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  • National Savings screening meant to stop ill-gotten money: Finance Division

    National Savings screening meant to stop ill-gotten money: Finance Division

    ISLAMABAD: The Finance Division on Monday said that the screening of all saving schemes is meant to stop any ill-gotten money to become part of financial system and to safeguard the valued investors from the menace of Money Laundering and Terrorist Financing.

    The Ministry of Finance, while clarifying news reports, said that Central Directorate of National Savings (CDNS) is committed to mitigating the deficiency to improve customer service delivery and to comply with the FATF recommendation to safeguard the investors’ interests.

    Banks under the supervision of SBP have already put in place all the required systems and KYCs (Know Your Customers) processes to comply with the FATF recommendations.

    In order to implement this requirement, Finance Division through promulgation of National Savings Schemes (AML-CFT) Rules, 2019 has decided to engage an AML-CFT compliant bank, through competitive bidding, to put in place the requirements as well as the necessary training of employees of National Savings.

    Accordingly, Expression of Interest, in consultation with SBP, has been sought from the interested bank to conduct KYC and other requirement of new as well as existing clients of CDNS.

    This will include the biometric verisys and screening of potential clients in UN Proscribed person List.

    All these screenings are meant to stop any ill-gotten money to become part of financial system and to safeguard the valued investor from the menace of Money Laundering and Terrorist Financing.

    Finance Division therefore reiterates that the steps of the Government are aimed at making the CDNS compliant with the FATF requirement and are not intended to jeopardize the interests of the account holders / customers.

    Moreover, third-party arrangement will make the organization i.e CDNS more transparent and viable for the customers and will not in any case affect its financial business.

  • National Saving Scheme AML, CFT Rules: Supervisory board constituted for monitoring

    National Saving Scheme AML, CFT Rules: Supervisory board constituted for monitoring

    ISLAMABAD: The ministry of finance has constituted supervisory board to provide independent oversight of implementation of National Savings Schemes (AML and CFT) Rules, 2019.

    The advisory board has been comprised of:

    01. Additional Finance Secretary (Budget): Chairman

    02. Syed Jahangir Shah, Director, State Bank of Pakistan: Member

    03. Ms. Tanzila Nisar Mirza, Additional Director, Securities and Exchange Commission of Pakistan: Member

    04. Adnan Imran, Director, Financial Monitoring Unit: Member

    05. Joint Secretary (B-1), Ministry of Finance: Member/Secretary

    As per the rules, the Supervisory Board shall provide independent oversight of implementation of these rules and take necessary enforcement actions against violations thereof.

    The Finance Division shall provide all secretarial and administrative support to the Board for effective discharge of its responsibilities.

    The Board shall, within two months of the commencement of these rules, devise its SOPs for supervision of CDNS to ensure compliance with AML and CFT requirements.

    The Board shall have powers to issue appropriate standard operating procedures(SOPs), demand receipt of appropriate management information system on periodical basis, direct CDNS to take such actions as may be required to address deficiencies pointed out during such assessments and advise such enforcement actions as it may deem necessary.

    The Board shall have powers to direct CDNS to take all reasonable measures to ensure compliance with provisions of the AML Act, 2010 and these rules.

    The Board shall have powers to compel production of any information or record it may require for the discharge of its responsibilities and CDNS shall provide the information and record in such format and within such timelines as may be specified by the Board.

    The Board shall have powers to engage chartered accountant firms from SBP’s approved panel of auditors to conduct onsite examinations, assess ML and TF risks posed, assess corresponding controls and determine compliance with the AML Act, 2010 and these rules and regulations issued from time to time.

    If any provision of these rules, is contravened, or if any default is made in complying with any requirement of these rules or orders or SOPs issued there under, by any officer or official of CDNS, the person who contravened shall be punishable in accordance with the law for the time being in force.

  • 46 essential consumer items out of 51 register price hike in one year; prices go up to 116.82%

    46 essential consumer items out of 51 register price hike in one year; prices go up to 116.82%

    ISLAMABAD: About 46 essential consumer items out of 51 have registered increase in prices during past one year showing the inflationary pressure on the masses.

    The inflation data based on Sensitive Price Indicator (SPI) released by Pakistan Bureau of Statistics (PBS) for the week ended January 01, 2020.

    The PBS calculates the weekly SPI with base 2015-16=100 covering 17 urban centres and 51 essential items for all expenditure groups/quintiles and combined.

    The following is the comparison of price increase for the period between January 23, 2020 and January 24, 2019:

    01. Onions: 116.82 percent

    02. Potatoes: 111.15 percent

    03. Pulse Moong (Washed): 88.52 percent

    04. Garlic (Lehsun) 1 Kg: 65.43 percent

    05. Tomatoes: 56.91 percent

    06. Pulse Mash (Washed): 50.9 percent

    07. Gur (Average Quality): 43.26 percent

    08. Chicken Farm Broiler (Live): 41.73 percent

    09. Cigarettes Capstan 20’S Packet: 36.81 percent

    10. Sugar Refined: 31.95 percent

    11. Long Cloth 57″ Gul Ahmed/Al Karam: 31.3 percent

    12. Pulse Gram: 30.2 percent

    13. Lawn Printed Gul Ahmed/Al Karam: 28.52 percent

    14. Petrol Super: 27.88 percent

    15. Vegetable Ghee DALDA/HABIB or Other superior Quality 1 kg Pouch: 24.87 percent

    16. Pulse Masoor (Washed): 22.92 percent

    17. Wheat Flour Bag 20 Kg: 21.16 percent

    18. Cooked Beef at Average Hotel: 20.26 percent

    19. Hi-Speed Diesel: 19.18 percent

    20. LPG 11.67 kg Cylinder: 18.87 percent

    21. Cooking Oil DALDA or Other Similar Brand (SN), 5 Litre Tin: 17.98 percent

    22. Vegetable Ghee DALDA/HABIB 2.5 kg Tin: 16.8 percent

    23. Tea Prepared Ordinary: 16.6 percent

    24. Shirting (Average Quality): 16.46 percent

    25. Powdered Milk NIDO 390 gm Polybag: 16.29 percent

    26. Cooked Daal at Average Hotel: 16.27 percent

    27. Bananas (Kela) Local: 15.51 percent

    28. Mustard Oil (Average Quality): 15.38 percent

    29. Sufi Washing Soap: 14.61 percent

    30. Bread plain (Small Size): 12.39 percent

    31. Georgette (Average Quality): 11.85 percent

    32. Rice IRRI-6/9 (Sindh/Punjab): 11.38 percent

    33. Toilet Soap LIFEBUOY 115 gm: 11.14 percent

    34. Eggs Hen (Farm): 10.4 percent

    35. Mutton (Average Quality): 10.3 percent

    36. Tea Lipton Yellow Label 190 gm Packet: 10.29 percent

    37. Electricity Charges for Q1: 10.26 percent

    38. Beef with Bone (Average Quality): 9.79 percent

    39. Milk fresh (Un-boiled): 9.19 percent

    40. Match Box: 8.47 percent

    41. Energy Saver Philips 14 Watt: 8.37 percent

    42. Firewood Whole 40 Kg: 7.08 percent

    43. Rice Basmati Broken (Average Quality) 1 Kg: 6.6 percent

    44. Curd (Dahi) Loose: 6.49 percent

    45. Chilies Powder NATIONAL 200 gm Packet: 3.98 percent

    46. Salt Powdered (NATIONAL/SHAN) 800 gm Packet: 0.91 percent

    47. Gents Sandal Bata: 0 percent

    48. Gents Sponge Chappal Bata: 0 percent

    49. Ladies Sandal Bata: 0 percent

    50. Gas Charges upto 3.3719 MMBTU: 0 percent

    51. Telephone Call Charges: 0 percent

  • FDI data collected on fiscal year basis: Finance Division

    FDI data collected on fiscal year basis: Finance Division

    ISLAMABAD: The Finance Division on Friday clarified news reports and said that the data of Foreign Direct Investment (FDI) collected on fiscal year basis not on calendar year basis.

    Finance Division has described as factually incorrect and misleading a news item published in a section of the press claiming that the foreign direct investment flows into Pakistan had dropped by 20 per cent in 2019.

    In an official statement, the Finance Division has clarified that a news report published in a segment of the press has highlighted that Foreign Direct Investment (FDI) inflows into Pakistan declined by 20 percent to $1.9 billion in 2019 (calendar year) against $2.4 billion in 2018.

    In this context, it is clarified that FDI data is collected on the basis of fiscal years, whereas the quoted figure is taken on calendar year basis.

    Furthermore, on fiscal year basis, FDI has increased by 68.3 percent during July-December 2019 as compared to same period of last year (from $0.797 billion to $1.341 billion)

  • Foreign exchange reserves increase to $18.271 billion

    Foreign exchange reserves increase to $18.271 billion

    Pakistan’s liquid foreign exchange reserves saw a notable increase of $148 million, reaching a total of $18.271 billion by the week ending January 17, 2020, according to a statement released by the State Bank of Pakistan (SBP) on Thursday.

    (more…)
  • Biometric verification of all saving scheme investors to be conducted under FATF recommendations

    Biometric verification of all saving scheme investors to be conducted under FATF recommendations

    ISLAMABAD: The government will conduct biometric verification of all investors of National Saving Schemes in order to make compliance with recommendations of Financial Action Task Force (FATF), a statement issued by Finance Division said on Saturday.

    Asia Pacific Group in its recently published Mutual Evaluation Report (MER 2019), has pointed out number of deficiencies on the part of Central Directorate of National Savings (CDNS) in terms of compliance to FATF recommendations, which has negatively affected the overall grading of different recommendations specially the recommendation 10, 11, 12 and 15.

    In this context, CDNS is committed to mitigating the deficiency to improve customer service delivery and to comply the FATF recommendation to safeguard the interest of the investors, it said.

    Banks under the supervision of SBP have already put in place all the required systems and KYC processes to comply the FATF recommendation.

    Finance Division through promulgation of National Savings Schemes (AML-CFT) Rules, 2019 has decided to engage an AML-CFT compliant bank, through competitive bidding, to put in place the requirement as well as the necessary training of employees of Central Directorate of National Savings (CDNS).

    Accordingly, Expression of Interest, in consultation with SBP, has been sought from the interested bank to conduct KYC (Know Your Customer) and other requirement of new as well as existing client of CDNS.

    This will include the biometric verification and screening of potential clients in UN Proscribed Person List.

    All these screenings are meant to stop any ill-gotten money to become part of financial system and to safeguard the valued investor from the menace of Money Laundering and Terrorist Financing.

    Central Directorate of National Savings (CDNS) as it stands today is one of the longstanding institutions in the country with a legacy of more than 140 years.

    The institution has always been a symbol of unshakable trust of the public.

    National Savings is playing its pivotal role to inculcate the Culture of Savings, facilitate Financial Inclusion and extending Social Security Net to the deserving sections of the society.

    Around 33 percent of CDNS deposits are in Welfare Schemes which attribute around 2 percent incremental rate of profit over and above other regular savings schemes.

    Currently, CDNS manages portfolio of Rs. 4,038 billion (November 2019) of more than 7 million investors.

    National Savings Schemes (“NSS”) provide risk free and competitive avenue to all segments of society specially the most vulnerable i.e. senior citizens, pensioners, widows, physically challenged persons and family members of Shuhada.

    On the other hand, it provides a non-inflationary and cost effective borrowing to the government to bridge the overall fiscal deficit which ultimately reduces dependency on external borrowing.

    About 19 percent of domestic debt consists of NSS while these deposits are equal to 28 percent of total deposit of scheduled bank.

    One of the main challenges to CDNS was its manual operations and lack IT, therefore, CDNS has started its journey of automation in 2009 and successfully completed PSDP funded Automation Project Phase I & II in 2013 and 2017.

    Through these project 223 National Savings Centre (“NSC”) i.e. (60 percent out of total 376) have been successfully automated.

    Automation of remaining 153 is in active process with support of Department for International Development (DFID), UK.

    Meanwhile, CDNS has upgraded its core business solution from decentralized to centralized architecture.

    Around 144 branches have already been shifted to upgraded solution where customer transaction time has significantly reduced.

    Also, the provision of Alternate Delivery Channels (ATM) is in final stages which will further improve the service delivery. Introduction of technology has provided CDNS the opportunity to modernize its process which include swift data reporting, reconciliation with other departments, budgeting and forecasting, customer data base etc.

    Due to IT progress CDNS is now capable to implement number of initiatives which was not possible due to manual operation.

  • Foreign exchange reserves increase to $18.123 billion

    Foreign exchange reserves increase to $18.123 billion

    KARACHI: The foreign exchange reserves of the country have increased by $39 million to $18.123 billion by week ended January 10, 2020 as compared with $18.084 billion a week ago, State Bank of Pakistan (SBP) said on Thursday.

    The reserves held by the central bank increased by $83 million to $11.586 billion by week ended January 10, 2020 as against $11.503 billion a week ago.

    The reserves held by commercial banks fell by $44 million to $6.537 billion as against $6.581 billion on weekly basis.

  • Foreign direct investment increases by 68.3% in first half

    Foreign direct investment increases by 68.3% in first half

    KARACHI: The foreign direct investment (FDI) into Pakistan has increased by 68.3 percent during first six months (July – December) of 2019/2020 owing to lower outflows during the period, according to data released by State Bank of Pakistan (SBP) on Thursday.

    The FDI increased to $1.34 billion during first six months of current fiscal year as compared with $796.8 million in the corresponding months of the last fiscal year.

    The inflows under the head were at $1.71 billion during the period under review as compared with $1.84 billion in the same period in the last fiscal year.

    The outflows were at $391.2 million during first half of the current fiscal year as compared with $1.05 billion in the corresponding half of the last fiscal year.

    The portfolio investment in the equity market witnessed increased by $18.8 million in July – December 2019/2020 as compared with outflows of $419.8 million in corresponding period of the last fiscal year.

    The total foreign private investment surged by 260.6 percent to $1.36 billion during the first half of the current fiscal year as compared with $377 million in the same half of the last fiscal year.

    During the period under review an investment of $452 million was witnessed in the debt securities as foreign public investment.

    The total foreign investment increased to $1.81 billion during first six months of current fiscal year as compared with $377 million in the corresponding months of the last fiscal year.