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  • SBP wins IFN global award for promoting Islamic finance

    SBP wins IFN global award for promoting Islamic finance

    KARACHI: The State Bank of Pakistan (SBP) has won the best bank award for promoting Islamic finance announced by Islamic Finance News (IFN), an arm of RED money Group, Malaysia.

    The IFN announced the SBP as the best Central Bank of 2021 across the world in promoting Islamic finance. The results of global voting were disclosed today. IFN Best Banks Poll is regarded as one of the prestigious accolades in the global Islamic finance space. Bank Negara Malaysia stood second while the Saudi Central Bank secured third position.

    READ MORE: Bank deposits surge to historic high at Rs20.97 trillion

    The category of the Best Central Bank in promoting Islamic Finance is one of the closely fought contests among regulators competing for supremacy through exceptional advances made during the year. SBP is honored to have won this award for the 5th time during last seven years.

    Previously, SBP was bestowed with this coveted award for the year 2015, 2017, 2018, and 2020. IFN in its cover story while congratulating State Bank of Pakistan for yet another win as the Best Central Bank in Promoting Islamic Finance stated that they welcome back a leading light of the industry. In a closely fought contest, 2020’s victor came roaring back to take the crown, said the IFN.

    READ MORE: Last date extended to exchange old banknotes: SBP

    IFN while announcing the poll result also stated that with its Governor, Dr Reza Baqir, recently promoted to be the new chairman of the Council of the IFSB, from his role as the Deputy Chairman in 2021, they can hopefully look forward to even stronger support and leadership from the central bank over the coming year.

    The IFN Award to SBP as the best central bank is the global endorsement of its initiatives for promotion of Islamic banking in the country. The award reflects an international recognition of the strategic measures undertaken by SBP to put in place a robust policy environment for Islamic banking to prosper.

    READ MORE: SBP’s instructions on pensioners biometric verification

    The State Bank of Pakistan has consistently promoted and encouraged Islamic finance within Pakistan, and has taken several significant steps. These include launch of 3rd five year Strategic Plan for Islamic banking 2021-25, Shariah compliant standing ceiling facility and open market operations, strengthening of Shariah governance mechanism, Shariah compliant regulations for the lender of the last resort (LOLR) facility and licensing regime for digital banking covering the Islamic segment; besides taking initiatives for promoting better awareness amongst the masses, and strengthening international linkages. The Strategic plan 2021-25 envisages to take Islamic banking share of 30% in terms of assets and 35% in terms of deposits in the overall banking system.

    READ MORE: SBP continues banking relaxations amid rising COVID cases

    Amidst the COVID-19 chaos throwing unforeseen challenges to the global financial market, Islamic banking industry in Pakistan continued to maintain its impressive growth trajectory and assets and deposits of Islamic banking industry grew on year-on-year basis by 28.2% and 26% respectively by September 30, 2021. The market share of Islamic banking assets and deposits stood at 17% and 18.6% respectively of the overall banking system in the country as of September 30, 2021. The industry operates through a huge network of 3,651 branches and 1,579 Islamic banking windows (dedicated counters at conventional branches) steered by twenty-two (22) Islamic Banking Institutions (IBIs) which include 5 full-fledged Islamic banks and 17 conventional banks having dedicated Islamic Banking Branches and windows. The industry is growing on the back of continued support by the Government of Pakistan which remains committed to provide an enabling platform for this industry to operate.

  • Customers’ exchange rates on January 13, 2022

    Customers’ exchange rates on January 13, 2022

    KARACHI: The State Bank of Pakistan (SBP) on Thursday issued customers’ exchange rates for January 13, 2022. The exchange rate is on the basis of weighted average rates of commercial banks.

    The SBP said the data is compiled and disseminated for information only. These exchange rates are estimates that quoted by various commercial banks to their clients.

    The banks provide their indicative exchange rates for commercial transactions with customers.

    CURRENCYBUYINGSELLING
    AED4 7.98994 8.1007
    AUD1 28.35541 28.6464
    CAD1 40.93631 41.2606
    CHF1 92.62231 93.0582
    CNY2 7.72082 7.7809
    EUR2 01.59402 02.0628
    GBP2 41.49682 42.0780
    JPY1 .53711 .5407
    SAR4 6.93504 7.0427
    USD1 76.14561 76.5684
    Customers’ exchange rates on January 12, 2022
  • Rupee strengthens by 40 paisas to dollar in interbank

    Rupee strengthens by 40 paisas to dollar in interbank

    KARACHI: The Pak Rupee (PKR) strengthened by 40 paisas against the dollar on Wednesday in interbank foreign exchange market. The rupee ended Rs176.23 to the dollar from previous day’s closing of Rs176.63 in the interbank foreign exchange market.

    It was second consecutive day when the rupee made gain. The local currency recovered around 45 paisas during the past two days.

    Currency experts said that positive sentiments were prevailed during the day that helped the local unit to make gain. They said that the mandatory requirement of realizing export receipts helped inflows in the market.

    The State Bank of Pakistan (SBP) on January 05, 2022 issued directives to realize their export receipts within 120 days from date of shipment instead 150 days.

    The experts however said that the falling foreign exchange reserves big challenge for the rupee stability in coming days.

    The official foreign exchange reserves of the State Bank of Pakistan (SBP) fell by $170 million to $17.686 billion by week ended December 31, 2021 as compared with $17.856 billion a week ago.

    Dollar falls five paisas against PKR in interbank
  • SBP issues KIBOR rates on January 12, 2022

    SBP issues KIBOR rates on January 12, 2022

    KARACHI: State Bank of Pakistan (SBP) on Wednesday issued the Karachi Interbank Offered Rates (KIBOR) as of January 12, 2022.

    Following are the latest KIBOR rates:

     TenorBIDOFFER
    1 – Week9.7010.20
    2 – Week9.7610.26
    1 – Month9.8410.34
    3 – Month10.2110.46
    6 – Month11.2111.46
    9 – Month11.2611.76
    1 – Year11.3111.81
    SBP issues KIBOR rates on January 11, 2022
  • SBP to issue Rs100 coin on UET’s 100th anniversary

    SBP to issue Rs100 coin on UET’s 100th anniversary

    To mark the 100th Anniversary of establishment of University of Engineering & Technology (UET), Lahore, the Government of Pakistan has decided to issue a commemorative coin of Rs.100.

    (more…)
  • Customers’ exchange rates on January 12, 2022

    Customers’ exchange rates on January 12, 2022

    Karachi, Pakistan – On Wednesday, the State Bank of Pakistan (SBP) released the official exchange rates for January 12, 2022, providing customers with valuable information based on the weighted average rates of commercial banks.

    (more…)
  • SBP issues KIBOR rates on January 11, 2022

    SBP issues KIBOR rates on January 11, 2022

    KARACHI: State Bank of Pakistan (SBP) on Tuesday issued the Karachi Interbank Offered Rates (KIBOR) as of January 11, 2022.

    Following are the latest KIBOR rates:

     TenorBIDOFFER
    1 – Week9.7310.23
    2 – Week9.7710.27
    1 – Month9.8410.34
    3 – Month10.2310.48
    6 – Month11.2211.47
    9 – Month11.2511.75
    1 – Year11.3011.80
    SBP issues KIBOR rates on January 10, 2022
  • Customers’ exchange rates on January 11, 2022

    Customers’ exchange rates on January 11, 2022

    Karachi, Pakistan – On Tuesday, the State Bank of Pakistan (SBP) disclosed the official exchange rates for January 11, 2022, offering customers crucial information based on the weighted average rates of commercial banks.

    (more…)
  • Bank deposits surge to historic high at Rs20.97 trillion

    Bank deposits surge to historic high at Rs20.97 trillion

    KARACHI: Deposits of the banking sector have continued their upward trajectory and increased to Rs20.97 trillion – all time historic high.

    Deposits of the banking sector clocking in at Rs20.97 trillion as at December 2021, registering a 17 per cent year on year (YoY) jump while rising by a 7 per cent month on month (MoM).

    Analysts at Arif Habib Limited said that with SBP rising CRR by 1 per cent in November 2021 along with 275 basis points increase in policy rate, it was expected that banks would focus on improving their low cost deposit portfolio. 

    READ MORE: Last date extended to exchange old banknotes: SBP

    Pakistan Banking advances in 2021 clocked in at Rs10 trillion, up 19 per cent YoY which was the highest growth in 3-years. This was driven by macro recovery, strong uptick in consumer loans, and initiation of new financing schemes by central bank (SBP).

    Disbursement under TERF (Temporary Economic Relief), housing finance, and auto finance have all led to up tick in advances. 

    READ MORE: SBP responds to misconceptions on amendments to State Bank Bill

    As per SBP, a total of Rs435 billion or 4 per cent of total advances have been approved under the Temporary Economic Relief (TERF) from April 2020 to March 2021 under which disbursements are still undergoing. SBP expects TERF disbursements at Rs273 billion in FY22 vs. Rs163 billion in FY21.

    In July, 2020, SBP also mandated banks to increase their housing and construction finance portfolio to at least 5 per cent of their private sector advances by December 2021 otherwise they will be subject to penalties. This coupled with increased disbursements under Mera Pakistan Mera Ghar scheme also boosted overall construction and housing finance.

    Consequently, total housing finance (including finance to bank employees) has increased to Rs286 billion (3.9 per cent of private sector credit) in Nov 2021 vs. Rs216 billion (3.3 per cent of private sector credit).

    READ MORE: SBP’s instructions on pensioners biometric verification

    Auto financing surged by 34 per cent to Rs385 billion in 11M2021 driven by strong auto sales and  single digit interest rates.

    In 2H2021, government also imposed increased tax of 2.5-5 per cent on banks falling below 50 per cent ADR (advance to deposit ratio) threshold forcing them to increased lending.

    ADR ratio of banks in 2021 clocked in at 48.4 per cent vs. 47.5 per cent in 2020, which is still lower than last 10-year average ADR of 53 per cent and peak of 83 per cent in 2008. We expect advances growth to remain in range of 10-15 per cent in 2022 to be driven by TERF disbursement, housing financing etc.

    Pakistan banking sector deposits were up 17 per cent YoY to Rs20.9trn in 2021 which was higher than the last 10-year average deposit growth rate of 13 per cent. Strong M2 (broad money) growth and higher remittances has have led to increased deposit growth.

    READ MORE: SBP continues banking relaxations amid rising COVID cases

    Currency in circulation as a percentage of broad money stood at 29 per cent in 2021 vs. 28 per cent in 2020 and last 5-year average of 27 per cent which could be due to low single digit interest rates and an effort to stay out of sight of tax authorities.

    Investments on other hand increased by 22 per cent YoY in 2021 vs. a growth of 31 per cent in 2020 as banks continue to prefer investment in risk free government securities.

    As a result, Investment to Deposit (IDR) ratio of the sector improved to 67 per cent in 2021 vs. 65 per cent in 2020.

  • SBP issues KIBOR rates on January 10, 2022

    SBP issues KIBOR rates on January 10, 2022

    KARACHI: State Bank of Pakistan (SBP) on Monday issued the Karachi Interbank Offered Rates (KIBOR) as of January 10, 2022.

    Following are the latest KIBOR rates:

     TenorBIDOFFER
    1 – Week9.7610.26
    2 – Week9.8010.30
    1 – Month9.8710.37
    3 – Month10.2610.51
    6 – Month11.2611.51
    9 – Month11.2811.78
    1 – Year11.3211.82
    SBP issues KIBOR rates on January 07, 2022