the SOP for processing requests under the aforementioned options for compliance by all banks:

    Conversion to Premium Prize Bonds (Registered)

    i. The bonds can be converted to premium prize bonds (registered) through the 16 field offices of SBP Banking Services Corporation, and authorized branches of six commercial banks i.e. National Bank of Pakistan (NBP), Habib Bank Limited (HBL), United Bank Limited (UBL), MCB Bank Limited (MCB), Allied Bank Limited (ABL) and Bank Alflah Limited (BAFL).

    ii. The bond holder shall be required to submit a written request for conversion of bearer bonds to premium prize bonds (registered) to be registered in his (her) name on the prescribed application.

    iii. The bond holder shall also be required to submit prescribed applications forms for registrations / purchase of premium prize bond as per the procedure in vogue.

    Replacement with the Special Saving Certificate (SSC)/Defence Saving Certificate (DSC)

    i. The bonds can be replaced with SSC / DSC through the 16 field offices of SBP Banking Services Corporation, authorized commercial banks and National Savings Centers.

    ii. All authorized commercial banks shall, therefore, accept requests for replacement of bearer bonds with SSC or DSC on the prescribed application form.

    iii. The bondholder shall also be required to submit application form for purchase of SSC/DSC (SC-1) as per the prescribed procedure.

    Encashment at Face Value:

    i. The bonds will only be encashed by transferring the proceeds to the bond holder’s bank account through the 16 field offices of SBP Banking Services Corporation as well as the authorized commercial bank branches.

    ii. All commercial banks shall receive requests for encashment of bearer bonds on the prescribed application form.

    A copy of the application form, duly signed and stamped, shall be provided to the bondholder as an acknowledgement receipt.

    The SBP said that it is needless to mention that the National Prize Bonds of Rs40,000 denomination tendered at the counters of banks shall be subject to through scrutiny to ascertain their genuineness. In this regard, details regarding the security features in Rs40,000 denomination National Prize Bonds are available online.

    Moreover, the prize bonds encashed / replaced by general public may be surrendered to concerned SBP BSC office through respective regional office of the commercial banks. For the purpose, the regional office may intimate the SBP BSC office three days in advance so that necessary arrangements for receipt of the bonds can be made.

    It is imperative to mention that a notice regarding the above / mentioned facilities must be displayed at prominent places within branch premises for awareness and information of general public.