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  • Foreign exchange reserves increase to $18.906 billion

    Foreign exchange reserves increase to $18.906 billion

    KARACHI: The foreign exchange reserves of the country increased by $37 million to $18.906 billion by week ended March 06, 2020, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves were at $18.869 billion a week ago.

    The official reserves of the central bank increased to $12.789 billion by week ended March 06 from previous week‘s level of $12.757 billion.

    The reserves held by commercial banks was at $6.115 billion as against $6.111 billion by week ended February 28, 2020.

  • Central banks lowering rates in response to coronavirus threat

    Central banks lowering rates in response to coronavirus threat

    KARACHI: Central banks of the world are responding to negative impact of coronavirus impact and they are reducing interest rate, said a top official of the State Bank of Pakistan (SBP).

    Syed Murtuza, Deputy Governor, SBP while addressing at a seminar on impact of coronavirus on economy organized by Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday.

    The deputy governor said that due to deterioration in economy the central banks of many countries had reduced interest rates. He said that after Federal Reserve of the US the central banks of UK, Canada and Australia had also brought down the discount rates.

    Murtuza Sayed said that the spread of coronavirus disease (COVID-19) was different with every changing day.

    The cases in China are now on decline and situation is improving.

    He hoped that the bad situation would be improved by May this year. However, this epidemic may cause difficult economic situation for at least one quarter, he added.

    He said that according to the IMF the coronavirus would cause decline in world economic growth in 2020.

    He said that there was opportunity for Pakistan to improve exports in this situation. However, he said that Pakistan economy may have repercussions of world economic slowdown.

  • Remittances grow by 5.4% in July-February

    Remittances grow by 5.4% in July-February

    KARACHI: The workers’ remittances received during July – February 2019/2020 amounted to $15.126 billion recording an increase $770.7 million or 5.4 percent over remittances received during July – February FY19 ($ 14,355.8 million), State Bank of Pakistan (SBP) said on Tuesday.

    Workers’ remittances during February 2020 amounted to $ 1,824.3 million recording a decrease of $ 83 million or 4.4 percent over remittance received during previous month (January 2020 $ 1,907.32 million).

    The remittances during February 2020 ($ 1,824.3 million) increased by $ 242.6 million or 15.3 percent over remittance received during corresponding month of FY 19 ($ 1,581.8 million).

    During February 2020, larger amounts of Workers’ Remittances are received from Saudi Arabia ($ 421.96 million), UAE ($ 387.1 million), USA ($ 333.5 million) and UK ($ 253.5 million) recording a decrease of 2.6 percent, 2.1 percent, 0.5 percent and 15.2 percent respectively as compared to January 2020.

  • SBP to announce monetary policy on March 17

    SBP to announce monetary policy on March 17

    KARACHI: State Bank of Pakistan (SBP) will announce monetary policy statement for next two months on March 17, 2020, a statement said on Monday.

    The monetary policy committee (MPC) will review the existing policy rate along with economic indicators and inflation.

    The SBP kept the policy rate at 13.25 percent during the three policy statement.

    The SBP kept the policy rate unchanged at 13.25 percent since July 2019 on the back of uptick in prices of consumer items.

    Market analysts anticipate 100 basis points cut in policy rate due to sharp decline in world oil prices and improvement in economic indicators.

  • Banks directed to observe working on weekly holidays for Hajj form collection

    Banks directed to observe working on weekly holidays for Hajj form collection

    KARACHI: In a move to ease the process for prospective Hajj pilgrims, the State Bank of Pakistan (SBP) has issued a directive to banks, instructing them to keep their doors open on weekends.

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  • Foreign exchange reserves increase by $126 million

    Foreign exchange reserves increase by $126 million

    KARACHI: February 28, 2020 – Pakistan’s total liquid foreign exchange reserves posted a notable increase of $126 million during the week ended February 28, 2020, according to data released by the State Bank of Pakistan (SBP) on Thursday.

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  • Banking deposits hit all-time high on attractive policy rate

    Banking deposits hit all-time high on attractive policy rate

    KARACHI: The deposits of banking system hit all-time high of Rs14.672 trillion by end of January 2020 owing to higher returns on attractive interest rates.

    According to State Bank of Pakistan (SBP), the deposits of banking system grew by 12.36 percent to Rs14.672 trillion by January 2020 as compared with Rs13.057 trillion in the same month of the last year.

    The banking deposits were previously hit all-time high of Rs14.632 trillion by end of December 2019.

    Analysts said that the higher interest rate attracted the investors to keep their money in banking system for higher returns.

    The SBP kept the policy rate unchanged at 13.25 percent in the last monetary policy on January 28, 2020.

    The analysts also believed that the slowdown in economy also discouraged new investment in the industrial and other avenues. Therefore, profit through banking deposits has become prime option.

    The higher deposits also provided room for banks to invest in government papers. The higher investment in government securities resulted in significant profitability of the banks.

    Analysts said that the year 2019 was an exceptional year for the banking sector with profitability increasing by 20 percent or Rs30 billion to reach Rs177 billion, in spite of economic slowdown.

    The primary driver this year has been the net interest income which has increased by 27 percent from Rs486 billion to Rs620 billion, which is mainly due to higher interest rates.

    Weighted average policy rate in 2019 remained 12.2 percent compared to 7.2 percent in 2018.

    In absolute terms, the highest yearly profit was earned by MCB bank (Rs23.8 billion) followed by UBL (Rs19 billion) and NBP (Rs16.6 billion). However in terms of earnings growth BIPL came out on top with 247 percent growth followed by MEBL with 73 percent and AKBL with 58 percent growth, said analysts at Arif Habib Limited.

    As mentioned Net Interest Income (NII) of the banks remained major earnings driver in 2019. In Pakistan rising interest rates bodes well for banks as around 34 percent of deposits are non-remunerative (Current Deposits on which banks give no return) that leads to a higher spread. Top banks with the highest growth in NII are BIPL (78 percent), MEBL (65 percent) and SCBPL (50 percent).

  • Pakistan’s foreign exchange reserves flat at $18.743 billion

    Pakistan’s foreign exchange reserves flat at $18.743 billion

    KARACHI: Pakistan’s liquid foreign exchange reserves were flat at $18.743 billion by week ended February 21, 2020, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $18.747 billion by week ended on February 14, 2020.

    The official reserves of the central bank increased by $87 million to $12.592 billion by week ended February 21, 2020 as compared with $12.505 billion a week ago.

    However, reserves held by commercial banks fell by $91 million to $6.151 billion by week ended February 21, 2020 as compared with $6.242 billion a week ago.

  • SBP directs banks to collect Hajj applications on coming weekly holidays

    SBP directs banks to collect Hajj applications on coming weekly holidays

    KARACHI: State Bank of Pakistan (SBP) on Monday directed banks to collect Hajj applications and other dues on coming weekly holidays on Saturday February 29 and Sunday March 01.

    A statement issued by the SBP stated that in order to facilitate the intending pilgrims to deposit application forms along with dues for Hajj 2020, 13 authorized banks had been directed to keep all their designated branches open from 10:00 a.m. to 2:30 p.m. on Saturday and Sunday (i.e. 29-02-2020 and 01-03-2020) throughout the country.

    Earlier, in terms of Hajj Policy 2020, the Ministry of Religious Affairs & Interfaith Harmony has authorized 13 banks (viz. National Bank of Pakistan, Habib Bank, United Bank, MCB Bank, Allied Bank, Bank of Punjab, Bank Alfalah, Zarai Taraqiati Bank, Faysal Bank, Askari Bank, Bank Al-Habib, Habib Metropolitan Bank and Meezan Bank) to collect application forms along with dues from intending pilgrims for Hajj 2020 w.e.f. February 25, 2020 till March 06, 2020 throughout the country.

  • Bearer Prize Bonds of Rs40,000 not to be encashed after March 31

    Bearer Prize Bonds of Rs40,000 not to be encashed after March 31

    KARACHI: State Bank of Pakistan (SBP) has said that people can encashed Rs40,000 bearer prize bonds on or before March 31, 2020 and after that the financial instruments cannot be redeemed.

    The central bank issued frequently asked questions (FAQs) related to the withdrawal of Rs. 40,000/- National Prize Bonds (Bearer) from Circulation to facilitate general public and investors.

    Q: Have National Prize Bonds (Bearer) of Rs.40,000/- denomination been withdrawn from circulation?

    A: Yes. The Finance Division (Budget Wing), Government of Pakistan vide Notification No. F.16(3)GSI/2014-1072 dated June 24, 2019 has restricted the sale of National Prize Bonds (Bearer) of Rs.40,000/-denomination after June 24, 2019.

    Q: Is there a time limit for conversion/encashment of my National Prize Bonds (Bearer) of Rs.40,000/- denomination?

    A: Yes. As per aforementioned Notification from the Government of Pakistan, National Prize Bonds (Bearer) of Rs. 40,000/- denomination can be encashed/redeemed upto March 31, 2020, after which they would not be encashed / redeemed.

    Q: How can I encash/redeem my National Prize Bonds (Bearer) of Rs.40,000/- denomination?

    A: The National Prize Bonds (Bearer) of Rs.40,000/- denomination can be encashed using the following options:

    1. Conversion to Premium Prize Bonds (Registered)

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

    3. Encashment through Bank Account

    Q: How can I convert my National Prize Bonds (Bearer) of Rs.40,000/- denomination to Premium Prize Bonds (Registered)?

    A: The National Prize Bonds (Bearer) of Rs.40,000/- denomination can be converted to Premium Prize Bonds (Registered) through the 16 field offices of SBP Banking Services Corporation, and 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 documentary requirements for the purchase of Premium Prize Bonds (Registered) are available at: http://www.sbp.org.pk/sbp_bsc/PrizeBond/premium/FAQs.pdf

    Q: How can I replace my National Prize Bonds (Bearer) of Rs.40,000/- denomination with Special Savings Certificates (SSC) / Defence Saving Certificates (DSC)?

    A: The National Prize Bonds (Bearer) of Rs.40,000/- denomination can be replaced with SSC / DSC through the 16 field offices of SBP Banking Services Corporation, Authorized Commercial banks and National Savings Centers.

    Q: How can I encash my National Prize Bonds (Bearer) of Rs.40,000/- denomination through bank account?

    A: On submission of request on the prescribed application form (details at Q7 below) at 16 field offices of SBP Banking Services Corporation or Commercial Banks, the proceeds of encashment shall be credited to the bond-holder’s bank account.

    Q: What information/documents are required to convert/redeem/encash my National Prize Bonds (Bearer) of Rs.40,000/- denomination?

    A: Request for conversion/encashment of Rs.40,000/- National Prize Bonds (Bearer) shall be submitted on prescribed application form which is available at the following weblink:

    http://www.sbp.org.pk/sbp_bsc/BSC/CMD/Circulars/2019/C1-Annex-A-Application-Form.pdf.

    The requisite information/documents required for each encashment option is as follows:

    1. Conversion to Premium Prize Bonds (Registered): Legible copy of valid CNIC / SNIC, Account

    Maintenance Certificate (not older than one month from application date), Valid IBAN number

    2. Replacement with Special Savings Certificate (SSC) / Defence Savings Certificate (DSC): Legible Withdrawal of Rs. 40,000/- National Prize Bonds (Bearer) from Circulation copy of valid CNIC / SNIC

    3. Encashment through Bank Account: Valid IBAN number

    Q: Can I receive cash against my National Prize Bonds (Bearer) of Rs.40,000/- denomination?

    A: No. The National Prize Bonds (Bearer) of Rs.40,000/- denomination can only be encashed using the following options:

    1. Conversion to Premium Prize Bonds (Registered)

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

    3. Encashment through Bank Account

    Q: Is there any tax / deduction against the conversion/encashment of National Prize Bonds (Bearer) of Rs.40,000/- denomination ?

    A: No. There is no tax / deduction for any of the approved conversion/encashment options.

    Q: For encashment of National Prize Bonds (Bearer) of Rs.40,000/- denomination through bank account, can I visit any Commercial Bank, or do I have to visit the Commercial Bank in which my account is maintained ?

    A: The National Prize Bonds (Bearer) of Rs.40,000/- denomination bonds can be encashed at any branch of the Commercial Bank in which bondholder maintains an “individual” account.

    Q: What is the timeline for credit of Face Value into my bank account?

    A: The Face Value shall be credited to the bank account on the same day, subject to provision of required information.

    Q: National Prize Bonds (Bearer) of Rs.40,000/- denomination are being encashed against cash at a discount rate. Is it allowed?

    A: As per Rule 3(2) of Prize Bonds Rules 1999, only Offices of the State Bank of Pakistan Banking Services Corporation, Commercial Banks authorized in this behalf by SBP, and National Savings Centers are authorized to carry out business of National Prize Bonds (Bearer). Further, the Rule 3(3) of the said Rules restricts any other office, body or institution other than the office, body or institutions specified in Rule 3(2) of Prize Bonds Rules, 1999 from conducting any business relating to National Prize Bonds (Bearer).

    The SBP said that the bondholders receive full amount (without any deduction) for any of the approved conversion/encashment options.

    Q: Will there be any further prize money draws for National Prize Bonds (Bearer) of Rs.40,000/- denomination?

    A: No. The last draw (78th draw) for Rs.40,000/- denomination National Prize Bonds (Bearer) was conducted on June 3, 2019. As per the Notification from Finance Division (Budget Wing) Government of Pakistan, no further prize money draws shall be conducted for National Prize Bonds (Bearer) of Rs.40,000/- denomination.

    Q: I have a prize-winning National Prize Bond (Bearer) of Rs.40,000/- denomination. What is the time limit for claiming my prize ?

    A: Under the governing rules, the prize money may be claimed by the holder of the prize bond at any time within a period of six years from the date of draw.

    Q: Can I encash damaged National Prize Bond (Bearer) of Rs.40,000/- denomination?

    A: Yes. Damaged National Prize Bonds (Bearer) of Rs.40,000/- denomination can be encashed at the 16 field offices of SBP Banking Services Corporation. However, it is pertinent to note that all such claims shall Withdrawal of Rs. 40,000/- National Prize Bonds (Bearer) from Circulation be decided by the authorized officials in light of relevant regulations.