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Tag: SBP

  • Renewable energy projects avail financing Rs36bn for producing 850MW

    Renewable energy projects avail financing Rs36bn for producing 850MW

    KARACHI: Dr. Reza Baqir, Governor, State Bank of Pakistan (SBP) has said that as of February 2021 financing of around Rs36 billion have been extended for 521 projects producing approximately 850 MW.

    He was addressing a webinar jointly hosted by SBP and Unilever Pakistan to create awareness about the SBP’s Renewable Energy Financing Scheme which has been used by Unilever to convert 30 percent of its factories to renewable energy

    Dr Reza Baqir has said thatfinancing for sustainable development is the need of the hour and Financial Institutions have a crucial role in this area.

    Dr. Baqir stated that the Pakistan faces challenge as a result of climate change and adopting prevention strategies are of paramount importance.

    In this regard he pointed out that the SBP has issued Financing Scheme for Renewable Energy with a view to promote renewable energy projects.

    Governor Baqir highlighted the key features of the scheme that can be beneficial for the stakeholders ranging from the corporates to the individuals. The scheme has evolved over time and received strong response and Dr. Baqir urged participants to benefit from this facility.

    Pakistan is member of Global Sustainable Banking Network (SBN) since2015 and green/ sustainable finance policies are being aligned with global environmental and social standards and best practice.

    Chairman and CEO of Unilever Pakistan, Amir Paracha in his address said that the Renewable Energy Financing Scheme offers tremendous social and business value to companies and producers both in terms of their environmental footprint and cost savings ambitions.

    The financing scheme in Pakistan has enabled them to fast-track their renewable energy goals whilst remaining financially feasible. He mentioned that Unilever is sharing this as a best practice for other corporate players, as its sustainability in its best form. They are benefitting the country and environment whilst their own business has seen a positive impact.

    SBP’s Renewable Energy Financing scheme is an innovative solution that aims to encourage investments for clean energy in Pakistan. This is part of the country’s efforts to diversify the energy mix and reduce climate change impact.

    The scheme offers varied financing options ranging from Rs400 million to Rs6 billion for a range of entities and persons. This includes captive energy units as well as commercial projects and individual consumers who may share excess production with the national grid.

    The SBP issued its Financing Scheme for Renewable Energy in 2016 and based on positive feedback the scheme was revised in July 2019. SBP also introduced a Shariah compliant version of this Scheme in August 2019.

    The scheme aims at meeting Pakistan’s growing electricity demand through renewable energy and promoting clean energy projects as part of Sustainable Development Goals (SDGs).

    It promotes the use of indigenous resources such as wind, solar and hydro to generate electricity as well as encourages the use of renewable energy at consumer level to support NEPRA’s Net Metering Regulations.

    As part of this financing scheme, Unilever availed a loan of Rs833 million through Standard Chartered Bank to set up 8.85 MW of renewable energy production facilities across four factories in Punjab. This effort is in line with Unilever’s global mission for carbon neutrality and sustainability in its manufacturing process.

    Unilever has committed to remove carbon emissions from operations by 2030, as well as net zero emissions from their products by 2039, which will be 11 years ahead of the 2050 Paris Agreement.

    The renewable energy solution was implemented by Reon Energy Limited, producing 13 million KW units of energy per year, resulting in annual savings of PKR 182 million and a reduction in 5,075 tons of CO2 emissions. The impact of projects such as the one implemented by Unilever prove the benefits of adopting renewable energy solutions by the wider industry in Pakistan.

    The webinar was attended by various chambers, media organizations, Presidents and CEOs of banks, energy experts, representatives of Pakistan Business Council and senior officials from SBP.

  • Bank holidays for Eid announced

    Bank holidays for Eid announced

    KARACHI: Banks shall observe six days holidays on the occasion of Eid-ul-Fitr. The State Bank of Pakistan (SBP) on Tuesday said that it will remain closed from 10th to 15th May, 2021 (Monday to Saturday) on the occasion of Eid-ul-Fitr.

    Simultaneously, banks shall also observe the holidays on the said dates. However, through another notification the SBP allowed the banks to open all the branches on Saturday May 08, 2021 to facilitate their customers.

    “In the wake of forthcoming Eid-ul-Fitr holidays from 10th to 15th May, 2021 and to cater the banking needs of public at large, it has been decided that all branches of banks / MFBs shall remain open on May 8, 2021 (Saturday) from 9:00 a.m. to 2:00 p.m. (without break).”

  • Banks to remain open on May 08

    Banks to remain open on May 08

    KARACHI: State Bank of Pakistan (SBP) on Tuesday directed to banks to observe working hours on May 08, 2021 to facilitate their customers ahead of Eid-ul-Fitr.

    The central bank said that in the wake of forthcoming Eid-ul-Fitr holidays from May 10 – May 15, 2021 and to cater the banking needs of public at large, it has been decided that all branches of banks/microfinance banks would remain open on May 08, 2021 (Saturday) from 9:00 am to 2:00 pm (without break).

  • Govt. to borrow Rs4,100 billion through sale of MTBs

    Govt. to borrow Rs4,100 billion through sale of MTBs

    KARACHI: The government has announced to borrow around $s4,100 billion through auction of market treasury bills (MTBs) during three months in order to meet budget financing.

    The State Bank of Pakistan (SBP) on Monday issued schedule for the auction of three-, six- and 12-month treasury bills.

    Out of scheduled sale of Rs4,100 billion treasury bills, an amount of Rs3,453 billion for the payment of maturities during the period of May – July 2021.

    The SBP to auction the treasury bills on May 05, May 19, June 02, June 16, June 30, July 14 and July 28 of the current year.

    The SBP set a target of Rs1,000 billion for the sale of 3-month treasury bills, Rs1,500 billion for the sale of six-month bills and Rs1,600 billion for the sale of 12-month treasury bills during May – July 2021.

  • What is last date for redemption of Rs40,000 prize bonds

    What is last date for redemption of Rs40,000 prize bonds

    ISLAMABAD: Regulators are at odds over the last date for conversion/redemption of Rs40,000 denomination national prize bonds, which created distress amongst the prize bondholders.

    A public notice was issued by the Central Directorate of National Savings (CDNS) in February 2021, that the government had discontinued the sale of National Prize Bonds (Bearer) of Rs25,000 and Rs40,000. “The deadline for redemption/encashment of these bonds is May 31, 2021.

    On the other hand, the State Bank of Pakistan (SBP) through its CMD Circular No. 07 dated December 08, 2020, stated: “the finance division, the government of Pakistan has extended the last date for encashment/replacement / conversion of Rs40,000 denomination National Prize Bonds (Bearer) till December 30, 2021, vide their Notification No. F.16(3)GS-1/2014-1603 dated November 26, 2020.”

    The finance division issued notification for withdrawal of Rs25,000 denomination national prize bonds from circulation in December 2020.

    Another SBP CMD Circular No. 08 dated December 10, 2020, stated: “National Prize Bonds of Rs25,000 denomination shall not be sold with immediate effect and will not be encashed/redeemed after May 31, 2021.”

    The public notice issued by the National Savings warned the holders who have not encashed their bonds so far, to redeem/encash Rs25,000 and Rs40,000 prize bonds before the deadline of May 31, 2021, using the following options:

    — Replace with Rs25,000 & Rs40,000 Premium prize bonds (registered)

    — replace with special saving certificates (SSC) / Defence Saving Certificate (DSC)

    — Encashment through Bank Account

    “After the deadline no such bonds will be redeemed/encashed,” it said.

    Sale of Prize Bonds Rs7,500, Rs15,000 stopped forthwith
  • SBP directs banks to provide tracking numbers against housing loan applications

    SBP directs banks to provide tracking numbers against housing loan applications

    KARACHI: State Bank of Pakistan (SBP) has taken notice of delayed processing of housing loans by banks and issued directives in this regard to ensure speedy process of applications.

    The central bank on Friday said that it was receiving a number of complaints especially regarding delayed processing, long turnaround time and no mechanism to track the financing application after submission.

    In this regard, banks/DFIs are directed to take the following measures:

    a. Immediately start providing to the applicants a receipt with unique tracking number against each housing finance application. Meanwhile, banks/DFIs are advised to put in place within 30 days from the date of this Circular an online e-tracking mechanism and a phone based help line to provide, on query of applicant, status and expected time required for decision on application.

    b. Devise a system to monitor 30 days Turn Around Time (TAT) for decision on applications received.

    c. Record and convey reasons of rejection of housing finance application to the applicant in simple and clear form.

    d. Equip the branch officials, through trainings and alignment of systems and procedures, to perform initial scrutiny and inform the customer about missing requirements/documents at the time of submission of application.

    e. Conduct rigorous trainings of branch officials to enhance their knowledge on G-MSS and improve their behavior towards customers.

    f. Conduct capacity building of call center officials to adequately address queries of customers.

    It has also been observed that complaints lodged on State Bank complaint portal remain pending with banks for unduly long times.

    The banks/ DFIs are advised to adopt appropriate measures to resolve complaints in timely manner.

    Moreover, policy for designation of focal person for State Bank complaint portal must be reviewed and it should be ensured that at least one focal person is present in each region to handle the complaints.

    Furthermore, potential borrowers under G-MSS have complained about exorbitant processing charges. Accordingly, banks/DFIs are advised to review and rationalize their processing fee for financing considering their actual costs and provide breakup of these charges to the applicants at the time of receipt of applications.

    In order to increase prospects of applicants to avail housing finance under G-MSS, banks/DFIs are advised to guide the applicants regarding the options of 100 percent clubbing of income of up to four co-applicants and enhancing their credit worthiness through third party guarantee as allowed vide IH&SMEFD Circular No. 01 of 2021.

  • Sale of Prize Bonds Rs7,500, Rs15,000 stopped forthwith

    Sale of Prize Bonds Rs7,500, Rs15,000 stopped forthwith

    ISLAMABAD: The finance ministry on Thursday announced that national prize bonds of denominations Rs7,500 and Rs15,000 shall not be sold with immediate effect.

    In different notifications the finance division announced to withdraw the prize bonds of denominations Rs7,500 and Rs15,000 from circulation with immediate effect.

    According to the notifications:

    “… Prize bonds of Rs7,500 denominations shall not be sold with immediate effect and will not be encahsed / redeemed after December 31, 2020 … “

    “ … Prize bonds of Rs15,000 denomination shall not be sold with immediate effect and will not be encahsed / redeemed after June 30, 2021 … “

    The finance divisions also issued the procedure for redemption/conversion of bonds.

    The bonds can be converted to premium prize bonds (registered) of denomination of Rs25,000 and Rs40,000 (subject to the adjustment of differential amount) through 16 field offices of State Bank of Pakistan (SBP) Banking Services Corporation, and branches of six commercial banks i.e. National Bank of Pakistan, Habib Bank Limited, United Bank Limited, MCB Bank Limited, Allied Bank Limited and Bank Alfalah Limited.

    The bonds can be replaced with Special Saving Certificates/Defence Saving Certificates through the 16 field offices of SBP Banking Services Corporation, authorized commercial banks and National Savings Center.

    The bonds will only be encashed by transferring the proceeds to the bonds holder’s bank account through the 16 field offices of SBP banking services corporation well as the authorized commercial bank branches and to the Saving Accounts at National Savings Centers.

    Investors redeem Rs115 billion against suspended Rs25,000 prize bonds
  • PM hopes car scheme to generate demand for domestic industry

    PM hopes car scheme to generate demand for domestic industry

    KARACHI: Prime Minister Imran Khan paid rich tribute to Overseas Pakistanis for their overwhelming response to the Roshan Digital Account (RDA). He said their support and vote of confidence have been pivotal in making the initiative a big success within a short period of time, according to a press release issued by State Bank of Pakistan (SBP) on Thursday.

    The prime minister was addressing a gathering of ministers, CEOs of car manufacturers and insurance companies, heads of leading charities, presidents of banks, SBP officials and other distinguished guests to celebrate the $1 billion mark in RDA deposits and to launch two additional products specially created for Overseas Pakistanis through RDA—Roshan Apni Car and Roshan Samaaji Khidmat.

    The success of RDA and today’s addition of further products under this scheme demonstrate that if the public and private sector work together in a spirit of cooperation, any project is bound to succeed, he added.

    The Prime Minister appreciated the out-of-the-box approach of the SBP and the banking industry in digitally connecting Overseas Pakistanis to the Pakistani banking system and economy through RDA. He also lauded the continued innovation they are showing through the addition of the Roshan Apni Car and Roshan Samaaji Khidmat products.

    He hoped that the Roshan Apni Car initiative would not only help Overseas Pakistanis to fulfill the needs of their loved ones in Pakistan but would also create additional demand for the car industry that will in turn help them and connected industries to grow at a faster pace.

    He was also confident that Roshan Samaaji Khidmat will be able to provide a convenient one stop donation platform for Overseas Pakistanis to meet their charitable giving goals and Zakat obligations. Appreciating the spirit of charity demonstrated time and time again by Overseas Pakistanis, he noted that these additional funds will help social sector organizations and NGOs to help an even larger number of disadvantaged people in Pakistan. The Prime Minister was especially pleased to note that, for the first time, Overseas Pakistanis will now also be able to contribute to “Ehsaas”, the government’s internationally acclaimed poverty alleviation program, through Roshan Samaaji Khidmat.

    In his welcome address, Governor SBP, Dr. Reza Baqir, thanked the Honourable Prime Minister for his vision of connecting the Pakistani diaspora through financial services and for his constant encouragement and guidance.

    He said he was feeling proud today that banks were able to receive $1 billion in deposits through RDA in such a short period of time. Recalling the launch of RDA in September 2020, he said that the first major milestone of receiving $500 million was passed after five months.

    After only another two months, the $1 billion mark has been crossed, demonstrating the accelerating pace inflows. He noted that more than 120,000 Roshan Digital Accounts have been opened from 170 countries around the world.

    He remarked that deposits through these accounts were providing a brand new source of foreign exchange inflows that were helping to improve Pakistan’s foreign exchange reserves and balance of payments position. He appreciated the hard work of all the staff and senior management of both the banks and SBP, noting that their dedication and spirit of constant innovation have been critical to the success of the initiative.

    Roshan Digital Account was conceived to offer lifestyle banking products in Pakistan to Overseas Pakistanis, including money deposit facilities, investment opportunities in Naya Pakistan Certificates, the stock market and real estate, as well as other day to day payment facilities. This suite of lifestyle products is being constantly expanded, with today’s launch of Roshan Apni Car and Roshan SamaajiKhidmat being the latest example.

    Roshan Apni Car has been specially designed for Overseas Pakistanis and has many distinguishing features. For the first time in the history of the banking industry, an RDA holder will be able to apply for car financing for their loved ones in Pakistan completely digitally. Processing time will be fast. Financing and insurance will be available at very attractive rates, and in both conventional and Shariah compliant forms. Moreover, car manufacturers have committed to significantly slashing the car delivery time for RDA holders.  

    Roshan SamaajiKhidmatis a one stop payment platform to enable Overseas Pakistanis to make donations to leading charities, hospitals and educational institutes in Pakistan, as well as to meet their  Zakat obligations. In addition to these private sector organizations, SBP also worked closely with Special Assistant of the Prime Minister of Pakistan on Poverty Alleviation and Social Protection, Dr. SaniaNishtar, and her team to integrate “Ehsaas”, the government’s flagship poverty alleviation program, with the Roshan Samaaji Khidmat portal.

    As a result, private participation in one of the world’s most acclaimed poverty alleviation programsis being made possible for the first time.

    Through Roshan Samaaji Khidmat, Overseas Pakistanis are being given the opportunity to make direct contributions to the program. In so doing, they would be providing vital support to the government’s efforts to lift millions of their fellow Pakistanis out of poverty.

  • Foreign exchange reserves increase by $307 million to $23.52 billion

    Foreign exchange reserves increase by $307 million to $23.52 billion

    KARACHI: The foreign exchange reserves of the country increased by $307 million to $23.52 billion by week ended April 23, 2021, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $23.213 billion by week ended April 16, 2021.

    The foreign exchange reserves of the central bank increased by $384 million to $16.428 billion by week ended April 23, 2021 as compared with $16.044 billion a week ago.

    However, foreign exchange reserves held by commercial banks fell by $77 million to $7.092 billion by week ended April 23, 2021 as compared with $7.169 billion a week ago.

  • SBP revises bank timings

    SBP revises bank timings

    KARACHI: State Bank of Pakistan (SBP) on Wednesday revised the office and public dealing hours of banks.

    The SBP said that in line with the decision of National Command & Operation Centre (NCOC) to contain the spread of COVID-19, the SBP will observe the following office hours, which will also be followed by all banks / DFIs / MFBs till further orders:

    Bank office hours:

    Monday to Thursday from 9:00 a.m. to 2:00 p.m. (without break)

    Friday from 9:00 a.m. to 1:00 p.m. (without break)

    Banks / MFBs have been advised to observe the following business (banking) hours for public dealing:

    Monday to Thursday from 9:00 a.m. to 1:00 p.m. (without break)

    Friday 9:00 a.m. to 12:30 p.m. (without break)

    Previously, the SBP issued bank timings during Ramazan on April 12, 2021. However, new timings shall supersede the instructions contained in BPRD Circular Letter No.10 dated April 12, 2021.