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  • SBP launches crackdown against exchange companies

    SBP launches crackdown against exchange companies

    KARACHI: The State Bank of Pakistan (SBP) has launched crackdown against exchange companies in order to end volatility in rupee value against the US dollar.

    A statement issued on Wednesday, the central bank said in view of recent volatility in the exchange rate and the difference between the interbank rate and the rate offered by Exchange Companies (ECs) and banks to their customers, it had increased the monitoring of the foreign exchange operations of ECs and banks.

    READ MORE: Pakistani Rupee makes historic recovery; dollar ends at Rs228.80

    In this respect, SBP started inspections of a number of exchange companies and banks since Monday (August 1, 2022).

    On Tuesday (August 2, 2022) SBP suspended the operations of four branches of two ECs (Galaxy Exchange Co and Al-Hameed International Money Exchange Co) for violation of SBP regulations.

    READ MORE: UBL declares 21% decline in half year net profit

    SBP has also imposed monetary penalties on some ECs in the recent past. Besides, due to violations of SBP instructions, arrangements of 13 franchises have been terminated by six different ECs in the recent past.

    SBP has also started conducting mystery shopping exercise throughout Pakistan to investigate the apprehensions that some ECs are not selling foreign currency to their customers.

    READ MORE: SBP introduces foreign currency, rupee value business accounts

    A meeting of the Exchange Companies Association of Pakistan has also been called on August 4, 2022.

    If needed, SBP would augment its enforcement actions on the ECs and the banks in light of findings of the on-going inspections and mystery shopping.

    READ MORE: SBP imposes Rs85 million as penalty on JS Bank

  • SBP issues KIBOR rates – August 03, 2022

    SBP issues KIBOR rates – August 03, 2022

    KARACHI: State Bank of Pakistan (SBP) on Wednesday issued the Karachi Interbank Offered Rates (KIBOR) as on August 03, 2022.

    Following are the latest KIBOR rates:

     TenorBIDOFFER
    1 – Week14.6415.14
    2 – Week14.7415.24
    1 – Month14.8615.36
    3 – Month15.5415.79
    6 – Month15.6415.89
    9 – Month15.6916.19
    1 – Year15.7316.23

    READ MORE: SBP issues KIBOR rates – August 02, 2022

  • SBP’s customer forex rates – August 03, 2022

    SBP’s customer forex rates – August 03, 2022

    On Wednesday, August 03, 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…)
  • Foreign investors discuss economic situation with SBP

    Foreign investors discuss economic situation with SBP

    KARACHI: Foreign investors operating in the country have discussed ongoing economic situation with the State Bank of Pakistan, a statement said on Tuesday.

    The members of Overseas Investment Chamber of Commerce and Industry (OICCI), the body representing foreign investors and multinational companies in Pakistan, met with Dr. Murtaza Syed, Acting Governor, State Bank of Pakistan (SBP), Dr. Inayat Hussain, Deputy Governor, SBP and Sima Kamil, Deputy Governor, SBP for a discussion on urgent fiscal and monetary policy measures that need to be taken to help stabilize Pakistan’s economy.

    READ MORE: SBP introduces foreign currency, rupee value business accounts

    Ghias Khan, President OICCI and Abdul Aleem, Secretary General, OICCI led the discussions and raised member concerns related to the pre-approval procedure of LCs for import of machinery and spare parts, timely remittance payments, approval exemptions of shipping values being too low, and other operational issues. It was stressed upon the SBP leadership to set timelines so that industry supply chain is not compromised.

    The SBP team gave a comprehensive overview of the current economic situation and the planned strategy to tackle issues in 2023. Pakistan is primarily a consumer-driven economy with consumption driving up to 95 per cent of the GDP. The SBP team was confident that Pakistan’s problems were temporary and urged the OICCI members to work on improving exports to help balance the exchange rate fluctuations and currency depreciation.

    READ MORE: Rupee makes recovery against dollar for 3rd straight day

    Ghias Khan stated: “This meeting was a much needed first step towards the recovery of Pakistan’s economy. It is imperative that we implement cogent measures to halt our pattern of circular debt. The SBP has always played a critical role in stabilizing Pakistan’s economy, and I am confident that under Dr. Murtaza Syed’s leadership we will be able to withstand the current economic climate while charting a path for growth.”

    READ MORE: OICCI suggests duty cut on locally manufactured cars

    Dr. Murtaza Syed commented, “SBP is taking tough measures and making difficult decisions to help avert the economic crisis. Global inflationary pressures coupled with a procyclical expansionary fiscal policy during a pro-cyclical period is one of the main reasons Pakistan is at this crossroads today. Once these measures are implemented and the IMF loan is received, the pressures on the economy will ease, specifically with regards to the depreciating Rupee.”

    OICCI serves as a platform to promote foreign investments and plays a major role in the growth of commerce and industry in the country. Collectively, OICCI invested USD 2.4 billion last year, contributing one-third of the country’s total tax collections.

    READ MORE: Return filing be made mandatory for account holders

  • SBP issues KIBOR rates – August 02, 2022

    SBP issues KIBOR rates – August 02, 2022

    KARACHI: State Bank of Pakistan (SBP) on Tuesday issued the Karachi Interbank Offered Rates (KIBOR) as on August 02, 2022.

    Following are the latest KIBOR rates:

     TenorBIDOFFER
    1 – Week14.7415.24
    2 – Week14.8015.30
    1 – Month14.8915.39
    3 – Month15.5315.78
    6 – Month15.6315.88
    9 – Month15.6716.17
    1 – Year15.7116.21

    READ MORE: SBP issues KIBOR rates – August 01, 2022

  • SBP imposes Rs85 million as penalty on JS Bank

    SBP imposes Rs85 million as penalty on JS Bank

    KARACHI: The State Bank of Pakistan (SBP) has imposed a monetary penalty of Rs85 million on JS Bank Limited for violating regulatory instructions.

    The central bank said that JS Bank Limited had violated regulatory instructions pertaining to Customer Due Diligence (CDD) / Know Your Customer (KYC), Asset Quality, foreign exchange and general banking operations.

    READ MORE: SBP introduces foreign currency, rupee value business accounts

    The SBP directed the bank to strengthen its controls/processes in the identified areas.

    The central bank on Tuesday issued details of enforcement actions against banks during the quarter ended June 30, 2022.

    The SBP imposed a total amount of Rs131.42 million on three banks during the quarter.

    An amount of Rs29.03 million as penalty has been imposed on Habib Bank Limited for violating regulatory instructions pertaining to CDD/KYC. The SBP also directed Habib Bank to strengthen its controls / processes in the identified areas.

    READ MORE: Pakistani rupee overshoots temporarily: FinMin, SBP

    Furthermore, the SBP imposed an amount of Rs17.24 million as penalty on the Bank of Punjab for violating regulatory instructions pertaining to Asset Quality and CDD/KYC. In addition to penal action, the bank has been advised to strengthen its controls / processes in the identified areas.

    The SBP from July 2019 started public disclosure of penal action against banks. “Enforcement actions are an integral part of the regulatory regime which involves imposition of monetary penalties and other actions against institutions and individuals for violations of laws, rules, regulations, guidelines or directives issued by SBP from time to time,” according to a circular issued by the central bank.

    In order to bring more transparency and strengthen market discipline, SBP has decided to publicly disclose significant enforcement actions.

    READ MORE: Rupee fall to continue till IMF fund realization: Pakistan’s top bank

  • SBP’s customer forex rates – August 02, 2022

    SBP’s customer forex rates – August 02, 2022

    On Tuesday, August 02, 2022, the State Bank of Pakistan (SBP) published the foreign exchange rates for customers, offering insights into the buying and selling prices of various currencies against the Pakistani Rupee (PKR).

    (more…)
  • High inflation may force further monetary tightening

    High inflation may force further monetary tightening

    The relentless surge in inflationary pressures may prompt the State Bank of Pakistan (SBP) to consider additional measures to tighten the monetary stance, as the central bank has already elevated the policy rate to 15 percent.

    (more…)
  • SBP issues KIBOR rates – August 01, 2022

    SBP issues KIBOR rates – August 01, 2022

    KARACHI: State Bank of Pakistan (SBP) on Monday issued the Karachi Interbank Offered Rates (KIBOR) as on August 01, 2022.

    Following are the latest KIBOR rates:

     TenorBIDOFFER
    1 – Week14.8615.36
    2 – Week14.9015.40
    1 – Month14.9715.47
    3 – Month15.5215.77
    6 – Month15.6315.88
    9 – Month15.6516.15
    1 – Year15.7316.23

    READ MORE: SBP issues KIBOR rates – July 29, 2022