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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 amid dollar demand

    Rupee ends firmer amid dollar demand

    KARACHI: The Pak Rupee ended firmer against dollar on Monday despite demand of the foreign currency for import and corporate payments.

    The rupee ended Rs154.57 to the dollar, the same closing level of last Friday, in interbank foreign exchange market.

    Currency dealers said that the market witnessed higher demand for the greenback for import and corporate payments on the first day trading after two weekly holidays.

    They, however, said that the inflows of export receipts and workers’ remittances helped the rupee to maintain level.

    The foreign currency market was initiated in the range of Rs154.58/Rs154.63. The market recorded day high of Rs154.58 and low of Rs154.54 and closed at Rs154.57.

    The exchange rate in open market also witnessed no change in rupee value. The buying and selling of dollar was recorded at Rs154.60/Rs154.90, the same closing level of last Friday, in cash ready market.

  • Rupee gains five paisas on inflows

    Rupee gains five paisas on inflows

    KARACHI: The Pak Rupee made gain five paisas against dollar on Friday owing to inflows of export and remittances.

    The rupee ended Rs154.57 to the dollar from previous day’s closing of Rs154.62 in interbank foreign exchange market.

    Currency dealers said that the market witnessed supply of dollars during the day which helped the rupee to make gain.

    The foreign currency market was initiated in the range of Rs154.65 and Rs154.68. The market recorded day high of Rs154.65 and low of Rs154.56 and closed at Rs154.57.

    The exchange rate in open market witnessed stable rupee value. The buying and selling of dollar was recorded at Rs154.60/Rs154.90, the same previous day’s closing, in cash ready market.

  • Rupee depreciates by 9 paisas on import payment demand

    Rupee depreciates by 9 paisas on import payment demand

    KARACHI: The Pak Rupee depreciated by nine paisas on Wednesday owing to demand for import and corporate payments.

    The rupee ended Rs154.62 to the dollar from previous day’s closing of Rs154.53 in interbank foreign exchange market.

    Currency dealers said that the market witnessed buying activities in foreign currency from importers and corporate buyers.

    The foreign currency market initiated in the range of Rs154.52 and Rs154.55. The market recorded day high of Rs154.63 and low of Rs154.55 and closed at Rs154.62.

    The exchange rate in open market however witnessed appreciation in rupee value. The buying and selling of the dollar was recorded at Rs154.50/Rs154.80 from previous day’s closing of Rs154.60/Rs154.90 in cash ready market.

  • Policy rate likely unchanged on high inflation

    Policy rate likely unchanged on high inflation

    KARACHI: The State Bank of Pakistan (SBP) is likely to keep the policy rate unchanged due to the recent surge in inflation, analysts said on Thursday.

    Analysts at Arif Habib Limited expect inflation to remain elevated in upcoming months on account of regular adjustment in electricity price (fuel cost adjustment and base tariff hike), another round of gas price increase, increase in prices of petroleum products, and continuous surge in prices of perishable and non-perishable food items.

    On the monetary policy front, they maintain a status quo stance on the upcoming Monetary Policy Statement (MPS) scheduled on 28th Jan’20, with no change expected in interest rate (policy rate to be maintained at 13.25%) as they believe the surge in inflation is due to supply disruptions of key commodities and this might settle down in coming months. We expect inflation to start declining from March 2020 to 11.5% due to the high base effect. After considering forecasted inflation, we expect rate cuts to begin from March 2020.

    They expect January 2020 inflation to settle at 13.58% YoY compared to 5.6% in Jan’19 and 12.63% in December 19, respectively.

    The YoY uptick in CPI is expected on the back of i) increase in prices of non-perishable products including Pulse Moong, Chicken, Pulse Gram, Eggs, Gur and Wheat Flour, ii) increase expected in quarterly house rent index by 1.5%, and iii) increase in prices of petroleum products.

    Whereas a decline in prices of perishable items is expected to keep the inflation restrained. This will take the 7MFY20 average inflation to 11.46% compared to 5.9% in 7MFY19. On a yearly basis, an increase in inflation will likely be led by Food (+21% YoY), Transport (+15.4%YoY), Alcoholic Beverages & Tobacco (+14.6% YoY), and House Hold Equipment (+12.9%).

    On a MoM basis, CPI reading is expected to increase by 1.20% attributable to surge in House Hold Equipment index (+2.4% MoM), Housing Index (+1.7% MoM), Food index (+1.4% MoM) and Transport Index (+1.4% MoM).

    As per three weeks Sensitive Price Index (SPI) data published by the Pakistan Bureau of Statistics (PBS), average prices of Pulse Moong, Chicken, Pulse Gram, Eggs, Gur and Wheat Flour are expected to register a jump of 15%, 13%, 13%, 11%, 8% and 5% MoM, respectively.

    On the other hand, meagre decline in prices of essential food items like Onions (-15% MoM), and Tomatoes (-5% MoM) are expected to keep the food index contained.

  • Rupee gains eight paisas on export receipts inflows

    Rupee gains eight paisas on export receipts inflows

    KARACHI: The Pak Rupee gained eight paisas against dollar on Wednesday owing to improve inflows of export receipts, dealers said.

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  • Rupee makes slight gain amid higher demand for corporate, import payment

    Rupee makes slight gain amid higher demand for corporate, import payment

    The Pakistani Rupee demonstrated resilience against the US Dollar on Tuesday, making a slight gain despite increased demand for imports and corporate payments, according to dealers in the interbank foreign exchange market.

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  • SBP to announce monetary policy on January 28

    SBP to announce monetary policy on January 28

    The State Bank of Pakistan (SBP) is set to unveil its monetary policy for the upcoming two months on Tuesday, January 28, 2020, as confirmed by a statement released on Tuesday.

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  • Banks asked to ensure compliance in collection of donations for Dam Fund

    Banks asked to ensure compliance in collection of donations for Dam Fund

    KARACHI: State Bank of Pakistan (SBP) on Monday said any laxity by banks in collection of donations for Dam Funds will tantamount to contempt of court.

    “The apex court of the country [Supreme Court of Pakistan] is monitoring progress in the matter of donations to the Fund. Any laxity by banks or their staff at branches will attract penal action and may also tantamount to contempt of court,” the SBP said.

    The banks are therefore, advised to ensure meticulous compliance of above instructions and extend full cooperation to donors in deposit of their donations/contributions, the SBP added.

    The central bank said that in a recent hearing of the subject case, the Honorable Supreme Court of Pakistan has observed that there are complaints that banks are not accepting donations from people contributing to the Dam Fund, and are also not actively facilitating donors in remittance of the funds stuck abroad.

    In order to address the issues being faced by donors, banks are advised to ensure that the arrangements made for collection of donations and contributions to the Dam Fund shall remain in place at every bank branch on an ongoing basis; requiring all concerned to provide necessary support and facilitation to donors.

    The banks are further directed to ask their overseas branches to facilitate the donors in depositing and remittance of donations to the Fund in accordance with the legal and regulatory framework of concerned jurisdiction.

    The banks shall display SBP’s helpline number and email address on their websites and branch notice boards for lodging of complaints by donors if they face any difficulty in depositing and contributing to the Fund.

  • Rupee ends down by three paisas on import demand

    Rupee ends down by three paisas on import demand

    KARACHI: The Pak Rupee ended down by three paisas against dollar on Monday due to increase in demand for the foreign currency by importers and corporate buyers.

    The rupee ended at Rs154.60 to the dollar from last Friday’s closing of Rs154.57 in interbank foreign exchange market.

    The currency dealers said that the demand for the foreign currency was higher as market resumed trading after two days weekly holidays.

    The foreign currency market was initiated in the range of Rs154.58 and Rs154.62. The market recorded day high of Rs154.66 and low of Rs154.54 and closed at Rs4154.60.

    The exchange rate in open market witnessed stable rupee value. The buying and selling of dollar was recorded at Rs154.50/Rs154.80, the same last Friday’s closing, in cash ready market.

  • Rupee gains nine paisas on foreign inflows in debt market

    Rupee gains nine paisas on foreign inflows in debt market

    KARACHI: The Pak Rupee gained nine paisas against dollar on Friday owing to significant foreign inflows in debt market, dealers said.

    The rupee ended Rs154.57 to the dollar as compared with previous day’s closing of Rs154.66 in interbank foreign exchange market.

    The dealers said that the debt market witnessed record single day investment.

    The debt market witnessed investment of $536 million in treasury bills on Friday.

    The market was initiated in the range of Rs154.57 and Rs154.62. The market recorded day high of Rs154.62 and low of Rs154.56 and closed at Rs154.57.

    The exchange rates in open market also witnessed appreciation in rupee value.

    The buying and selling of dollar at Rs154.50/Rs154.80 from previous day’s closing of Rs154.60/Rs154.90 in cash ready market.