KARACHI: State Bank of Pakistan (SBP) on Wednesday issued the Karachi Interbank Offered Rates (KIBOR) as of March 09, 2022.
Following are the latest KIBOR rates:
| Tenor | BID | OFFER |
| 1 – Week | 9.78 | 10.28 |
| 2 – Week | 9.83 | 10.33 |
| 1 – Month | 9.97 | 10.47 |
| 3 – Month | 10.59 | 10.84 |
| 6 – Month | 11.03 | 11.28 |
| 9 – Month | 11.07 | 11.57 |
| 1 – Year | 11.11 | 11.61 |
Karachi, March 09, 2022: The State Bank of Pakistan (SBP) has released the official exchange rates for March 09, 2022, providing a glimpse into the currency values against the Pakistani Rupee.
(more…)KARACHI: State Bank of Pakistan (SBP) on Tuesday issued the Karachi Interbank Offered Rates (KIBOR) as of March 08, 2022.
Following are the latest KIBOR rates:
| Tenor | BID | OFFER |
| 1 – Week | 9.78 | 10.28 |
| 2 – Week | 9.85 | 10.35 |
| 1 – Month | 9.95 | 10.45 |
| 3 – Month | 10.53 | 10.78 |
| 6 – Month | 10.96 | 11.21 |
| 9 – Month | 11.04 | 11.54 |
| 1 – Year | 11.08 | 11.58 |
KARACHI: The State Bank of Pakistan (SBP) on Tuesday decided to keep policy rate unchanged at 9.75 per cent for the next two months.
The State Bank said that the decision reflected the outlook for inflation has improved following the cuts in fuel prices and electricity tariffs announced last week as part of the government’s relief package.
At the same time, high-frequency indicators suggest that growth continues to moderate to a more sustainable pace.
This moderation should help keep at bay demand-side pressures on inflation and contain non-oil imports, notwithstanding the significant uncertainty about the future path of global energy and food prices due to the Russia-Ukraine conflict.
READ MORE: Key policy rate goes up to 9.75%; SBP raises 250bps in less than month
Since the last Monetary Policy Committee (MPC) meeting on January 24, 2022, headline inflation moderated in February to 12.2 percent (y/y). Inflation in February would have been noticeably lower were it not for abnormal increases in a few perishable items.
Accordingly, core inflation also fell in urban areas and inflation expectations have remained stable, suggesting that second-round effects from higher commodity prices remain contained.
On the external front, despite the rise in global prices, the February trade deficit witnessed a further 10 percent contraction (m/m) on top of the 29 percent decline recorded in January, confirming the slowdown in domestic demand. While the current account deficit rose in January, this largely reflected lumpy imports of oil, vaccines and other items financed through loans and supplier credit. Excluding these imports, the deficit would have been about $1 billion lower, suggesting that the underlying trend in the current account balance is also moderating.
READ MORE: SBP increases policy rate by 150 basis points to 8.75%
Looking ahead, the MPC noted that while current real interest rates on a forward-looking basis are appropriate to guide inflation to the medium-term range of 5-7 percent, support growth, and maintain external stability, the Russia-Ukraine conflict has introduced a high degree of uncertainty in the outlook for international commodity prices and global financial conditions.
Continued adverse conditions on these fronts could pose challenges to the outlook for the current account deficit and inflation expectations, which could necessitate changes in the policy rate. Since the Russia-Ukraine situation remains fluid, the MPC noted 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.
In reaching its decision, the MPC considered key trends and prospects in the real, external and fiscal sectors, and the resulting outlook for monetary conditions and inflation.
In January, there was a sharp and broad-based decline in imports, including energy imports, to $6.1 billion from $7.6 billion in December based on PBS data.
READ MORE: SBP not to hold regular monetary policy committee meeting
Imports declined further in February while exports rose, resulting in a 38 percent contraction in the trade deficit compared to its peak last November. Around three-fourths of the rise in imports this year is estimated to stem from higher prices, with the contribution from volume growth negative in January.
These trends suggest that demand-led pressures on the current account are declining. While the current account deficit rose to $2.6 billion, this included a sizeable contribution from imports financed through loans and supplier credit, including oil and vaccines, the SBP said.
At around 2 percent of GDP, the fiscal deficit during the first half of FY22 was almost the same as last year. FBR tax collections grew strongly by 30 percent (y/y) during Jul-Feb FY22, in part due to a depreciated exchange rate and higher imports than last year as well as strengthened tax collection efforts. This offsets declines in non-tax revenues due to lower petroleum development levy revenues and increased spending, including on subsidies, grants and provincial PSDP.
The SBP said that headline inflation fell from 13 percent (y/y) in January to 12.2 percent in February, driven by a slowdown in energy price inflation. The contribution to inflation from food prices rose, reflecting higher prices for tomatoes, fresh vegetables, chicken, and vegetable ghee.
READ MORE: SBP issues annual schedule for monetary policy
Meanwhile, core inflation ticked down in urban areas and up in rural areas, while inflation expectations of both consumers and businesses remained broadly unchanged.
The MPC continues to expect inflation to average between 9-11 percent this fiscal year before declining toward the medium-term target range of 5-7 percent in FY23 as global commodity prices normalize. This baseline outlook is subject to risks from the path of global prices, domestic wage developments, and the fiscal policy stance. The MPC will continue to carefully monitor developments affecting medium-term prospects for inflation, financial stability, and growth.
Karachi, March 08, 2022: The State Bank of Pakistan (SBP) has released the official exchange rates for March 08, 2022, shedding light on the currency values against the Pakistani Rupee.
(more…)KARACHI: Dr. Reza Baqir, Governor, State Bank of Pakistan (SBP) on Monday said that Asaan Digital Account (ADA) will break the barriers in financial inclusion of women.
It offers faster, cheaper, efficient and convenient solutions for meeting women’s requirements. “Asaan Digital Account is a fully digitized solution for opening a full-service bank account from anywhere, at any time, through smartphones or computers with only a CNIC and no other documentation requirements.”
READ MORE: SBP organizes discussion on ‘promise of digital banks’
SBP governor was addressing at an event to celebrate the journey of women’s financial inclusion in Pakistan.
The SBP, in collaboration with Bank Alfalah, Standard Chartered Bank and UBL hosted an event titled ‘Asaan Digital Account: Breaking Barriers’
Dr. Baqir lauded the contributions of women in various fields and stressed that women empowerment is the key to socio-economic developments in the country.
He observed that gender gaps do not allow women the same freedom to avail opportunities, rights and obligations in all walks of life as compared to men. However, the International Women’s Day encourages us to pause and reflect on the systemic barriers that limit women in their pursuits. He stressed the need to reflect and renew the sense of ambition, and transformative possibility around gender equality in financial services space.
READ MORE: Pakistan’s e-banking registers sharp increase in 1QFY22
Dr. Reza Baqir pointed out that, traditionally, women’s participation in financial services has remained low due to persistent barriers such as cumbersome documentation requirements, proximity to the bank branches and availability of suitable products which together with the constraining social and cultural norms, have prevented women from availing even the basic financial services such as owning a bank account.
The SBP governor went on to add that SBP is breaking these barriers and addressing women’s financial inclusion through various initiatives such as: Banking on Equality Policy, Raast – Pakistan’s first instant payment system, a comprehensive ‘Customers’ Digital Onboarding Framework’, to facilitate convenient opening of bank accounts, Asaan Mobile Account where anyone with a simple feature phone can open and use an account by dialing *2262#.
READ MORE: SBP imposes Rs1.45 billion penalty on 18 banks in 2021
In the same vein, SBP has also launched various financing schemes such as SBP Refinance and Credit Guarantee Scheme for Women Entrepreneurs, SME Asaan Finance or SAAF Initiative, and Prime Minister’s Kamyab Jawan Youth Entrepreneurship Scheme etc., and a country -wide National Financial Literacy Program which is imparting essential financial education to the masses.
Dr. Reza Baqir highlighted that these initiatives are already bridging the gender gaps in financial sector and services, however, he stressed that more needs to be done. He encouraged women to open their bank accounts through the newly introduced Asaan Digital Account while urging all banks to take measures to make the account opening process more simple, increase the value proposition for women, and market the features to expand their outreach.
READ MORE: SBP imposes penalty of Rs58 million on five banks
Group Head Bank Alfalah Ms. Mehreen Ahmed in her address said that Bank Alfalah has been playing its part for a number of years now, in helping women across many segments of the economy to become financially independent. She said her Bank has been enabling women entrepreneurs with initial funding to start their new ventures as well as providing funding for growing their already established businesses.
CEO Standard Chartered Bank Rehan Shaikh in his address said that women are an integral constituent of our society and their full and equal participation in all facets of society is a fundamental human right. He lauded the efforts of State Bank of Pakistan for playing a leading role in creating an environment to push the frontiers in this space. He went on to add that with continued focus and support by the State Bank of Pakistan, the banking industry is embracing digital transformation.
Speaking on the occasion, President & CEO, United Bank Limited Mr. Shazad Dada congratulated the State Bank of Pakistan on Asaan Digital Account initiative and termed its resounding success to its simplicity and accessibility to customers from all over Pakistan, including unbanked regions. He observed that the account is ideal for the women of Pakistan as it can be opened from anywhere and there is no need to visit a branch to open or maintain the account.
The event was attended by heads of financial institutions, influential women leaders, and prominent figures from various walks of life. On this occasion SCB, UBL and Bank Alfalah had set up stalls where the audience experienced live account opening of Asaan Digital Accounts.
KARACHI: State Bank of Pakistan (SBP) on Monday issued the Karachi Interbank Offered Rates (KIBOR) as of March 07, 2022.
Following are the latest KIBOR rates:
| Tenor | BID | OFFER |
| 1 – Week | 9.79 | 10.29 |
| 2 – Week | 9.86 | 10.36 |
| 1 – Month | 9.96 | 10.46 |
| 3 – Month | 10.51 | 10.76 |
| 6 – Month | 10.97 | 11.22 |
| 9 – Month | 11.03 | 11.53 |
| 1 – Year | 11.07 | 11.57 |
Karachi, March 07, 2022: The State Bank of Pakistan (SBP) has released the official exchange rates for March 07, 2022, presenting a snapshot of currency values against the Pakistani Rupee.
(more…)KARACHI: The State Bank of Pakistan (SBP) has said it will celebrate the journey of women’s financial inclusion in Pakistan.
In this regard the central bank, in collaboration with UBL, Standard Chartered Bank, and Bank Alfalah, will be hosting an event titled “Asaan Digital Account: Breaking Barriers”, on March 07, 2022.
READ MORE: SBP organizes discussion on ‘promise of digital banks’
The SBP governor Dr. Reza Baqir, will be the chief guest of the event.
The event will celebrate the role and contributions of women in our economy and SBP will introduce its flagship Asaan Digital Account, which is a fully digitized solution for opening a full service bank account with CNIC and no other documentation requirements from anywhere, at any time, through smartphones or computers.
READ MORE: Pakistan’s e-banking registers sharp increase in 1QFY22
In this spirit, the event has been titled as “Bila rukawat – Asaan Digital Account” in Urdu to allude to the seamless access to banking that will now be available to all Pakistanis, especially women in their palms.
The Asaan Digital Account provides availability and accessibility of financial services to customers with the click of a few buttons.
READ MORE: SBP imposes Rs1.45 billion penalty on 18 banks in 2021
More importantly, these accounts are particularly helpful for women as it overcomes the barriers such as lack of documentation, proximity to bank branches and other social and cultural norms that have traditionally and disproportionally limited women’s access to bank accounts and hampered their financial inclusion.
READ MORE: SBP imposes penalty of Rs58 million on five banks
KARACHI: The State Bank of Pakistan (SBP) on Saturday said it hosed an interactive session on March 03, 2022 on the topic ‘The Promise of Digital Banks’ for domestic and international stakeholders.
The stakeholders were included banks, fintechs, venture capital firms, digital banks and representatives of business community from across the world.
The objective of this webinar was to share information on SBP’s ‘Licensing and Regulatory Framework for Digital Banks’ and discuss the promise of digital banks especially in the context of the experience in other countries.
READ MORE: Pakistan’s e-banking registers sharp increase in 1QFY22
The webinar was aimed at sharing the broad contours of SBP’s initiative and the experiences of other international players. The webinar began with a keynote address by the Governor SBP, Dr. Reza Baqir, followed by an interactive panel discussion with well-known international experts in the fields of digital banking and fintechs.
In his keynote address, Dr. Reza Baqir, Governor State Bank of Pakistan, stated that with major digital enablers and fundamental components of a digital economy in place, Pakistan is now well set for a major digital evolution. He emphasized that, as noted in a recent opinion piece, a key goal behind SBP’s framework for digital banks is to promote financial inclusion and innovation in the country and provide an ecosystem where the customer and customer service is prioritized.
READ MORE: SBP imposes Rs1.45 billion penalty on 18 banks in 2021
He highlighted the challenges and gaps in the existing banking space and mentioned that SBP has laid a solid foundation for the provision of digital financial services by providing the legal and regulatory environment and core infrastructure.
Dr. Baqir also spoke about the steps taken by the SBP to promote innovation in financial services, including removing of barriers to entry for non-banks and fintechs, frictionless digital account opening for individuals, in-app biometric verification to facilitate customers’ digital on-boarding, and introducing Pakistan’s Instant Payment System – Raast. Dr. Baqir also emphasized that important initiatives are under discussion with stakeholders on Common Know Your Customer framework—which will enable Financial Institutions to share KYC information with customer consent, to improve customers’ digital journey—and Open Banking.
READ MORE: SBP imposes penalty of Rs58 million on five banks
The event also included a panel discussion moderated by Ms. Tania Aidrus, Co-founder of The Rayn Group, with Sopnendu Mohanty, Chief Fintech Officer of Monetary Authority of Singapore (MAS), Omer Ismail, Incoming Chief Executive Officer of ONE and Mamoon Hamid, Managing Member and General Partner at Kleiner Perkins as panelists.
The panelists highlighted the real potential and opportunities of digital banks globally for international players including fintechs, startups, venture capitalists etc. and deliberated on various aspects of the regulatory challenges. The subject matter experts highlighted that innovation in the financial sector is largely led by the combined efforts of a regulator and other relevant players.
READ MORE: SBP slaps Rs280 million penalty on National Bank
Appreciating the flexibility of ‘SBP’s Licensing and Regulatory Framework for Digital Banks,’ which accommodates a range of investors independently or in collaboration, the panelists were of the view that the incoming players can benefit from opportunities presented by Pakistan and make a tangible and significant increase in meaningful financial inclusion.
The panel was confident that digital banks will become an essential part of the financial ecosystem and provide people with the access to a wider range of financial services, and advance the broader agenda of financial inclusion.