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.

Bank holiday

KARACHI: The banks will remain close for public dealing on July 01, 2019, which will be observed as bank holiday on Monday.

A notification issued on Thursday the SBP said that it will remain closed for public dealings on July 1, 2019 (Monday) which will be observed as Bank Holiday.

All banks / Development Financial Institutions/ Microfinance Banks (MFBs) shall, therefore, remain closed for public dealings on the aforesaid date.

However, all employees of the banks / DFIs / MFBs will attend the office as usual, the SBP said.

June 27, 2019
Dollar makes new high at Rs164.06

KARACHI: The deterioration in Pak Rupee continued against dollar on Thursday as the foreign currency made a new high at Rs164.06 in interbank foreign exchange market.

The rupee fell by Rs1.09 to end at Rs164.06 to the dollar as compared with previous day’s closing of Rs162.17 in interbank foreign exchange market.

The foreign exchange market initiated in the range of Rs164.00 and Rs164.50. The market witnessed day high of Rd164.25 and low at Rs163.80 to the dollar in interbank foreign exchange market.

Currency experts said that due to closing of fiscal year by June 30 put the pressure on dollar buying for import and corporate payments.

The exchange rate in open market also witnessed depreciation of the local unit.

The buying and selling of dollar was recorded at Rs162.50/Rs163.50 as compared with last day’s closing of Rs162.00/Rs163.00 in cash ready market.

June 27, 2019
SBP relaxes tax non-filer condition

KARACHI: The State Bank of Pakistan (SBP) on Wednesday relaxed non-filer condition for depositing into to foreign currency accounts in order to facilitate declarants of tax amnesty scheme 2019.

Referring Assets Declaration Ordinance, 2019 (ADO), the central bank said that the Ordinance had been promulgated with a view to provide for voluntary declaration of undisclosed assets, sales and expenditures, for the purposes of allowing the non-documented economy’s inclusion in the taxation system and economic revival and growth by encouraging a tax compliant economy/ culture.

In terms of Section 8 of the ADO, the declaration made shall be valid if the foreign currency held in Pakistan declared under Section 3 is deposited into declarant’s own foreign currency bank account at the time of declaration and is retained in such account till 30th June, 2019.

“It is clarified that notwithstanding any instructions to the contrary contained in the Foreign Exchange Manual, a declarant, including a non-filer can deposit foreign currency in cash into his/her bank account under the ADO.”

Similarly, the provision of Foreign Exchange Manual, Chapter 6, para 1(vi) regarding deposit of foreign currency notes in foreign currency accounts exceeding USD 10,000/- (or equivalent in other currencies) in a single day, shall not be applicable to such deposits made under the ADO.

However, the banks while accepting such deposits under the ADO shall obtain a copy of the declaration filed with the Federal Board of Revenue (FBR) by the declarant and accept the deposit only if the amount being deposited is equivalent to the amount declared in the declaration filed with FBR.

The banks shall ensure the confidentiality and secrecy of the information contained in the declaration submitted to them by declarants along-with deposit request.

The banks shall submit to the State Bank of Pakistan (SBP) a statement as annexed hereto, within 7 (seven) days of close of the scheme.

June 26, 2019
Rupee hits another historic low of Rs162.17 against dollar

KARACHI: The Pak Rupee hit recorded another historic low against dollar on Wednesday by depreciating Rs5.51 in interbank foreign exchange market owing to withdrawal of high denomination prize bonds by the government.

The rupee ended Rs162.17 to the dollar from previous day’s closing of Rs156.99 in interbank foreign exchange market.

The foreign currency market was initiated in the range of Rs157.00 and Rs158.00. The market recorded day high of Rs162.50 and low of Rs158.50 and ended at Rs162.17.

Currency experts said that the withdrawal of Rs40,000 prize bonds put the pressure on dollar buying.

The government has announced to withdraw the bearer bonds of Rs40,000 bonds by March 2020 and its sales through bank branches has been closed since June 24, 2019.

The exchange rate in open market also witnessed deterioration in rupee value.

The buying and selling of dollar was recorded at Rs162.00/Rs163.00 from previous day’s closing of Rs156.00/Rs156.70 in cash ready market.

June 26, 2019
Rs260 billion to be documented through withdrawal of Rs40,000 bearer bonds in first phase

KARACHI: The government will document an amount of Rs260 billion in first phase by withdrawing Rs40,000 denomination bonds.

The government has announced to stop circulation of high denomination bearer bonds in order to curb the black economy.

Till February 2019 the central directorate of national savings issued Rs259.22 billion bonds of Rs40,000.

On Jane 24, 2019 State Bank of Pakistan (SBP) issued instructions to commercial banks for not selling Rs40,000 Prize Bonds. The SBP also issued procedure for exchanging the bonds with premium bonds or documented saving certificates by March 2020.

According to Economic Survey of Pakistan 2018-2019 the CDNS had planned to convert all bearer bonds into documented securities.

A staggering amount of Rs939 billion has been invested in bearer bonds up to February 2019.

Market sources said the holders of bearer bonds worth Rs40,000 were desperate to exchange and were even offering to exchange much lower rates in order to avoid questioning.

The sources further said that many of those holders were desperate to exchange with US dollar and other foreign currencies, which put pressure on the local currency.

The rupee hit all time low at Rs165 to a dollar in Interbank Foreign Exchange Market on Wednesday.

On the other hand the FBR is also planning to question the persons exchanging the bearer bonds regarding source of investment.

June 26, 2019
Meezan Bank partners with IBM for accelerating digital transformation

KARACHI: Meezan Bank, leading Islamic bank, has announced its partnership with IBM (International Business Machines Corporation) Pakistan, to accelerate its digital transformation.

The new solution shall enable real-time analysis of data and help the Bank uncover customer behavioral insights. With a network of over 676 branches in more than 180 cities in Pakistan, Meezan Bank will utilize IBM’s data analytics to improve and personalize customer experience, provide new efficiencies to the Bank’s operations and mitigate financial risks.

Meezan Bank serves more than two million customers currently. The new partnership will enable the Bank to develop insights to improve customer acquisition, servicing as well as overall productivity.

“Meezan Bank is acutely aware of the increasing importance of leveraging technology to deliver solutions for both customers and the Bank’s own processes. We continue to invest heavily in technology and I am confident that this Data Analytics project will be a game changer,” said Ariful Islam – Deputy CEO of Meezan Bank.

“Technologies are disrupting our lives at an accelerated pace, and it is our endeavor to deliver as per the expectations of our customers using the tools that new technologies will give us. The future of banking depends on the speed with which we can adapt these new realities.”

The implementation of this Data Analytics project will give Meezan Bank the ability to ingest and analyze data in real time from various sources, including social media and mobile, and in turn, uncover customer behavioral insights, such as past purchasing behaviors, and make more informed data-driven decisions.

“Data has become the biggest differentiating factor in the constantly evolving and competitive financial services industry,” said Ghazanfar Ali – Country General Manager of IBM Pakistan.

“Through IBM’s analytics and cognitive solutions, Meezan Bank will be able to benefit from a data driven approach to create personalized customer experiences, expand the business and drive efficiencies that will extend its leadership in the banking marketplace.”

June 25, 2019
Rupee ends unchanged in interbank foreign exchange market

KARACHI: The Pak Rupee ended unchanged at all time low against the dollar on Tuesday amid demand for import and corporate payments.

The rupee ended Rs156.99 to the dollar, the same previous day’s level, in interbank foreign exchange market.

The foreign exchange market opened in the range of Rs156.75 and Rs157.00. The market recorded day high of Rs157.00 and low of Rs156.50 in interbank foreign exchange market.

The exchange rate in open market was also remained unchanged. The buying and selling of dollar was recorded at Rs156.00/Rs156.70, the same previous day’s level, in cash ready market.

June 25, 2019
SBP stops banks selling Rs40,000 prize bonds, issues procedure for conversion into registered bonds

KARACHI: State Bank of Pakistan (SBP) has stopped banks from issuing prize bond denomination of Rs40,000 with immediate effect and also issued instructions regarding conversion into registered bonds and encashment.

The SBP on Monday 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:

1. 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 cop 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.

June 24, 2019
Rupee hits all time low against dollar

KARACHI: The Pak Rupee ended down to hit all time low against dollar at closing on Monday owing to pressure from payment for import and corporate.

The rupee ended down by 16 paisas to close at Rs156.99 to the dollar from last Friday’s closing of Rs156.83 in interbank foreign exchange market.

The foreign exchange market initiated at Rs156.98 and Rs157.00. The market recorded day high of Rs157.00 and low of Rs156.75 and closed at Rs156.99.

The exchange rate in open market also witnessed depreciation in local currency value.

The buying and selling of dollar recorded at Rs156.00/Rs156.70 from last Saturday’s closing of Rs155.70/Rs156.70 in cash ready market.

June 24, 2019
Rupee gains 13 paisas against dollar

The Pakistani Rupee (PKR) strengthened against the US Dollar on Friday, gaining 13 paisas, buoyed by improved inflows of remittances and reduced demand for import payments. The rupee closed at PKR 156.83 to the dollar, compared to the previous day’s closing rate of PKR 156.96 in the interbank foreign exchange market.
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June 21, 2019