Karachi, November 23, 2022 – The State Bank of Pakistan (SBP) has released the foreign exchange rates for today, providing a comprehensive overview of the buying and selling prices of various foreign currencies against the Pakistan Rupee (PKR).
(more…)Tag: SBP
-
Karachi Interbank Offered Rates KIBOR – November 22, 2022
KARACHI: State Bank of Pakistan (SBP) on Tuesday issued the Karachi Interbank Offered Rates (KIBOR) as on November 22, 2022.
Following are the latest KIBOR rates:
Tenor BID OFFER 1 – Week 14.94 15.44 2 – Week 14.99 15.49 1 – Month 15.08 15.58 3 – Month 15.58 15.83 6 – Month 15.62 15.87 9 – Month 15.63 16.13 1 – Year 15.64 16.14 READ MORE: Karachi Interbank Offered Rates KIBOR – November 21, 2022
-
State Bank reviews benchmark policy rate on November 25
KARACHI: State Bank of Pakistan (SBP) on Tuesday said it will review the benchmark policy rate on Friday, November 25, 2022.
“The Monetary Policy Committee of SBP will meet on Friday, November 25, 2022 at SBP Karachi to decide about the Monetary Policy,” the SBP said in a statement.
Analysts at Arif Habib Limited believed that the SBP would keep the policy rate unchanged at 15 per cent in the upcoming monetary policy.
READ MORE: Poll suggests SBP to keep benchmark policy rate unchanged at 15pc
To recall, in the last MPS too, policy rate was kept unchanged at 15 per cent and this stance was taken in lieu of a continued deceleration in economic activity as well as a decline detected in headline inflation since the last meeting held in August 2022.
The MPC further stated that the existing rate prudently reflected a balance between maintaining growth post floods and managing inflation.
The recent Balance of Payment numbers show that Pakistan’s current account deficit decreased by 37 per cent YoY to USD 2.2 billion during 1QFY23, as against a deficit of USD 3.5 billion during the same period last year.
READ MORE: SBP keeps policy rate unchanged at 15% amid economic deceleration
This YoY decline is mainly on the back of lower imports and jump in exports. With the measures taken by the authorities to curb import along with decline in international commodity prices, current account deficit is likely to remain lower in FY23 compared to FY22’s CAD.
As a result of a contained CAD and disbursement from ADB (USD 1.5 billion), the weakening of PKR against USD showed moderation since last MPS, depreciating 2.2 per cent.
Moreover, SBP believes that Pakistan’s external financing needs should be more than fully met in FY23 aided by rollovers by bilateral official creditors, new lending from multilateral creditors, and a combination of bond issuances, FDI and portfolio inflows.
READ MORE: SBP keeps benchmark rate unchanged at 15% amid rising inflation
Thus, pressure on the Rupee should lessen while SBP’s foreign exchange reserves should assume the upward trajectory which currently stand at USD 8.0 billion (11-Nov-2022).
In addition, another positive development since the last MPC meeting has been the decline in international prices of major commodities such as WTI (-8.6 per cent), Coal (-21.5 per cent), Brent (-4.8 per cent), Steel (-3.8 per cent), Wheat (-8.4 per cent) and Arab Light (-6.6 per cent). This bodes well for our external account position, hence providing much needed relief to our trade numbers.
On the domestic front, most of the high frequency (demand) indicators showed moderation to decline in growth on YoY basis. Measures taken by the monetary and fiscal authorities to slow down the aggregate demand along with rising cost of doing business led to decline of LSMI as evident from decline in production numbers during 1QFY23 of textile (-3.3 per cent YoY), food (-6.2 per cent YoY), automobile (-32.8 per cent YoY) and petroleum (-18.9 per cent YoY). Moreover, with recent flood damaged agriculture growth, lower yields of cotton and seasonal crops could weigh on growth this year.
READ MORE: Poll sees no policy rate change in August 22, 2022 meeting
As mentioned in the last MPS, SBP is closely monitoring the inflation trajectory. On the inflationary front, the headline inflation continues to remain in the double digit since Nov’21 mainly on the back of uptick in food and energy prices. In the month of Oct’22, headline inflation clocked-in at 26.6 per cent YoY. However, on MoM basis, inflation increased by 4.71 per cent mainly due to FCA adjustments and food prices’ hike. With this, average inflation for 4MFY23 clocks-in at 25.5 per cent compared to 8.74 per cent in 4MFY22. Moreover, headline inflation is expected to have peaked in the out-going quarter of FY23 and is likely to come down with high base-effect kicking-in.
-
State Bank issues foreign exchange rates on November 22, 2022
Karachi, November 22, 2022 – The State Bank of Pakistan (SBP) has published the foreign exchange rates for today, offering valuable insights into the buying and selling prices of various foreign currencies against the Pakistan Rupee (PKR).
(more…) -
Karachi Interbank Offered Rates KIBOR – November 21, 2022
KARACHI: State Bank of Pakistan (SBP) on Monday issued the Karachi Interbank Offered Rates (KIBOR) as on November 21, 2022.
Following are the latest KIBOR rates:
Tenor BID OFFER 1 – Week 14.95 15.45 2 – Week 15.01 15.51 1 – Month 15.08 15.58 3 – Month 15.56 15.81 6 – Month 15.60 15.85 9 – Month 15.61 16.11 1 – Year 15.63 16.13 READ MORE: Karachi Interbank Offered Rates KIBOR – November 18, 2022
-
Foreign direct investment into Pakistan plunges by 52pc in 4MFY23
KARACHI: Foreign direct investment (FDI) into Pakistan has plunged by 52 per cent during first four months (July – October) of fiscal year 2022-2023 (4MFY23).
According to data released by the State Bank of Pakistan (SBP) on Monday the FDI fell to $348 million during the first four months of the current fiscal year as compared with $726 million in the corresponding months of the last fiscal year.
READ MORE: Foreign direct investment in Pakistan plunges by 47% in 1QFY23
The data showed the inflows under the FDI fell by 40.3 per cent to $514 million during the period under review as compared with $862 million in the corresponding period of the last fiscal year.
On the other hand outflows under the head of FDI recorded an increase of 22.4 per cent to $166.2 million during July – October 2022 as compared with $136 million in the same period of the last fiscal year.
READ MORE: FATF removes Pakistan from grey list
The outflow from stock market recorded a decline of 91 per cent during first four months. The foreign portfolio investment recorded an outflow of $15.6 million during July – October 2022 as compared with the outflow of $178.5 million in the same period of the last fiscal year.
READ MORE: Asian Bank approves $1.5 billion to finance Pakistan
The net inflow of total foreign private investment recorded a decline of 39 per cent to $333 million during the period under review as compared with $548 million in the corresponding period of the last fiscal year.
Meanwhile, the public debt securities witnessed a decline in outflow during the period to $18.2 million when compared with the outflow of $60.1 million.
READ MORE: Pakistan’s weekly forex reserves increase nominally
The total foreign investment plunged by 36 per cent to $315 million during first four months of the current fiscal year as compared with $488 million in the corresponding period of the last fiscal year.
-
State Bank issues foreign currency rates on November 21, 2022
KARACHI – The State Bank of Pakistan (SBP) has released the foreign exchange rates for November 21, 2022, offering a comprehensive look at the value of the Pakistani Rupee (PKR) against major international currencies.
(more…) -
Pakistan current account deficit narrows by 47pc in 4MFY23
Current Account Deficit (CAD) of Pakistan narrowed by 47 per cent in first four months (July – October) of fiscal year 2022-2023 (4MFY23), according to Balance of Payment (BoP) details released by State Bank of Pakistan (SBP) on Monday.
The CAD contracted to $2.82 billion during first four months of the current fiscal year as compared with the deficit of $5.31 billion in the corresponding months of the last fiscal year.
READ MORE: Current account deficit declines by 37% to $2.21 billion in first quarter
Contraction in current account deficit may be attributed in significant fall in import bill of the country, which resulted in narrowing the trade deficit.
The import bill of the country fell by 16 per cent to $21.09 billion during first four months of the current fiscal year as compared with $25.08 billion in the same period of the last fiscal year.
READ MORE: Pakistan current account deficit narrows by 19% in July – August
On the other hand exports recorded a nominal growth of one per cent to $9.56 billion during the period under review as compared with $9.46 billion in the same period of the last fiscal year.
This resulted in contraction of trade deficit by 26 per cent to $11.53 billion during July – October 2022 when compared with $15.62 billion in the same period of the last fiscal year.
READ MORE: Pakistan current account deficit widens by 42% in July 2022
However, inflows of remittances declined by 8.6 per cent to $9.9 billion during first four months of the current fiscal year. 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: Pakistan’s FY22 current account deficit widens to $17.41 bn
The current account deficit in the month of October 2022 recorded at $547 million, which is widened compared with the deficit of $363 in September 2022. However, it was narrowed with compared with $1.78 billion in October 2021.
The CAD sharply widened to $17.41 billion in the fiscal year 2021/2022 from $2.82 billion in fiscal year 2020/2021.
-
Karachi Interbank Offered Rates KIBOR – November 18, 2022
KARACHI: State Bank of Pakistan (SBP) on Friday issued the Karachi Interbank Offered Rates (KIBOR) as on November 18, 2022.
Following are the latest KIBOR rates:
Tenor BID OFFER 1 – Week 14.94 15.44 2 – Week 15.00 15.50 1 – Month 15.06 15.56 3 – Month 15.56 15.81 6 – Month 15.61 15.86 9 – Month 15.62 16.12 1 – Year 15.64 16.14 READ MORE: Karachi Interbank Offered Rates KIBOR – November 17, 2022
-
SBP suspends two exchange companies namely Orient and Best Way in latest action
KARACHI: State Bank of Pakistan (SBP) on Friday suspended authorization of two exchange companies for serious violation of regulatory environment.
The central bank suspended the authorization of M/s Orient Exchange Company-B (Pvt) Limited and M/s Best Way Exchange Company-B (Pvt) Limited.
READ MORE: Poll suggests SBP to keep benchmark policy rate unchanged at 15pc
The SBP suspended the companies for three months due to serious violations of regulatory instructions.
SBP has advised both the companies to strengthen their Internal Control Functions and submit a report, of corrective measures to be taken in this regard, to SBP.
Both Exchange Companies, their Head Offices, all branches/outlets have been restricted from undertaking any kind of business activity during the suspension period.
The central bank had initiated harsh action against the exchange companies in order to ensure legal mode of transactions for foreign currencies.
REAR MORE: Action against banks for overcharging on LCs by month-end
On October 27, 2022, the SBP suspended the authorization of M/s Mega Currency Exchange Company – B (Pvt) Limited.
Similarly, on September 13, 2022, the central bank suspended the authorization of two Exchange Companies, namely, Swiss International Exchange Company-B (Pvt.) Limited and Great Union Exchange Company-B (Pvt.) Limited.
On March 25, 2022, the SBP suspended with immediate effect the authorization of an Exchange
Company namely M/s Noble Exchange International (Pvt) Limited till further orders for violation of SBP rules and regulations.
Recently, the SBP and Federal Investigation Agency (FIA) have agreed to take joint action against illegal exchange companies.
It was agreed by the both that concerted joint effort is required to apprehend and implicate the illegal foreign exchange operators and speculators across the country.
READ MORE: SBP introduces reporting system for illegal foreign exchange activity
SBP and FIA have jointly initiated action against illegal foreign exchange operators in Pakistan. To this effect, joint teams from SBP and FIA shall identify and take penal/legal action against the perpetrators so as to curb speculation and the grey market.
The teams, while remaining within the legal mandate allowed to them by the relevant laws, would crack down on all illegal foreign exchange operators and businesses across Pakistan.
READ MORE: Pakistan remittances decline by 15.7% in October 2022
Banks and Exchange Companies are authorized by the SBP to carry out Foreign Exchange business in Pakistan. Involvement of any person or entity, other than banks and Exchange Companies, in foreign exchange business is illegal under the Foreign Exchange Regulation Act, 1947. The illegal foreign exchange business also adversely affects the open market exchange rate and increases the gap between the interbank and open market exchange rate.