Tag: SBP

Pakistani rupee falls 36% to Saudi Riyal in seven months

KARACHI: The Pakistani Rupee (PKR) has recorded a sharp decline by Rs16.79 or 36 per cent against the Saudi Riyal during the past seven months January – July 2022, according to official data.

According to weighted average customer exchange rates issued by the State Bank of Pakistan (SBP), the selling rate by exchange companies opened at Rs47.08 to the Saudi Riyal on January 04, 2022 [the first trading day of the year] as compared with closing of Rs63.87 to the Saudi Riyal on July 29, 2022.

READ MORE: Pakistani Rupee to Saudi Riyal on July 31, 2022

The rupee recorded a massive decline during the year against a basket of foreign currencies. As the local unit recorded a massive decline of 34.35 per cent against the US dollar in the interbank foreign exchange market.

The US dollar was at Rs178.17 at opening on January 04, 2022 and closed at Rs239.37 on July 29, 2022 in the interbank foreign exchange market.

READ MORE: Pakistani Rupee to Saudi Riyal on July 30, 2022

Experts believed that the downgrade of the rating of Pakistan by three top credit rating agencies deteriorated the outlook of the country. Furthermore, the political conflict further aggravated the situation.

Further the Rupee declined against SAR because of the exchange of currency for pilgrimage to Saudi Arabia. The Hajj began on July 7, 2022, when the SAR closed at Rs55.49.

READ MORE: Pakistani Rupee to Saudi Riyal on July 29, 2022

The rupee also declined against the Saudi Riyal on account of the massive fall of the local currency against the US Dollar after the country has been trapped in foreign exchange reserves shortage.

July 31, 2022
SBP issues KIBOR rates – July 29, 2022

KARACHI: State Bank of Pakistan (SBP) on Friday issued the Karachi Interbank Offered Rates (KIBOR) as on July 29, 2022.

Following are the latest KIBOR rates:

Tenor BID OFFER
1 – Week 14.76 15.26
2 – Week 14.80 15.30
1 – Month 14.85 15.35
3 – Month 15.44 15.69
6 – Month 15.58 15.83
9 – Month 15.61 16.11
1 – Year 15.67 16.17

READ MORE: SBP issues KIBOR rates – July 28, 2022

July 29, 2022
No date extension for exchanging Pakistan prize bond

KARACHI: Pakistan has not extended the date for exchanging bearer prize bonds that were expired on June 30, 2022.

A number of persons have reached PkRevenue.com regarding extension for exchanging bearer prize bonds. However, there is no information from the finance ministry of the State Bank of Pakistan (SBP) regarding date extension.

READ MORE: Pakistan-issued prize bonds expire on June 30, 2022

So far no decision came from the finance ministry to extend the last date for exchanging bearer prize bonds. The federal government had already extended the last date for converting or exchanging the bearer prize bonds up to June 30, 2022.

The State Bank of Pakistan (SBP) issued a circular on March 30, 2022 to extend the date up to June 30, 2022 for exchanging or converting the bearer prize bonds including denominations of Rs40,000/- Rs25,000/-, Rs15,000/- and Rs7,500.

READ MORE: SBP directs banks to accept bearer prize bonds

Earlier, the last date for exchanging the bearer prize bonds was March 31, 2022.

The SBP instructed the banks to accept requests for encashment / conversion / redemption of cited denominations from general public till June 30, 2022.

“Further, the banks shall submit branch / region wise consolidated data of cited denomination national prize bonds held by them on last date i.e. June 30, 2022 latest by July 04, 2022, as per the instructions stipulated in aforementioned CMD Circulars.

READ MORE: Prize bond (bearer) holders given 3 months to document

The finance ministry launched the withdrawal of the unregistered prize bonds in a phased manner. The federal government on June 24, 2019, announced to discontinue the circulation of Rs40,000 denomination national prize bonds. Similarly, on December 10, 2020, the government announced to discontinue the circulation of Rs25,000 denomination prize bonds. In April 2021, the finance ministry announced that national prize bonds of denominations Rs7,500 and Rs15,000 shall not be sold.

Since June 2019 the government repeatedly extended the date for exchanging the bearer bonds. Previously, the last date for exchanging the unregistered bonds was December 31, 2021.

READ MORE: History of Prize Bonds in Pakistan

The government is aiming to document the bearer bonds so the exchanging the unregistered bond with cash has been prohibited. The ministry of finance issued various procedure to convert the bond without exchanging with the cash.

The bonds can be converted to premium prize bonds (registered) of denomination of Rs25,000 and Rs40,000 (subject to the adjustment of differential amount) through 16 field offices of State Bank of Pakistan (SBP) Banking Services Corporation (BSC), and branches of six commercial banks i.e. National Bank of Pakistan, Habib Bank Limited, United Bank Limited, MCB Bank Limited, Allied Bank Limited, and Bank Alfalah Limited.

READ MORE: Income tax on prize bonds, lottery winning

The bonds can be replaced with Special Saving Certificates/Defence Saving Certificates through the 16 field offices of SBP Banking Services Corporation, authorized commercial banks, and the National Savings Center.

The bonds will only be encashed by transferring the proceeds to the bonds holder’s bank account through the 16 field offices of SBP BSC as well as the authorized commercial bank branches and to the Saving Accounts at National Savings Centers.

July 29, 2022
SBP’s customer forex rates – July 29, 2022

On Friday, July 29, 2022, the State Bank of Pakistan (SBP) disclosed the foreign exchange rates for customers, providing valuable information on the buying and selling prices of various currencies against the Pakistani Rupee (PKR).
(more…)

July 29, 2022
Pakistan forex reserves deplete to $14.42 billion

KARACHI: Pakistan foreign exchange reserves depleted by $827 million to $14.415 billion by week ended July 22, 2022, State Bank of Pakistan (SBP) said on Thursday.

The foreign exchange reserves of the country were $15.242 billion a week ago i.e. July 15, 2022.

READ MORE: Pakistan’s forex reserves decline to $15.24 billion

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 $12.813 billion.

The official reserves of the State Bank also fell by $754 million to $8.575 billion by week ended July 22, 2022 as compared with $9.329 billion a week ago.

READ MORE: Pakistan’s forex reserves drop to $15.61 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 deplete to $15.74 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 $10.571 billion.

The commercial banks held foreign exchange also witnessed a decline of $73 million to 5.84 billion by week ended July 22, 2022 when compared with $5.913 billion a week ago.

READ MORE: State Bank’s reserves dip to 32-month low at $8.238 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.

July 28, 2022
SBP issues KIBOR rates – July 28, 2022

KARACHI: State Bank of Pakistan (SBP) on Thursday issued the Karachi Interbank Offered Rates (KIBOR) as on July 28, 2022.

Following are the latest KIBOR rates:

Tenor BID OFFER
1 – Week 14.72 15.22
2 – Week 14.74 15.24
1 – Month 14.80 15.30
3 – Month 15.44 15.69
6 – Month 15.56 15.81
9 – Month 15.59 16.09
1 – Year 15.65 16.15

READ MORE: SBP issues KIBOR rates – July 27, 2022

July 28, 2022
Suzuki Motors warns plant shutdown in Pakistan

KARACHI: Suzuki Motors Co. Ltd. on Thursday warned shutting down its production plant in Pakistan due to import restrictions.

In a communication sent to Pakistan Stock Exchange (PSX), the auto manufacturer said that State Bank of Pakistan (SBP) had introduced a mechanism for prior approval for import under HS Code 8703 category (including CKD) vide circular No. 09 of 2022 dated May 20, 2022.

READ MORE: Indus Motors rebuts plant shutdown reports

“Restrictions had adversely impacted clearance of import consignments of the company from the ports which might result in shutdown of the plant in near future,” the company said, adding that Pak Suzuki has stopped bookings of its products since July 01, 2022.

The company further clarified that at present it had not plan to shut down the plant. “The production schedule of the company and any non-production days remain contingent on a number of external factors,” it said.

READ MORE: Toyota Indus Motors offers 100% refunds on booking cancellation

The company is actively monitoring its production and operations and is closely working with the government of Pakistan and the central bank to alleviate the present challenges.

A day earlier, Indus Motors Company– the manufacturers of Toyota cars in Pakistan, also issued a statement in this regard.

READ MORE: Toyota lowers July production in Japan

The IMC said that the auto sector was facing unprecedented difficulties in its operations due to ongoing economic challenges and factors beyond the control of automobiles manufacturers.

“The unprecedented devaluation of Pakistan Rupee (PKR), coupled with restrictions imposed by the State Bank of Pakistan (SBP) regarding prior LC approval for Completely Knocked Down (CKD) imports and continuing financing instability has radically impacted the auto industry,” the IMC said.

The company clarified that as of today (July 27, 2022), there are no plans fixed for complete plant shutdown for more than two weeks in the month of August 2022.

READ MORE: COVID-19 cases reported at Toyota work sites

July 28, 2022
SBP’s customer forex rates – July 28, 2022

On Thursday, July 28, 2022, the State Bank of Pakistan (SBP) unveiled the foreign exchange rates for customers, revealing the buying and selling prices of various currencies against the Pakistani Rupee (PKR).
(more…)

July 28, 2022
Pakistan’s FY22 current account deficit widens to $17.41 bn

KARACHI: Pakistan has posted $17.41 billion as current account deficit (CAD) for the fiscal year 2021/2022, according to data of balance of payment released by the State Bank of Pakistan (SBP) on Wednesday.

The country posted a deficit in the current account of $2.82 billion in the preceding fiscal year i.e. 2020/2021. It shows that the current account deficit of the country ballooned by over five times.

The widening of the current account deficit may be attributed to a surge in import bill during the fiscal year under review.

READ MORE: Pakistan’s CAD balloons to $15.19 billion in 11 months

The import bill of the country recorded an increase of 42.21 per cent to $80.18 billion during the fiscal year 2021/2022 as compared with $56.38 billion in the preceding fiscal year, according to Pakistan Bureau of Statistics (PBS).

However, the exports also posted an increase of 25.64 per cent to $31.79 billion during the fiscal year under review as compared with $25.30 billion a year ago.

But the massive rise in import bill resulted in a huge trade deficit. The country posted 55.70 per cent in widening of trade deficit to $48.38 billion during the year under review as compared with the deficit of $31.07 billion in the preceding fiscal year.

READ MORE: Current account deficit swells to $13.78 bn in 10 months

Even the record remittances during the year have failed to curtail the current account deficit. The Pakistani workers sent record high remittances amounting $31.24 billion during the fiscal year 2021/2022 as compared with $29.45 billion in the preceding fiscal year.

Meanwhile, the total investment into Pakistan recorded a 61 per cent decline to $1.79 billion in the fiscal year 2021/2022 as compared with $4.58 billion in the preceding fiscal year.

The inflow of foreign private investment into the country fell 27 per cent to $1.48 billion during the fiscal year under review as compared with $2.03 billion in the preceding fiscal year.

READ MORE: Pakistan’s CAD hit $13.17 billion in July – March

The major component of the foreign private investment i.e. Foreign Direct Investment (FDI) posted an increase of 2.6 per cent to $1.87 billion during the fiscal year 2021/2022 as compared with $1.82 billion a year ago.

However, the foreign investment in the capital market recorded a massive decline of 288 per cent. The capital market witnessed an outflow of $388.4 million during fiscal year 2021/2022 as compared with an inflow of $206.6 million in the preceding fiscal year.

July 27, 2022
SBP issues KIBOR rates – July 27, 2022

KARACHI: State Bank of Pakistan (SBP) on Wednesday issued the Karachi Interbank Offered Rates (KIBOR) as on July 27, 2022.

Following are the latest KIBOR rates:

Tenor BID OFFER
1 – Week 14.70 15.20
2 – Week 14.74 15.24
1 – Month 14.81 15.31
3 – Month 15.13 15.38
6 – Month 15.46 15.71
9 – Month 15.53 16.03
1 – Year 15.61 16.11

READ MORE: SBP issues KIBOR rates – July 26, 2022

July 27, 2022

Tenor	BID	OFFER
1 – Week	14.76	15.26
2 – Week	14.80	15.30
1 – Month	14.85	15.35
3 – Month	15.44	15.69
6 – Month	15.58	15.83
9 – Month	15.61	16.11
1 – Year	15.67	16.17