Tag: SBP

  • Pakistan-issued prize bonds expire on June 30, 2022

    Pakistan-issued prize bonds expire on June 30, 2022

    KARACHI: The prize bonds of various denominations issued by the government of Pakistan are expiring 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 has 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.

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

    READ MORE: SBP directs banks to accept bearer prize bonds

    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.

  • SBP’s customer forex rates – June 27, 2022

    SBP’s customer forex rates – June 27, 2022

    KARACHI: The State Bank of Pakistan (SBP) has released the foreign exchange rates for customers on June 27, 2022.

    (more…)
  • SBP seeks Supreme Court guidance on Riba case judgement

    SBP seeks Supreme Court guidance on Riba case judgement

    KARACHI: The State Bank of Pakistan (SBP) on Saturday said it had approached Shariat Appelate Bench of the Supreme Court for guidance on decision of Federal Shariat Court in Riba case.

    In a statement the central bank said the SBP welcomes the Federal Shariat Court’s Judgement of April 28, 2022 on Riba case, as has already been done by the Honorable Finance Minister. In particular, we appreciate the substantive part of the decision. 

    READ MORE: IPS demands implementation of court judgment on Riba

    As the prime custodian and regulator of the financial and monetary framework of the Islamic Republic of Pakistan, SBP is deeply committed to ensuring compliance with the injunctions of Islam, in particular those pertaining to riba, while protecting the stability and security of the financial sector of the country that functions as part of the global financial system. 

    In this context, SBP has always remained at the forefront in promoting Islamic banking in the country. SBP is among the few regulators across the globe where comprehensive legal, regulatory and Shariah Governance frameworks have been successfully developed and implemented. 

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

    Currently, 22 Islamic Banking Institutions (5 full- fledged Islamic banks and 17 conventional banks having standalone Islamic banking branches) with a branch network of 3,983 branches along with 1,418 Islamic banking windows (Islamic banking counters at conventional branches) are operational across the country. The industry now accounts for 19.4 percent of the country’s overall banking system in terms of assets while in terms of deposits the share is 20 percent (as of March 31, 2022).

    READ MORE: FSC reserves judgment in Riba free banking case

    In addition, SBP has also been taking measures to bring the legal and regulatory infrastructure in compliance with Shariah principles.

    After detailed review of the judgment and based upon the advice of our Chief Legal Adviser and external counsel, we have sought guidance from the honorable Shariat Appelate Bench of the Supreme Court in terms of its implementation and practicalities involved. 

  • SBP issues KIBOR rates – June 24, 2022

    SBP issues KIBOR rates – June 24, 2022

    KARACHI: State Bank of Pakistan (SBP) on Friday issued the Karachi Interbank Offered Rates (KIBOR) as on June 24, 2022.

    Following are the latest KIBOR rates:

     TenorBIDOFFER
    1 – Week13.3113.81
    2 – Week13.4613.96
    1 – Month13.6814.18
    3 – Month14.6314.88
    6 – Month15.1015.35
    9 – Month15.2115.71
    1 – Year15.2415.74

    READ MORE: SBP issues KIBOR rates – June 23, 2022

  • SBP’s customer forex rates – June 24, 2022

    SBP’s customer forex rates – June 24, 2022

    KARACHI: On June 24, 2022, the State Bank of Pakistan (SBP) published the foreign exchange rates for customers.

    (more…)
  • State Bank’s reserves dip to 32-month low at $8.238 billion

    State Bank’s reserves dip to 32-month low at $8.238 billion

    KARACHI: The official foreign exchange reserves of State Bank of Pakistan (SBP) have decreased around 32-month low at $8.238 billion by week ended June 17, 2022, official data revealed on Thursday.

    The official reserves of the central bank fell by $747 million to $8.238 billion by week ended June 17, 2022 as compared with $8.985 billion by week ended June 10, 2022.

    Previously, the foreign exchange reserves of the SBP were seen on November 01, 2019 when those were at $8.358 billion.

    READ MORE: Pakistan’s central bank reserves shrink to one month import cover

    Considering the current official reserves of the State Bank at $8.238 billion, the import cover is only for 1.21 months.

    The central bank attributed the decline in foreign exchange reserves for external debt repayments. However, SBP reserves are expected to increase in coming days on realization of proceeds of China Development Bank (CDB) loan, 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.

    READ MORE: SBP’s forex reserves slip 2½-year low to $9.226 billion

    Since touching the peak the central bank’s foreign exchange witnessed a continuous decline. The official reserves of the SBP fell around $11.91 billion by week ended June 17, 2022 from touching the peak on August 27, 2021.

    The country is facing serious balance of payment crisis during the past many months. The foreign exchange reserves of the central bank have seen a constant decline.

    The falling foreign exchange reserves also put pressure on the local currency. The Pakistani Rupee (PKR) is also depreciating to record low against the US dollar on daily basis.

    The total foreign exchange reserves of Pakistan have declined to around three-year low at $14.21 billion by week ended June 17, 2022. Previously, the foreign exchange reserves of the country were seen at $14.259 billion by week ended July 5, 2019.

    READ MORE: SBP’s forex reserves fall two-year low to $9.72 billion

    The country’s foreign exchange reserves have fallen by $733 million to $14.21 billion by week ended June 17, 2022 as compared with $14.943 billion a week ago i.e. June 10, 2022.

    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 $13.018 billion.

    The foreign exchange held by commercial banks however slightly up by $14 million to $5.972 billion by week ended June 17, 2022 as compared with $5.958 billion a week ago.

    READ MORE: Moody’s changes Pakistan’s outlook to negative

  • SBP issues KIBOR rates – June 23, 2022

    SBP issues KIBOR rates – June 23, 2022

    KARACHI: State Bank of Pakistan (SBP) on Thursday issued the Karachi Interbank Offered Rates (KIBOR) as on June 23, 2022.

    Following are the latest KIBOR rates:

     TenorBIDOFFER
    1 – Week13.4013.90
    2 – Week13.5414.04
    1 – Month13.7514.25
    3 – Month14.7715.02
    6 – Month15.1915.44
    9 – Month15.2915.79
    1 – Year15.3315.83

    READ MORE: SBP issues KIBOR rates – June 22, 2022

  • SBP’s customer forex rates – June 23, 2022

    SBP’s customer forex rates – June 23, 2022

    KARACHI: On June 23, 2022, the State Bank of Pakistan (SBP) issued the foreign exchange rates for customers.

    (more…)
  • SBP allows bankers to work from home for fuel, energy conservation

    SBP allows bankers to work from home for fuel, energy conservation

    KARACHI: The State Bank of Pakistan (SBP) has allowed banks to grant their employees to work from home in order to conserve energy including fuel and energy.

    The SBP on Wednesday issue a circular stating that the Federal and Provincial Governments are taking a number of actions to address the prevailing energy situation in the country.

    READ MORE: Total bank accounts in Pakistan grow to 66.13 million

    In a similar bid, the SBP has taken a number of measures to conserve energy. It is expected that the banking industry will also play its role for energy and fuel conservation.

    The SBP said that the banks may formulate a policy on “Work From Home (WFH)” whereby banks’ offices (other than branches) can observe, one/two days in every week, as WFH to achieve the intended objectives.

    READ MORE: Internet banking posts 20% growth in 3Q: State Bank

    The banks may close all of its premises including branches at 7:00 pm or earlier and switch-off their electric supply except for any emergency use, call centers, monitoring of Alternative Delivery Channels (ADCs), back-ups and maintaining necessary electrical/ IT equipment. Moreover, the air-conditioners at ATMs vestibules may be used economically.

    The electrically illuminated sign-boards of branches and other offices shall remain switched-off, at all times.

    READ MORE: SBP renews status of credit rating agencies

    The banks are encouraged to hold their meetings (intra/inter-city etc.) virtually and also curtail their local as well as international travelling expenses.

    The banks shall encourage their staff to pool their transportation for commuting to and from their respective offices and take any other measure(s) for reducing the commutation time of the bank staff.

    The banks may adopt the use of alternate and cost effective sources of energy such as deployment of solar technologies and encourage use of energy efficient equipment, fixtures and appliances in their premises.

    READ MORE: High tax may erode banks’ earnings up to 20%

    The banks may take any other steps/ actions to curtail the consumption of electricity and fuel in their respective offices including branches.

    The banks shall enhance awareness of their employees as well as customers about energy conservation initiatives and encourage them to take part in this energy conservation drive. 

    In order to achieve the intended objectives, the banks are advised to ensure adequate oversight and monitoring mechanism of energy conservation drive.

    READ MORE: Pakistan slaps 45% corporate tax on banks

    In view of foregoing, banks are advised to take appropriate measures and share their energy conservation plan with SBP latest by June 24, 2022 (Friday). Such measures should be effective latest from July 01, 2022.

  • SBP issues KIBOR rates – June 22, 2022

    SBP issues KIBOR rates – June 22, 2022

    KARACHI: State Bank of Pakistan (SBP) on Wednesday issued the Karachi Interbank Offered Rates (KIBOR) as on June 22, 2022.

    Following are the latest KIBOR rates:

     TenorBIDOFFER
    1 – Week13.3713.87
    2 – Week13.5214.02
    1 – Month13.7414.24
    3 – Month14.7615.01
    6 – Month15.1915.44
    9 – Month15.2815.78
    1 – Year15.3215.82

    READ MORE: SBP issues KIBOR rates – June 21, 2022