KARACHI: State Bank of Pakistan (SBP) on Thursday issued the Karachi Interbank Offered Rates (KIBOR) as on April 07, 2022.
Following are the latest KIBOR rates:
| Tenor | BID | OFFER |
| 1 – Week | 9.89 | 10.39 |
| 2 – Week | 10.16 | 10.66 |
| 1 – Month | 10.67 | 11.17 |
| 3 – Month | 12.44 | 12.69 |
| 6 – Month | 12.94 | 12.64 |
| 9 – Month | 12.93 | 13.43 |
| 1 – Year | 12.96 | 13.46 |
Source: State Bank of Pakistan
KARACHI, April 07, 2022 – The State Bank of Pakistan (SBP) has issued the official exchange rates for customers on Thursday, April 07, 2022.
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KARACHI: The State Bank of Pakistan (SBP) in an unscheduled meeting held on Thursday announced a sharp increase in key policy rate by 250 basis points to 12.25 per cent from 9.75 per cent for next two months.
The Monetary Policy Committee (MPC) is scheduled to be held on April 19, 2022. However, due to latest development in yield of treasure bills resulted in emergent meeting of the MPC.
READ MORE: Policy rate may rise as T-Bill yields increase sharply
The SBP in a statement said that the MPC noted that the above developments necessitated a strong and proactive policy response. Accordingly, the MPC decided at its emergency meeting today, to raise the policy rate by 250 basis points to 12.25 percent.
At its last meeting on 8th March 2022, the Monetary Policy Committee (MPC) noted in its statement the significant uncertainty around the outlook for international commodity prices and global financial conditions, which had been exacerbated by the Russia-Ukraine conflict. Given the unfolding situation, the MPC had highlighted that it “was prepared to meet earlier than the next scheduled MPC meeting in late April, if necessary, to take any needed timely and calibrated action to safeguard external and price stability.”
READ MORE: State Bank enhances frequency of MP reviews to eight
Since the last MPC meeting, the outlook for inflation has deteriorated and risks to external stability have risen. Externally, futures markets suggest that global commodity prices, including oil, are likely to remain elevated for longer and the Federal Reserve is likely to increase interest rates more quickly than previously anticipated, likely leading to a sharper tightening of global financial conditions. On the domestic front, the inflation out-turn in March surprised on the upside, with core inflation in both urban and rural areas also rising significantly.
While timely demand-moderating measures and strong exports and remittances saw the February current account deficit shrink to $0.5 billion, its lowest level this fiscal year, heightened domestic political uncertainty contributed to a 5 percent depreciation in the rupee and a sharp rise in domestic secondary market yields as well as Pakistan’s Eurobond yields and CDS spreads since the last MPC meeting.
READ MORE: Key policy rate goes up to 9.75%; SBP raises 250bps in less than month
In addition, there has been a decline in the SBP’s foreign exchange reserves largely due to debt repayments and government payments pertaining to settlement of an arbitration award related to a mining project. Some of this decline in reserves is expected to be reversed as official creditors renew their loans.
As a result of these developments, average inflation forecasts have been revised upwards to slightly above 11 percent in FY22 before moderating in FY23. The current account deficit is still expected to be around 4 percent of GDP in FY22. While the non-oil current account balance has continued to improve, the overall current account remains dependent on global commodity prices.
READ MORE: SBP decides to keep policy rate unchanged at 9.75%
This increases forward-looking real interest rates (defined as the policy rate less expected inflation) to mildly positive territory. The MPC was of the view that this action would help to safeguard external and price stability. The MPC also noted that SBP is in the process of taking further actions to reduce pressures on inflation and the current account, namely an increase in the interest rate on the export refinance scheme (EFS) and widening the set of import items subject to cash margin requirements. These items are mostly finished goods including luxury items and exclude raw materials. The announcement of these measures is expected soon and will complement the action taken by the MPC on interest rates today.
Importantly, the MPC highlighted that Pakistan’s external financing needs in FY22 are fully met from identified sources. Looking ahead, the MPC noted that today’s decisive actions, together with a reduction in domestic political uncertainty and prudent fiscal policies, should help ensure that Pakistan’s robust economic recovery from Covid-19 remains sustainable.
KARACHI: The cut-off yield of treasury bills (T-Bills) increased sharply in an auction held on Wednesday indicating an expected rise in policy rate in upcoming monetary policy announcement scheduled for April 19, 2022.
“In today’s [April 06, 2022] treasury bills auction, cut-off yields increased by 60 – 80 basis points,” according to analysts at Topline Securities.
READ MORE: SBP receives 20 applications for digital bank licenses
The government raised Rs645 billion through auction of treasury bills against the target of Rs600 billion and maturity of Rs674 billion, according to results announced by the State Bank of Pakistan (SBP).
The key policy rate has been kept unchanged at 9.75 per cent in the last Monetary Policy Statement (MPS) on March 08, 2022. However, the cut-off yields of government securities have shown much higher rate against the policy rate.
READ MORE: State Bank enhances frequency of MP reviews to eight
The cut-off yields of 3-, 6- and 12-month papers increased by 80 basis points, 75 basis points and 60 basis points, respectively. The yields in three-month treasury bill increased to 12.80 per cent from 11.9999 per cent. Similarly, yields in six-month and 12-month papers have increased to 13.25 per cent from 12.50 per cent and 13.2999 per cent from 12.70 per cent, respectively.
READ MORE: Key policy rate goes up to 9.75%; SBP raises 250bps in less than month
The latest auction of treasury bills witnessed aggressive participation from the banks. The SBP received bids worth Rs911 billion against the target of Rs600 billion.
However, the central bank accepted bids worth Rs645 billion at maturity of Rs674 billion.
READ MORE: SBP decides to keep policy rate unchanged at 9.75%
KARACHI: State Bank of Pakistan (SBP) on Wednesday issued the Karachi Interbank Offered Rates (KIBOR) as on April 06, 2022.
Following are the latest KIBOR rates:
| Tenor | BID | OFFER |
| 1 – Week | 9.87 | 10.37 |
| 2 – Week | 10.11 | 10.61 |
| 1 – Month | 10.56 | 11.06 |
| 3 – Month | 11.77 | 12.02 |
| 6 – Month | 12.39 | 12.64 |
| 9 – Month | 12.43 | 12.93 |
| 1 – Year | 12.48 | 12.98 |
Source: State Bank of Pakistan
Karachi, April 06, 2022 – The State Bank of Pakistan (SBP) has released the latest exchange rates for foreign currencies against the Pakistani Rupee (PKR) on Wednesday, April 06, 2022.
(more…)KARACHI: The State Bank of Pakistan (SBP) on Wednesday said that around 20 applications were received for digital bank license by end of deadline i.e. March 31, 2022.
The application process registered an overwhelming response whereby SBP received twenty (20) applications from a diverse range of applicants, including domestic commercial banks, microfinance banks, electronic money institutions and FinTech players, the SBP said in a statement issued on Wednesday.
Foreign players already operating in the digital banking space overseas have also expressed their interest to venture into Pakistani market.
The strong interest shown by both local and international players into SBP’s digital banks’ initiative reflects their confidence in the financial sector of Pakistan and the potential of the investment opportunities available in the country.
Earlier this year on January 03, 2022, SBP launched its “Licensing and Regulatory Framework for Digital Banks”.
While setting foundation for the customers’ convenience, providing cost effective digital financial services and promoting innovation for achieving SBP’s overall goal of digitization in the banking business, the Framework is primarily aimed at providing financial services to unserved and underserved segments of the society.
To achieve the intended objectives under this regulatory initiative, the applications were solicited from interested applicants who can demonstrate strong value proposition, robustness of technological infrastructure, sufficiency of financial strength, high level of technical expertise and effectiveness of their risk management culture in the Digital Banks’ space.
SBP developed and finalized this Framework after an extensive consultative process. Initially, SBP released an exposure draft of this Framework and a targeted survey was launched to invite feedback from a wide range of local as well as international stakeholders. Subsequently, a number of meetings were held with all the stakeholders to further enrich the consultative exercise.
Later, SBP also organized two interactive webinars titled ‘Digital Banks – A New Era in Pakistan’ and ‘The Promise of Digital Banks’ with leading local as well as international speakers to discuss the opportunities and challenges associated with digital banks as well as disseminate awareness about Pakistan’s digital bank licensing framework.
During the application window opened from January 03 till March 31, 2022, SBP has remained extensively engaged with all the interested applicants and held various rounds of discussions/ meetings with all of them.
Moreover, SBP team also remained committed to provide exclusive support and necessary facilitation required for preparation and submission of applications to all the applicants. This initiative of State Bank would greatly help in providing financial services to underserved and unserved segments of the society.
KARACHI: State Bank of Pakistan (SBP) on Tuesday issued the Karachi Interbank Offered Rates (KIBOR) as on April 05, 2022.
Following are the latest KIBOR rates:
| Tenor | BID | OFFER |
| 1 – Week | 9.85 | 10.35 |
| 2 – Week | 10.01 | 10.51 |
| 1 – Month | 10.59 | 11.09 |
| 3 – Month | 11.76 | 12.01 |
| 6 – Month | 12.29 | 12.54 |
| 9 – Month | 12.34 | 12.84 |
| 1 – Year | 12.38 | 12.88 |
KARACHI: Karachi Chamber of Commerce and Industry (KCCI) Tuesday urged the central bank to immediate intervene in to stop further devaluation of Pakistan rupee (PKR).
In a statement KCCI President Muhammad Idrees expressed deep concerns over continuous devaluation of rupee against dollar as the foreign currency hit a new all-time high by crossing Rs186.
READ MORE: Dollar continues record spree against PKR; hits 185.23
He urged the State Bank of Pakistan (SBP) to play its role and devise effective strategy to stop further devaluation rupees which was having a deep negative impact on the economy, particularly the inflation.
“Although the experts are attributing the rupee devaluation to political uncertainty but the SBP, being the regulator, has to play a role otherwise, it will create a lot of problems for the economy which is sinking as it faces a lot of challenges due to widening current and fiscal deficits,” he said.
READ MORE: Businessmen want early resolution of political uncertainty
Muhammad Idrees said that rising dollar against rupee was raising the cost of doing business, making Pakistani goods uncompetitive in the export markets and unaffordable for common man at the local markets as the impact of rising dollar value is usually passed onto end-users.
He said that it has to be understood that the share of exports in GDP stood at around 10 percent while the rest of 90 percent was local trade and imports hence the devaluation is hurting and has reached to a level where it has become unbearable.
“Due to lack of effective price control mechanism, an abnormal upsurge has been witnessed in the prices of almost all the commodities of household usage which have to be controlled to ease the already overburdened and miserable life of the inflation stricken common man,” he stressed.
READ MORE: Direct flights between Pakistan, Tajikistan needed
“Severe devaluation of rupee has raised the cost of doing business and fostered the inflation, therefore, it is really crucial to review the current strategies being pursued by the regulator,” he reiterated.
President KCCI feared that the economic crises including energy crises, devaluing rupee against dollar and rising trade deficit etc. would push the economy to a point of ‘no return’ and may even put Pakistan’s survival at stake. “All the efforts made to maintain GDP growth of 5 percent plus will go wasted if the ongoing political uncertainty continues for long period.”
READ MORE: Withholding tax should be on income: FBR Chairman
He stressed that the emerging situation has to be efficiently addressed and handled very carefully otherwise, the excessive devaluation will continue to increase the cost of doing business, which would terribly affect the industrial performance, raise unemployment and open the floodgates of inflation, particularly for the middle and lower segments of the society, besides making the already poor poorer due to unbearable inflation.
KARACHI, April 05, 2022 – The State Bank of Pakistan (SBP) has issued the official exchange rates for customers on Tuesday, April 05, 2022.
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