On Thursday, September 22, 2022, the State Bank of Pakistan (SBP) issued the foreign exchange rates for customers, revealing the buying and selling prices of various currencies against the Pakistani Rupee (PKR).
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Pakistan current account deficit narrows by 19% in July – August
KARACHI: Pakistan current account deficit recorded a contraction of 19 per cent during first two months (July – August) of the current fiscal year 2022/2023, according to data released by State Bank of Pakistan (SBP) on Wednesday.
The current account deficit during the period under review was at $1.92 billion as compared with $2.37 billion in the corresponding months of the last fiscal year.
READ MORE: Pakistan current account deficit widens by 42% in July 2022
The contraction in current account deficit may be attributed to narrowing trade deficit during the period under review.
The trade deficit of the country recorded a decline of 16.36 per cent to $6.33 billion during July – August 2022/2023 as compared with the deficit of $7.56 billion in the corresponding period of the last fiscal year, according to Pakistan Bureau of Statistics (PBS).
READ MORE: Pakistan’s FY22 current account deficit widens to $17.41 bn
Importantly, the import bill of the country fell by 9 per cent to $11.06 billion during the first two months of the current fiscal year as compared with $12.15 billion in the same months of the last fiscal year.
On the other hand, the export exhibited an increase of 3.27 per cent to $4.74 billion during July – August 2022/2023 as compared with $4.59 billion in the same period of the last fiscal year.
The contraction in trade deficit may be attributed to the ban imposed by the government on import of luxury and non-essential items. The government imposed the ban on May 19, 2022. But, it was later lifted on August 20, 2022.
READ MORE: Pakistan’s CAD balloons to $15.19 billion in 11 months
However, some restrictions on import of various goods are still there as those clearances are subject to prior approval of the SBP.
Meanwhile, the overall remittances sent by Pakistani workers declined by 3 per cent during first two months (July – August) 2022/2023. The overseas Pakistani workers sent $5.25 billion during first two months of the current fiscal year as compared with $5.42 billion in the same months of the last fiscal year.
READ MORE: Current account deficit swells to $13.78 bn in 10 months
The current account deficit for the month of August 2022 was $703 million as compared with the deficit of $1.52 billion in the same month of the last year. Whereas the deficit in August 2022 is also narrowed when compared with the deficit of $1.21 billion in the month of July 2022.
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Karachi Interbank Offered Rates KIBOR – September 21, 2022
KARACHI: State Bank of Pakistan (SBP) on Wednesday issued the Karachi Interbank Offered Rates (KIBOR) as on September 21, 2022.
Following are the latest KIBOR rates:
Tenor BID OFFER 1 – Week 14.78 15.28 2 – Week 14.88 15.38 1 – Month 15.05 15.55 3 – Month 15.84 16.09 6 – Month 15.87 16.12 9 – Month 15.91 16.41 1 – Year 15.92 16.42 -
State Bank agrees to clear invoices up to $50,000: FPCCI
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday said that the State Bank of Pakistan (SBP) has agreed to allow clearance of consignments valuing up to $50,000.
FPCCI President Irfan Iqbal Sheikh in a statement apprised the entire business, industry and trade community of Pakistan that in a breakthrough achievement from the platform of FPCCI and under the leadership of its Senior Vice President and FPCCI’s focal person on SBP-related matters, Suleman Chawla, “SBP has agreed to clear / settle all the backlog and stuck up payments within two days, which fall under chapters 84 & 85 of the customs tariff; and, if their invoice values are up to fifty thousand dollars.”
READ MORE: KATI expresses concern over delaying revision in petroleum prices
Irfan Iqbal Sheikh maintained that FPCCI has been working relentlessly over the past couple of months on the issue of delayed clearance of dollar payments of importers; and, finally after multiple detailed rounds of consultative sessions between FPCCI and SBP, the central bank has agreed, in principle, to at least release all payments in the range of $50,000 or less.
Suleman Chawla informed that he has also released an official notification from FPCCI on the development to inform all members of the apex body & stakeholders of the lingering issue.
READ MORE: FBR suggested fixed tax regime for women entrepreneurs
He added that FPCCI has been receiving numerous calls each day for the past couple of months from across Pakistan and across various sectors affected by the restrictions – which were also impacting raw materials and equipment falling under chapters 84 & 85 – and,FPCCI is expecting that all payments falling under the aforementioned category will be cleared within this week.
READ MORE: Karachi Chamber urges allowing imports from India
Suleman Chawla reiterated that the commercial importers and manufacturers have suffered a lot due to the restrictions as these were announced abruptly and without any homework or consultation. Authorities should have been meticulously selective in implementation of the restrictions to only luxury items; which, in turn, would have saved the business community millions of dollars in demurrages, container charges and lost export orders, he added.
READ MORE: FPCCI rejects central bank’s claim of ‘no import restriction’
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State Bank’s foreign exchange rates – September 21, 2022
On Wednesday, September 21, 2022, the State Bank of Pakistan (SBP) unveiled the foreign exchange rates for customers, outlining the buying and selling prices of various currencies against the Pakistani Rupee (PKR).
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Karachi Interbank Offered Rates KIBOR – September 20, 2022
KARACHI: State Bank of Pakistan (SBP) on Tuesday issued the Karachi Interbank Offered Rates (KIBOR) as on September 20, 2022.
Following are the latest KIBOR rates:
Tenor BID OFFER 1 – Week 14.79 15.29 2 – Week 14.90 15.40 1 – Month 15.05 15.55 3 – Month 15.83 16.08 6 – Month 15.86 16.11 9 – Month 15.89 16.39 1 – Year 15.92 16.42 READ MORE: Karachi Interbank Offered Rates KIBOR – September 19, 2022
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SBP issues new instructions on cross border payments
KARACHI: State Bank of Pakistan (SBP) on Tuesday issued new instructions related to cross border payments to bring in line with international best practices.
The central bank in a circular stated that as per existing practice, the banks provide payment cases related to Asian Clearing Union (ACU), Cash Reserve Requirements (CRR) & Special Cash Reserve Requirements (SCRR) and Deposits/ Withdrawals from Local US Dollar Instrument Collection and Settlement; through SBP, Banking Services Corporation, Karachi Office (SBP BSC – KO).
READ MORE: PKR falls for 13th session as dollar ends near record high
Further, the banks also send their queries with regard to above payment cases to SBP BSC – KO for clarification, guidance and advice.
In order to bring cross border payments in line with international best practices, State Bank of Pakistan (SBP) has re-engineered its business process by centralizing all cross border payments, including above, at the Treasury Operations Department-SBP (TOD-SBP).
Hence, all banks/ Islamic banks are advised to please ensure compliance of following instructions with effect from October 01, 2022.
READ MORE: President Alvi bars retrospective effect to profit rates on saving certificates
All ACU payment cases / letters addressed to Chief Manager “ACU Section” SBP BSC-KO, shall now be submitted to Director, Treasury Operations Department (Director-TOD), SBP, Karachi as per formats attached at annexure ‘A’ & ‘B’.
All banks’ CRR & SCRR deposits & withdrawal cases / letters (FE25) addressed to Chief Manager “DAD Section” SBP BSC-KO shall now be submitted to Director-TOD as per formats attached at annexures ‘C’ & ‘D’.
READ MORE: No restriction on imports, SBP clarifies
All Local US Dollar deposits & withdrawals cases from Instrument Collection & Settlement (FE2) addressed to Chief Manager “DAD Section” SBP BSC-KO shall now be submitted to Director-TOD as per formats attached at annexures ‘E’ & ‘F’.
Any queries with regard to above payment cases shall now be submitted to Director-TOD for clarification, guidance and advice.
READ MORE: State Bank suspends two exchange companies
The contact details of TOD officers and Standard Settlement Instructions (SSIs) of SBP are attached at annexures ‘G’ & ‘H’ for ready reference.
The SBP issued following annexures related to cross border payments:
- Annexure A- Letter for Transfer / Purchase of ACU Dollars
- Annexure B- Letter for Repatriation / Surrender of ACU Dollars
- Annexure C- Letter for CRR & SCRR Deposit
- Annexure D- Letter for CRR & SCRR Withdrawal
- Annexure E- Letter for Deposit to Local US Dollar Instrument Collection & Settlement Account
- Annexure F- Letter for Withdrawal from Local US Dollar Instrument Collection & Settlement Account
- Annexure G- Contact Details of Treasury Operations Department, SBP Karachi.
- Annexure H- Standard Settlement Instructions (SSIs) of SBP
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State Bank’s foreign exchange rates – September 20, 2022
The State Bank of Pakistan (SBP) has published the foreign exchange rates for September 20, 2022, providing insights into the buying and selling prices of various foreign currencies in Pakistani Rupees (PKR).
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Karachi Interbank Offered Rates KIBOR – September 19, 2022
KARACHI: State Bank of Pakistan (SBP) on Monday issued the Karachi Interbank Offered Rates (KIBOR) as on September 19, 2022.
Following are the latest KIBOR rates:
Tenor BID OFFER 1 – Week 14.93 15.43 2 – Week 14.99 15.49 1 – Month 15.09 15.59 3 – Month 15.83 16.08 6 – Month 15.85 16.10 9 – Month 15.88 16.38 1 – Year 15.91 16.41 READ MORE: Karachi Interbank Offered Rates KIBOR – September 16, 2022
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State Bank’s foreign exchange rates – September 19, 2022
On Monday, September 19, 2022, the State Bank of Pakistan (SBP) disclosed the foreign exchange rates for customers, indicating the buying and selling prices of various currencies against the Pakistani Rupee (PKR).
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