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  • Foreign exchange reserves inch up to $20.158 billion

    Foreign exchange reserves inch up to $20.158 billion

    KARACHI: The liquid foreign exchange reserves of the country inched by $25 million to $20.158 billion by week ended March 05, 2021, the State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $20.133 billion a week ago.

    The official foreign exchange reserves of the SBP increased by $38 million to $13.016 billion by week ended March 05, 2021 as compared with $12.978 billion a week ago.

    The foreign exchange held by commercial bank, however, fell by $13 million to $7.142 billion by week ended March 05, 2021 as compared with $7.155 billion a week ago.

  • Remittances surge by 24 percent in eight months

    Remittances surge by 24 percent in eight months

    KARACHI: The inflow of workers’ remittances has increased by 24 percent to $18.74 billion during first eight months (July – February) 2020/2021, according to data released by State Bank of Pakistan (SBP) on Thursday.

    The SBP received $15.104 billion as workers’ remittances during the same months of the last fiscal year.

    The inflows during the month of February 2021 also posted 24 percent increase to $2.26 billion when compared with $1.82 billion in the same month of the last year.

    The inflows recorded robust growth of 46.7 percent, 56.8 percent and 19.5 percent from USA, UK and Saudi Arabia, respectively, during first eight months of the current fiscal year.

  • SBP waives 100pc cash margin requirement on import of various goods

    SBP waives 100pc cash margin requirement on import of various goods

    KARACHI: State Bank of Pakistan (SBP) on Thursday waived requirement of 100 percent cash margin on import of various goods.

    The SBP said that based on the representations of industries and other relevant stakeholders, it has been decided to waive the condition of 100 percent cash margin requirement on imports made under following HS Codes:

    S. No.HS CodesDescription as given in BPRD CircularsDescription as per FBR’s PCT Codes
    148191000CARTONS, BOXES & CASESCARTONS, BOXES AND CASES, OF CORRUGATED PAPER OR PAPERBOARD
    284159030COVER FOR INNER BODY OF AIR CONDITIONERCOVERS FOR INNER BODY
    384149090OTHER PARTS AIR/VACUUM PUMPSOTHER
    484159099OTHER – AIR CONDITIONING MACHINESOTHER
    584189910EVAPORATORSEVAPORATORS (ROLL BOND / FIN / TUBE ON PLATE TYPES)
    684189920CONDENSORSWIRE CONDENSERS
    784509000PARTS FOR WASHING MACHINEPARTS
    885366990OTHER ELECTRIC SWITCH, RELAYS, FUSESOTHER
    984186990OTHERSOTHER
    1084193900OTHER DRYEROTHER
    1140141000SHEATH CONTRACEPTIVESSHEATH CONTRACEPTIVES

    The SBP directed the banks that cash margin requirement will not be applicable on the imports made under HS Code 87021090 (Others) by Category-A and Category-B investors as defined in the Automotive Development Policy, 2016-2021.

  • Banks barred from self issuing cheque books

    Banks barred from self issuing cheque books

    KARACHI: The State Bank of Pakistan (SBP) has barred financial institutions from issuing cheque book by default, according to a statement issued on Wednesday.

    The decision has been taken to promote digitalization in the banking sector. “Cheque-books that are currently being issued by default shall only be issued upon customer’s request,” the SBP said.

    In light of SBP’s vision to promote digitization in the banking sector and encourage use of digital channels, the following decisions have been taken for banks and microfinance banks.

    The financial institutions currently offering or planning to offer digital financial services shall create a role of Chief Digital Officer (CDO) or a similar role with a different designation.

    The CDO should preferably be a Key Executive responsible for steering the digitization efforts of the organization. The role would be in addition to existing Key Executives as required by relevant regulations.

    The financial institutions may consider recommended Terms of Reference (ToRs) for the above position. In addition, accelerated digitization should also be part of every CEO’s Key Performance Indicators (KPIs) and the board of the financial institutions should monitor the achievements at least on half-yearly basis.

    The SBP issued instructions Regarding Internet Banking (IB)/Mobile Banking (MB):

    All FIs providing IB/MB services shall:

    — Offer the minimum set of services as identified in Annexure-B through their IB/MB channels.

    — Provide their interface in English, Urdu and where possible, regional languages.

    — Rationalize the use of One Time Password (OTP) on their platforms to improve user experience. However, they are also encouraged to use other convenient and secure authentication factors to satisfy the 2-Factor Authentication (2FA) requirements.

    — Ensure that there are no activation, subscription or annual charges for customers using IB/MB services.

    — Arrange to provide full-fledged digital portal for their corporate customers (corporate portal) and align controls, transaction limits etc. to cater for their online business needs.

    In order to move towards self-service banking channels and allow round the clock banking solutions to customers and businesses, banks are encouraged to consider the deployment of Cash Deposit Machines (CDMs) at selected locations especially at branches with large number of customers.

    Participants and member FIs of a PSO shall ensure that all other participants, member FIs and billers of that PSO are enabled on their IB/MB/ATM channels.

    Further, they shall also ensure that new participants/member FIs and billers are added on their respective channels within 30 days of the date of intimation from the PSO.

    To promote the use of payment cards, it has been decided that FIs shall ensure that all new-to-bank account holders and those customers who have not opted for a debit card previously, shall be issued a debit card. However, customers shall also be given the option to opt out of receiving any card.

    Further, photo account holders, visually impaired and illiterate persons shall be exempted from mandatory card issuance. In this regard, FIs shall ensure full compliance with PSD’s Circular No. 1 of 2020 dated January 31, 2020, in letter and spirit and shall not unnecessarily coerce and/or convince their customers to opt for cards that are not issued by SBP-approved domestic payment scheme.

    Detailed record of customer consent shall be maintained and made available for SBP’s inspection, as and when required.

    As per the existing practice, FIs have been using signatures and paper based instruments for authenticating customers in branches. To leverage on the existing EMV enabled card based infrastructure, FIs are now allowed to authenticate their customers at branch counters using chip-and-pin cards and 2FA prior to offering them banking services.

    However, this change should be implemented without causing inconvenience to the customers.

  • Bill to be presented for abolishing tax exemptions

    Bill to be presented for abolishing tax exemptions

    ISLAMABAD: The government will present a bill before the parliament to abolish tax exemptions that are discriminate towards many individuals and sectors of the economy.

    Minister for Finance and Revenue Dr. Abdul Hafeez Shaikh said this at a press conference on Tuesday.

    He said many companies and sectors are exempted from the taxes and to abolish such discrimination and to bring uniform system all such exemptions would be brought under the law.

    He said under Prime Minister Imran Khan’ vision to collect taxes in a way that poor people should not be affected, tax system is being reformed.

    He said that the cabinet approved draft of State Bank of Pakistan (SBP) Amendment Bill 2021 to give absolute autonomy to the Central Bank.

    He said the central bank’s core objective was to control inflation and to fight increase in prices and the law also aimed at providing the Bank further autonomy to ensure that it fulfills its objectives of price stability with complete independence.

    He said the law would also help SBP to independently fulfill the requirements of monetary policy and exchange rates without intervention of the the government. The term of Governor SBP, he said would also be extended to five years.

    Hafeez Shaikh said the government would stop borrowing from the central bank so that the federal government could manage financing by its own resources or by lending from the commercial banks.

    Further he said the monetary and fiscal coordination board would also be abolished and instead the government would arrange coordination through special committees.

    The minister informed that the Governor would be appointed by the President of Pakistan and the Bank would only be accountable to the Parliament.

    He informed that the second law approved by the cabinet was about Pakistan’s State Owned Entities (SOEs) that were engaged in business activities.

    The purpose of this law is to provide more authority to the SOEs by stopping intervention of the ministries and the ministers.

    The board and the Chairman would be appointed by the government under a transparent and professional way and the CEOs of the institutions would appoint the boards, instead of the minsters so that professionalism in these areas should be promoted.

    Further he said the CEOs would be made more secure so they run their companies without any pressure to compete with the private sector.

    He pointed out that these bills would be followed on fast track basis.

    About International Monetgary Fund, Shaikh said Pakistan and the IMF were currently engaged to resume the Extended Fund Facility that was paused for few months due to COVID-19.

    “The IMF international Board would meet soon and financial lending for Pakistan will resume”, he added.

    Adviser to Prime Minister on Institutional Reforms Dr. Ishrat Hussain on the occasion said major reforms in the institutions were being introduced to promote transparency and professionalism in the government departments.

    He said the due to these reforms, losses in government institutions were drastically reduced and efforts were made to wipe out all losses in future.

    To a question, Shaikh said privatization was a difficult task and big investors were needed in this process.

    He said the privatization programme was being extended and the process was now resumed after a temporary halt due to COVID-19.

    To another question, he said the government was minimizing gap between the income and the expenditure and the primary fiscal balance was in surplus of Rs 400 billion.

    Besides, he said the government had also not borrowed a single rupee from the Central Bank nor it provided additional grants to the government departments.

    About inflation, he said the government had not control over the prices of such basic kitchen items which are imported from abroad.

    However, the government in this regard can only do to provide assistance to the extreme people and it is providing financial support to over 15 million, he added.

    Further he said at utility stores too, the government was providing the basic usable items at affordable prices to the targeted income group. He informed that the targeted subsidy would be further extended in future.

    Minister for Industries Hammad Azhar said that utility stores was providing wheat flour at a subsidized rate of Rs 800 per 20 kg bag, sugar at Rs 68 per kg, ghee at Rs 125 per kg and the price was retained for over a year an it has been decided that this price would continue in future as well.

    Chairman Federal Board of Revenue Javed Ghani and Secretary Finance Kamran Afzal were also present on the occasion.

  • Foreign exchange reserves increase to $20.133 billion

    Foreign exchange reserves increase to $20.133 billion

    KARACHI – The State Bank of Pakistan (SBP) has reported a positive development in the country’s economic indicators as the liquid foreign exchange reserves increased by $91 million to reach $20.133 billion by the week ending February 26, 2021.

    (more…)
  • Investors redeem Rs115 billion against suspended Rs25,000 prize bonds

    Investors redeem Rs115 billion against suspended Rs25,000 prize bonds

    ISLAMABAD: Investors have redeemed/enchased to the tune of Rs115 billion against bearer prize bonds of Rs25,000 denomination which were suspended by the government in December 2020.

    According to state media on Tuesday, the Central Directorate of National Savings (CDNS) had paid encashment of Rs 115 billion by February 28 to the investors against the suspension of prize bonds of Rs 25,000.

    An official of the CDNS quoted as saying that around Rs 115 billion had been paid to the customers during last three months and remaining 45 billion out of total Rs 160 billion would also be paid by May 30, 2021.

    On December 10, the State Bank of Pakistan (SBP) issued following instructions to the president and CEOs of all commercial banks regarding option to replace / encash the bonds:

    i. The Bonds can be converted to Rs. 25,000/-denomination Premium Prize Bonds (Registered) through the 16 field offices of SBP Banking Services Corporation, and branches of six authorized commercial banks i.e. National Bank of Pakistan, Habib Bank Limited, United Bank Limited, MCB Bank Limited, Allied Bank Limited and Bank Alfalah Limited.

    ii. The authorized commercial banks shall also issue Rs. 25,000/-denomination Premium Prize Bonds (Registered)as per the prescribed procedure, with immediate effect. Stock of the same has already been delivered to authorized commercial banks.

    iii. The bondholder shall be required to submit a written request for conversion of bearer bonds to Rs. 25,000/-Premium Prize Bonds (Registered) on the prescribed application form.

    iv. The bondholder shall also be required to submit prescribed application forms for registration / purchase of Premium Prize Bonds as per the procedure in vogue.

    Replacement with Special Savings Certificate (SSC) / Defence Savings Certificate (DSC)

    i. The Bonds can be replaced with SSC / DSC through the 16 field offices of SBP Banking Services Corporation, authorized commercial banks and National Savings Centers.

    ii. All authorized commercial banks shall, therefore, accept requests for replacement of bearer bonds with SSC or DSC on the prescribed application form.

    iii. The bondholder shall also be required to submit application form for purchase of SSC / DSC (SC-1) as per the prescribed procedure

    Encashment at Face Value

    i. The Bonds will only be encashed by transferring the proceeds to the bond holder`s bank account through the 16 field offices of SBP Banking Services Corporation, at authorized commercial bank branches and to the Savings Accounts at National Savings Centres.

    ii. All commercial banks shall receive requests for encashment of bearer bonds on the prescribed application form.

    A copy of the application form (Annexure A), duly signed and stamped, shall be provided to the bondholder as an acknowledgement receipt.

    Moreover, the prize bonds encashed / replaced by the general public may be surrendered to the concerned SBP BSC office through the respective regional office of the commercial bank.

    The government has already canceled prize bonds of Rs 40,000 and CDNS repaid to the investors the encashment worth of Rs 258 billion in 2019-20.

  • SBP updates panel of chartered accountancy firms for audit of banks

    SBP updates panel of chartered accountancy firms for audit of banks

    KARACHI: State Bank of Pakistan (SBP) has updated the list of panel of chartered accountancy firms for conducting audit of banking companies.

    The SBP through a circular issued on Friday informed that “RSM Avais Hyder Liaquat Nauman, Chartered Accountants’, listed in the Category ‘B’ of SBP’s Panel of Auditors is being upgraded to the Category ‘A’ of the panel.

    The central bank also enlisted two chartered accountancy firms in the category ‘C’ of the SBP’s Panel of auditors with an immediate effect:

    J.A.S.B & Associates, Chartered Accountants 1104, Uni Tower, I.I. Chundrigar Road, Karachi. Phone: 021-32468154-55 Web: www.jasb-associates.com

    Mazars M.F. & Co., Chartered Accountants 3rd Floor, 44-C, Badar Commercial, Street 10, DHA Phase V, Karachi. Phone: 021-35342801-06, Web: www.mazars.pk

    The SBP issued the updated list of chartered accountancy firms:

    Category ‘A”

    Audit Firms in Category “A” are eligible to conduct audit of all Banks and DFIs

    A1. A.F. Ferguson & Co.  State Life Building No. 1/C, I.I. Chundrigar Road, Karachi. Tel: +92 (021) 32426711-15, Fax: +92 (021) 32415007, Web: www.affco.com.pk

    A2. Baker Tilly Mehmood Idrees Qamar, 4th Floor, Central Hotel Building, Civil Lines, Mereweather Road, Karachi.  Tel: +92 (021) 35644872-77, Fax: +92 (021) 35694573 Email: [email protected], Web: www.bakertillymiq.com.

    A3. BDO Ebrahim & Co.  2nd Floor, Block ‘C’ Lakson Square,  Building No. 1, Sarwar Shaheed Road, Karachi.  Tel: +92 (021) 35683030  Fax: +92 (021) 35684239  Email: [email protected]  Web: www.bdo.com.pk

    A4. Crowe Hussain Chaudhury & Co.  25-E, Main Market, Gulberg II, Lahore.  Tel: +92 (042) 37759223-5 Fax: +92 (042) 35759226 Email: [email protected]  Web: www.crowe.pk

    A5. EY Ford Rhodes, 6th Floor, Progressive Plaza,  Beaumont Road, Karachi.  Tel: +92 (021) 111-113-937  Fax: +92 (021) 35681965  E. mail: [email protected]  Web: www.ey.com

    A6. Grant Thornton Anjum Rahman, 1st & 3rd Floor, Modern Motors House, Beaumont Road, Karachi. Tel: +92 (021) 35672951-56 Fax: +92 (021) 35688834 Email: [email protected] Web: www.gtpak.com

    A7. Ilyas Saeed & Co. A-4, Sea Breeze Homes, Shershah Block, New Garden Town, Lahore. Tel: +92 (042) 35861852, 35868849 Fax: +92 (042) 35856145 Email: [email protected] Web: www.ilyassaeed.com

    A8. KPMG Taseer Hadi & Co. 1st Floor, Sheikh Sultan Trust Building No. 2, Beaumount Road, Karachi. Tel: +92 (021) 35685847 Fax: +92 (021) 35685095 Email: [email protected] Web: www.kpmg.com.pk

    A9. Kreston Hyder Bhimji & Co. Suite No. 1601, 16th Floor, Kashif Centre, Main Shahrah-e-Faisal, Karachi. Tel: +92 (021) 35640050-52 Fax: +92 (021) 35640053 Email: [email protected] Web: www.krestonhb.com

    A10. Muniff Ziauddin & Co. F/17/3, Business Executive Centre, Block No. 8, Clifton, Karachi. Tel: +92 (021) 35375127-28, 35872283 Fax: +92 (021) 35820325 Email: [email protected] Web: www.mzco.com.pk

    A11. Naveed Zafar Ashfaq Jaffery & Co. 1st Floor, Modern Motors House, Beaumount Road, Karachi. Tel: +92 (021) 111-774-422, 35671909 Fax: (021) 5210626 Email: [email protected] Web: www.nzaj.com.pk

    A12. Rahman Sarfaraz Rahim Iqbal Rafiq, Rahman Sarfaraz House, 54-P, Gulberg II, Lahore. Tel: +92 (042) 35875965-67 Fax: +92 (042) 35758621 Email: [email protected] Web: www.rsrir.com

    A13. Riaz Ahmad & Co. 10-B, Saint Mary Park, Main Boulevard, Gulberg III, Lahore. Tel: +92 (042) 35718137-39 Fax: +92 (042) 35718136 Email: [email protected] Web: www.racopk.com

    A14. RSM Avais Hyder Liaquat Nauman, Suite No. 407, Progressive Plaza, Beaumont Road, Karachi. Tel: +92 (021) 35655975-76 Fax: +92 (021) 35655977 Email: [email protected] Web: www.rsm.global/pakistan

    A15. Yousuf Adil, Cavish Court, A-35, Block 7 & 8, K.C.H.S.U. Shahrah-e-Faisal, Karachi. Tel: +92 (021) 34546494-97 Fax: +92(021) 34541314 Email: [email protected] Web: www.yousufadil.com

    Category ‘B’

    Audit Firms in Category “B” are eligible to conduct audit of Banks and DFIs having assets up to Rupees 100 billion or branches up to 160.

    B1. Amin Mudassar & Co. 4th Floor, IEP Building, 97-B/D-1, Main Boulevard, Gulberg III, Lahore. Tel: +92 (042) 35717261-62 Fax: +92 (042) 35717263 Email: [email protected]

    B2. Reanda Haroon Zakaria & Co. M1-M4, Mezzanine Floor, Progressive Plaza, Beaumont Road, Karachi. Tel: +92 (021) 35674741-44 Fax: +92 (021) 35674745 Email: [email protected] Web: www.hzco.com.pk

    B3. HLB Ijaz Tabussum & Co. 303, Sawan Road, G-10/1, Islamabad. Tel: +92 (051) 32354801-03 Fax: +92 (051) 32354800 Email: [email protected]; [email protected]; Web: www.hlbitc.com

    B4. IECnet S.K.S.S.S. Suite No. 209, Parsa Tower, PECHS Block 6, Main Shahrah-e-Faisal, Karachi. Tel: +92 (021) 34150811-13 Fax: +92 (021) 34150814 Email: [email protected] Web: www.iecnet.com.pk

    B5. Mudassar Ehtisham & Co. 50/2, Lawrence Road, Lahore. Tel: +92 (042) 36370215, 35466618 Fax: +92 (042) 36363614 Email: [email protected] Web: www.mudassarehtisham.com

    B6. Mushtaq & Co. 407, Commerce Centre, Maulana Hasrat Mohani Road, Karachi. Tel: +92 (021) 32638521-24 Email: [email protected]

    B7. Nasir Javaid Maqsood Imran, Office No. 807, 8th Floor, Plot No. 11/2, Q.M. House, Ellander Road, Opp. Shaheen Complex, Off. I.I. Chundrigar Road, Karachi Tel: +92 (021) 32212382-83, 32211515-16 Fax: +92 (021) 32211515 Email: [email protected] Website: www.njmi.net

     B8 Parker Randall – A.J.S. 6-C, 2nd Floor, ST Plaza, Kohinoor Town, College Road, Faisalabad.  Tel: +92 (021) 32621703-04 Fax: +92 (021) 32621701 Email: [email protected]  Web: www.parkerrandallajs.pk

    B9. PKF F.R.A.N.T.S. 16/II, ‘N’ Lane, Commercial Avenue, Phase IV, D.H.A, Karachi. Tel: +92 (021) 35315275 Fax: +92 (021) 35315276 Email: [email protected] Website: www.pkf.com.pk

    B10 Riaz Ahmad Saqib Gohar & Co. 5-Nasim, C.H.S. Major Nazir Bhatti Road, Off Shaheed-e-Millat Road, Karachi. Tel: +92 (021) 34945427, 34946112 Fax: +92 (021) 34932629 Email: [email protected] Web: www.rasgco.com

    B11. ShineWing Hameed Chaudhri & Co. H.M. House No. 07, Bank Square, Off Shahrah-e-Quaid-e-Azam, Lahore. Tel: +92 (042) 37235084-87 Fax: +92 (042) 37235083 Email: [email protected] Website: www.hccpk.com

    B12. Suriya Nauman Rehan & Co. House No. 02, Street No. 02, F-7/3, Islamabad. Tel: +92 (051) 32610931-32 Fax: +92 (051) 32610954 Email: [email protected] Web: www.nrcca.pk

    B13. Tariq Abdul Ghani Maqbool & Co. 173-W, Block-2, P.E.C.H.S, Karachi Phone: +92 (021) 34322582-83, (021) 34322606-07 Fax: +92 (021) 34522492 Email: [email protected] Website: www.tagm.co

    B14. UHY Hassan Naeem & Co. 193-A, Shah Jamal, Lahore. Tel: +92 (042) 35403550-51, 35403588 Fax: +92 (042) 35403599 Email: [email protected] Web: www.uhy-hnco.com

    B15. Zahid Jamil & Co. 1st Floor, Al-Jamil, 7-Madina Town Ext, Kohinoor Chowk, Off. Jaranwala Road, Faisalabad. Tel: +92 (041) 38725065-68 Fax: +92 (041) 38725070 Email: [email protected] Web: www.zahidjamilco.com

    Category ‘C’

    Audit Firms in Category “C” are eligible to conduct audit of banks and DFIs having assets up to Rupees 15 billion or branches up to 30.

    C1. Fazal Mahmood & Co. 147 – Shadman I, Lahore. Tel: +92 (042) 37426771-73 Fax: +92 (042) 37426774 Email: [email protected] Web: www.fmc.com.pk

    C2. Feroze Sharif Tariq & Co. 4-N/4, Block No. 06, P.E.C.H.S. Karachi. Tel: +92 (021) 34540891, 34542607 Fax: +92 (021) 34540891 Email: [email protected]

    C3. H.A.M.D & Co. 302, Land Mark Plaza, Mohammed Bin Qasim Road, Off I.I Chundrigar Road, Karachi. Tel: +92 (021) 32630651 Fax: +92 (021) 35872521 Email: [email protected]; [email protected]

    C4. Ibrahim Shaikh & Co. 259-260 Panorama Centre, Fatima Jinnah Road, Saddar, Karachi. Tel: +92 (021) 35210577, 35671853 Fax: +92 (021) 35676591 Email: [email protected]

    C5. J.A.S.B & Associates 1104, Uni Tower, I.I. Chundrigar Road, Karachi. Tel: +92 (021) 32468154-55 Fax: +92 (021) 32468157 Email: [email protected] Web: www.jasb-associates.com

    C6. Junaidy Shoaib Asad 1/6-P, Block No. 06, P.E.C.H.S, Mohtarma Laeeq Begum Road, Off Shahra-e-Faisal. Karachi. Tel: +92 (021) 34371910-13 Fax: +92 (021) 34371916 Email: [email protected] Web: www.jsa.com.pk

    C7. H.Y.K & Co. SKP House, 321 Upper Mall, Lahore. Tel: +92 (042) 111-772-000, 35789330-1 Fax: +92 (042) 35789182 Email: [email protected] Web: www.hyk.com.pk

    C8. Khalid Majid Rehman & Co. 7-A, Street No. 65, F-8/3, Islamabad. Tel: +92 (051) 32287713-17 Fax: +92 (051) 32287710 Email: [email protected] Web: www.kmr.com.pk

    C9. Mazars M.F. & Co. 44-C, 3rd Floor, Badar Commercial, Street 10, Phase V, DHA, Karachi. Tel: +92 (021) 35342801-06 Web: www.mazars.pk

    C10. Qavi & Co. Suites No. 717 & 718, Caesars Tower, Shahrah-e-Faisal, Karachi. Tel: +92 (021) 32791966-68Fax: +92 (021) 32791969 Email: [email protected] Web: www.qaviandco.com

    C11. Rafaqat Mansha Mohsin Dossani Masoom & Co. Suite No. 113, 3rd Floor, Hafeez Centre, A/34, K.C.H.S, Block No. 07 & 08, Shahrah-e-Faisal, Karachi. Tel: +92 (021) 34392361-62 Fax: +92 (021) 34320693 Email: [email protected] Web: www.mmdk.com.pk

    C12. Sarwars, Office No. 12 & 14, 2nd Floor, Lahore Centre, 77-D, Main Boulevard, Gulberg III, Lahore. Tel: +92 (042) 35782920-22 Fax: +92 (042) 35773825 Email: [email protected] Web: www.saewarsca.com

    C13. S. M. Suhail & Co. Suite No. 1001-1014, 10th Floor, Uni Centre, I.I. Chundrigar Road, Karachi Tel: +92 (021) 32414057, 32414163 Fax: +92 (021) 32416288 Email: [email protected], Web: www.smsco.pk

    C14. Uzair Hammad Faisal & Co. 37- Main Gulberg, Lahore. Tel: +92 (042) 35877470, 35879310 Email: [email protected] Web: www.uhf.com.pk

  • Weekly foreign exchange reserves ease to $20.042 billion

    Weekly foreign exchange reserves ease to $20.042 billion

    KARACHI: The weekly position of foreign exchange reserves of the country eased to $20.042 billion by week ended February 19, 2021, the State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $20.059 billion by week ended February 12, 2021.

    The official foreign exchange reserves held by the central bank slightly increased to $12.909 billion by week ended February 19, 2021 as compared with $12.890 billion a week ago.

    Similarly, the foreign exchange reserves held by the commercial banks fell to $7.133 billion by week ended February 19, 2021 as compared with $7.169 billion a week ago.

  • SBP asked to restore biometric verification for online banking services

    SBP asked to restore biometric verification for online banking services

    KARACHI: The Banking Mohtasib has asked the State Bank of Pakistan (SBP) to restore the verification through biometric system for activation/re-activation of online banking services.

    The non-availability of biometric verification system is creating unsafe environment for banking customers, according to annual report for the year 2020 issued by the office of Banking Mohtasib Pakistan on Thursday.

    The Mohtasib said that the SBP vide its PSD Circular No. 9 of 2018, (dated November 28, 2018), made it mandatory for banks to have biometric verification at any branch of their banks for activation/ re-activation of online banking services, including internet/mobile banking for their customers.

    The above instructions were suspended vide PSD Circular No. 2 of 2020 (dated March 18, 2020) which inter-alia was one of the measures to control the spread of pandemic of COVID-19.

    However, it has been observed from complaints received in Banking Mohtasib Pakistan office that the fraudsters are taking advantage of suspension of bio-metric verification conditionality as since suspension the number of complaints relating to IBFT/internet banking transactions are increasing day by day.

    “The SBP is, therefore, recommended to lift the suspension, if considered appropriate, or some alternate for bio-metric be introduced to reduce/avoid miseries of innocent account holders.”

    In other recommendations to SBP, the Banking Mohtasib office pointed out systemic deficiencies and control weaknesses within banks.

    Such weaknesses are brought to the attention of banks’ senior management. For issues of a serious nature, a report is submitted to the State Bank of Pakistan for action as it may consider appropriate.

    Some of the issues which have been brought to the notice of State Bank of Pakistan for appropriate regulatory intervention are as under:

    • It has been observed that instructions issued by SBP from time to time vide their different circulars are not followed by banks in letter and spirit. One of the reasons may be the inflow of variety of circulars and change in instructions or various modifications on the same subject which cannot be grasped / adopted by banks due to frequent changes in the instructions and influx of certain information from time to time.

    It is, therefore, recommended that a Master Circular on each subject may be issued so that all the Instructions / modifications may be centralized and incorporated in a Master Circular in order to facilitate banks as well as all the stake holders.

    • A comprehensive consumer complaints data is available, but at present it is dispersed among individual banks, SBP and Banking Mohtasib office. SBP and Banking Mohtasib Pakistan office have published some statistics in this regard, but there is a need for a consolidated data base of all consumer complaints which would facilitate the regulator as well as banks to better identify and address recurring problems and areas of weak controls. It is recommended that a data on all consumer complaints be made for effective analysis.

    • Section 82 B (4) (b) of Part IV A of the Banking Companies Ordinance, 1962, confers the power and responsibility to the Banking Mohtasib to facilitate an amicable resolution of complaints after hearings. However, this is rendered impossible for the reason that the managers or officers of banks appearing at the hearing have no such authority from their institutions to negotiate and arrive at an amicable settlement and they tend to refer the simple issues to their Head Offices which not only delays the process of speedy justice, but also leads to a series of further communications.

    Further, Banking Mohtasib Pakistan has noticed many instances where banks agree to make payment to complainants, but the process of their internal approval is largely found to be time consuming which defeats the very basic purpose of providing speedy justice.

    The banks are thus required to make their complaint resolution mechanism compatible to relevant law to ensure prompt payment to the customer in case of complaints attaining finality under law or resolved by process of amicable settlement.

    • Reducing of notice period of complaint from customers from 45 to 15 days as it appears to be a long period which deprives the Complainant from early resolution of their complaint.

    • As per Section 82 D (1) of Banking Companies Ordinance, 1962, the Complainant is required to file his Complaint on Oath. However, It is suggested that amendment may be made in the relevant section and Complainant may be allowed to submit an undertaking instead of an attestation by the Oath Commissioner.