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: The Pakistani Rupee appreciated modestly against the US dollar on Friday, gaining three paisas to close at Rs154.20 in the interbank foreign exchange market.
(more…)
KARACHI: State Bank of Pakistan (SBP) has said that people can encashed Rs40,000 bearer prize bonds on or before March 31, 2020 and after that the financial instruments cannot be redeemed.
The central bank issued frequently asked questions (FAQs) related to the withdrawal of Rs. 40,000/- National Prize Bonds (Bearer) from Circulation to facilitate general public and investors.
Q: Have National Prize Bonds (Bearer) of Rs.40,000/- denomination been withdrawn from circulation?
A: Yes. The Finance Division (Budget Wing), Government of Pakistan vide Notification No. F.16(3)GSI/2014-1072 dated June 24, 2019 has restricted the sale of National Prize Bonds (Bearer) of Rs.40,000/-denomination after June 24, 2019.
Q: Is there a time limit for conversion/encashment of my National Prize Bonds (Bearer) of Rs.40,000/- denomination?
A: Yes. As per aforementioned Notification from the Government of Pakistan, National Prize Bonds (Bearer) of Rs. 40,000/- denomination can be encashed/redeemed upto March 31, 2020, after which they would not be encashed / redeemed.
Q: How can I encash/redeem my National Prize Bonds (Bearer) of Rs.40,000/- denomination?
A: The National Prize Bonds (Bearer) of Rs.40,000/- denomination can be encashed using the following options:
1. Conversion to Premium Prize Bonds (Registered)
2. Replacement with Special Savings Certificate (SSC) / Defence Savings Certificate (DSC)
3. Encashment through Bank Account
Q: How can I convert my National Prize Bonds (Bearer) of Rs.40,000/- denomination to Premium Prize Bonds (Registered)?
A: The National Prize Bonds (Bearer) of Rs.40,000/- denomination can be converted to Premium Prize Bonds (Registered) through the 16 field offices of SBP Banking Services Corporation, and six commercial banks i.e. National Bank of Pakistan, Habib Bank Limited, United Bank Limited, MCB Bank Limited, Allied Bank Limited and Bank Alfalah Limited. The documentary requirements for the purchase of Premium Prize Bonds (Registered) are available at: http://www.sbp.org.pk/sbp_bsc/PrizeBond/premium/FAQs.pdf
Q: How can I replace my National Prize Bonds (Bearer) of Rs.40,000/- denomination with Special Savings Certificates (SSC) / Defence Saving Certificates (DSC)?
A: The National Prize Bonds (Bearer) of Rs.40,000/- denomination can be replaced with SSC / DSC through the 16 field offices of SBP Banking Services Corporation, Authorized Commercial banks and National Savings Centers.
Q: How can I encash my National Prize Bonds (Bearer) of Rs.40,000/- denomination through bank account?
A: On submission of request on the prescribed application form (details at Q7 below) at 16 field offices of SBP Banking Services Corporation or Commercial Banks, the proceeds of encashment shall be credited to the bond-holder’s bank account.
Q: What information/documents are required to convert/redeem/encash my National Prize Bonds (Bearer) of Rs.40,000/- denomination?
A: Request for conversion/encashment of Rs.40,000/- National Prize Bonds (Bearer) shall be submitted on prescribed application form which is available at the following weblink:
http://www.sbp.org.pk/sbp_bsc/BSC/CMD/Circulars/2019/C1-Annex-A-Application-Form.pdf.
The requisite information/documents required for each encashment option is as follows:
1. Conversion to Premium Prize Bonds (Registered): Legible copy of valid CNIC / SNIC, Account
Maintenance Certificate (not older than one month from application date), Valid IBAN number
2. Replacement with Special Savings Certificate (SSC) / Defence Savings Certificate (DSC): Legible Withdrawal of Rs. 40,000/- National Prize Bonds (Bearer) from Circulation copy of valid CNIC / SNIC
3. Encashment through Bank Account: Valid IBAN number
Q: Can I receive cash against my National Prize Bonds (Bearer) of Rs.40,000/- denomination?
A: No. The National Prize Bonds (Bearer) of Rs.40,000/- denomination can only be encashed using the following options:
1. Conversion to Premium Prize Bonds (Registered)
2. Replacement with Special Savings Certificate (SSC) / Defence Savings Certificate (DSC)
3. Encashment through Bank Account
Q: Is there any tax / deduction against the conversion/encashment of National Prize Bonds (Bearer) of Rs.40,000/- denomination ?
A: No. There is no tax / deduction for any of the approved conversion/encashment options.
Q: For encashment of National Prize Bonds (Bearer) of Rs.40,000/- denomination through bank account, can I visit any Commercial Bank, or do I have to visit the Commercial Bank in which my account is maintained ?
A: The National Prize Bonds (Bearer) of Rs.40,000/- denomination bonds can be encashed at any branch of the Commercial Bank in which bondholder maintains an “individual” account.
Q: What is the timeline for credit of Face Value into my bank account?
A: The Face Value shall be credited to the bank account on the same day, subject to provision of required information.
Q: National Prize Bonds (Bearer) of Rs.40,000/- denomination are being encashed against cash at a discount rate. Is it allowed?
A: As per Rule 3(2) of Prize Bonds Rules 1999, only Offices of the State Bank of Pakistan Banking Services Corporation, Commercial Banks authorized in this behalf by SBP, and National Savings Centers are authorized to carry out business of National Prize Bonds (Bearer). Further, the Rule 3(3) of the said Rules restricts any other office, body or institution other than the office, body or institutions specified in Rule 3(2) of Prize Bonds Rules, 1999 from conducting any business relating to National Prize Bonds (Bearer).
The SBP said that the bondholders receive full amount (without any deduction) for any of the approved conversion/encashment options.
Q: Will there be any further prize money draws for National Prize Bonds (Bearer) of Rs.40,000/- denomination?
A: No. The last draw (78th draw) for Rs.40,000/- denomination National Prize Bonds (Bearer) was conducted on June 3, 2019. As per the Notification from Finance Division (Budget Wing) Government of Pakistan, no further prize money draws shall be conducted for National Prize Bonds (Bearer) of Rs.40,000/- denomination.
Q: I have a prize-winning National Prize Bond (Bearer) of Rs.40,000/- denomination. What is the time limit for claiming my prize ?
A: Under the governing rules, the prize money may be claimed by the holder of the prize bond at any time within a period of six years from the date of draw.
Q: Can I encash damaged National Prize Bond (Bearer) of Rs.40,000/- denomination?
A: Yes. Damaged National Prize Bonds (Bearer) of Rs.40,000/- denomination can be encashed at the 16 field offices of SBP Banking Services Corporation. However, it is pertinent to note that all such claims shall Withdrawal of Rs. 40,000/- National Prize Bonds (Bearer) from Circulation be decided by the authorized officials in light of relevant regulations.
KARACHI: The Pak Rupee gained three paisas on Thursday against dollar owing to shrinking current account deficit.
The rupee ended Rs154.23 to the dollar from previous day’s closing of Rs154.26 in interbank foreign exchange market.
Currency dealers said that market sentiments were high owing to narrowing current account deficit of the country.
Pakistan’s current account deficit narrowed by 72 percent during first seven months (July – January) of 2019/2020 owing to inflows of workers’ remittances and decline in import bill.
The current account deficit reduced to $2.65 billion during the first seven months of current fiscal year as compared with $9.48 billion in the corresponding months of the last fiscal year, according to Balance of Payment (BoP) data released by State Bank of Pakistan (SBP) a day earlier.
The exchange rate in open market witnessed no change in rupee value. The buying and selling of dollar was recorded at Rs154.10/Rs154.40, the same previous day’s closing, in cash ready market.
KARACHI: Meezan Bank’s Shariah Supervisory Board has approved guidelines for digital Mudarabah-based mobile account to support financial inclusion in Pakistan.
Shariah Supervisory Board approved guidelines in its recently concluded, a statement said on Thursday.
The meeting was chaired by Dr. Muhammad Imran Ashraf Usmani and attended by Sheikh Esam Mohamed Ishaq, Mufti Muhammad Naveed Alam, Ahmed Ali Siddiqui and other key officials.
Irfan Siddiqui – President & CEO, Meezan Bank and Ariful Islam – Deputy CEO, Meezan Bank were also present in the meeting which was held at Movenpick Hotel, Karachi.
The Shariah Supervisory Board showed its overall satisfaction on the Shariah-compliance environment and operations of the Bank.
Several key issues were discussed in the meeting related to modern trends in Islamic banking. Guidelines for a digital mobile account – Meezan Asaan Mobile Account based on Mudarabah was approved under which a customer can open his digital mobile account at Meezan Bank without the hassle of visiting any physical branch.
On maintaining balance in this account, the customer would be entitled to receive halal profit based on actual returns of Shariah-compliant financings on monthly basis.
Furthermore, the customer can use this account to deposit and withdraw funds digitally or from any Meezan Bank branch all over Pakistan.
The Shariah Supervisory Board also gave important guidelines related to housing finance facility to be offered by the Bank in collaboration with Pakistan Mortgage Refinance Company which is low cost housing finance solution for the lower and middle income families.
Relevant guidelines related to Islamic Fintech solution for supply chain financing were also issued by the Shariah Supervisory Board to make Shariah-compliant financing solutions accessible to Small and Medium Enterprises in Pakistan.
Earlier on the same day, a meeting between Shariah Supervisory Board and Board of Directors (BoDs) of Meezan Bank was also held as part of the annual meeting plan of the Shariah Supervisory Board and BoD.
In this meeting Dr. Muhammad Imran Ashraf Usmani conducted a learning session for the Board and also apprised them regarding the key decisions taken by the Shariah Supervisory Board during the year 2019.
KARACHI: The Pak Rupee fell by three paisas against dollar on Wednesday owing to demand from import and corporate buyers.
The rupee ended Rs154.26 to the dollar from previous day’s closing of Rs154.23 in interbank foreign exchange market.
The currency dealers said that dollar demand was higher because corporate buyers were active during the day. They said that many foreign corporate entities repatriate their incomes in shape of profit and dividends during results season.
They said that importers were also seen active to purchase dollars for import payment for placing orders for commodities ahead of the holy month of Ramaza.
The exchange rate in open market witnessed no change in rupee value. The buying and selling of dollar was recorded at Rs154.10/Rs154.40, the same previous day’s closing, in cash ready market.
KARACHI: United Bank Limited has declared 26 percent growth in annual profit for calendar year 2019 owing to significant increase in net mark-up income.
According to financial results for calendar year 2019 released on Wednesday, the bank declared Rs19.13 billion after tax profit as compared with Rs15.22 billion profit in the preceding year.
The bank also announced Rs15.63 as earning per share for the year as compared with EPS of 12.44 declared in the last year.
The interest income of the bank registered 36 percent increase to Rs153.67 billion in calendar year 2019 as compared with Rs113.9 billion in the preceding year.
However, total non-markup come at Rs61.77 billion in 2019 as compared with Rs56.23 billion in the last year.
Total income of the bank after including non-mark up income rose to Rs83.45 billion in 2019 as compared with Rs81.25 billion in the preceding year.
Operating expenses of the bank have increased to Rs40.21 billion in 2019 as compared with Rs38.82 billion in preceding year.
The bank contributed income tax to the tune of Rs15.1 billion in the calendar year 2019 as compared with Rs9.74 billion in the preceding year.
KARACHI: The Pak Rupee gained five paisas against dollar on Tuesday as market witnessed mixed trend during the day.
The rupee ended Rs154.23 to the dollar from previous day’s closing of Rs154.28 in interbank foreign exchange market.
Currency dealers said that the market witnessed depreciation of rupee earlier in the day owing to demand from importers and corporate buyers.
However, inflows of export earnings and remittances helped the rupee to gain the value.
The foreign currency market initiated in the range of Rs154.35 and Rs154.38. The market recorded day high of Rs154.35 and low of Rs154.18 and closed at Rs154.23.
The exchange rate in open market also witnessed depreciation in the rupee value. The buying and selling of the dollar was recorded at Rs154.10/Rs154.40 from previous day’s closing of Rs154.00/Rs154.30 in cash ready market.
KARACHI: State Bank of Pakistan (SBP) has imposed monetary penalty of Rs12.8 million on Habib Bank Limited (HBL) for procedural violations in the area of Customers Due Diligence (CDD) and Know Your Customer (KYC).
The SBP on Tuesday said that it had imposed monetary penalty on HBL under significant enforcement actions during January 2020.
The central bank directed HBL to improve the areas of CDD and KYC.
The SBP imposed Rs219.138 million as penalty on five banks during the month of December 2019 for violating mainly regulations related to foreign trade operations, Customers Due Diligence (CDD) and Know Your Customer (KYC).
The SBP from July 2019 started public disclosure of penal action against banks. “Enforcement actions are an integral part of regulatory regime which involves imposition of monetary penalties and other actions against institutions and individuals for violations of laws, rules, regulations, guidelines or directives issued by SBP from time to time,” according to a circular issued by the central bank.
In order to bring more transparency and strengthen market discipline, SBP has decided to publicly disclose significant enforcement actions
With the latest penal action the total amount of penalty during first seven months (July – January) 2019/2020 increased to Rs1,581.8 million.
KARACHI: The Pak Rupee ended down by 11 paisas against dollar on Monday owing to demand from importers and corporate buyers.
The rupee ended Rs154.28 to the dollar from last Friday’s closing of Rs154.17 in interbank foreign exchange market.
The currency dealers said that the market witnessed higher demand for dollars after opening two weekly holidays.
The foreign currency market was initiated in the range of Rs154.28 and Rs154.34. The market recorded day high of Rs154.29 and low of Rs154.16 and closed at Rs154.28.
The exchange rate in open market witnessed appreciation in the rupee value. The buying and selling of the dollar recorded at Rs154.00/Rs154.30 from last Friday’s closing of Rs154.20/Rs154.50 in cash ready market.
KARACHI: Habib Bank Limited (HBL) on Monday said that it will complete the closure of its New York Branch by March 31, 2020 in coordination with the New York State banking regulators.
In information shared with the Pakistan Stock Exchange (PSX), the bank said that upon such closure HBL will no longer operate any bank branch in the United States.
The bank said that it wishes to thank the State Bank of Pakistan (SBP), the New York State Department of Financial Services, and the Federal Reserve Bank of New York for their consistent support and cooperation through the process of winding down and closing the New York Branch.
HBL remains committed to engaging in progressive banking practices while ensuring compliance with all international and local laws and regulations across its network, the bank said.