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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.

  • Remittances grow to $20.19 billion in 11 months

    Remittances grow to $20.19 billion in 11 months

    KARACHI: Overseas Pakistanis workers have sent $20.19 billion during July – May 2018/2019 as compared $18.28 billion in the same period of the last fiscal year, showing growth of 10.42 percent, State Bank of Pakistan (SBP) on Friday.

    The central bank said that during May 2019, the inflow of worker’s remittances amounted to $2315.74 million, which is 30.17 percent higher than April 2019 and 28.36 percent higher than May 2018.

    The country wise details for the month of May 2019 show that inflows from Saudi Arabia, UAE, USA, UK, GCC countries (including Bahrain, Kuwait, Qatar and Oman) and EU countries amounted to US $493.73 million, $476.57 million, $346.81 million, $387.09 million, $237.76 million and $70.61 million, respectively compared with the inflow of $432.05 million, $373.85 million, $290.26 million, $269.11 million, $178.96 million and $60.34 million respectively in May 2018.

    Remittances received from Malaysia, Norway, Switzerland, Australia, Canada, Japan and other countries during May 2019 amounted to $303.17 million together as against $199.51 million received in May 2018.

  • SECP holds consultation session to review Bancassurance regulations

    SECP holds consultation session to review Bancassurance regulations

    KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has organized a stakeholders’ consultations session to review the changes in insurance regulatory framework governing Bancassurance, a statement said on Friday.

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  • Dollar hits record high at Rs155.85 in interbank

    Dollar hits record high at Rs155.85 in interbank

    KARACHI: The dollar appreciated by Rs2.94 to make a new record high on Friday owing to weak economic indicators and high debt repayments during next two years.

    The rupee ended Rs155.85 to the dollar from previous day’s closing of Rs152.91 in interbank foreign exchange market.

    The interbank foreign exchange market initiate in the range of Rs153.50 and Rs153.75. The market recorded day high of Rs156.50 and low of Rs153.95 and closed at Rs155.85.

    Currency experts said that the statement of the adviser to the prime minister regarding interest payment earlier in the day against foreign loan pressurized the local currency.

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

    The buying and selling of the dollar was recorded at Rs156.00/Rs157.50 from previous day’s closing of Rs152.50/Rs153.50 in cash ready market.

  • Dollar hits new high at Rs153.71 in early trade

    Dollar hits new high at Rs153.71 in early trade

    KARACHI: The US Dollar appreciated to record high at Rs 153.71 in early trade on Friday owing to high demand for import.

    The dollar is being trade at Rs153.71 after witnessing 80 paisas in interbank foreign exchange market.

    The exchange rate was closed yesterday at Rs152.91 to the dollar in Interbank Foreign Exchange Market.

  • Rupee hits all time low Rs152.91 against dollar

    Rupee hits all time low Rs152.91 against dollar

    KARACHI: The Pak Rupee hit all time low by losing Rs1.34 against dollar on Thursday owing to higher oil payment demand and scheduled repayment against foreign loan.

    The rupee ended Rs152.91 to the dollar from previous day’s close of Rs151.57 in interbank foreign exchange market.

    The foreign exchange market was initiated in the range of Rs151.50 and Rs151.90.

    The market recorded day high of Rs153.00 and low of Rs151.85 and closed at Rs152.91.

    Currency experts said that the rupee was under pressure due to schedule repayment of foreign debt. Further the inflows of remittances became lower after Eid festival, they added.

    They further added that the weekly payment of oil payment also escalated the demand for the greenback.

    The exchange rate in open market was also witnessed depreciation in rupee value.

    The buying and selling of dollar was recorded at Rs152.00/Rs153.00 as compared with previous day’s closing of Rs151.30/Rs152.00 in cash ready market.

  • Dollar hits all time high at Rs153 in midday trading

    Dollar hits all time high at Rs153 in midday trading

    The US dollar surged to an all-time high against the Pakistani rupee, reaching Rs153 during midday trading on Thursday. This significant increase is attributed to weak economic indicators, which have placed considerable pressure on the local currency.

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  • Finance Bill 2019: Banks to pay 37.5pc tax on profit from investment in govt securities

    Finance Bill 2019: Banks to pay 37.5pc tax on profit from investment in govt securities

    ISLAMABAD: Banks shall pay 37.5 percent income tax on profit from investment in government securities, according to proposals made through Finance Bill, 2019.

    The Federal Board of Revenue (FBR) in explanation to the Finance Bill, 2019 said that banks are earning substantial profits on account of incremental exposure to government securities.

    Therefore profit from such government securities as is in excess of twenty percent of total profit before tax is being taxed separately at the rate of 37.5 percent.

    The FBR further said that banks generally do not offer for taxation the provisions which were previously allowed but later on reversed. Therefore reversal of provisions already allowed is being made taxable by inserting an explanation in the Seventh Schedule.

    Banks are also allowed to claim deduction in respect of provisions classified as “doubtful” and “loss”. Now only deductions only in respect of provisions classified as “loss” are to be allowed.

  • Rupee falls by 10 paisas on import demand

    Rupee falls by 10 paisas on import demand

    KARACHI: The Pak Rupee fell by 10 paisas against dollar on Wednesday owing to demand for import and corporate payments.

    The rupee ended Rs151.57 to the dollar from previous day’s closing of Rs151.47 in interbank foreign exchange market.

    The foreign exchange market was initiated in the range of Rs151.50 and Rs151.75. The market recorded day high of Rs152.00 and low of

    Rs151.40 and closed at Rs151.57.

    Currency experts said that the rupee would remain stable till the end of current fiscal year or June 30, 2019.

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

    The buying and selling of dollar was recorded at Rs151.30/Rs152.00 from previous day’s closing of Rs151.00/Rs152.00 in cash ready market.

  • Rupee weakens by Rs1.36 against dollar

    Rupee weakens by Rs1.36 against dollar

    KARACHI: The Pak Rupee weakened by Rs1.36 against the US dollar on Tuesday as demand persists for import payment.

    The rupee closed at Rs151.47 to the dollar from previous day’s close of Rs150.11 in interbank foreign exchange market.

    Currency experts said that the rupee declined due to weak economic conditions.

    They said that the economic survey launched yesterday presented bleak picture of Pakistan’s economy.

    The exchange rate also witnessed depreciation in rupee value.

    The buying and selling of dollar was recorded at Rs151.00/Rs152.00 from previous day’s closing of Rs150.10/Rs150.40 in cash ready market.

  • Government borrows Rs3.2 trillion from SBP in 10 months: Economic Survey

    Government borrows Rs3.2 trillion from SBP in 10 months: Economic Survey

    ISLAMABAD: The government has borrowed Rs3.2 trillion from State Bank of Pakistan (SBP) for budget financing during first ten months of current fiscal year, Economic Survey of Pakistan revealed.

    The survey released a day earlier stated that during July 01, 2018-April 26, 2019 government borrowed Rs 1,073.0 billion for budgetary support compared to Rs 850 billion in the same period last year, of which, government has borrowed from SBP Rs 3,204.7 billion as compared to Rs 1,316.1 billion last year.

    On the other hand, government retired Rs 2,131.7 billion to scheduled banks against retirement of Rs 466.1 billion in last year. Net government sector borrowing thus remained at Rs 908.0 billion during the period under review compared with Rs 813.6 billion last year.

    During the period 01 Jul-26 Apr, FY2019 money supply (M2) increased by Rs 625.3 billion (growth of 3.9 percent) compared with Rs 601.8 billion (4.1 percent) in comparable period of last year.

    Net Domestic Assets (NDA) is the main contributor to M2 growth.

    Net Foreign Assets (NFA) point contribution is negative and stood at (-5.5 percent) during the period under review compared with (-3.3 percent) in the same period last year.

    NDA point contribution has increased to 9.4 percent compared with 7.4 percent last year. NDA point contribution growth partially offset by NFA negative growth, thus overall money supply grew by 3.9 percent during the period under review.

    On the other hand, reserve money posted an expansion of Rs 488.0 billion (growth of 8.9 percent) during 01 Jul-26 Apr, FY2019 against Rs 260.5 billion (5.4 percent) last year.

    SBP’s NDA posted a growth of 22.5 percent compared with 18.18 percent during the same period last year, whereas, SBP’s NFA decreased by Rs 743.8 billion compared with contraction of Rs 473.7 billion in the comparable period last year.

    Therefore, reserve money growth stemmed from NDA of the SBP whereas NFA outstanding stock remained negative during the period under review.

    Within Broad Money, NFA of the banking sector further contracted to Rs 882.4 billion during 01 Jul-26 Apr, FY2019. During same period last year, it was contracted by Rs 475.4 billion.

    Therefore, SBA and scheduled bank’s NFA remained negative during the period under review.

    During the period 01 Jul-26 Apr, FY2019 NDA of the banking sector registered an expansion of Rs 1,507.7 billion (growth of 9.3 percent) compared with Rs 1,077.2 billion (7.7 percent) during the comparable period last year.

    NDA of SBP increased by Rs 1,132.5 billion as compared with Rs 661.5 billion during same period last year.

    The NDA of scheduled banks witnessed an expansion of Rs 375.1 billion compared to expansion of Rs 415.7 billion in the same period of last year.

    Government sector borrowing and private sector credit mutually impacted NDA growth of the banking system, which was more than offset the contraction in NFA of the banking system.

    Consequently, broad money growth increased to 3.9 percent during 01 Jul-26 Apr, FY2019 as compared to 4.1 percent during the comparable period last year.

    Credit to Public Sector Enterprises (PSEs) increased by Rs 312.1 billion during the period 01 Jul-26 Apr, FY2019 against Rs 153.2 billion during the same period of last year.