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  • Pakistan’s weekly forex reserves increase by $149.7 million

    Pakistan’s weekly forex reserves increase by $149.7 million

    KARACHI: The total liquid foreign exchange reserves of the country have increased by $149.7 million to $15.142 billion by week ended October 11, 2019 as compared with $14.992 billion a week ago, State Bank of Pakistan (SBP) said on Thursday.

    The reserves held by State Bank witnessed increase of $56.1 million to $7.813 billion by week ended October 11 as compared with $7.757 billion.

    The reserves held by commercial banks increased by $93.6 million to $7.329 billion as compared with $7.235 billion.

  • Foreign investment grows by 51pc during first quarter

    Foreign investment grows by 51pc during first quarter

    KARACHI: The total inflow of foreign private investment increased by 51 percent growth during first quarter (July-September) of 2019/2020, State Bank of Pakistan (SBP) said on Thursday.

    The total foreign private investment increased to $565 million during the first quarter of current fiscal year as compared with $374 million in the same period of the last fiscal year.

    The foreign direct investment (FDI) posted nominal decline of 3.1 percent to $542 million during the period under review as compared with $559 million in the same period of the last fiscal year.

    The inflows under FDI were $763 million during July – September 2019, which were 5.4 percent lower when compared with inflows of $806 million in the same period of the last year.

    The outflows under FDI were declined by 11 percent to $221 million as compared with $247 million.

    The foreign investment in capital market witnessed 112.2 percent increase during the first quarter of current fiscal year.

    The portfolio investment recorded $22.7 million inflows during July – September 2019 as against outflows of $185 million in the corresponding period of the last year.

  • Pakistan’s exchange rate reflecting actual economic conditions: IMF

    Pakistan’s exchange rate reflecting actual economic conditions: IMF

    The International Monetary Fund (IMF) affirmed on Wednesday that Pakistan’s exchange rate now better reflects the actual economic conditions of the country.

    (more…)
  • SECP registration reaches to 105,407 companies

    SECP registration reaches to 105,407 companies

    ISLAMABAD: The total number of registered companies with Securities and Exchange Commission of Pakistan (SECP) has topped at 105,407 with addition of 1,392 new companies in September 2019, according to a statement issued on Friday.

    The SECP registered a total 1,392 new companies in September 2019, raising the total number of incorporated companies to 105,407.

    The incorporation in September 2019 comprises 69 percent private limited, 27 percent single member companies.

    The remaining 4 percent companies include public unlisted companies, trade organizations, foreign companies, Limited Liability Partnership (LLP) and not for profit associations.

    During the month, 51 new companies have been incorporated with foreign shareholders mainly from China, Denmark, Germany, Hong Kong, Japan, Korea South, Malaysia, the Netherlands, Nigeria, Poland Singapore, South Africa, Switzerland, Turkey, the UAE, UK the US and Yemen.

    Digital solutions deployed by the regulator made companies registration and post incorporation compliance simple, faster and cost effective.

    In September 2019, 96 percent of companies registered online through SECP’s eService and 50 percent of companies incorporated the same day.

    Most importantly, 85 foreign applicants completed registration of companies from overseas using eService.

    In new registrations, trading sector took lead with 239 companies, construction and services with 173 each, information technology with 148, tourism with 79 and real estate development with 54 companies.

    Similarly, 52 companies were registered in food and beverages, 48 in education 38 each in engineering and textile, 37 in corporate agricultural farming, 32 in marketing, 24 in transport, 21 in healthcare, and pharmaceutical each, 20 in communication, 17 companies registered in logging.

    Moreover, 16 companies were each from chemical, auto and allied, cosmetics and toiletries, and steel and allied sector and 15 each, power generation with 13, broadcasting and telecasting with 12 and 92 companies were registered in other sectors.

    During the month, the highest numbers of companies i.e. 503 were registered in CRO Islamabad.

    The CROs in Lahore, Karachi, Peshawar, Multan, Faisalabad, Gilgit-Baltistan, Quetta, and Sukkur registered, 413, 247, 78, 69, 40, 28, 12 and 2 companies respectively.

    The increasing trend in online registration of companies demonstrates success of reforms and digitalization recently undertaken by SECP. It is to emphasize that through SECP’s eService, registration of a company is now a simple one-step procedure that can be completed within four working hours.

    The steps of company name reservation, incorporation application, appointment of Chief Executive Officer are now merged. By providing additional information in online company incorporation form, a company can also get registration with FBR, EOBI and provincial social security, labor department and excise & taxations departments of Punjab and Sindh.

    Moreover, the browser compatibility of SECP’s eServcies portal has also been improved to match with all commonly used browsers.

  • Significant decline in import bill sharply narrows trade deficit by 35 percent in first quarter

    Significant decline in import bill sharply narrows trade deficit by 35 percent in first quarter

    ISLAMABAD: Significant decline in import bill helped to sharply narrow the trade deficit by 35 percent during first quarter of current fiscal year, according to data released Pakistan Bureau of Statistics (PBS) on Friday.

    The trade deficit narrowed by 35 percent to $5.72 billion during July – September 2019 of current fiscal year as compared with deficit of $8.79 billion in the corresponding period of the last fiscal year.

    The total import bill of the country fell by 21 percent to $11.25 billion during first quarter of the current fiscal year as compared with $14.16 billion in the same period of the last fiscal year.

    Meanwhile, the exports have posted 3 percent growth to $5.52 billion during July – September 2019 as compared with $5.37 billion in the same period of the last fiscal year.

  • Financial institutions report 219 suspicious transactions since AML/CFT regulatory framework launch: SECP

    Financial institutions report 219 suspicious transactions since AML/CFT regulatory framework launch: SECP

    ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has said around 219 Suspicious Transactions Reports (STRs) have been generated by financial institutions since launch of its Anti-Money Laundering (AML)/Counter Financing Terrorism (CFT) regulatory framework.

    The SECP in a statement on Thursday said that its risk based approach for effective implementation of AML/CFT regulatory framework ensued significant improvement in filing of Suspicious Transactions Reports (STR) with FMU.

    To align itself with FATF’s standards (40 recommendations), SECP developed a single set of regulations namely SECP AML/CFT Regulations in June 2018.

    SECP also developed a comprehensive guideline to help regulated persons in creating an effective AML/CFT risk assessment and compliance framework.

    Since the promulgation of consolidated AML/CFT regulations, the financial institutions have generated a total of 219 STRs, as compared to only 13 in the last eight years.

    The SECP conducted 167 inspections focusing on AML/CFT compliance in the cases of 72 Securities Brokers, 27 NBFCs, 13 Insurance Companies and 55 High Risk NPOs.

    Significant penalties have been imposed for non-compliances with the said Regulations.

    Financial Institutions have undertaken remedial measures to ensure effective compliance with the said Regulations. Automated screening software has been deployed by many Financial Institutions to screen the proscribed persons.

    The regulated entities now also have access to GoAML system of the FMU for online filing of STR.

    The SECP successfully made transition from one-size fits all to a risk based approach to implement a consolidated AML/CFT regulatory framework in its regulated financial sector comprising of stock and commodity brokers, NBFCs, Modarabas and the Insurers/Takaful operators.

    Further to effectively identify assess and understand the ML/TF risks that Pakistan faces, a National ML/ TF Risk Assessment was undertaken in 2019 to assess ML/TF vulnerabilities that are inherent within the financial sector including banking, NBFC, brokers and insurance.

    NRA aimed to put in place actions and control measures to mitigate those risks. FMU led the task in collaboration with stakeholders including ministries, law enforcement agencies, SBP and SECP.

    The risk assessment and understanding enabled SECP and the regulated entities to implement the much needed control mechanism to check potential abuse by money launderers and terrorist financiers.

    Subsequent to NRA, SECP embarked on a comprehensive awareness raising program to develop the risk understanding and AML Obligations of the regulated sectors and shared the NRA 2019 with its regulated sectors.

    SECP’s continuous efforts have resulted in improvement in compliance level of the regulated entities and effective control measures are now implemented to combat money laundering and terrorist financing.

    The SECP has also revamped its overall risk based supervisory mechanism and works closely with national stakeholder’s inter-alia FMU, SBP etc. for mutual peer review and evaluation of SECP’s regulated financial sector.

    Eversince the Commission has adopted a risk-based approach to supervision and monitoring in the area of AML/CFT, it has completed sector risk assessment and enhanced risk based supervisory activities encompassing all high-risk entities and is spreading the scope of supervision to next tier moderate risk entities.

    Remedial actions and dissuasive sanctions on non-compliance are now part of it’s enforcement regime.

    Recently, the Asia-Pacific Group of Money Laundering (APG) has adopted Pakistan’s Mutual Evaluation Report (MER) in its 22nd Annual Meeting held in Canberra, Australia from 18-23 August 2019, which has now been uploaded on APG’s website as per procedure.

    It is pertinent to mention that Pakistan’s Mutual Evaluation Report (MER) provides a summary of the AML/CFT measures in place in Pakistan as of October 2018.

    A large component of the above reforms were implemented after October 2018 and are not reflected in the MER published now by APG.

  • Pakistan’s foreign exchange reserves at $14.993 billion

    Pakistan’s foreign exchange reserves at $14.993 billion

    KARACHI: The total liquid foreign exchange reserves of Pakistan declined nominally by $11 million to $14.993 billion by week ended October 04, 2019 as compared with $15.003 billion a week ago, State Bank of Pakistan (SBP) said on Thursday.

    The reserves held by SBP increased by $16 million to $7.757 billion by week ended October 04, 2019 as compared with $7.771 billion a week ago.

    The foreign exchange reserves held by commercial banks declined by 27 million to $7.235 billion as compared with $7.262 billion a week ago.

  • Overseas Pakistanis remit $5.478 billion in July – September

    Overseas Pakistanis remit $5.478 billion in July – September

    KARACHI: The overseas workers have sent $5.478 billion during first quarter (July – September) of current fiscal year, which is 1.43 percent down when compared with $5.557 billion in the corresponding period of the last fiscal year, according to data released by State Bank of Pakistan (SBP) on Thursday.

    However, inflows of workers’ remittances witnessed 17.59 percent growth to $1.747 billion in the month of September 2019 when compared with $1.486 billion in the same month of the last year.

    Saudi Arab was the major destination from where Pakistanis sent remittances to homeland. The inflows of remittances from Saudi Arabia were $1.269 billion during first quarter of current fiscal year as compared with $1.263 billion in the same quarter of the last fiscal year, showing growth of 0.49 percent.

    The country received $911 million as workers’ remittances from the US during first quarter of the current fiscal year as compared with $862.76 million in the corresponding quarter of the last fiscal year, showing 5.67 percent growth.

    The third major destination for workers’ remittances was the UK from where the country received $814.37 million during July –September 2019 as compared with $810 million in the same period of the last fiscal year.

    The combined inflows from United Arab Emirates (UAE) were $1.139 billion during first quarter of current fiscal year as compared with $1.227 billion in the same quarter of the last fiscal year, registering 7.19 percent decline.

    The inflows from other GCC countries were at $519.43 million during July – September 2019 as compared with $526.96 million in the same period of the last fiscal year, showing 1.43 percent decline.

  • FATF APG issues evaluation report on Pakistan

    FATF APG issues evaluation report on Pakistan

    KARACHI: Asia Pacific Group (APG) of Financial Action Task Force (FATF) on money laundering has released its mutual evaluation report on October 02, 2019, where the group has discussed measures in place in Pakistan during onsite visit conducted in October 2018.

    Analysts at Topline Research said that according to recently released report by APG, out of 40 recommendations given to Pakistan, the country has shown compliance to one factor ‘Financial Institutions Secrecy Law’ and has shown non-compliance in four areas.

    However, Pakistan is partially compliant on 26 and largely compliant on 9 recommendations.

    The analysts believe the probability is high that Pakistan will remain on the “grey list” as the government needs minimum of 3 votes to avoid falling in black list. Support from China, Malaysia and Turkey for the said matter is likely.

    International Monetary fund (IMF) has also kept FATF issue as a structural benchmark with timeline ending Oct 2019, whereby Pakistan’s AML/CFT was supposed to be strengthened.

    In case of black-list the potential impact would be overall downgrade of the financial system of Pakistan and restrictions on its markets.

  • Pakistan’s foreign exchange reserves fall by $769 million to $15 billion

    Pakistan’s foreign exchange reserves fall by $769 million to $15 billion

    KARACHI: Pakistan’s total foreign exchange reserves declined by $769 million to $15 billion by week ended September 27, 2019, State Bank of Pakistan (SBP) said on Thursday.

    The total foreign exchange reserves of Pakistan declined by $768.9 million to $15.003 billion by week ended September 27, 2019 as compared with $15.772 billion a week ago.

    The official reserves held by the SBP came down by $723.7 million to $7.741 billion by week ended September 27, 2019 as compared with $8.465 billion a week ago.

    The SBP said that its official reserves were declined due to foreign debt repayment.

    The reserves held by commercial banks also fell by $45.2 million to $7.262 billion as compared with $7.307 billion a week ago.

    The foreign exchange reserves hit record high of $23.084 billion on week ended July 01, 2016.