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.
The Pakistani Rupee experienced a marginal decline against the US Dollar, closing at Rs155.36 in the interbank foreign exchange market, a slight drop from the previous day’s close of Rs155.35.
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KARACHI: State Bank of Pakistan (SBP) likely to keep policy rate unchanged in upcoming monetary policy, analysts said on Tuesday.
The analysts at Arif Habib Limited said that the monetary policy committee of SBP will convene on Friday (22nd November 2019) to announce the monetary policy for the next two months.
We expect the SBP to keep policy rates unchanged in the upcoming monetary policy statement. Despite significant reduction in yields of 10-yr PIB, T-Bills, and revision on National Savings Scheme (NSS) rates, we see a status quo stance due to the following reasons:
i) Inflation is likely to remain elevated in upcoming months and expected to peak out in January 2020 at 12.50 percent which would reduce real interest rates to 75bps (compared to last 10 months average of ~290bps),
ii) Government is expected to continue attracting foreign investment in T-Bills to increase foreign exchange reserves, and
iii) Monetary easing might have negative repercussions on the current account and exchange rates.
To recall, SBP kept policy rate unchanged in last monetary policy statement (held on 16th September 2019) on account of
i) Inflation forecast which was broadly similar between new and old base (11-12 percent for FY20),
ii) Higher core inflation, and iii) Regular adjustment in utility prices and increase in food prices could pose upside risk to inflation forecast.
KARACHI: State Bank of Pakistan (SBP) has amended framework related to trade based money laundering in order to facilitate receiving export payment.
The SBP on Monday issued amendment to Framework for Managing Risks of Trade Based Money Laundering and Terrorist Financing.
The central bank invited attention of the banks and exchange companies to FE Circular No. 04 dated October 14, 2019 regarding the above subject.
The SBP said that in order to facilitate export against advance payment, the Para 6(b)(i)(e) of the Framework for Managing Risks of Trade Based Money Laundering and Terrorist Financing has been amended as under:
“e) Guideline at (a)(c) & (d) above shall be followed while making declaration on Advance Payment Voucher (Appendix V-14). Moreover, it shall be ensured by ADs that in case of exports against advance payment, declaration made on EFE/MFE is strictly in accordance with the particulars declared on Advance Payment Voucher including the name of the consignee. In case advance payment is received from an entity other than the consignee, the ADs shall ensure the same is verified through a swift message or underlying contract and the related risks, including the risk of under/over invoicing are adequately addressed.”
Prior to amendment the paragraph was read as:
“e) Guideline at (a)(c) & (d) above shall be followed while making declaration on Advance Payment Voucher (Appendix V-14). Moreover, it shall be ensured by ADs that in case of advance payment export, declaration made on EFE/MFE is strictly in accordance with the particulars declared on Advance Payment Voucher and name of consignee declared on EFE/MFE is of the same entity from which the advance payment is received.”
The SBP said that all other terms and conditions on the subject shall remain unchanged.
Further, the instructions related to advance remittance for export of fresh fruits/vegetables as contained in Para 27, Chapter 12 of Foreign Exchange Manual shall also remain unchanged.
Authorized Dealers are advised to bring the same to the notice of all their constituents.
KARACHI: The Pak Rupee gained four paisas against dollar on Monday owing to sufficient inflows.
The rupee ended Rs155.35 to the dollar from last Friday’s closing of Rs155.39 in interbank foreign exchange market.
Currency experts said that the inflows of export receipts and remittances helped the rupee to gain values.
The foreign currency market was initiated in the range of Rs155.38 and Rs155.42. The market recorded day high of Rs155.40 and low of Rs155.35 and closed at Rs155.35.
The exchange rate in open market the rupee witnessed slight gain. The buying and selling of dollar was recorded at Rs155.20/Rs155.40 from previous level of last Friday’s of Rs155.20/Rs155.50.
KARACHI: State Bank of Pakistan (SBP) will announce monetary policy on Friday, November 22, 2019 for next two months, said a statement on Monday.
The SBP kept the policy rate unchanged at 13.25 percent in its monetary policy announcement on September 16, 2019.
In the previous monetary policy, the SBP noted two key developments since the last MPC meeting.
First, the interbank foreign exchange market had adjusted relatively well to the introduction of the market-based exchange rate system.
The initial volatility and associated uncertainty in the exchange market had subsided.
Reflecting these improved sentiments and continued adjustment in the current account, the rupee had strengthened modestly against the US dollar since the last MPC, unlike its previous trend.
Second, on the external front, the US Fed, as anticipated, reduced its policy rate by 25 basis points (bps), followed by policy rate cuts by other major central banks around the world.
This would help in lowering pressures on emerging markets’ currencies and potentially increase financial inflows.
KARACHI: State Bank of Pakistan (SBP) on Friday issued instructions to banks regarding foreign exchange (FX)/SWAP trade confirmation.
The SBP said that it had earlier issued instructions through a circular on October 09, 2012 under which the banks provide FX/SWAP trade confirmations duly signed by their authorized signatories, as per standardized hard copy format (hard copy) on the transaction date.
They are also required to provide SWIFT MT-300 confirmation message (SWIFT message) in addition to said hard copies.
It has, however, been observed that some of the banks occasionally fail to send said hard copies/ SWIFT messages on the transaction date.
Such lapses pose serious difficulties in timely verification of trade terms and other trade related details thereby unnecessarily exposing the banks to critical settlement risk.
The banks are also required to keep this department updated on any changes in their list of authorized signatories along with contact details, however, intermittent non-compliance to these instructions has also been noted.
In order to ensure smooth settlement process, the banks are advised to:
Ensure that all SWIFT messages, of a given transaction date, are invariably transmitted to this department with zero tolerance for any leftover SWIFT message.
This means that transmission date of a SWIFT message should not be later than the trade commitment date (transaction date) of related FX/SWAP trade.
Further, in order to bring efficiency in the process, transmission of hard copy may be discontinued from now onwards.
However, submission of hard copy would be mandatory in situations where a bank is unable to transmit SWIFT message due to any reason of whatsoever in nature.
Submit an updated list of authorized signatories with specimen signatures and contact details, on quarterly basis (format attached).
Such updated list for quarter ending Jul-Sep19 may be submitted by November 28, 2019. The future reports may be submitted within 10 working days from end of a calendar quarter.
In case of any future changes of authorized person(s) during a quarter, this department will be immediately notified of such changes but not later than 3 working days.
KARACHI: The State Bank of Pakistan (SBP) has notified regulations to Statutory Liquidity Requirement (SLR) eligibility limit on floating rate Pakistan Investment Bonds (PIBs).
In a circular issued on Friday, the SBP said it is decided that SLR eligibility limit of 15 percent for banks and 5 percent for Development Finance Institutions (DFIs) on Pakistan Investment Bonds (PIBs) shall not be applicable on floating rate PIBs.
The SBP said that it had issued circulars on March 08, 2018 and May 22, 2004 for banks and Development Finance Institutions (DFIs) respectively.
All other instructions on the subject will remain same. The above instructions will be effective immediately, the SBP said.
KARACHI: The Pak Rupee gained three paisas against dollar on Friday owing to inflows of export receipts and foreign remittances, dealers said.
The rupee closed at Rs155.39 to the dollar from previous day’s closing of Rs155.42 in interbank foreign exchange market.
The dealers said that foreign inflows and export receipts helped the local unit to appreciate early in the day. However, demand for the greenback for import payments due to next two weekly holidays restricted the rupee appreciation to three paisas.
The foreign currency market was initiated in the range of Rs155.35 and Rs155.39. The market recorded day high of Rs155.47 and low of Rs155.39 and closed at Rs155.39.
The exchange rate in open market witnessed slight change in rupee value. The buying and selling of the dollar was recorded at Rs155.20/Rs155.50 from previous day’s closing of Rs155.20/Rs155.40 in cash ready market.
ISLAMABAD: The disbursement of loans to young entrepreneurs will start from next month after completing all the formalities, it was agreed at a meeting on Thursday to review Youth Entrepreneurship Scheme of Kamyab Jawam Programm.
The meeting agreed that the disbursement of loans to the successful applicants under the scheme would start in December 2019 after completing all the required formalities.
Muhammad Usman Dar, Special Assistant to the Prime Minister on Youth Affairs; along with Asad Umer, Chairman National Assembly Standing Committee on Finance, chaired a high-level meeting with the representatives from State Bank of Pakistan, Presidents and senior officials of National Bank of Pakistan, Bank of Punjab, and Bank of Khyber to review the processing of loan applications received under Youth Entrepreneurship Scheme (YES) of Kamyab jawan Programme.
All the three executing banks of the scheme: National Bank of Pakistan, Bank of Punjab, and Bank of Khyber would strengthen their infrastructure both in terms of human resource and technology to cope with the huge challenge of processing one million applications received so far under the scheme.
Speaking on the occasion, Muhammad Usman Dar reiterated his resolve to strictly follow merit and transparency in the processing and disbursement of loans to the potential entrepreneurs.
This would not only create number of employment opportunities for youth but would also contribute remarkably to the national economic growth.
Muhammad Usman Dar appreciated the commitment and efforts of State Bank of Pakistan and the three executing banks: National Bank of Pakistan, Bank of Punjab, and Bank of Khyber, in making this scheme a real game changer for the creation of jobs through the promotion of SME sector in the country.
KARACHI: The Pak Rupee ended down by two paisas against dollar on Thursday amid demand for import payment.
The rupee closed at Rs155.42 to the dollar from previous day’s closing of Rs155.40 in interbank foreign exchange market.
Currency dealers said that the demand for the foreign currency was higher earlier in the day. However, inflows helped the rupee to recovery early day losses.
The foreign currency market was initiated in the range between Rs155.40/Rs155.45. The market recorded day high of Rs155.47 and low of Rs155.40 and closed at Rs155.42.
The exchange rate in open market witnessed slight appreciation in rupee value. The buying and selling of dollar was recorded at Rs155.20/Rs155.40 from previous day’s closing of Rs155.20/Rs155.50 in cash ready market.