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  • 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…)
  • Karachi Interbank Offered Rates KIBOR – November 16, 2022

    Karachi Interbank Offered Rates KIBOR – November 16, 2022

    KARACHI: State Bank of Pakistan (SBP) on Wednesday issued the Karachi Interbank Offered Rates (KIBOR) as on November 16, 2022.

    Following are the latest KIBOR rates:

     TenorBIDOFFER
    1 – Week14.9315.43
    2 – Week14.9815.48
    1 – Month15.0315.53
    3 – Month15.4915.74
    6 – Month15.6015.85
    9 – Month15.6116.11
    1 – Year15.6416.14

    READ MORE: Karachi Interbank Offered Rates KIBOR – November 15, 2022

  • Action against banks for overcharging on LCs by month-end

    Action against banks for overcharging on LCs by month-end

    ISLAMABAD: State Bank of Pakistan (SBP) on Wednesday said it has finalized to take action against banks involved in overcharging on opening of Letters of Credit (LCs).

    The National Assembly Standing Committee on Finance and Revenue was informed here on Wednesday that the actions against eight banks involved in overcharging on opening of LC would be taken by the end of current month.

    READ MORE: Dollar climbs to PKR 222.41 amid foreign payment demand

    While briefing the Committee, Deputy Governor State Bank of Pakistan (SBP), Dr. Inayat Hussain said that in light of inspection findings, SBP is also in process of completing the enforcement action against the concerned banks.

    The Committee met under the Chairmanship of Qaiser Ahmed Sheikh and discussed various issues pertaining to the Ministry and its attached departments.

    The Chairman of the Committee said that now the monitoring process of the Central Bank has been tightened and no complaints have been received yet.

    READ MORE: SBP introduces reporting system for illegal foreign exchange activity

    Inayat said the shortage of dollars in the market is due to the gap between import and export and foreign exchange is also required for balance of payment.

    He highlighted that the shortage occurs when Dollar inflow is less than the outflow. These are the reasons for the increase in the rate of the Dollar and the depreciation of the rupee, he added.

    MNA Sabir Hussain Kaim Khani said that National Bank of Pakistan (NBP) was also responsible for the devaluation of the rupee and increase in the rate of Dollar. He questioned how will we stop others when a government bank does this.

    The Chairman of the Committee said that Banks were still saying that they don’t have Dollars and market confidence was affected due to fluctuations in the value of the rupee.

    READ MORE: Pakistan remittances decline by 15.7% in October 2022

    Dollar is worth Rs 222 in the market and there is a difference of 15 rupees in the interbank and open market, he added.

    Governor State Bank should should come to respond to this, Barjees Tahir said.

    MNA Khalid Hussain Magsi said that now the economy was not in right direction because we have not set the direction.

    Meanwhile discussing the issue of allocation of funds to National Disaster Management Authority (NDMA) and essential items provided to the floods affectees, the official of NDMA informed that the authority disbursed around 283,934 tents, 77,585 tarpaulins, 2,044,104 mosquito nets, 234,545 blankets.

    MNA Nafisa Shah said that according to her information, around 4 to 5 thousand children were died of Malaria in Khairpur district but there was no data available on flood victims. She said that things were given twice in each house and compiling data of flood victims was the biggest responsibility.

    READ MORE: Pakistan banks may issue corporate cards for cross-border commercial payments

    Zarai Taraqiati Bank Limited (ZTBL) briefed the Committee on its overall performance, however the Committee was not satisfied with the briefing and allowed three months’ time asking it to come again with better preparation.

    The Committee also asked ZTBL President to ensure his presence in the next meeting.