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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 appreciates by 26 paisas against dollar

    Rupee appreciates by 26 paisas against dollar

    KARACHI: The Pak Rupee gained another 26 paisas against dollar on Tuesday owing to better economic indicators amid coronavirus pandemic.

    The rupee ended Rs159.65 to the dollar from previous day’s closing of Rs159.91 in interbank foreign exchange market.

    The local currency gained 56 paisas during past two days.

    Currency experts said that the rupee appreciated due to inflows of IMF funds and decline in international oil prices.

    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.

  • SBP decides not to issue fresh currency notes for Eid ul Fitr

    SBP decides not to issue fresh currency notes for Eid ul Fitr

    KARACHI: State Bank of Pakistan (SBP) on Monday said that it will not issue fresh currency notes on this Eid ul Fitr.

    The decision has been taken due to measures taken by the government to prevent spread of COVID-19.

    The SBP issued a notification suspending the issuance of fresh currency notes to public.

    The SBP said that the bank’s management had taken multiple precautionary measures to ensure social distancing and mitigate the spread of COVID-19.

    “These include but are not limited to performing of only essential / critical functions, making comprehensive work from home arrangements, ensuring workplace SOPs, issuance of medical advisories, etc.”

    Accordingly, the bank’s COVID-19 committee had decided not to issue fresh notes to general public and employees / ex-employees of SBP and its subsidiaries on occasion of Eid-ul-Fitr 2020.

  • SBP allows circulation of quarantined infected banknotes

    SBP allows circulation of quarantined infected banknotes

    KARACHI: State Bank of Pakistan (SBP) has advised banks to use the infected banknotes that have completed 14 days quarantine period.

    The SBP on Monday issued advisory for banks related to COVID-19 – Uninterrupted Supply of Disinfected Cash at Banks and ATMs.

    The SBP previously issued a circular dated March 23, 2020 under which banks were advised to disinfect, seal and quarantine the cash collected from hospitals and clinics, until further orders. The banks were given credit for all such cash so quarantined and kept on behalf of SBP.

    In the meanwhile, central banks’ practices on the matter have been reviewed which indicate that quarantine of cash for 14 days is sufficient to disinfect the banknotes, which can then be put back into circulation.

    Similarly, the World Health Organization has also advised that the life of the virus on porous surfaces (such as paper banknotes) is lower, compared to other hard surfaces.

    In view of the above, banks are allowed to use the quarantined cash, which have completed quarantine period of fourteen (14) days.

    Consequently, the credit given to banks on account of quarantined cash would be reversed on the fifteenth (15th) day from each reported date.

    However, the facility of same day credit for quarantined cash introduced via FD Circular No. 1/2020 dated March 23, 2020 shall continue with contra debit on 15th day, as stated above.

  • Rupee gains 26 paisas against dollar on IMF inflows

    Rupee gains 26 paisas against dollar on IMF inflows

    KARACHI: The Pak Rupee gained 26 paisas against dollar on Monday owing to inflows of IMF loan payment.

    The rupee ended Rs159.91 to the dollar from previous close of Rs160.17 on April 30, 2020.

    Currency experts said that the rupee appreciated due to inflows of IMF funds and decline in international oil prices.

    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.

  • SBP enhances refinancing limits for hospitals

    SBP enhances refinancing limits for hospitals

    KARACHI: State Bank of Pakistan (SBP) on Friday increased the refinancing limits for hospitals and medical centers in the background of rising cases of COVID-19 in the country and with the need to strengthen health sector in fight against COVID-19.

    The central bank enhanced financing limit of a single hospital/ medical center under its Refinance Facility for Combating COVID -19 (RFCC) from Rs. 200 million to Rs. 500 million.

    RFCC is an emergency funding facility to support hospitals/medical centers to develop their capacities for treatment of infected patients of COVID-19.

    The financing under this facility is being made available by State Bank at zero percent to banks that can charge a maximum rate of 3 percent per annum to hospitals/medical centers.

    State Bank has been continuously improving features of this Facility to ensure timely financial support to hospitals/medical centers engaged in combating COVID-19.

    So far, financing of Rs. 2.2 billion for 11 hospitals/medical centers has been approved whereas financing requests of Rs 3.6 billion for 23 hospitals/medical centers are being processed by the banks.

    With today’s enhancement of financing limit, it is expected that large scale facilities will be created for treating COVID-19 patients by using subsidized funding being extended under this facility.

  • Rupee makes significant gain of Rs1.44 against dollar

    Rupee makes significant gain of Rs1.44 against dollar

    KARACHI: The Pak Rupee gained Rs1.44 against dollar on Thursday owing to lower demand for import payments, dealers said.

    The rupee ended Rs160.17 to the dollar from previous day’s closing of Rs161.61 in interbank foreign exchange market.

    The currency dealers said that the rupee was gaining over lower oil prices and reduced non-oil imports.

    Currency experts said that the statement of Dr. Hafeez Shaikh, Special Advisor to Prime Minister on Finance and Revenue, about further reducing the oil prices for next month had also improved the market sentiments.

    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.

  • SBP extends date for exchange companies providing information

    SBP extends date for exchange companies providing information

    KARACHI: State Bank of Pakistan (SBP) on Thursday extended the date for exchange companies to submit information of customers related to anti-money laundering (AML) and Counter Financing Terrorism (CFT).

    The central bank amended the Foreign Exchange Circular No. 04 dated October 14, 2019 in this regard.

    The SBP said that in terms of instructions given in Para 5 (a) & (b) of the subject framework, authorized dealers in foreign exchange are required, inter alia, to complete the Risk Profiling of Customers and develop their distinct trade related Risk Profile by April 30, 2020.

    In view of the prevailing circumstances due to COVID-19 outbreak and representation from the banking industry, it has been decided to extend the aforementioned deadline up to September 30, 2020.

    Through the previous notification the SBP stated that in order to strengthen trade related Anti Money Laundering/Combating Financing of Terrorism (AML/CFT) regime and restrict possible misuse of banking channel, a comprehensive framework on the subject has been developed and attached herewith.

    Accordingly, Authorized Dealers (ADs) are advised to upgrade their systems and controls and bring policies and procedures in line with the requirements of the framework to ensure meticulous compliance with the provisions thereof with immediate effect except as otherwise provided in the framework

    The provisions of this framework are in addition to and not a replacement of already issued instructions on the subject of ML/FT risks.

    Therefore, the compliance of the same shall not absolve ADs from their legal and regulatory obligations under prevailing AML/CFT laws/rules and regulations or any other relevant law in force.

    ADs are also advised to educate their clients about their obligation of ensuring (a) correct declaration of particulars on the prescribed forms, (b) utilization of foreign exchange for the exact purpose for which it is acquired by them and (c) repatriation of foreign exchange that represents the full export value of goods. In the event, it is found that material information required to be submitted on the prescribed forms has been omitted or suppressed, foreign exchange is misutilized by a client of an AD or export proceeds repatriated by a client does not represent the full export value of goods, SBP shall initiate penal action against such delinquent parties under relevant provisions of the Foreign Exchange Regulation Act, 1947 (FERA).

    Further, the matter shall also be reported to relevant stakeholders for necessary action under the laws being administered by them.

    Failure to comply with the instructions on the subject and the regulatory obligations of AML/CFT may attract action against ADs under the FERA and other relevant laws.

  • Rupee gains four paisas on ease in import payment demand

    Rupee gains four paisas on ease in import payment demand

    KARACHI: The Pakistani rupee appreciated by four paisas against the US dollar on Wednesday, closing at Rs161.61 in the interbank foreign exchange market compared to the previous day’s closing of Rs161.65. Currency dealers attributed the gain to a notable ease in import payment demand, which helped stabilize and strengthen the local currency.

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  • Bank holiday announcement

    Bank holiday announcement

    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.

  • Rupee falls by Rs1.17 against dollar on import demand

    Rupee falls by Rs1.17 against dollar on import demand

    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.