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Tag: SBP

  • SBP develops regulatory framework for cross border e-commerce

    SBP develops regulatory framework for cross border e-commerce

    ISLAMABAD: State Bank of Pakistan (SBP) has developed regulatory framework for facilitation of cross border B2C e-commerce.

    However, this will be adopted after integration with the e-Commerce to be developed by Federal Board of Revenue (FBR) in WeBOC (Web Based One Customs).

    The officials of SBP shared this information at the second meeting of National e-Commerce Council, chaired by Abdul Razak Dawood, Advisor to the Prime Minister on Commerce and Investment on Thursday.

    All of the nominated members of the Council, including State Bank of Pakistan, Ministry of IT & Telecom, Federal Board of Revenue, Securities and Exchange Commission of Pakistan, National Information Technology Board, Provincial Departments of Industries and Commerce, Provincial Revenue Authorities, Pakistan Post, Federal and Provincial Consumer Rights Commission/Councils, Telecom companies, online marketplaces, Fintech sector representatives, Freelancers, Banking sector and Logistics companies attended the meeting.

    The Advisor briefed the participants about the progress achieved in the past months on the e-Commerce Policy, since its approval on October 01, 2019.

    He appreciated the coordinated efforts of public and private sector for the effective implementation of the policy.

    Talking to the participants, Razak Dawood underlined that the trend of e-commerce has increased rapidly in the recent years with the development and easy accessibility of the internet.

    He added that, due to the covid-19 pandemic, the importance of e-Commerce has increased manifolds, making it an extremely vital sector for the economy.

    He stressed the importance of directing the resources towards digital adoption and connecting the SMEs to e-platforms across the globe, while exploring new market access opportunities for them.

    Punjab and Khyber Pakhtunkhwa Revenue Authorities apprised the participants of the incentives being announced for Digital and e-Commerce sector in the provincial budgets to support these sectors during these challenging circumstances.

    Representatives from Consumer Protection Councils of Punjab and Lahore and from Consumer Rights Commission of Pakistan informed that, in line with the directions of the e-Commerce Policy, Federal and Provincial Consumer Acts are being amended to include the subject of e-Commerce and the disputes arising from this sector.

    They added that webinars are being planned to educate academia and train the judicial officers on the subject of consumer protection.

    SECP shared with the participants that several new initiatives are being planned to promote e-Commerce, including introduction of a separate sectoral classification of e-Commerce.

     So far 152 businesses have registered on their portal, which has reduced the time of a company registration to 4 hours.

    Secretary Commerce told the participants that Ministry of Commerce is continuously engaged with its foreign trade missions for promoting Pakistani trade and exploring new markets for its exporters.

    In this regard, a new development is registration of Pakistani sellers with Amazon. Initially, a list of 38 exporters has been communicated to Amazon, which is limited to Surgical & Sports Goods and Home Textiles Sectors but will be expanded to other sectors in near future, after a successful trial of these shortlisted companies.

    A video message from the Director General-WTO, appreciating Pakistan’s e-Commerce Policy being a step in the right direction, was also shared with the participants.

  • Foreign exchange reserves up by $70 million

    Foreign exchange reserves up by $70 million

    KARACHI: The foreign exchange reserves of the country have increased by $70 million to $16.775 billion by week ended June 12, 2020, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves were at $16.705 billion by week ended on June 05, 2020.

    The foreign exchange reserves held by the central bank increased by $11 million to $10.107 billion by week ended June 12, 2020 as compared with $10.096 billion a week ago.

    The foreign exchange reserves held by commercial banks were also increased by $59 million to $6.668 billion from $6.609 billion a week ago.

  • SBP, banks discuss Naya Pakistan Housing Program

    SBP, banks discuss Naya Pakistan Housing Program

    KARACHI: Governor State Bank of Pakistan (SBP) Dr. Reza Baqir called a meeting of Banks on Wednesday for deliberations on the measures proposed by Naya Pakistan Housing and Development Authority (NAPHDA) and identify way forward to ensure sustainable market-led financing of housing projects and mortgages.

    The meeting was chaired by the SBP Governor Dr. Reza Baqir, and attended by Chairman NAPHDA, Lt. General Anwar Ali Haider, and members of the think tank formed by the government including Shaukat Tareen, Arif Habib and Aqeel Karim Dhedhi among others.

    Banks were represented by their respective presidents.

    The SBP governor at the outset praised the work of Lt. General Anwar Ali Haider and NAPHDA for its significant potential contribution in meeting the shortage of housing in the country and accelerating economic activity in the country.

    He said that housing finance has not only remained under-developed in Pakistan as compared with other emerging economies but seen little progress over time. In this regard, therefore, this initiative is of great national interest.

    He emphasized that the construction and housing sectors have strong linkages with the rest of the economic sectors and offer a commercially viable and long term business proposition for banks.

    He also stressed that supporting economic activity in these sectors would support economic growth and particularly employment in current times of economic stress.

    He encouraged banks to view housing and construction finance as an opportunity to broaden their balance sheet and cater to the huge financing needs of the sector.

    The SBP governor reiterated central bank’s commitment to play a facilitative and supportive role while also supporting a healthy credit culture in the country.

    Chairman NAPHDA made a presentation to the banks on the key features of Naya Pakistan Housing Program. He shared the details of the underlying development model for the successful implementation of the initiative.

    Complementing the presentation, Shaukat Tarin, member of the government’s think tank, presented a financial model and elaborated the incentives being offered by the government and emphasized that these will make the financing of developers and mortgages commercially attractive for banks.

    The presidents of banks in their deliberations appreciated the Naya Pakistan Housing Program and expressed their readiness for participating in this initiative of national importance.

    They also made queries and suggestions in this regard. It was decided that banks, NAPHDA, and SBP would work together to prepare an overall roadmap and execution plans with support from the relevant sub-committees of Pakistan Banks Association.

  • SBP suspends service charges to facilitate banks

    SBP suspends service charges to facilitate banks

    KARACHI: The State Bank of Pakistan (SBP) on Wednesday announced temporary suspension of 0.12 percent service charges levied on banks against deposit of re-issuable balance.

    Through FD Circular No. 03/2015, dated August 26, 2015, 0.12 percent service charges have been levied on the banks against deposit of re-issuable balances with SBP BSC offices or NBP chest branches.

    In order to facilitate the banks in managing the excess liquidity, consequent to large volumes of withdrawals on the eve of Eid and the COVID-19 pandemic, it has been decided to extend the temporary suspension of 0.12 percent service charges on deposit of re-issuable balances with SBP BSC offices or NBP chests branches.

    Accordingly, banks can deposit re-issuable balances with SBP BSC offices or NBP chests without levy of 0.12 percent service charges on deposit of re-issuable balances till June 30, 2021.

  • SBP directs banks to ensure payment of prize bonds

    SBP directs banks to ensure payment of prize bonds

    KARACHI: State Bank of Pakistan (SBP) on Monday directed commercial banks to ensure payment of prize bonds i.e. prize money and face value.

    The SBP said that it had observed that commercial banks have not been extending the desired level of support to their customers in availing the facility on payment of prize money and face value of National Prize Bonds through their bank branches.

    In view of the above, all authorized commercial banks are advised to ensure compliance to the following instructions:

    i. The head office / regional offices of each commercial bank shall reiterate the instructions referred at para. 1 above and advise all the designated branches to extend maximum support to their customers in this regard.

    ii. Efforts shall be made to increase the number of designated branches for the subject facility so as to enhance the outreach and ensure adequate geographic coverage.

    iii. The information about availability of this facility shall be prominently displayed on the banks’ official website as also in the premises of the designated branches for information of the general public.

    iv. Customer service officials shall facilitate / brief customers on the availability of this facility in their respective branches.

  • Remittances fall by 18.6 percent in May 2020

    Remittances fall by 18.6 percent in May 2020

    KARACHI: The inflow of workers’ remittance has registered 18.6 percent decline in May 2020 due to job losses and closure of borders due to coronavirus.

    The inflow of workers’ remittances was at $429.2 million in May 2020 as compared with $2.3 billion in the same month of the last year, showing decline of 18.6 percent, State Bank of Pakistan (SBP) said on Friday.

    During this pandemic situation, job losses of overseas workers and closure of international borders are the main factors affecting remittances’ flow. Moreover, in last year, the whole month of Ramadan fell in May 2019, the SBP said.

    During May 2020, workers’ remittances stood at $1,872.8 million, showing an increase of $82.8 million or 4.6 percent over previous month (April 2020, $1,790.0 million).

    Workers’ Remittances amounted to US $ 20,654.5 million during July – May FY20, up by 2.7 percent or US $ 551.5 million over July – May FY19 (US $ 20,103.0 million).

    Major contribution to workers’ remittances during May 2020 came from Saudi Arabia (US $ 436.2 million), USA (US $ 428.3 million), UAE (US $ 323.4 million) and UK (US $ 284.8 million) recording an increase of 25.7 percent and 6.6 percent for UK and USA respectively whereas a decrease of 3.4 percent and 8.6 percent for Saudi Arabia and UAE respectively as compared to April 2020.

  • SBP adopts flexible monetary policy stance on adverse impact of COVID-19

    SBP adopts flexible monetary policy stance on adverse impact of COVID-19

    ISLAMABAD:  The adverse impact on the economy due to COVID-19 has forced the State Bank of Pakistan (SBP) to adopt flexible monetary policy stance, according to Pakistan Economic Survey 2019/2020 released on Thursday.

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  • Foreign exchange reserves slip by $215 million

    Foreign exchange reserves slip by $215 million

    KARACHI: Pakistan’s foreign exchange reserves have declined by $215 million to $16.705 billion by week ended June 05, 2020, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $16.92 billion by week ended May 29, 2020.

    The foreign exchange reserves held by the SBP fell by $266 million to $10.096 billion by week ended June 05, 2020 as compared with $10.362 billion a week ago.

    The central bank attributed the decline to the government external debt repayments of $301 million during the week.

    The foreign exchange reserves held by commercial banks however increased by $51 million to $6.609 billion by week ended June 05, 2020 as compared with $6.558 billion a week ago.

  • SBP disburses Rs96 billion under refinance scheme to dilute COVID impact

    SBP disburses Rs96 billion under refinance scheme to dilute COVID impact

    KARACHI: Dr. Reza Baqir, Governor, State Bank of Pakistan (SBP) has said that so far around 1320 companies availed SBP’s refinance scheme and a sum of Rs96 billion has been disbursed to the applicants during last three months of current fiscal year to dilute adverse impact of COVID-19.

    The SBP governor was exchanging views with Presidents of Karachi, Lahore, Islamabad, Quetta, Faisalabad, Sarhad, Sialkot, Gujranwala, Multan, Mirpurkhas Chambers and also the FPCCI at a meeting held a day earlier via video link, said a statement issued by Karachi Chamber of Commerce and Industry (KCCI).

    The SBP governor said that the refinance scheme was launched as a risk sharing initiative to facilitate SMEs during the ongoing difficult times and minimize the negative impact on numerous businesses caused by the outbreak of coronavirus pandemic.

    He was of the opinion that this meeting via video link with the business and industrial community of entire Pakistan should be held regularly on monthly basis so that the SBP could better understand business community’s requirements and accordingly devise strategies.

    President KCCI Agha Shahab Ahmed Khan, in his remarks, urged the State Bank of Pakistan to publicize details of all the companies who have availed SBP’s refinance scheme with a view to make this scheme transparent otherwise, it is likely that the banks will be accused of giving loans to their favorites and undeserving in future.

    He further stated that several public sector organizations including the State Bank of Pakistan have been following dissimilar definitions for SMEs that creates a lot of confusion and needs to be clarified.

    In response, Governor State Bank assured that the issue has been rectified and all the institutions including SBP are following a uniform definition for SMEs which will be shared with KCCI so that they could understand the overall ambit of SME sector.

    Agha Shahab said that some highly influential people having good contacts in the banking sector have easy access to financing facilities but a large segment of society remains deprived hence, there is a need to ease the overall criteria and paperwork for loan disbursement so that maximum people could benefit from these facilities and are able to survive in the extremely difficult and extraordinary situation being suffered by the business community of entire Pakistan.

    “SBP’s refinance facility offers loans at an attractive interest rate of just 3 percent but many people simply don’t want to pay any interest as it is strictly prohibited in Islam. Hence, the State Bank must look into the possibility of launching another refinance facility with zero percent markup which would certainly provide huge support to the business community in distress”, he added.

  • Bank deposits touch new peak of Rs15.48 trillion

    Bank deposits touch new peak of Rs15.48 trillion

    KARACHI: The deposits of banking system high record high at Rs15.48 trillion in May 2020 despite sharp cut in policy rate cut and Eid festival.

    According to statistics released by State Bank of Pakistan (SBP) on Monday the deposits of banking system sharply grew by 15 percent to Rs15.48 trillion by end of May 2020 as compared with deposits of Rs13.459 trillion in the same month of the last year.

    The deposits of banking system by May 2020 also grew by 7 percent when compared with Rs14.475 trillion in April 2020.

    The banking system witnessed record high deposits despite cut in key policy rate by the SBP during the past two months.

    The SBP in its latest monetary policy announcement on May 15, 2020 reduced the policy rate by 100 basis points to bring down to 8 percent.

    The cumulative reduction in key policy rate was 525 basis points during the past two months.

    Further, the deposits hit record high despite Eid festival when people opt to withdraw cash. However, on this Eid-ul-Fitr the SBP had not issued fresh currency notes due to coronavirus.

    Banking experts said that due to partial halt in business activities and easing lockdown to allow opening of markets in the last days of the month of Ramazan helped the banking system to have massive deposits.