Karachi, November 14, 2022 – The State Bank of Pakistan (SBP) has published the foreign exchange rates for today, shedding light on the buying and selling prices of various foreign currencies against the Pakistan Rupee (PKR).
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FBR, SBP discuss stuck-up consignments, LC opening
Islamabad: In a collaborative effort to address challenges related to stuck-up consignments and the opening of Letters of Credit (LCs), the Federal Board of Revenue (FBR) and the State Bank of Pakistan (SBP) engaged in discussions on Friday.
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SBP introduces reporting system for illegal foreign exchange activity
KARACHI: State Bank of Pakistan (SBP) on Friday introduced a reporting system for illegal foreign exchange activity.
The central bank said in order to promote an environment of accountability and integrity, State Bank of Pakistan (SBP) has introduced a dedicated email address i.e. ([email protected]), using which public at large can report to SBP any unauthorized foreign exchange activity.
This email may also be used to report any unauthorized activity carried out by an exchange company or where exchange company is not providing system generated receipt of the currency exchange transaction.
While reporting an unauthorized foreign exchange activity, the complainant is expected to provide facts and as much specific information and particulars as possible to examine the matter thoroughly.
They are also expected to refrain from rumor mongering, speculation, false and frivolous allegations/accusations. The disclosure of identity for utilizing this forum is voluntary; however, if shared the identity will be kept confidential. The public at large is encouraged to be judicious in reporting incidents.
Further, if a person faces any issue in dealing with exchange companies, he/she may share the concerns at [email protected].
Examples of such issues may include but are not limited to sale/purchase of foreign currency notes by Exchange Companies issuing receipts which are not system generated, charging exorbitantly high exchange rate over those displayed on the notice board, denial of genuine requests of the customer for provision of foreign currencies, etc.
Foreign Exchange business in Pakistan is regulated by State Bank of Pakistan (SBP) under Foreign Exchange Regulation Act, 1947. Under the aforesaid Act, SBP has authorized twenty six Exchange Companies of “A” category and twenty Exchange Companies of “B” category to deal in foreign exchange business including sale purchase of foreign currency notes. The list of authorized outlets of exchange companies of “A” & “B” category can be accessed at the following link: https://www.sbp.org.pk/epd/pdf/NetworkExchangeCompaniesSector.pdf
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Karachi Interbank Offered Rates KIBOR – November 11, 2022
KARACHI: State Bank of Pakistan (SBP) on Friday issued the Karachi Interbank Offered Rates (KIBOR) as on November 11, 2022.
Following are the latest KIBOR rates:
Tenor BID OFFER 1 – Week 14.84 15.34 2 – Week 14.93 15.43 1 – Month 15.02 15.52 3 – Month 15.48 15.73 6 – Month 15.59 15.84 9 – Month 15.61 16.11 1 – Year 15.64 16.14 READ MORE: Karachi Interbank Offered Rates KIBOR – November 10, 2022
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Pakistan remittances decline by 15.7% in October 2022
KARACHI: Inflow of workers remittances has declined by 15.7 per cent in the month of October 2022 when compared with the same month of the last year, according to data released by State Bank of Pakistan (SBP) on Friday.
READ MORE: Home remittances decline to $7.68 billion in 1QFY23
The inflows of home remittances fell to $2.215 billion in October 2022 when compared with $2.628 billion in the same month of the last year.
The remittances in October 2022 also witnessed a fall of 9 per cent when compared with $2.437 billion received during the month of September 2022.
READ MORE: Pakistan remittances from Saudi Arabia fall by 7.5% in two months
Remittances inflows during October 2022 were mainly sourced from Saudi Arabia ($570.5 million), the United Arab Emirates ($427 million), the United Kingdom ($278.8 million) and the United States of America ($253.1 million).
The cumulative inflow declined by 8.6 per cent to $9.9 billion during first four months of the current fiscal year.
READ MORE: State Bank signs deal to analyze property prices
The inflow of remittances has been recorded at $9.9 billion during July – October of current fiscal year 2022/2023 as compared with $10.83 billion in the corresponding period of the last fiscal year.
READ MORE: SBP bars banks from taking service charges on flood donations
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State Bank issues foreign exchange rates on November 11, 2022
Karachi, November 11, 2022 – The State Bank of Pakistan (SBP) has released the foreign exchange rates for today, providing insight into the buying and selling prices of various foreign currencies against the Pakistan Rupee (PKR).
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Pakistan banks may issue corporate cards for cross-border commercial payments
KARACHI: State Bank of Pakistan (SBP) has allowed banks to issue corporate cards to their business customers for making cross-border commercial payments.
The SBP through a circular dated November 08, 2022 issued to presidents and chief executives of authorized dealers (ADs) in foreign exchange said that banks desirous to facilitate their business customers may issue corporate cards, to be used strictly in accordance with the applicable provisions of the Foreign Exchange Manual and the profile of the customer. “ADs shall institute a robust mechanism to monitor the payments through such corporate cards,” the SBP added.
READ MORE: State Bank, NBP to withdraw petitions in Riba case: Ishaq Dar
According the circular the central bank had observed individuals were using their debit/credit cards for cross-border transactions, which are of commercial nature and are not aligned with their personal needs as well as their risk profile.
In order to ensure judicious use of cards, including virtual cards, it has been decided to place an annual limit of $30,000 per individual on card based cross-border transactions. For the purpose of this circular, the year will start from November 1, 2022, however, limit for the current year will be calculated from the date of issuance of this circular. This limit would be applicable for an individual across the banking industry.
READ MORE: State Bank launches environment, social risk management manual
The SBP advised the banks to conduct proper due diligence of the individual customers at the time of their onboarding/ update of risk profiles and duly incorporate their cross-border payment needs through cards in their profiles.
Banks are also directed to ensure that issuance of multiple cards to a single customer are commensurate with their risk profile and are monitored collectively. Further, banks should only allow those card based cross-border transactions, which are in-sync with the personal needs of the customers and have no commercial purpose.
READ MORE: SBP limits cash up to USD 5,000 taking out of Pakistan
Although, it is the primary responsibility of a customer to ensure that his/ her annual limit is not breached at any time, ADs shall institute a mechanism of ongoing monitoring whereby card based cross-border payments by individuals through single/multiple cards are only allowed in accordance with the limit prescribed above and as per the risk profile of the customer.
Besides, ADs are advised to run an awareness campaign to inform their customers about the contents of this circular and the fact that cross-border commercial payments through cards issued to individuals are not permissible.
READ MORE: SBP, FIA jointly take action against illegal exchange companies
ADs are advised to ensure meticulous compliance of these instructions and bring the same to the notice of all their constituents. Any non-compliance of above instructions may be dealt with under relevant provisions of the Foreign Exchange Regulation Act, 1947 and any pecuniary or administrative action, as deemed necessary, may be initiated against the delinquent ADs.
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Reducing foreign currency cash carrying limits to half criticized
KARACHI: Syed Usman Ali Chairman Towel Manufactures Association (TMA) of Pakistan has strongly criticized the State Bank of Pakistan (SBP) for reducing cash carrying limits of foreign currency for international travel.
While expressing deep concern over decreasing of limit of foreign currency as Travelling Cash, urged the State Bank of Pakistan (SBP) to enhance the limit to US$. 15,000/- per visit and US$ 90,000/- Annually.
The State Bank of Pakistan (SBP) had halved the cash-carrying limits on foreign currency for international travel to $5,000 from $10,000 per visit.
In a letter to the Governor of State Bank of Pakistan, Chairman TMA pointed out that revised limits for travelers will provide huge distress to the Business Professionals especially the Exporters, those who were visiting abroad to bring Foreign Exchange into the country.
These Business Professionals/ Exporters usually stay in Hotels of various cities through extensive travelling to bring export contracts in Pakistan which is not possible through this short limit of foreign currencies.
“In view of the support of the Business Professionals/ Exporters, Chairman TMA requested the Governor State Bank to enhance the limit to US$. 15,000/- per visit and US$ 90,000/- Annually (Equivalent Foreign Exchange) rather than decreasing in travelling cash to distress them.”
Syed Usman Ali also requested the Ministry of Finance and Prime Minister of Pakistan to take immediate action and facilitate the business community in strengthening the trade and economy of Pakistan.
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Pakistan FX reserves slip sharply by $958 mn on external payments
KARACHI: Pakistan foreign exchange reserves slipped sharply by $958 million by week ended November 08, 2022 owing to external payments, State Bank of Pakistan (SBP) said on Thursday.
The foreign exchange reserves of the country have been recorded at $13.721 billion by week ended November 04, 2022 as compared with $14.679 billion a week ago i.e. October 28, 2022.
READ MORE: Pakistan FX reserves rise to $14.69 billion after ADB transfer
The country’s foreign exchange reserves hit all-time high of $27.228 billion on August 27, 2021. Since then the foreign exchange reserves have declined by $13.507 billion.
The official foreign exchange reserves of the State Bank plunged by $958 million to $7.957 billion by week ended November 04, 2022 as compared with $8.913 billion a week ago.
READ MORE: SBP’s weekly forex reserves dip by $157 million to $7.44 billion
The SBP attributed the decline to external debt servicing. “Major external debt repayments executed during the week includes repayment of government commercial loans. Refinancing of these loans is in process which will improve foreign exchange reserves in coming weeks,” the central bank added.
The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021. Since then the official reserves of the SBP dropped by $12.189 billion.
READ MORE: Pakistan’s weekly forex reserves increase nominally
It is pertinent to mention that the SBP’s reserves witnessed sizeable increase a week ago after the Asian Development Bank (ADB) released the fund amounting $1.5 billion to Pakistan on October 26, 2022.
The foreign exchange reserves held by commercial banks flat at $5.764 billion by week ended November 04, 2022 when compared with $5.766 billion a week ago.
READ MORE: Pakistan’s forex reserves continue to fall; deplete to $13.25 billion
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Karachi Interbank Offered Rates KIBOR – November 10, 2022
KARACHI: State Bank of Pakistan (SBP) on Thursday issued the Karachi Interbank Offered Rates (KIBOR) as on November 10, 2022.
Following are the latest KIBOR rates:
Tenor BID OFFER 1 – Week 14.80 15.30 2 – Week 14.90 15.40 1 – Month 15.02 15.52 3 – Month 15.48 15.73 6 – Month 15.58 15.83 9 – Month 15.61 16.11 1 – Year 15.64 16.14 READ MORE: Karachi Interbank Offered Rates KIBOR – November 08, 2022