Pkrevenue.com

Category: Top stories

Find top stories in this section. Pakistan Revenue brings you the latest and most important news from Pakistan and around the world, keeping you informed with key updates and insights.

  • SBP makes permission must for import of mobile phone, cars

    SBP makes permission must for import of mobile phone, cars

    KARACHI: The State Bank of Pakistan (SBP) has imposed condition for payment on import of mobile phones and motor cars.

    The SBP issued a circular related import goods making it mandatory for banks to take prior permission for releasing funds for import of motor cars, mobile phones and other machinery.

    READ MORE: SBP may raise policy rate by 100bps to 13.25%

    In this regard the SBP informed the banks about Chapter 13 of the Foreign Exchange Manual relating to payments against import of goods.

    The SBP decided that with immediate effect, the banks would require prior permission from Foreign Exchange Operations Department (FEOD), SBP-BSC before initiating transactions for import of goods listed in the enclosed Annexure, subject to following conditions:

    READ MORE: Banks increasing dollar rates; FAP tells Prime Minister

    The above requirement shall be applicable for all import transactions initiated by Authorized Dealers through (i) issuance/ amendment of letter of credit; (ii) registration/ amendment of contract; (iii) making advance payment; (iv) authorizing transactions on open account or collections basis;

    The above requirement shall not be applicable on import transactions initiated by the Authorized Dealers on or before the date of issuance of this circular letter;

    Authorized Dealers may approach Director, FEOD, SBP-BSC, Head Office, Karachi, along with appropriate documents and its recommendation on a case to case basis;

    READ MORE: SBP governor assumes charge of Asian Clearing Union

    Authorized Dealers shall be required to suitably amend the importer’s bank profile in Pakistan Single Window to ensure that the aforementioned import transaction shall not be initiated on open account basis without prior permission from State Bank.

    All other instructions on the subject shall remain unchanged. Authorized Dealers are advised to bring the same to the knowledge of all the concerned and ensure meticulous compliance of the above & other applicable regulations on the subject. Authorized Dealers are especially instructed to bring these instructions to the knowledge of their customers and advise them to approach the bank before initiation of import transaction of any item covered under this circular letter.

  • Dollar touches new peak at Rs200.14

    Dollar touches new peak at Rs200.14

    KARACHI: The US dollar gained 14 paisas against the Pakistan Rupee (PKR) to make new peak at Rs200.14 at interbank foreign exchange market on Friday.

    The exchange rate was closed at Rs200 to the dollar a day earlier in interbank foreign exchange market.

    READ MORE: Dollar hits record Rs200 at interbank trading

    Currency experts said that massive fall in foreign exchange reserves and high import payments were the major reasons behind rupee fall.

    Further, delay in IMF tranche of $1 billion after the government decision not to remove subsidy on fuel prices, put further pressure on the exchange rate.

    READ MORE: Dollar makes new high Rs198.39 at interbank closing

    Pakistan’s foreign exchange reserves fell by $177 million to $16.376 billion by the week ended May 6, 2022. The foreign exchange reserves of the country were $16.553 billion by week ended April 30, 2022.

    The country’s foreign exchange reserves hit record high at $27.228 billion by the week ended August 27, 2021. Since then the foreign exchange reserves have depleted by $10.852 billion.

    READ MORE: Dollar peaks at Rs195.50 at midday interbank trading

    The official reserves of the State Bank witnessed a decline of $190 million to $10.309 billion by the week ended May 6, 2022 as compared with $10.499 billion a week ago.

    The SBP reserves reached a record high at $20.145 billion by August 27, 2021. The official reserves also fell by $9.836 billion after reaching record high. The official reserves of the SBP have been reduced to provide import payment cover for only 1.56 months.

    READ MORE: Dollar makes new high Rs195.75 at interbank closing

    The import bill of the country surged by 46.41 per cent to $65.49 billion during the first 10 months of the current fiscal year as compared with $44.73 billion in the corresponding months of the last fiscal year.

    Pakistan is a net importer of petroleum products to meet its domestic demand. The country’s oil bill was $14.81 billion during the first nine months (July – March) 2021/2022 as compared with $7.55 billion in the corresponding period of the last fiscal year, showing a massive growth of 96 per cent. The oil bill is around 25 per cent of the total import bill of the country.

  • Dollar hits record Rs200 at interbank trading

    Dollar hits record Rs200 at interbank trading

    KARACHI: The US dollar gained Rs1.61 against the Pakistan Rupee (PKR) to make new peak at Rs200 at interbank foreign exchange market on Thursday.

    The exchange rate was closed at Rs198.39 to the dollar a day earlier in interbank foreign exchange market.

    READ MORE: Dollar makes new high Rs198.39 at interbank closing

    Currency experts said that massive fall in foreign exchange reserves and high import payments were the major reasons behind rupee fall.

    Further, delay in IMF tranche of $1 billion after the government decision not to remove subsidy on fuel prices, put further pressure on the exchange rate.

    READ MORE: Dollar peaks at Rs195.50 at midday interbank trading

    Pakistan’s foreign exchange reserves fell by $177 million to $16.376 billion by the week ended May 6, 2022. The foreign exchange reserves of the country were $16.553 billion by week ended April 30, 2022.

    The country’s foreign exchange reserves hit record high at $27.228 billion by the week ended August 27, 2021. Since then the foreign exchange reserves have depleted by $10.852 billion.

    READ MORE: Dollar makes new high Rs195.75 at interbank closing

    The official reserves of the State Bank witnessed a decline of $190 million to $10.309 billion by the week ended May 6, 2022 as compared with $10.499 billion a week ago.

    The SBP reserves reached a record high at $20.145 billion by August 27, 2021. The official reserves also fell by $9.836 billion after reaching record high. The official reserves of the SBP have been reduced to provide import payment cover for only 1.56 months.

    READ MORE: SBP may raise policy rate by 100bps to 13.25%

    The import bill of the country surged by 46.41 per cent to $65.49 billion during the first 10 months of the current fiscal year as compared with $44.73 billion in the corresponding months of the last fiscal year.

    Pakistan is a net importer of petroleum products to meet its domestic demand. The country’s oil bill was $14.81 billion during the first nine months (July – March) 2021/2022 as compared with $7.55 billion in the corresponding period of the last fiscal year, showing a massive growth of 96 per cent. The oil bill is around 25 per cent of the total import bill of the country.

  • Dollar makes new high Rs198.39 at interbank closing

    Dollar makes new high Rs198.39 at interbank closing

    KARACHI: The US dollar gained Rs2.64 against the Pakistan Rupee (PKR) to make new record high at Rs198.39 by end of trading at interbank foreign exchange market on Wednesday.

    The exchange rate was closed at Rs198.39 to the dollar, which was the previous high of the dollar, a day earlier in interbank foreign exchange market.

    READ MORE: Dollar makes new high Rs195.75 at interbank closing

    Currency experts said that massive fall in foreign exchange reserves and high import payments were the major reasons behind rupee fall. Further, delay in IMF tranche of $1 billion after the government decision not to remove subsidy on fuel prices, put further pressure on the exchange rate.

    Pakistan’s foreign exchange reserves fell by $177 million to $16.376 billion by the week ended May 6, 2022. The foreign exchange reserves of the country were $16.553 billion by week ended April 30, 2022.

    The country’s foreign exchange reserves hit record high at $27.228 billion by the week ended August 27, 2021. Since then the foreign exchange reserves have depleted by $10.852 billion.

    READ MORE: Dollar makes fresh high at Rs194.18 at interbank closing

    The official reserves of the State Bank witnessed a decline of $190 million to $10.309 billion by the week ended May 6, 2022 as compared with $10.499 billion a week ago.

    The SBP reserves reached a record high at $20.145 billion by August 27, 2021. The official reserves also fell by $9.836 billion after reaching record high. The official reserves of the SBP have been reduced to provide import payment cover for only 1.56 months.

    The import bill of the country surged by 46.41 per cent to $65.49 billion during the first 10 months of the current fiscal year as compared with $44.73 billion in the corresponding months of the last fiscal year.

    READ MORE: Rupee falls for 8th straight day; dollar hits Rs192.53

    Pakistan is a net importer of petroleum products to meet its domestic demand. The country’s oil bill was $14.81 billion during the first nine months (July – March) 2021/2022 as compared with $7.55 billion in the corresponding period of the last fiscal year, showing a massive growth of 96 per cent. The oil bill is around 25 per cent of the total import bill of the country.

    READ MORE: Rupee fall continues; dollar hits new high at Rs191.77

  • Dollar makes new high Rs195.75 at interbank closing

    Dollar makes new high Rs195.75 at interbank closing

    KARACHI: The US dollar gained Rs1.57 against the Pakistan Rupee (PKR) to make new record high at Rs195.75 by end of trading at interbank foreign exchange market on Tuesday.

    The exchange rate was closed at Rs194.18 to the dollar, which was the previous high of the dollar, a day earlier in interbank foreign exchange market.

    READ MORE: Dollar makes fresh high at Rs194.18 at interbank closing

    Currency experts said that massive fall in foreign exchange reserves and high import payments were the major reasons behind rupee fall. Further, delay in IMF tranche of $1 billion after the government decision not to remove subsidy on fuel prices, put further pressure on the exchange rate.

    Pakistan’s foreign exchange reserves fell by $177 million to $16.376 billion by the week ended May 6, 2022. The foreign exchange reserves of the country were $16.553 billion by week ended April 30, 2022.

    The country’s foreign exchange reserves hit record high at $27.228 billion by the week ended August 27, 2021. Since then the foreign exchange reserves have depleted by $10.852 billion.

    READ MORE: Rupee falls for 8th straight day; dollar hits Rs192.53

    The official reserves of the State Bank witnessed a decline of $190 million to $10.309 billion by the week ended May 6, 2022 as compared with $10.499 billion a week ago.

    The SBP reserves reached a record high at $20.145 billion by August 27, 2021. The official reserves also fell by $9.836 billion after reaching record high. The official reserves of the SBP have been reduced to provide import payment cover for only 1.56 months.

    The import bill of the country surged by 46.41 per cent to $65.49 billion during the first 10 months of the current fiscal year as compared with $44.73 billion in the corresponding months of the last fiscal year.

    READ MORE: Rupee fall continues; dollar hits new high at Rs191.77

    Pakistan is a net importer of petroleum products to meet its domestic demand. The country’s oil bill was $14.81 billion during the first nine months (July – March) 2021/2022 as compared with $7.55 billion in the corresponding period of the last fiscal year, showing a massive growth of 96 per cent. The oil bill is around 25 per cent of the total import bill of the country.

    READ MORE: Rupee crashes to record low at Rs190.02 against dollar

  • SBP may raise policy rate by 100bps to 13.25%

    SBP may raise policy rate by 100bps to 13.25%

    KARACHI: The State Bank of Pakistan (SBP) is scheduled to announce monetary policy on May 23, 2022 and may increase the key policy rate by 100 basis points to 13.25 per cent, analysts said on Tuesday.

    According to the analysts at Arif Habib Limited, the monetary policy committee of SBP will convene on Monday (May 23rd, 2022) to announce the last scheduled monetary policy of 2021/2022.

    READ MORE: SBP increases policy rate sharply by 250bps to 12.25%

    They expect the central bank may increase the policy rate by 100 basis points to 13.25 per cent in the upcoming monetary policy statement.

    To recall, in an emergency monetary policy meeting held on April 07, 2022, the SBP increased the benchmark policy rate by 250 basis points to 12.25 per cent.

    The MPC stated that it believed that since the monetary policy meeting held in March 2022, the outlook for inflation had deteriorated and risks to external stability had risen.

    Therefore, these developments necessitated a strong and proactive policy response.

    READ MORE: Policy rate may rise as T-Bill yields increase sharply

    To recall, headline inflation has remained in the double digits since November 2021 mainly on the back of uptick in food and energy prices.

    This phenomenon still continues with headline number hitting almost two years high in April, clocking-in at 13.4 per cent with pressure mainly emanating from higher food and commodity prices.

    In April’s MPS, SBP stated that the average inflation forecasts had been revised upwards to slightly above 11 per cent for fiscal year 2021/2022 before moderating in the next fiscal year.

    Moreover, in the last policy (April 2022), SBP had termed its action of rate hike as ‘decisive’ and a timely measure to ensure that the goal of financial stability.

    READ MORE: State Bank enhances frequency of MP reviews to eight

    In addition, the Governor in post MPS (Analyst) Briefing had hinted at a ‘good news’ regarding IMF but conditional upon certain measures pending at government’s end.

    The next round of meeting with the IMF starts from May 18th (source: news reports) so they expect government to soon consider rolling back of fiscal relief measures in order to get seventh review through, successfully.

    However, this step of government is most likely to further augment inflationary pressure hence, SBP might want to act proactively and consider rate hike in the upcoming policy.

    READ MORE: Key policy rate goes up to 9.75%; SBP raises 250bps in less than month

  • Dollar peaks at Rs195.50 at midday interbank trading

    Dollar peaks at Rs195.50 at midday interbank trading

    KARACHI: The US dollar gained Rs1.32 against the Pakistan Rupee (PKR) to make new peak at Rs195.50 during midday trading at interbank foreign exchange market on Tuesday.

    The exchange rate was closed at Rs194.18 to the dollar a day earlier in interbank foreign exchange market.

    Currency experts said that massive fall in foreign exchange reserves and high import payments were the major reasons behind rupee fall.

    Further, delay in IMF tranche of $1 billion after the government decision not to remove subsidy on fuel prices, put further pressure on the exchange rate.

    Pakistan’s foreign exchange reserves fell by $177 million to $16.376 billion by the week ended May 6, 2022. The foreign exchange reserves of the country were $16.553 billion by week ended April 30, 2022.

    The country’s foreign exchange reserves hit record high at $27.228 billion by the week ended August 27, 2021. Since then the foreign exchange reserves have depleted by $10.852 billion.

    The official reserves of the State Bank witnessed a decline of $190 million to $10.309 billion by the week ended May 6, 2022 as compared with $10.499 billion a week ago.

    The SBP reserves reached a record high at $20.145 billion by August 27, 2021. The official reserves also fell by $9.836 billion after reaching record high. The official reserves of the SBP have been reduced to provide import payment cover for only 1.56 months.

    The import bill of the country surged by 46.41 per cent to $65.49 billion during the first 10 months of the current fiscal year as compared with $44.73 billion in the corresponding months of the last fiscal year.

    Pakistan is a net importer of petroleum products to meet its domestic demand. The country’s oil bill was $14.81 billion during the first nine months (July – March) 2021/2022 as compared with $7.55 billion in the corresponding period of the last fiscal year, showing a massive growth of 96 per cent. The oil bill is around 25 per cent of the total import bill of the country.

  • Banks increasing dollar rates; FAP tells Prime Minister

    Banks increasing dollar rates; FAP tells Prime Minister

    KARACHI: Malik Mohammad Bostan, President, Forex Association of Pakistan (FAP) on Monday informed Prime Minister Shehbaz Sharif that banks are increasing dollars rate.

    Prime Minister Shehbaz Shari, in a Zoom meeting with FAP President, expressed concerns of significant devaluation of Pakistan Rupee (PKR) and asked reasons behind the recent fall of rupee against the dollar.

    READ MORE: FAP demands dollar exchange without CNIC condition

    Bostan explained the reasons for dollar appreciation including high trade deficit, delay of $1 billion IMF loan tranche and huge external debt which are scheduled to pay this year.

    FAP President said that until the rate of dollar is not reduced in the interbank the free market may not bring down the exchange rate. He said the exchange companies can control the free market. “If banks bring down dollar rate by Re1 we will appreciate the local currency by Rs2,” he added.

    READ MORE: FAP suggests incentive to undeclared $3 billion

    Bostan informed the prime minister that after his oath taking the rupee appreciated to Rs181 to dollar from Rs189. “However, after political uncertainty and announcement of sit-in in Islamabad put pressure on the exchange rate,” he added.

    READ MORE: Dollar makes fresh high at Rs194.18 at interbank closing

    Due to uncertainty, importers are opening more Letter of Credit (LCs) and exporters were surrendering less dollars, which have reduced the supply of dollars in the local market, he added.

    FAP President suggested that the government should ban import of luxury items, which help in saving around $12 billion annually. “This will help the country to repay external debt without taking more loans,” he added.

    READ MORE: Pakistan’s forex reserves fall to $16.37 billion

  • ECC approves Rs55.48bn for price differential claims of OMCs

    ECC approves Rs55.48bn for price differential claims of OMCs

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday approved an amount of Rs55.48 billion for payment of price differential claims of Oil Marketing Companies (OMCs).

    Federal Minister for Finance and Revenue Miftah Ismail presided over a meeting of the Economic Coordination Committee (ECC) of the Cabinet at Finance Division.

    READ MORE: Govt. decides to continue subsidy on petroleum prices

    Federal Minister for Industries and Production Makhdoom Syed Murtaza Mehmood, Minister of State for Finance & Revenue Dr. Aisha Ghous Pasha, Minister of State for Petroleum Musadik Masood Malik, Federal Secretaries and senior officers attended the meeting.

    Petroleum Division submitted a summary for reimbursement of Price Differential Claims (PDCs) of Oil Marketing Companies (OMCs) and Refineries.

    READ MORE: Pakistan cuts petroleum prices amid Russia-Ukraine War

    The price differential is to be paid to the Oil Marketing Companies/Refineries by the Government as a subsidy in the wake of Government’s decision to keep the petroleum products’ prices fixed at the level notified on March 01, 2022.

    The ECC after deliberation approved supplementary grant of Rs. 55.48 billion for disbursement of PDC to OMCs/Refineries for the first fortnight of May, 2022.

    READ MORE: New government keeps petroleum prices unchanged

    Due to continuously rising trend of oil prices in the international market, the quantum of subsidy has been on higher side.

    Ministry of Industries and Production submitted a summary on import of Urea and presented that the government intends to create better stock for Urea fertilizer to ensure continuity of Urea supply during next financial year and requested for allowing import of Urea from international market in order to stabilize the local market.

    The ECC after discussion allowed Trading Corporation of Pakistan (TCP) to explore the possibility of import of 200,000 MT of Urea on G2G basis and on deferred payment.

    READ MORE: Pakistan surrenders to IMF, agrees to remove subsidies