KARACHI: The State Bank of Pakistan (SBP) has released the foreign exchange rates for customers on July 07, 2022. These rates, based on the weighted average rates of commercial banks, provide valuable information for individuals and businesses involved in international trade and financial transactions.
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Stay informed with SBP announcements, interest rates, banking policies, exchange rates, financial regulations, and economic updates.
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SBP directs banks to open branches on July 8, 2022
KARACHI: State Bank of Pakistan (SBP) on Thursday directed banks to open their branches on July 08, 2022 – the first holiday for Eid-ul-Adha to facilitate people.
The federal government has announced five days of holidays on the occasion of Eid ul Adha. Subsequently, the SBP also announced holidays from July 8 to July 12, 2022 for banks.
READ MORE: Bank holidays announced for Eid ul Adha 2022
However, the central bank said in order to ensure the availability of banking services to trade and industry, in particular and public in general, during the extended holidays on the occasion of Eid-ul-Adha, it has been decided that banks / MFBs shall arrange to open selected branches, only on Friday, July 8, 2022 from 9:00 a.m. to 4:00 p.m., situated in close proximity of cattle markets, big cities, business centers, commercial markets & hubs, ports etc. throughout the country.
READ MORE: SBP enables banks to get regulatory approval digitally
It may, however, be noted that RTGS System and Clearing through NIFT will not be available on the afore-mentioned date. Accordingly, all clearing transactions including foreign exchange conversion transactions will be settled on the next working day i.e. Wednesday, July 13, 2022.
Banks / MFBs should ensure the deployment of minimal number of staff necessary to carry out smooth working at such branches on the above date, the SBP added.
READ MORE: SBP makes permission mandatory for motor car import
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SBP enables banks to get regulatory approval digitally
KARACHI: The State Bank of Pakistan (SBP) has launched Regulatory Approval System (RAS) under which banks have been enabled to get approval digitally.
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SBP issues KIBOR rates – July 06, 2022
KARACHI: State Bank of Pakistan (SBP) on Wednesday issued the Karachi Interbank Offered Rates (KIBOR) as on July 06, 2022.
Following are the latest KIBOR rates:
Tenor BID OFFER 1 – Week 13.12 13.62 2 – Week 13.45 13.95 1 – Month 13.83 14.33 3 – Month 15.09 15.34 6 – Month 15.24 15.49 9 – Month 15.30 15.80 1 – Year 15.36 15.86 -
SBP’s customer forex rates – July 06, 2022
KARACHI: The State Bank of Pakistan (SBP) has published the foreign exchange rates for customers on July 06, 2022. These rates, based on the weighted average rates of commercial banks, serve as important indicators for individuals and businesses engaged in international trade and financial transactions.
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SBP makes permission mandatory for motor car import
KARACHI: The State Bank of Pakistan (SBP) on Tuesday made it mandatory for banks to take prior permission for making transactions related to import of motor cars in Completely Knocked Down (CKD).
The SBP issued a circular to implement the decision. The central bank invited attention of banks to EPD Circular Letter No. 9 dated May 20, 2022 relating to import of goods.
READ MORE: Pakistan car sales climb up by 50% in 11 months
In this regard, the list of goods for which Authorized Dealers are required to seek prior permission from Foreign Exchange Operations Department (FEOD), SBP-BSC for initiating the import transaction, has been updated.
Henceforth, Authorized Dealers shall be required to seek prior permission from FEOD, SBP-BSC before initiating transactions for import of goods listed in the enclosed Annexure.
READ MORE: Pakistan massively increases taxation on motor vehicles
All other instructions on the subject shall remain unchanged. The banks have been advised to bring the same to the knowledge of all the concerned and ensure meticulous compliance of the above and other applicable regulations on the subject.
Authorized Dealers are especially instructed to bring these instructions to the knowledge of their customers and advise them to approach the bank before initiation of import transaction of any item covered under this circular letter.
READ MORE: Pakistan allows conditional import of CBU vehicles
It is important to note that the government on May 19, 2022 imposed ban on luxury and non-essential items in order to discourage outflow of dollars.
The import ban was imposed on only motor vehicles Completely Built Unit (CBU). However, the circular of the SBP has made the CKD motor cars import subject to prior approval.
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SBP issues KIBOR rates – July 05, 2022
KARACHI: State Bank of Pakistan (SBP) on Tuesday issued the Karachi Interbank Offered Rates (KIBOR) as on July 05, 2022.
Following are the latest KIBOR rates:
Tenor BID OFFER 1 – Week 13.39 13.89 2 – Week 13.59 14.09 1 – Month 13.84 14.34 3 – Month 15.08 15.33 6 – Month 15.24 15.49 9 – Month 15.29 15.79 1 – Year 15.34 15.84 -
Pakistan may see further 100bps hike in policy rate
KARACHI: Pakistan central bank is scheduled to review policy rate on July 07, 2022 and analysts believed an increase of up to 100 basis points due to surge in inflation.
A report of K Trade Research issued on Tuesday, stated that the State Bank of Pakistan (SBP) scheduled its monetary policy meeting for July 07, 2022 to set policy rates for the next six weeks.
READ MORE: SBP increases interest rate by 150bps to 13.75%
“Given the recent inflationary wave, we anticipate another 75-100 basis points hike in the policy rate to 14.5-14.75 per cent,” according to the analysts.
The SBP in its monetary policy announcements on April 7, 2022 and May 23, 2022 has already increase policy rate by 250 basis points and 150 basis points, respectively. The central bank increased the policy rate by 400 basis points from 9.75 per cent to 13.75 per cent in just last two announcements.
READ MORE: SBP may increase key policy rate by 100bps: poll
Inflation for June 2022 touched 13-year high levels of 21.3 per cent, driven by the reversal of petroleum and electricity subsidies. Real interest rates for the month fell to nearly -8.0 per cent from 0 per cent in May 2022.
Moreover, core Non-Food Non-Energy (NFNE) inflation has entered double-digits (12.3 per cent in Jun 2022), indicating strong underlying demand in the economy.
The analysts project inflation to average around 16.0 per cent in current fiscal eyar 2022/2023, given the re-implementation of taxes in the petroleum pricing structure.
READ MORE: SBP may raise policy rate by 100bps to 13.25%
Moreover, elevated prices of both RLNG and Coal will further push electricity prices to higher levels. Notably, electricity production cost from imported coal (20 per cent of power mix) is up nearly 4x YoY, and electricity production cost from RLNG (20 per cent of power mix) is up 2.5x YoY.
On a forward-looking basis, we estimate real interest rates stand at -2.3 per cent, strengthening our case for another policy rate hike.
READ MORE: Policy rate may rise as T-Bill yields increase sharply
External imbalances remain elevated as the trade deficit for Jun 2022 stood at USD 4.8 billion, driven by elevated energy and commodity prices. Moreover, material concerns have arisen over the potential sustainability of exports, given the economic slowdown in key markets. Notably, textile players are anticipating a 15-20 per cent reduction in volumetric export off-take in 2022/2023, potentially exacerbating the external imbalances.
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The analysts believe a tight monetary stance over the medium is necessary to ensure Pakistan’s economy weathers the global inflationary wave and the ensuing external and fiscal imbalances.
The short tenor secondary market yields have crossed 15.0 per cent and the 3-month treasury-bill cut-off yields touched 15.23 per cent in the latest auction, hinting at market expectations of another hike.
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SBP’s customer forex rates – July 05, 2022
KARACHI: The State Bank of Pakistan (SBP) has unveiled the foreign exchange rates for customers on July 05, 2022. These rates, based on the weighted average rates of commercial banks, play a significant role in guiding transactions involving foreign currencies and are essential for individuals and businesses engaged in international trade.
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SBP adopts Sharia standards of accounting, auditing
KARACHI: State Bank of Pakistan (SBP) on Monday said it has adopted Sharia standards of accounting and auditing for Islamic banks in the country.
In a statement, the central bank said strengthening Shariah compliance of Islamic banking industry in line with the best international practices is one of the key pillars of SBP’s 3rd Strategic Plan for Islamic Banking Industry 2021-25.
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Under the plan, SBP has been adopting Shariah standards of Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) in a systematic and gradual manner.
The standardization and harmonization in Shariah practices and procedures are helping in elevating the local Islamic banking industry at par with the international best practices.
After a comprehensive process of evaluation and deliberations with the internal and external stakeholders, keeping in view our local environment, today the State Bank of Pakistan (SBP) has adopted four more AAOIFI Shariah standards on: i) Salam and Parallel Salam, ii) Istisna’a and Parallel Istisna’a, iii) Combination of Contracts and iv) Irrigation Partnership (Musaqat), with certain clarifications and amendments.
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Salam is a mode of finance frequently used in agriculture while Istisna’a is a mode generally used by Islamic banking institutions to provide financing where manufacturing/assembling/processing is involved. Irrigation partnership (Musaqat) standard can be used in agriculture sector, especially for orchard financing while standard on combination of contract provides guidance to Islamic banking institutions when making use of multiple contracts in their various arrangements to meet the needs of the customers. It may be noted that earlier SBP has already issued detailed general guidelines on Islamic financing for agriculture sector.
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With adoption of these four standards, the total number of AAOIFI Shariah standards adopted by SBP has reached twenty while work on remaining standards is underway. Besides, there are few AAOIFI standards which have already been adopted by SBP as part of its various regulations, instructions and guidelines issued from time to time.
AAOIFI is a leading international organization primarily responsible for development and issuance of standards for the global Islamic finance industry. SBP has remained a key member of AAOIFI’s Board of Trustees.
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