KARACHI, March 24, 2022 – The State Bank of Pakistan (SBP) has disclosed the exchange rates for Thursday, March 24, 2022. These rates are established on the weighted average rates of commercial banks and are presented for informational purposes only, as stated by the SBP.
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SBP issues KIBOR rates on March 22, 2022
KARACHI: State Bank of Pakistan (SBP) on Tuesday issued the Karachi Interbank Offered Rates (KIBOR) as of March 22, 2022.
Following are the latest KIBOR rates:
Tenor BID OFFER 1 – Week 9.82 10.32 2 – Week 9.91 10.41 1 – Month 10.34 10.84 3 – Month 11.35 11.60 6 – Month 11.85 12.10 9 – Month 11.87 12.37 1 – Year 11.95 12.45 -
Customers’ exchange rates on March 22, 2022
KARACHI, March 22, 2022 – The State Bank of Pakistan (SBP) has disclosed the exchange rates for Tuesday, March 22, 2022. These rates are established on the weighted average rates of commercial banks and are presented for informational purposes only, as stated by the SBP.
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SBP launches challenge fund for SMEs
KARACHI: The State Bank of Pakistan (SBP) on Monday March 21, 2022, launched challenge fund for Small and Medium Enterprises (SMEs) to support innovative solutions for SME banking in the country.
The central bank through a circular issued procedure for the challenge fund for SMEs (CFS).
This fund in form of grant will facilitate banks in developing innovative technological solutions to cater the banking needs of SME sector.
READ MORE: Meezan Bank starts Islamic financing scheme for SMEs
This will also enable to increase the access and usage of digital financial services by SME sector.
The scope of CFS will focus, however, it will not be limited to the following areas:
i. Developing SME banking solutions
ii. Developing digital payment solutions for SMEs
iii. Developing E-Commerce / market place
iv. Digitizing loans application and credit management
READ MORE: Computation of income tax on profit and gains for SMEs
The SBP said that commercial banks (conventional & Islamic) are eligible to apply for grant under CFS. Banks can also apply in partnership with Non-banking financial Institutions (NBFIs), Fintechs, Electronic Money Institutions (EMI) and software houses. However, lead responsibility will rest with the applicant bank.
The SBP said that grant size will be determined according to the financing requirements of the proposal under consideration. However, each grantee will contribute 15 per cent of the total cost. Depending upon the quality and innovations of proposal, the grant size can vary, however one bank will get only one grant. The duration of the projects to be implemented through CFS grant should not exceed 8 months.
SBP invites interest of banks through Expression of interest (EOI) placed at Annexure A for availing grant under CFS to improve their SME financing portfolio. Banks proposals will be evaluated as per technical criteria developed by SBP.
Banks are encouraged to apply as per EOI on prescribed format placed at Annexure-B to SBP latest by April 18, 2022.
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Banks approve housing loans worth Rs7.4 billion in event
The Mera Pakistan Mera Ghar (MPMG) housing scheme received an astounding response during a two-day event in Faisalabad, where banks granted conditional approvals for housing loans totaling approximately Rs7.4 billion.
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Court hearing on Riba-free banking in Pakistan
ISLAMABAD: The Federal Shariat Court on Monday continued hearing on the case of Riba in the country.
The full bench of the court comprising of Justice Muhammad Noor Meskanzai Chief Justice, Justice Dr. Syed Muhammad Anwar and Justice Khadim Hussain M. Shaikh, in exercise of power under Article 203-D of the Constitution of Islamic Republic of Pakistan continued hearing of the Riba case.
Dr. Waqar Masud Ex. Secretary Finance Government of Pakistan, after detail arguments, suggested two years for conversion of the existing banking system into Riba free Islamic Banking system.
Dr. Ijaz Ahmad Samadani, Chairman Shariah Board Maldives Islamic Bank, appeared before the Court and argued that gradual conversion of the existing system into Islamic one is possible.
Dr Atiqul Zafar jurisconsult on the previous date of hearing had suggested that five years is sufficient for conversion of the existing system.
Shahzad Shaukat, a chartered accountant continued his arguments on the Islamic Economic System. The next hearing will be at Karachi Bench Registry in Sindh High Court Building Karachi on March 25, 2022.
The State Bank of Pakistan (SBP) defines Riba as:
The word “Riba” means excess, increase or addition, which correctly interpreted according to Shariah terminology, implies any excess compensation without due consideration (consideration does not include time value of money). This definition of Riba is derived from the Quran and is unanimously accepted by all Islamic scholars.
The meaning of Riba has been clarified in the following verses of Quran (Surah Al Baqarah 2:278-9)
“O those who believe; fear Allah and give up what still remains of the Riba if you are believers. But if you do not do so, then be warned of war from Allah and His Messenger. If you repent even now, you have the right of the return of your principal; neither will you do wrong nor will you be wronged.”
The origination of term interest dates back to 17th century with the emergence of banking system at global level. Interest means giving and/or taking of any excess amount in exchange of a loan or on debt. Hence, it carries the same meaning/value as that of Riba as defined in the previous question. Further, it is narrated that “the loan that draws interest is Riba”.
There is consensus among the Muslim scholars of all the fiqhs that interest is Riba in all its forms and manifestations.
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SBP issues KIBOR rates on March 21, 2022
KARACHI: State Bank of Pakistan (SBP) on Monday issued the Karachi Interbank Offered Rates (KIBOR) as of March 21, 2022.
Following are the latest KIBOR rates:
Tenor BID OFFER 1 – Week 9.81 10.31 2 – Week 9.91 10.41 1 – Month 10.28 10.78 3 – Month 11.26 11.51 6 – Month 11.80 12.05 9 – Month 11.84 12.34 1 – Year 11.90 12.40 -
Customers’ exchange rates on March 21, 2022
KARACHI, March 21, 2022 – The State Bank of Pakistan (SBP) has issued the exchange rates for Monday, March 21, 2022. These rates are based on the weighted average rates of commercial banks and are provided for informational purposes only, according to the SBP.
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Pakistan’s CAD mounts to $12 billion in eight months
KARACHI: Pakistan’s Current Account Deficit (CAD) has widened to staggering above $12 billion during first eight months (July – February) 2021/2022, the State Bank of Pakistan (SBP) said on Saturday.
The current account was surplus by $994 million in the corresponding period of the last months, according to the balance of payment (BOP) issued by the SBP.
READ MORE: Current account deficit widens to $11.58 bn in 7MFY22
Primary reason behind bargaining current account deficit is extraordinary gap in national trade. The trade deficit widened by 82 per cent to $31.95 billion during the first eight months of the current fiscal year as compared with the deficit of $17.53 billion in the corresponding months of the last fiscal year.
READ MORE: Pakistan’s current account deficit balloons to $9.1 bn
Pakistan’s import bill registered an increase of 55 per cent to $52.5 billion during the period under review as compared with $33.86 billion in the same period of the last fiscal year. On the other hand, the exports also grew by 26 per cent to $20.56 billion in the first eight months of the current fiscal year as compared with $16.32 billion in the same period of the last fiscal year.
READ MORE: Pakistan’s CAD balloons to $7.1 billion in five months
Meanwhile, workers’ remittances rose to $21 billion during July – February 2021/2022 as compared with $18.7 billion in the same period of the last fiscal year.
On the foreign investment front, the foreign direct investment (FDI) registered 6.1 per cent growth to $1.26 billion during first eight months of the current fiscal year as compared with $1.19 in the same period of the last fiscal year.
READ MORE: July-Oct current account deficit widens to $5.08 billion
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SBP issues KIBOR rates on March 18, 2022
KARACHI: State Bank of Pakistan (SBP) on Friday issued the Karachi Interbank Offered Rates (KIBOR) as of March 18, 2022.
Following are the latest KIBOR rates:
Tenor BID OFFER 1 – Week 9.81 10.31 2 – Week 9.90 10.40 1 – Month 10.23 10.73 3 – Month 11.28 11.53 6 – Month 11.77 12.02 9 – Month 11.82 12.32 1 – Year 11.89 12.39