Category: Finance

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  • Foreign exchange reserves fall by $67 million

    Foreign exchange reserves fall by $67 million

    KARACHI: The foreign exchange reserves of the country fell by $67 million to $20.313 billion by week ended December 18, 2020, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $20.380 billion by week ended December 11, 2020.

    The official reserves of the SBP fell by $83 million to $13.216 billion as compared with $13.299 billion a week ago.

    The central attributed the decline in the official reserves to external debt repayment during the week.

    The foreign exchange reserves held by commercial banks increased by $16 million to $7.097 billion by week ended December 18, 2020 when compared with $7.081 billion a week ago.

  • Pakistan’s knitwear export jumps up by 14.34 percent in five months

    Pakistan’s knitwear export jumps up by 14.34 percent in five months

    KARACHI: Pakistan’s knitwear export has jumped up by 14.34 percent to $1.51 billion during the first five months (July – November) of the current fiscal year, according to data released by Pakistan Bureau of Statistics (PBS) on Friday.

    The export of knitwear was at $1.32 billion during the same period of the last fiscal year.

    The total export of textile products posted five percent growth to $6.04 billion during the first five months of the current fiscal year as compared with $5.76 billion in the corresponding months of the last fiscal year.

    The export of knitwear remained the largest component contributing around 25 percent of the total textile export.

    In terms of value, export of readymade garments was the second largest component of textile export. The export of readymade garments posted 4.36 percent growth to $1.2 billion during July – November 2020/2021 as compared with $1.15 billion in the corresponding period of the last fiscal year.

    The export of bedwear registered 12.28 percent increase to $1.138 billion during the first five months of the current fiscal year as compared with $1.01 billion in the same period of the last fiscal year.

    The export of cotton cloth fell by 8.73 percent to $773.17 million during July – November 2020/2021 as compared with $847 million in the corresponding period of the last fiscal year.

    Similarly, the export of cotton yarn fell by 37.34 percent to $304.55 million during the period under review as compared with $486 million in the same period of the last fiscal year.

  • Weekly foreign exchange reserves ease by $22 million

    Weekly foreign exchange reserves ease by $22 million

    KARACHI: Pakistan’s foreign exchange reserves eased by $22 million to $20.38 billion by week ended December 11, 2020, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $20.402 billion by week ended December 04, 2020.

    The foreign exchange reserves of the SBP were remained flat at $13.299 billion by week ended December 11, 2020 as compared with $13.298 billion a week ago.

    The foreign exchange reserves held by commercial banks fell by $23 million to $7.081 billion by week ended December 11, 2020 as compared with $7.104 billion a week ago.

  • Taxes removed on locally manufactured mobile phones; ECC accords approval

    Taxes removed on locally manufactured mobile phones; ECC accords approval

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved removal of taxes on locally manufactured mobile phones.

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  • Foreign investment falls 81 percent during July – November

    Foreign investment falls 81 percent during July – November

    KARACHI: The inflow of total foreign investment fell by around 81 percent during first five months of the current fiscal year due to outflow of investment from debt securities.

    According to data released by State Bank of Pakistan (SBP) on Wednesday the foreign public investment fell by 112.5 percent mainly due to outflow in debt securities.

    The investment in debt securities witnessed outflow of $142 million during first five months of the current fiscal year as compared with inflows of $1.13 billion in the same period of the last fiscal year.

    The other segment of total investment i.e. foreign private investment witnessed a decline of 40 percent during the period under review.

    The foreign private investment fell to $531.6 million during July – November of the current fiscal year as compared with $884 million in the corresponding period of the last fiscal year.

    Under the head of foreign private investment, the inflow of direct investment witnessed 17 percent to $717 million during first five months of the current fiscal year as compared with $864.4 million in the same period of the last fiscal year.

    The investment in capital market witnessed massive outflow during the period. The portfolio investment during first five months of the current fiscal year witnessed outflow of $185.8 million as compared with inflow of $19.5 million in the same period of the last fiscal year.

  • Foreign exchange reserves increase by $160 million

    Foreign exchange reserves increase by $160 million

    KARACHI: The liquid foreign exchange reserves of the country have increased by $160 million to $20.402 billion by week ended December 04, 2020, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $20.242 billion by week ended November 27, 2020.

    During the week ended December 04, 2020, SBP received $359 million from multilateral/bilateral sources including $307 million from Asian Development Bank (ADB).

    After accounting for external debt repayments, SBP reserves increased by $188 million to $13.298 billion.

    The foreign exchange reserves held by commercial banks however fell by $27 million to $7.104 billion by week ended December 04, 2020 as compared with $7.131 billion a week ago.

  • National Savings tightens checks on investors

    National Savings tightens checks on investors

    ISLAMABAD: The government has tightened monitoring of investors of national savings to comply with conditions of Financial Action Task Force (FATF) and prevent transactions related to money laundering and terror financing.

    The Central Directorate of National Savings (CDNS) has prepared a comprehensive plan to examine the customers and issued instructions to all its regional offices in the country.

    The plan has been prepared by the National Savings (AML&CFT) Supervisory Board in consultation with the Financial Monitoring Unit (FMU).

    Under the plan the offices of the national savings have been advised to follow the guidelines in examining and monitoring the customs of the saving certificates and prize bonds.

    All those customers will be examined where overall investment quantum, account balance or transactional activity is not in line with their businesses, known means or stated purpose of products.

    The authorities issued red flags for transactional patterns related to all products, including certificates, accounts and prize bonds.

    Following are the red flags to identify suspicious transactions:

    ·         Nominee is not a close relative or change in nominee (for instance, to include non-family members).

    ·         Third party check is provided for investment.

    ·         Purchase of a long-term investment product followed shortly thereafter by a request to liquidate the position to get back the invested amount.

    ·         Overall investment quantum, account balance or transactional activity is not in line with the customer’s business, known means or stated purpose of the product.

    ·         Client is frequently purchasing savings certificates / prize bonds through unusual payments in cash which do not commensurate with his/her profile.

    ·         Unusually high levels of investments or unusually large transactions in relation to what might reasonably be expected of clients with a similar profile.

    ·         When transactions are conducted without any apparent legitimate or economic reason.

    ·         Where multiple deposits are made by unrelated individuals.

    ·         Large cash is deposited followed by early withdrawal.

    ·         Where large deposits and withdrawals are made routinely, and the end of day balance is very low or nil.

    ·         When a customer insists to buy multiple savings certificates/prize bonds through structured/broken cash transactions to avoid CTR reporting threshold (PKR 2.0 Million and above).

    ·         Two or more customers (Linked/associated with each other) working together to break one cash transaction into two or more transactions to evade the CTR reporting requirement.

    ·         Purchase of higher denomination Prize Bonds against cash without providing any plausible justification.

    ·         Encashment of higher denomination Prize Bonds without any plausible justification.

    ·         When a customer is frequently converting one product into another (especially in the name of an unrelated third party) without any plausible justification.

    ·         Numerous prizes are repeatedly/very frequently being claimed by the customer against winning prize bonds during a short span of time.

  • World Bank approves $300 million for two projects in Pakistan

    World Bank approves $300 million for two projects in Pakistan

    ISLAMABAD: The executive board of the World Bank has approved $300 million for financing two projects in Pakistan – the Sindh Resilience Project and the Solid Waste Emergency and Efficiency Project.

    These investments will bolster Pakistan’s efforts to build resilience to natural hazards such as floods and droughts in the Sindh province, and will strengthen solid waste management in Karachi to tackle recurrent urban flooding and public health emergencies in the city, the World Bank said in a statement on Wednesday.

    “Building resilience to natural disasters and health emergencies is an important and urgent agenda in Pakistan, that will help save lives and protect the economy,” said Najy Benhassine, World Bank Country Director for Pakistan.

    “The debilitating impact of recent floods in Karachi, droughts and extreme rainfall in Sindh, and of course the COVID-19 pandemic, make it imperative that risk reduction investments strengthen multi-sectoral dialogue and coordination at the city, provincial, and national levels to ensure protections for vulnerable communities and fight the spread of disease.”

    The US$200 million Sindh Resilience Project Additional Financing will help the government better manage climate and disaster risks, including floods, droughts, and public health emergencies.

    The project will strengthen linkages between disaster risk management and the health sector by establishing the Sindh Emergency Service to strengthen capacity for disaster preparedness and emergency response, including health crises such as COVID-19.

    The project also improves irrigation infrastructure to protect vulnerable communities living in rural areas, which will directly benefit 750,000 citizens in drought-prone areas of Kirthar range hills and the Nagarparkar region in the Tharparkar District.

    “The establishment of Sindh Emergency Service will greatly enhance the government’s responsiveness to natural disasters and emergencies, particularly in a megacity like Karachi where many lives are lost due to insufficient emergency medical services,” said Ahsan Tehsin, Task Team Leader for the Sindh Resilience Project.

    “The project will also improve water security for rural communities that suffer from chronic malnutrition and poverty and are forced to migrate due to water insecurity.”

    The US$100 million Solid Waste Emergency and Efficiency Project (SWEEP) will improve solid waste management services in Karachi – Pakistan’s largest city of more than 16 million people – and upgrade critical solid waste infrastructure to reduce urban flooding and public health risks.

    The project focuses on emergency waste removal to restore stormwater drainage capacity before the next monsoon season, especially in vulnerable communities around drainage and waste collection sites.

    The project will improve living conditions for at least half a million residents of Karachi and increase protections for workers by introducing safety protocols that improve labor conditions.

    SWEEP also addresses deficiencies in existing solid waste infrastructure by constructing and upgrading critical infrastructure, such as collection, transfer and disposal facilities.

    It also leverages the Competitive and Livable City of Karachi Project (approved on June 27, 2020) to advance long-term planning, policy reforms, and behavioral changes required to improve the solid waste management sector.

    “Engaging citizens and community members, including informal workers, is essential for sustainable and safer waste management solutions,” said Suhaib Rasheed, Task Team Leader for the Solid Waste Emergency and Efficiency Project. “Equally important is a focus on financial sustainability, which will require continued efforts to develop private sector partnerships and sustainable revenues streams to offset the costs of delivering these vital services.”

  • Pakistan’s exports grow by 2.11 percent in five months

    Pakistan’s exports grow by 2.11 percent in five months

    ISLAMABAD: Pakistan’s exports have shown resilience amidst global economic challenges, recording a 2.11% increase to $9.737 billion in the first five months (July – November) of the current fiscal year 2020/2021, according to data released by the Pakistan Bureau of Statistics (PBS) on Friday.

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