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Tag: SBP

  • Pakistan’s reserves plunge 43-month low to $13.56 billion

    Pakistan’s reserves plunge 43-month low to $13.56 billion

    KARACHI: Pakistan’s foreign exchange reserves have declined 43-month low at $13.56 billion by week ended August 05, 2022.

    The foreign exchange reserves of country fell by $648 million as those were $14.21 billion a week ago i.e. July 29, 2022, the State Bank of Pakistan (SBP) said on Thursday.

    READ MORE: Pakistan’s foreign reserves dip to $14.21 billion

    Pakistan’s foreign exchange reserves were seen at $13.597 billion on January 2019.

    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 $13.668 billion.

    The official reserves of the State Bank also fell by $556 million to $7.83 billion by week ended August 5, 2022 as compared with $8.386 billion a week ago.

    READ MORE: Pakistan forex reserves deplete to $14.42 billion

    The SBP attributed the decline in foreign exchange reserves to external debt repayments.

    It is pertinent to mention that the SBP received about $2.3 billion from Chinese banks for buildup of foreign exchange reserves. However, despite receiving the amount the external debt payment kept the pressure on the reserves.

    Further, the country is in negotiation with the IMF for release of next tranche under Extended Fund Facility (EFF) to boost its foreign exchange reserves.

    READ MORE: Pakistan’s forex reserves decline to $15.24 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 declined by $12.316 billion.

    The commercial banks held foreign exchange witnessed a decline of $92 million to $5.731 billion by week ended August 05, 2022 when compared with $5.82 billion a week ago.

    READ MORE: Pakistan’s forex reserves drop to $15.61 billion

    The sharp decline in foreign exchange reserves has resulted in free-fall of rupee value.

    The local currency ended historic low of Rs239.94 to the dollar at closing of interbank foreign exchange market on July 28, 2022. However, on the hope of inflows from the IMF and improved indicators the rupee rebounded in the month of August 2022.

    READ MORE: Pakistan’s forex reserves deplete to $15.74 billion

  • SBP’s customer forex rates – August 11, 2022

    SBP’s customer forex rates – August 11, 2022

    On Thursday, August 11, 2022, the State Bank of Pakistan (SBP) released the foreign exchange rates for customers, shedding light on the buying and selling prices of various currencies against the Pakistani Rupee (PKR).

    (more…)
  • SBP issues KIBOR rates – August 10, 2022

    SBP issues KIBOR rates – August 10, 2022

    The State Bank of Pakistan (SBP) has released the latest Karachi Interbank Offered Rates (KIBOR) on Wednesday, providing insights into the borrowing and lending rates prevalent in the interbank market.

    (more…)
  • SBP’s customer forex rates – August 10, 2022

    SBP’s customer forex rates – August 10, 2022

    On Wednesday, August 10, 2022, the State Bank of Pakistan (SBP) disclosed the foreign exchange rates for customers, providing insight into the buying and selling prices of various currencies against the Pakistani Rupee (PKR).

    (more…)
  • Non-resident Pakistanis allowed contribution in pension funds

    Non-resident Pakistanis allowed contribution in pension funds

    KARACHI: The State Bank of Pakistan (SBP) has allowed non-resident Pakistanis to contribute in pension funds.

    In a circular issued to banks/Authorized Dealers (ADs) on August 05, 2022, the SBP said in order to improve the value proposition of NRP Rupee Value Account (NRVA) and facilitating the non-resident Pakistanis (NRPs), it has been decided to allow NRPs to contribute in pension funds, authorized by the Securities and Exchange Commission of Pakistan (SECP) under Voluntary Pension Funds Rules 2005 (VPS Rules), through their Authorized Dealers. Accordingly, following amendments in Foreign Exchange Regulations have been made:

    READ MORE: SBP issues options to make donation in PM flood relief fund

    Para 8 (iv)(a) of Chapter 8- following new sub-clause has been added:

    8. Contribution in units of Pension Fund authorized in terms of VPS Rules, under the management of Pension Fund Managers (PFMs) registered with SECP.

    Para 8 (iv)(a) of Chapter 8- existing text has been amended as:

    The transfer of funds for the above investments shall be allowed by the ADs through the special instructions received from NRVA holder in this behalf. For investments/ contribution mentioned at (1),(2),(5),(6),(7) & (8) above, the procedure prescribed for investment/ disinvestment/ redemption in Chapter 20 of the Foreign Exchange Manual shall be followed while for investment mentioned at (3) above, the terms and conditions prescribed at Annexure-A, at the end of this chapter, shall be followed.

    Para 6 (B) of Chapter 20- following new clause has been added:

    (IIIC)  Issue of units of Pension Fund authorized by SECP in terms of Voluntary Pension Funds Rules 2005, under management of Pension Fund Managers (PFMs) registered with SECP to undertake pension fund scheme business.

    READ MORE: SBP relaxes cash margin restriction on import

    Para 9 of Chapter 20- following new clause has been added:

    (E) Contribution in Units of authorized Pension Funds

    NRP Rupee Value Account (NRVA) holders are allowed to contribute in pension funds, authorized in terms of Voluntary Pension Funds Rules 2005, under the management of Pension Fund Managers (PFMs) registered with SECP, through NRVA opened with an Authorized Dealer (AD) in Pakistan. Such contribution can be made in following manner:

    Funds available in NRVA can be used for contribution in pension funds and payment for such contribution may be debited from the account on the specific request of the NRVA holder for onward credit to the bank account of trustee of the pension fund. The Net Asset Value (NAV) allocated with respect to each contribution along with copy of payment instrument/ details shall be provided by the PFM to the AD on the same day. PFM shall also send account statement to the AD within 24 hours of the realization of funds.

    READ MORE: SBP advises banks to issue digital verification for remittances

    In case of transfer of individual pension account of the NRVA holder from one pension fund to another pension fund of the same PFM, the PFM will share the details of the transfer transaction (including all details as reported for transfer from one pension fund to another fund) for their record of AD.

    In case of transfer of individual pension account of the NRVA holder from one PFM to another PFM, the PFM will share the details of the transfer transaction (including all details as reported for transfer from one PFM to another PFM) for record of AD.

    Redemption proceeds may be credited to respective NRVA, received from trustee of pension fund on account of redemption of units earlier contributed by participant through these accounts or bonus units issued thereon. The details of the same will be shared by the Trustee of pension fund/ PFM with the AD.

    READ MORE: SBP takes regulatory action against TAG Innovation

    The AD shall ensure that all issuance and redemptions are taking place at prevalent NAV announced publicly by the relevant PFM.

    The banks shall maintain the complete reconciliation of amount transferred/received to/from trustee of pension fund, units contributed/redeemed by the participant there-against, and ensure the compliance of all related foreign exchange regulations.

    READ MORE: SBP launches crackdown against exchange companies

  • SBP issues options to make donation in PM flood relief fund

    SBP issues options to make donation in PM flood relief fund

    KARACHI: The State Bank of Pakistan (SBP) on Saturday issued multiple options to make donations in prime minister flood relief fund 2022.

    The central bank said that the government had notified establishment of a flood relief fund, namely, Prime Minister’s Flood Relief Fund, 2022, for providing relief and rehabilitation to the affected population due to torrential rains and flash floods in many parts of the country.

    READ MORE: Floods affect telecom services: PTA

    The Fund shall accept donations / contributions both from domestic and international sources for the aforesaid purpose. The Fund will be administered by the National Disaster Management Authority (NDMA) while the Accountant General Pakistan revenue will maintain accounts of the Fund.

    In this regard, the SBP has opened “Prime Minister’s Flood Relief Fund Account, 2022” for collection donations / contributions to the Fund.

    All the commercial and microfinance banks shall open the account of the Fund and shall receive donations/contributions in cash, through cheques, payorder and demand drafts, at all their branches across the country. Donors have been provided multiple options for making donation/ contribution to the Fund as described below: –

    A. Overseas Donors:

    Wire Transfer:

    Overseas donors including overseas Pakistanis may donate to the Fund through wire transfer in the Fund account maintained with their respective bank. They would simply advise their respective banks to transmit the donation amount in the Fund Account by debiting their accounts. The banks shall transmit the consolidated amount of donations received in the Fund account to the SBP on daily-basis through ‘Real Time Gross Settlement’ (RTGS) system.

    READ MORE: Exports decline by 19.5 percent as rains, urban flooding disrupt supply chain

    Transfer through Money Service Bureaus, Money Transfer Operators and Exchange Houses:

    Overseas donors may also donate / contribute through Money Service Bureaus (MSBs), Money Transfer Operators (MTOs) (e.g. MoneyGram, Western Union) and Exchange Houses (EHs) in line with the arrangements in place for receiving home remittances. Banks receiving such remittances in the Fund Account shall transfer the consolidated amount through RTGS to the SBP on daily basis.

    B. Domestic Donors:

    Cash Deposits at Banks’ Counters:

    Donors and contributors may make their donations / contributions to the fund in cash at any branch of any bank operating in Pakistan, which shall transfer the consolidated amount of such donations to the Fund account at SBP through RTGS on daily basis. Similarly, donations/ contributions may also be made at any of the field offices of SBP Banking Services Corporation.

    Deposit of Crossed Cheques in the Name of the Fund in Bank’s Drop Boxes:

    The donors and contributors may make their donations / contributions to the Fund by dropping crossed cheques in the name of the Fund in their respective bank’s drop box. All banks shall make available drop box facility at their selected branches for donors where they may drop their crossed cheques in favor of the Fund. The banks shall, accordingly debit the customer’s account and transfer the amount of such proceeds daily on consolidated basis through RTGS to the SBP.

    READ MORE: Jazz announces free calls to calamity hit Balochistan

    Alternate Delivery Channels:

    The donor may also use alternate delivery channels e.g. internet banking, mobile banking, Automated Teller Machines (ATMs) and mobile wallets etc. to donate / contribute to the Fund account through Inter-Bank Fund Transfer Facility (IBFT)/Raast. The commercial and microfinance banks shall prominently display the IBAN of the Fund at their websites.

    3. The banks shall maintain the details of individual donors i.e. name of donor the amount of his/her contribution, mode of payment etc., with them and shall be made available to SBP as and when needed. Please acknowledge receipt.

    READ MORE: IRC launches rain relief operation in Balochistan

  • SBP relaxes cash margin restriction on import

    SBP relaxes cash margin restriction on import

    KARACHI: The State Bank of Pakistan (SBP) has relaxed restriction on cash margin requirement on imported items.

    According to a circular issued on August 05, 2022, the SBP said that banks were required to maintain 100 percent cash margin against certain items of import (HS codes), regardless of the mode of payment.

    READ MORE: SBP advises banks to issue digital verification for remittances

    In this regard, it has been decided to relax the 100 percent cash margin requirements where the credit terms of import are more than 90 days; accordingly, the banks shall obtain cash margins as per the revised percentages given in the below table:

    Term of Payment from ImportApplicable Instructions for Cash Margin Requirement (CMR)
    91 to 180 Days25%
    181 Days and above0%

    Based on the tiered-approach in Para 2 above, the cash margin requirements shall be applicable on the Rupee equivalent amount of the import transaction.

    READ MORE: SBP takes regulatory action against TAG Innovation

    It may be noted that the above instructions shall be applicable on all new import transactions initiated by the bank after the issuance date of this circular letter. However, on already initiated import transactions, the instructions may only be applied if the amendments (in terms of payment) are made subsequent to the date of the issuance of instructions in accordance with above table.

    The cash margins deposited by importers on all items subject to CMR would be non-remunerative.

    READ MORE: SBP launches crackdown against exchange companies

  • SBP advises banks to issue digital verification for remittances

    SBP advises banks to issue digital verification for remittances

    KARACHI: State Bank of Pakistan (SBP) has advised banks to issue digital verification for proceeds realization certificate (PRCs) against remittances.

    (more…)
  • SBP issues KIBOR rates – August 05, 2022

    SBP issues KIBOR rates – August 05, 2022

    KARACHI: State Bank of Pakistan (SBP) on Friday issued the Karachi Interbank Offered Rates (KIBOR) as on August 05, 2022.

    Following are the latest KIBOR rates:

     TenorBIDOFFER
    1 – Week14.7815.28
    2 – Week14.8315.33
    1 – Month14.8915.39
    3 – Month15.5415.79
    6 – Month15.6415.89
    9 – Month15.6916.19
    1 – Year15.7316.23

    READ MORE: SBP issues KIBOR rates – August 04, 2022

  • SBP’s customer forex rates – August 05, 2022

    SBP’s customer forex rates – August 05, 2022

    On Friday, August 05, 2022, the State Bank of Pakistan (SBP) revealed the foreign exchange rates for customers, providing crucial information about the buying and selling prices of various currencies against the Pakistani Rupee (PKR).

    (more…)