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Tag: SBP

  • Pakistan remittances decline by 15.7% in October 2022

    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

  • State Bank issues foreign exchange rates on November 11, 2022

    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

    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.

  • Reducing foreign currency cash carrying limits to half criticized

    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.

  • Pakistan FX reserves slip sharply by $958 mn on external payments

    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

  • Karachi Interbank Offered Rates KIBOR – November 10, 2022

    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:

     TenorBIDOFFER
    1 – Week14.8015.30
    2 – Week14.9015.40
    1 – Month15.0215.52
    3 – Month15.4815.73
    6 – Month15.5815.83
    9 – Month15.6116.11
    1 – Year15.6416.14

    READ MORE: Karachi Interbank Offered Rates KIBOR – November 08, 2022

  • State Bank issues foreign exchange rates on November 10, 2022

    State Bank issues foreign exchange rates on November 10, 2022

    Karachi, November 10, 2022 – The State Bank of Pakistan (SBP) has released the foreign exchange rates for today, offering valuable information about the buying and selling prices of various foreign currencies against the Pakistan Rupee (PKR).

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  • State Bank, NBP to withdraw petitions in Riba case: Ishaq Dar

    State Bank, NBP to withdraw petitions in Riba case: Ishaq Dar

    ISLAMABAD: Finance Minister Senator Muhammed Ishaq Dar Wednesday said that State Bank of Pakistan (SBP) and National Bank of Pakistan (NBP) will withdraw their petitions from the Supreme Court of Pakistan against the judgment of Federal Shariat Court in which the Court had ordered implementation of interest-free (Riba free) banking system in the country.

    READ MORE: KCCI demands implementation of Riba free banking

    He said that in this regard he held several meetings and detailed discussions with the SBP Governor and under the special directives of Prime Minister, it was decided that both the SBP and NBP would withdraw their petitions against the decision.

    He said that the government would also expedite its efforts to introduce Shariah compliant banking system in the country for rapid growth and promotion of Islamic bank and finance.

    READ MORE: SBP seeks Supreme Court guidance on Riba case judgement

    He further informed that during 2013-2018 several steps were being taken to promote Islamic economic system and a special committee comprising on Islamic scholars were also formed, adding that Islamic Banking system also observed significant growth and progress at that time.

    READ MORE: IPS demands implementation of court judgment on Riba

    However, he said that from last few years the sector was completely neglected and no further progress was witnessed, adding that promotion of Islamic economic system and interest free banking was the top priority of incumbent government

    He said that government was also determined to overcome all the challenges faced for introducing interest free banking system and it will take all possible measures to take forward the interest free banking and economy for the prosperity of nation.

    READ MORE: Court judgment: Riba is Haram in any form

  • State Bank launches environment, social risk management manual

    State Bank launches environment, social risk management manual

    KARACHI: State Bank of Pakistan (SBP) on Wednesday launched environment and social risk management manual at a conference.

    The central bank organized a Sustainable Banking Conference, in collaboration with IFC, a member of the World Bank Group.

    The objective of the conference was to create critically needed awareness related to climate change and sustainability within the financial sector and launch the Environmental and Social Risk Management (ESRM) Implementation Manual. The inaugural session of the conference was chaired by Governor SBP Jameel Ahmad.

    READ MORE: SBP limits cash up to USD 5,000 taking out of Pakistan

    The conference was attended by high profile dignitaries including, Khawaja Aftab Ahmed (Regional Director, IFC), Zeeshan Ahmed Sheikh (Country Manager for Afghanistan and Pakistan, IFC), Toshio Odagiri (the Counsul General of Japan in Karachi), Dr. Shamshad Akhtar (Chairperson, PSX Board), Yaseen Anwar (Senior Policy Advisor, IFC), Ms. Sima Kamil (Deputy Governor, SBP), presidents/CEOs of banks/DFIs, senior officials from Pakistan Banks Association, Sindh Environmental Protection Agency and other relevant stakeholders.

    During the conference, Governor, SBP, launched the ESRM Implementation Manual for banks and DFIs. While delivering the keynote address, Governor, SBP remarked that this manual has been launched as part of SBP’s ongoing efforts to promote green banking in Pakistan.

    The ESRM manual is a procedural guide for the banks/DFIs to establish their environmental & social risk management systems, as advised in SBP’s Green Banking Guidelines (GBGs). Further, he highlighted that the conference was an effort to spread awareness on the impact of climate change and environmental degradation on the financial sector of Pakistan and a step towards SBP’s endeavor to reduce the vulnerability of financial sector from such risks.

    READ MORE: SBP, FIA jointly take action against illegal exchange companies

    He added that Pakistan is one of the most vulnerable countries to the impacts of climate change as we have witnessed during the recent floods; therefore, it is critical time for Pakistan’s financial sector to become sensitive to financial consequences arising from environmental & social risks.

    SBP, being a responsible regulator of the financial system, has also undertaken certain initiatives like Green Banking Guidelines and Financing Scheme for Renewable Energy, to ingrain sustainability considerations into the financial sector as per international best practices.

    Governor, SBP, encouraged the entire banking industry to take full benefit of the manual to establish their ESRM systems and procedures. State Bank will keep on providing necessary support and guidance at every stage of ESRM implementation.

    READ MORE: US Dollar falls by 26 paisas to PKR 221.66 in interbank market

    In the inauguration ceremony, Khawaja Aftab Ahmed, IFC Regional Director for the Middle East, Pakistan and Afghanistan, shared that the launch of the Environmental and Social Risk Management (ESRM) Implementation Manual marks a significant step towards promoting sustainable banking practices in Pakistan.

    He added that the manual can help the banking industry better manage environmental and social risks throughout their lending practices, and subsequently, enable a green and inclusive economic recovery at a critical time for Pakistan.

    READ MORE: Faysal Bank enables donations through WhatsApp

    The conference also included two high-level panel discussions on important topics including ESG integration in financial sector and climate finance risk & climate disclosures wherein, in addition to other senior level experts, two ex-SBP Governors shared their experiences. Deputy Governor, Sima Kamil concluded the conference and thanked all participants.

  • SBP limits cash up to USD 5,000 taking out of Pakistan

    SBP limits cash up to USD 5,000 taking out of Pakistan

    KARACHI: State Bank of Pakistan (SBP) on Tuesday restricted the amount of foreign currency in cash up to equivalent to USD 5,000 from USD 10,000.

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