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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 sheds 38 paisas against dollar

    Rupee sheds 38 paisas against dollar

    KARACHI: The Pak Rupee lost 38 paisas against dollar on Thursday after indication of the government for entering IMF program.

    The rupee ended Rs139.19 to the dollar from previous day’s close of Rs138.81 in interbank foreign exchange market.

    The interbank foreign exchange market was initiated in the range of Rs138.92 and Rs138.99.

    The market recorded day high of Rs139.25 and low of Rs138.95 and closed at Rs139.19.

    A day earlier the finance minister hinted at entering into a new loan program with IMF.

    The exchange rate in open market also revised downward.

    The buying and selling of dollar was recorded at Rs138.70/Rs139.20 from previous day’s closing of Rs138.30/Rs138 in cash ready market.

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    Rupee maintains level against dollar

  • SBP urges SMEs to avail refinance benefits

    SBP urges SMEs to avail refinance benefits

    KARACHI: State Bank of Pakistan (SBP) has urged Small and Medium Enterprises (SMEs) to avail refinance facilities as the central bank put in place number of refinance facilities both for purchase of plant & machinery for SMEs and working capital finance for special sectors.


    While speaking to SMEs, Syed Samar Hasnain, Executive Director, SBP at a meeting with manufacturers and exporters belonging to SME sectors and bankers based in Sialkot on Wednesday, he emphasized that banks have been instructed to inform SMEs about their facilities.

    At the same time, he also urged the SMEs to take a step ahead and approach nearby bank branches to know about SBP’s facilitates available for them.

    Hasnain stated: “In terms of numbers, most of the entities in your region are SMEs. If you want to graduate from indirect exporter to direct exporter, you can modernize and expand your plant and equipment by availing SBP’s refinance facilities for modernization.”

    He encouraged the SMEs to avail SBP’s refinance facility for renewable energy to overcome power problem. Adding further, he said that SMEs can also use SBP’s subsidized refinance facility for setting up silos, cold storage facility and warehouses. Mr. Hasnain assured the SMEs that SBPBSC- Sialkot office will be taking stock of the financing extended to SMEs and progress in this regard will also be monitored closely.

    In a presentation, salient features of SBP’s Policy for Promotion of SME Finance were explained. It highlighted the nine pillars of the policy, namely, i) Improving Regulatory Framework; ii) Upscaling through Microfinance Banks; iii) Risk Mitigation Strategy; iv) Simplified Procedure for SME Financing; v) Program Based Lending & Value Chain Financing; vi) Capacity Building & Awareness Creation; vii) Handholding of SMEs – Non Financial Advisory Service; viii) Leveraging Technology to promote SME Financing; and, ix) Simplifying Taxation Regime for SMEs.

    The meeting/awareness sessions were attended by representatives from associations including Pakistan Sports Goods Manufacturers & Exporters Association, Pakistan Gloves Manufacturers & Exporters Association, Leather Garments Manufacturers & Exporters Association, Pakistan Hosiery Manufacturers & Exporters Association and Pakistan Cutlery & Stainless Utensils Manufacturers and Exporters Association in Sialkot.

    Regional heads, SME heads and branch managers of all banks operating in the region also participated in these meetings. Chief Manger SBP Sialkot was also present on the occasion.

  • Rupee maintains level against dollar

    Rupee maintains level against dollar

    KARACHI: The Pak Rupee maintained level against dollar on Wednesday despite higher demand for import and corporate payments.

    The rupee ended Rs138.81 to the dollar from previous day’s close of Rs138.82 in interbank foreign exchange market.

    The interbank foreign exchange market was market initiated in the range of Rs138.80 and Rs138.85.

    The market recorded day high of Rs138.88 and low of Rs138.78 and closed at Rs138.81.

    Currency experts said that due to declining import bill the demand for the greenback was eased.

    The trade deficit has narrowed by 11 percent during first eight months of current fiscal year owing decline in import bill, Pakistan Bureau of Statistics (PBS) said on Tuesday.

    The trade deficit shrank to $21.52 billion during July – February 2018/2019 as compared with the deficit of $24.19 billion in the corresponding period of the last fiscal year.

    The import bill of the country was declined by 6.13 percent to $36.63 billion during first eight months of current fiscal year as compared with $39.03 billion in the same period of the last fiscal year.

    The exchange rate in the open market was also remained stable.

    The buying and selling of dollar was recorded at Rs138.30/Rs138.80, the same previous day’s level, in cash ready market.

  • Rupee ends flat against dollar

    Rupee ends flat against dollar

    KARACHI: The Pak Rupee ended flat against dollar on Tuesday amid higher demand for import and corporate demand.

    The rupee ended Rs138.82 to the dollar from previous day’s close of Rs138.82 in interbank foreign exchange market.

    The interbank foreign exchange market was initiated in the range of Rs138.80 and Rs138.85.

    The market recorded day high of Rs138.90 and low of Rs138.82 and closed at Rs138.82.

    Currency experts said that the scheduled repayment of foreign loans had pressure on the local currency. However, they said that expected inflows of $4.1 billion during next few days would help the local currency to gain values.

    The exchange rates in the open market were also flat.

    The buying and selling of dollar was recorded at Rs138.30/Rs138.80 from previous day’s closing of Rs138.30/Rs138.70 in cash ready market.

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    Rupee falls by 26 paisas against dollar

  • SBP allows exemptions, relaxations for housing finance

    SBP allows exemptions, relaxations for housing finance

    KARACHI: The State Bank of Pakistan (SBP) has allowed certain exemptions and relaxations in prudential regulations for promoting low cost housing finance.

    A circular issued a day earlier, the SBP said that in order to promote low cost housing finance in the country, it has been decided to define the low cost housing as part of SBP’s regulatory framework and allow certain regulatory relaxations for banks/DFIs.

    To qualify under low-cost housing finance, the borrower has to fulfill the following criteria:

    • Maximum value of the housing unit/apartment up to Rs3 million

    • Covered area of the housing unit / apartment up to 850 square feet in urban areas

    • Loan size up to Rs2.7 million

    To further encourage and facilitate the Banks/DFIs to pursue low-cost housing finance, regulatory exemptions/relaxations in the following Prudential Regulations (PRs) for housing finance are being advised:

    i. Regulation HF 4: Loan to Value Ratio (LTV): LTV ratio of upto 90:10 shall be maintained for low cost housing finance.

    ii. Regulation HF 5: Limit on Exposure against Real Estate Sector: Financing extended to low cost housing, shall be exempted from exposure limit of 10 percent on real estate sector.

    iii. Regulation HF-7: Property Assessment: For the purpose of financing low cost housing units, banks/DFIs are allowed to apply the valuation of single unit on all the units of the same society/colony instead of conducting separate valuation for each unit constructed on the same layout and size.

    iv. Regulation HF 9: General Reserve against Housing Finance: Banks/DFIs are exempted from general reserve requirement against the financing extended to low cost housing.

    Banks/DFIs have been directed to ensure circulation of these exemptions/relaxations in the regulations for housing finance among all their offices/branches for meticulous compliance in letter and spirit.

  • SBP launches Islamic loan facility for low cost housing

    SBP launches Islamic loan facility for low cost housing

    KARACHI: State Bank of Pakistan (SBP) on Monday launched Sharia compliant loans for low cost housing for special segments.

    In a circular issued by the central bank stated that in order to facilitate availability of long-term affordable funding to some of the selective low income segments, SBP had launched a “Financing Facility for Low Cost Housing for Special Segments” through IH&SMEFD Circular No. 05 of 2019.

    In this regard, SBP is also introducing a Mudarabah based “Islamic Financing Facility for Low Cost Housing for Special Segments” (The Facility) for Islamic Banking Institutions (IBIs) and Islamic DFIs; collectively referred as Participating Islamic Financial Institutions (PIFIs).

    Salient features of the financing facility are as under:

    Participants: All Banks/DFIs

    Loan Amount: Up to Rs. 2.7 million

    Refinance: Up to 100 percent by SBP

    Scope: Widows, Children of martyrs, Special persons, Transgender, and Persons in areas severely affected by terrorism.

    Eligibility of Borrower: First time home owner; Must not have availed housing finance previously; For construction of a new housing unit; Maximum value of the housing unit up to Rs. 3 million; The financing for plot to be purchased for constructing house shall be allowed upto Rs1 million only

    Loan Tenor: Up to 12½ years

    Under this facility, the central bank said that Mudarabah investment of SBP shall be available for up to 100 percent of the amount financed to eligible customers.

    SBP shall make Mudarabah investment in general pool of the PIFI.

    PIFIs may submit their requests for allocation / assignment of limits under this facility to be evaluated by SBP as per its internal criteria. Yearly limits shall be allocated to individual PIFI under the Scheme.

    Applications for sanction of limits for each fiscal year (July-June basis) shall be sent by the interested PIFIs to the Director, Infrastructure, Housing & SME Finance Department, latest by May 15 each year to facilitate sanction of annual limits at the earliest.

    For the current year, the request for sanction of limits may be submitted within 30 days from the date of issuance of this circular.

  • Rupee falls by 26 paisas against dollar

    Rupee falls by 26 paisas against dollar

    The Pakistani Rupee experienced a depreciation of 26 paisas against the US Dollar, closing at Rs138.81 in the interbank foreign exchange market. This decline comes after last Friday’s closing of Rs138.55, reflecting heightened demand for dollars driven by import and corporate payment obligations.

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  • Rupee gains 20 paisas on foreign inflows

    Rupee gains 20 paisas on foreign inflows

    KARACHI: Pak Rupee gained 20 paisas against US dollar in open market on Saturday on reports of foreign inflows from friendly countries.

    The buying and selling of dollar was recorded at Rs138.30/Rs138.80 from previous day’s closing of Rs138.50/Rs139.00 in cash free market.

    Currency experts said that the signing of financing between State Bank of Pakistan (SBP) and Abu Dhabi Fund for Development (ADFD) for deposit of $2 billion helped the local currency to gain.

    They further said that the local currency would strengthen during the next week owing to foreign inflows.

  • Rupee gains nine paisas against dollar

    Rupee gains nine paisas against dollar

    KARACHI: The Pak Rupee gained nine paisas against dollar on Friday owing to inflows of remittances and export receipts.

    The rupee ended Rs138.55 to the dollar from previous day’s close of Rs138.64 in interbank foreign exchange market.

    The interbank foreign exchange market was initiated in the range of Rs138.60 and Rs138.65.

    The market recorded day high of Rs138.65 and low of Rs138.52 and closed at Rs138.55.

    In the open market the exchange rate was remained unchanged.

    The buying and selling of dollar was recorded Rs138.50/Rs139.00, the same previous day level, in the cash ready market.

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    Rupee gains 20 paisas against dollar

  • Rupee gains 20 paisas against dollar

    Rupee gains 20 paisas against dollar

    KARACHI: The Pak Rupee gained 20 paisas against dollar on Thursday owing to inflows of remittances and export receipts.

    The rupee ended Rs138.64 to the dollar from previous day’s close of Rs138.84 in interbank foreign exchange market.

    The interbank foreign exchange market was initiated in the range of Rs138.70 and Rs138.75.

    The market recorded day high of Rs138.77 and low of Rs138.63 and closed at Rs138.64.

    In the open market the exchange rate was remained unchanged.

    The buying and selling of dollar was recorded Rs138.50/Rs139.00, the same previous day level, in the cash ready market.