KARACHI: The overseas Pakistani workers have sent $13.3 billion as remittances during first seven months (July – January) of 2019/2020, showing 4.1 percent growth when compared with same period of the last fiscal year.
The overseas Pakistani had sent $12.774 billion in the first seven months of the last fiscal year, State Bank of Pakistan (SBP) said on Wednesday.
The remittances during January 2020 were $ 1,907.3 million, shows an increase of $163.2 million or 9.3 percent growth over remittance received during corresponding month of 2019 $1,744.1 million.
During January 2020, larger amounts of Workers’ Remittances received from Saudi Arabia, UAE, USA and UK with US $ 433.4 million, US $ 395.5 million, US $ 335.1 million and US $ 299.1 million recorded a decline of 8.4 percent, 7.5 percent, 6.3 percent and 7.9 percent respectively as compared to December 2019.
KARACHI: The State Bank of Pakistan (SBP) on Wednesday enhanced payment limits against freelance services from $5,000 per individual per month to $25,000 per individual per month.
The central bank in a statement said that in order to broaden the scope of business-to-customer transactions through home remittance channel it had enhanced payment limits against freelance services in computer and information systems and other freelance services from $5,000 per individual per month to $25,000 per individual per month.
The enhancement in limit will facilitate freelancers to route greater value of funds through a more economical and efficient channel of home remittances and help in receiving foreign exchange flows through formal banking channels in the country. This would also enable freelancers to expand their business/ operations and engage new freelancers to join the workforce.
This is expected to create employment opportunities and increase foreign exchange earnings of the country.
While Export of Services has been growing in double digits, (10.5 percent rise registered in January, 2020), this enhancement of limits for freelancers shall further accelerate growth in Export of Services in the months ahead, the SBP added.
KARACHI: An amount of Rs243 billion has been documented by people through surrendering bearer prize bonds of Rs40,000 denomination.
According to official statistics, the investment in unregistered prize bonds of Rs40,000 denomination fell to Rs14.55 billion by December 2019 as compared with Rs258 billion in May 2019.
The government on June 24, 2019, announced to discontinue the circulation of Rs40,000 denomination national prize bonds.
In compliance to the government announced the State Bank of Pakistan (SBP) also issued instructions to banks. The central bank issued a procedure for the banks to facilitate the general public in exchanging the unregistered prize bonds with three different modes.
The SBP said that the bearer prize bonds of Rs40,000 cannot be exchanged against cash. However, it can be redeemed against registered prize bonds or can be converted into national saving schemes or face value (direct transfer to the bank account of bond bolder).
The SBP asked the banks that such prize bonds would not be sold after June 24, 2019, and will not be encashed/redeemed after March 31, 2020. No further draws of Rs40,000 denomination national prize bonds shall be held.
Due to the replacement of the bearer prize bonds of Rs40,000 denomination, the total investment in prize bonds fell to Rs718.38 billion by December 2019 as compared with Rs951.64 billion in May 2019.
The bearer papers have been known as a parking lot for the undocumented economy. Therefore, the government launched registered prize bonds of Rs40,000 denomination in March 2017 which could be purchased against certain requirements including Computerized National Identity Card (CNIC) and a valid bank account.
Till May 2019 the total investment in premium prize bonds was Rs6.17 billion. But after the restriction imposed on bearer bonds the investment into registered prize bonds increased to Rs17.71 billion by the end-December 2019.
According to the SBP, the bearer instrument can be exchanged in savings schemes such as Special Saving Certificates (SSC) or Defence Saving Certificates (DSC). While the third mode of exchanging the bearer bonds was direct transfer to bank accounts.
The government is intended to transform all the bearer prize bonds into registered scrips. In this regard, the Central Directorate of National Savings in collaboration with SBP is planning to issue scripless registered prize bonds amongst all denominations with objective to document the economy.
KARACHI: Pakistan’s liquid foreign exchange reserves increased by $282 million on a weekly basis to $18.644 billion by week ended January 31, 2020, State Bank of Pakistan (SBP) said on Thursday.
The foreign exchange reserves of the country were at $18.362 billion a week ago on January 24, 2020.
The official reserves of SBP increased by $359 million to $12.274 billion by week ended January 31, 2020 as compared with $11.915 billion a week ago.
The reserves held by commercial banks witnessed decline by $76 million to $6.37 billion as compared with $6.447 billion a week ago.
KARACHI, February 4, 2020 – In a significant move reflecting solidarity with Kashmiris, the State Bank of Pakistan (SBP) has declared a holiday on February 5, 2020, on the occasion of Kashmir Day.
KARACHI: Addressing another gap in cheque clearing whereby it took weeks to clear cheques in far flung areas of the country, SBP has allowed the use of Pakistan Real Time Interbank Settlement Mechanism (PRISM) for the settlement of cheques, said a statement on Monday.
This is expected to decrease the processing time for clearing of payment instruments in areas that are not easily accessible. This will also help the financial institutions in far flung areas to leverage digital channels for their clearing and settlement obligations, the SBP added.
To further improve the digital payment services landscape in the country and promote financial inclusion, SBP has issued instructions to the banking industry for improving the acceptance of payment cards in the country.
Specifically, SBP has taken three steps: one, the banks are now bound to offer the domestic payment scheme card, PayPak, to the customers as a first priority, whereas cards of international payment schemes like Visa, MasterCard and Union Pay may be issued on the request of the customer.
Two, the merchant discount rate (MDR) i.e. the fee charged by banks to the merchants, will now be in the range of 1.5 to 2.5 percent. Earlier banks were allowed to charge any fee to the merchants.
Three, the distribution of revenues generated from a merchant among the players including card issuer, card machine deploying entity and the payment scheme company, has also been rationalised to keep the incentives equitable among all the players.
These measures are expected to increase payment card acceptance access points in the country and in turn will also help in digitizing the economy and promoting financial inclusion.
It may be recalled that SBP launched the National Payment Systems Strategy in November 2019 and has since taken a number of steps to promote digitization of payment transactions in the country.
KARACHI: The liquid foreign exchange reserves of the country increased by $91 million to $18.362 billion by week ended January 24, 2020, State Bank of Pakistan (SBP) said on Thursday.
The foreign exchange reserves of the country were at Rs18.271 billion a week ago.
The reserves held by the central bank increased by $184 million to $11.915 billion by week ended January 24, 2020 from $11.731 billion a week ago.
The reserves held by commercial banks fell by $93 million to $6.447 billion from $6.538 billion.
KARACHI: State Bank of Pakistan (SBP) has allowed imports on open account for the import of raw materials and spare parts to facilitate small and medium manufacturing units and commercial importers.
The SBP in a circular issued on Tuesday said that F.E. Circular No. 07 dated July 20, 2018 whereby imports on open account basis was confined to industrial and manufacturing sector only for import of raw materials and spare parts for their own use.
These instructions were amended vide EPD Circular Letter No. 13 dated August 29, 2018 and EPD Circular Letter No. 15 dated September 14, 2018 to allow open account imports for specified sectors.
In order to facilitate small and medium manufacturing units and commercial importers, the above instructions have been further modified.
Henceforth, Authorized Dealers are allowed to effect import payments on open account basis on behalf of manufacturing and industrial users and commercial importers for import of raw materials and spare parts only to be used as input by the manufacturing/industrial concerns.
Authorized Dealers are advised to ensure meticulous compliance of above and other applicable regulatory instructions including those of Para 6, Chapter 2 of Foreign Exchange Manual which requires them, inter alia, to satisfy themselves that the transaction will not involve and is not designed for the purpose of contravention or evasion of any of the provisions of the Foreign Exchange Regulation Act, 1947 or of any rules, directions or orders issued thereunder.
KARACHI: The State Bank of Pakistan (SBP) has enhanced the maximum borrowing limit under Long Term Financing Facility (LTFF) to Rs5 billion from Rs2.5 billion.
In a statement on Tuesday, the central bank said that it had extended the scope of LTFF to cover all permissible export oriented sectors.
This step is aimed at setting up of diverse export oriented projects in Pakistan and to boost exports in multiple sectors.
Further, to accommodate enhanced financing requirements of exporters for setting up long term export oriented projects, maximum limit of Rs. 2.5 billion has been enhanced to Rs. 5 billion per project under LTFF.
In line with the above measure, SBP has also provided additional concessional financing of Rs.200 billion to banks including Rs. 100 billion under Long Term Financing Facility (LTFF) and Rs. 100 billion under Export Refinance Scheme (EFS), to be utilized by June 30, 2020.
Going forward, to further promote SME exporters, SBP in consultation with the relevant stakeholders, is in the process of devising an elaborate mechanism for the allocation of LTFF and EFS to SME exporters.
These changes are likely to be announced in March 2020.
KARACHI: State Bank of Pakistan (SBP) has allowed 100 percent advance payment for import of various goods against letter credit.
The SBP in a statement on Tuesday said that with a view to facilitate importers, SBP has allowed banks to make advance payment up to USD 10,000/-, or equivalent thereof, per invoice on behalf of commercial importers for import of raw material, spare parts and machinery.
Besides, SBP has also allowed banks to make payments on behalf of commercial importers for imports of raw materials and spare parts on Open Account.
In addition, SBP has also enhanced the existing limit of 50 percent advance payment, allowed to manufacturing concerns, for import of plant, machinery, spare parts and raw materials etc. against letter of credit, to 100 percent.
In December 2019, SBP allowed advance payment of up to 50 percent of the value of imports against letter of credit to manufacturing concerns for import of plant, machinery, spare parts and raw material etc.
After the implementation of a market based exchange rate system, the balance of payments has witnessed significant improvement. In the first six months of the current fiscal year, the current account deficit has contracted by 75 percent to US$ 2.15 billion.
This improvement is helping to further relax some of the restrictions on imports by SBP.
The latest measures, taken today, are in continuation of facilitating export-oriented industries and manufacturing concerns in the backdrop of ease of doing business and promoting exports’ growth.
These measures will further contribute in improving economic outlook of the country.
