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Tag: SBP

  • Foreign direct investment into Pakistan plunges by 52pc in 4MFY23

    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

    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…)
  • Karachi Interbank Offered Rates KIBOR – November 18, 2022

    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:

     TenorBIDOFFER
    1 – Week14.9415.44
    2 – Week15.0015.50
    1 – Month15.0615.56
    3 – Month15.5615.81
    6 – Month15.6115.86
    9 – Month15.6216.12
    1 – Year15.6416.14

    READ MORE: Karachi Interbank Offered Rates KIBOR – November 17, 2022

  • SBP suspends two exchange companies namely Orient and Best Way in latest action

    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.

  • State Bank issues foreign exchange rates on November 18, 2022

    State Bank issues foreign exchange rates on November 18, 2022

    Karachi, November 18, 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…)
  • Poll suggests SBP to keep benchmark policy rate unchanged at 15pc

    Poll suggests SBP to keep benchmark policy rate unchanged at 15pc

    KARACHI: A poll has suggested that the State Bank of Pakistan (SBP) likely to keep benchmark policy rate at 15 in its monetary policy announcement scheduled for November 25, 2022.

    Topline Research conducted a Poll from market participants to assess their view on the upcoming Monetary Policy announcement.

    READ MORE: SBP keeps policy rate unchanged at 15% amid economic deceleration

    As per the survey, 79 per cent of the participants expects no change in policy rate in upcoming monetary policy and is likely to remain at 15 per cent. Around 16 per cent of the participants anticipates an increase whereas 5 per cent of the participants expects a decrease in policy rate.

    Responding to second question on their view about policy rate by end of the current fiscal year 2022-2023, majority think policy rate will be less than what it is now by June 2023.

    About 35 per cent of the participants expects policy rate to be in the range of 14-15 per cent, 27 per cent of the participants expects policy rate to be in the range of 13-14 per cent, and 19 per cent of the participants anticipate it to be in the range of 12 per cent-13 per cent by June 2023.

    READ MORE: SBP keeps benchmark rate unchanged at 15% amid rising inflation

    In terms of outlook for Current Account Deficit (CAD), 62 per cent of the participants expect CAD to be in a range of US$8-12 billion in FY23, while 21 per cent of the participants expect CAD to be below US$8 billion in FY23. 16 per cent of the participants expect CAD to be over US$12 billion in FY23. To recall, CAD in FY22 had clocked in at US$17.4 billion led by sharp uptick in imports.

    These results are also in line with our estimates where we think that policy rate will remain unchanged in upcoming monetary policy and are now at its peak where we can see a decline in policy rates in the second half of the current fiscal year.

    READ MORE: Poll sees no policy rate change in August 22, 2022 meeting

    Since last monetary policy statement on October 10, 2022, CPI inflation increased to 26.6 per cent in October 2022 as compared to 23 per cent in September 2022 but this was primarily due to major adjustment in electricity tariffs which will not be recurring.

    Furthermore, October 2022 imports saw 13 per cent contraction as a result trade deficit in October 2022 was down to $2.3 billion from $2.9 billion in September 2022. This is likely to keep a check in CAD going forward and will be a key driver in SBP’s monetary policy stance.

    Moreover, floods and monetary & fiscal tightening measures have led to slowdown in aggregate demand which could lead to SBP opting for status quo, we believe.

    READ MORE: Pakistan hikes key policy rate by 125 basis points to 15%

  • Karachi Interbank Offered Rates KIBOR – November 17, 2022

    Karachi Interbank Offered Rates KIBOR – November 17, 2022

    KARACHI: State Bank of Pakistan (SBP) on Thursday issued the Karachi Interbank Offered Rates (KIBOR) as on November 17, 2022.

    Following are the latest KIBOR rates:

     TenorBIDOFFER
    1 – Week14.9515.45
    2 – Week14.9915.49
    1 – Month15.0515.55
    3 – Month15.5515.80
    6 – Month15.6215.87
    9 – Month15.6216.12
    1 – Year15.6316.13

    READ MORE: Karachi Interbank Offered Rates KIBOR – November 16, 2022

  • Pakistan forex reserves inch up to $13.796 billion

    Pakistan forex reserves inch up to $13.796 billion

    KARACHI: Foreign exchange (forex) reserves of Pakistan inched up by $75 million to $13.796 billion by week ended November 11, 2022, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $13.721 billion a week ago i.e. November 04, 2022.

    READ MORE: Pakistan FX reserves slip sharply by $958 mn on external payments

    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 $13.432 billion.

    The official foreign exchange reserves of the State Bank nominally increased by $3 million to 7.96 billion by week ended November 11, 2022 as compared with $7.957 billion a week ago.

    READ MORE: SBP’s weekly forex reserves dip by $157 million to $7.44 billion

    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 $12.185 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 recorded an increase of $72 million to $5.836 billion by week ended November 11, 2022 as compared with $5.764 billion a week ago.

    READ MORE: Pakistan’s forex reserves continue to fall; deplete to $13.25 billion

  • State Bank issues foreign exchange rates on November 17, 2022

    State Bank issues foreign exchange rates on November 17, 2022

    Karachi, November 17, 2022 – The State Bank of Pakistan (SBP) has issued the foreign exchange rates for today, revealing the buying and selling prices of various foreign currencies against the Pakistan Rupee (PKR).

    (more…)