The State Bank of Pakistan (SBP) has reported a significant boost in the country’s liquid foreign exchange reserves, which surged by $200 million to reach $15.062 billion as of the week ending July 26, 2024. This increase marks a notable improvement from the $14.862 billion recorded the previous week.
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SBP advises public not to share banking information
KARACHI: State Bank of Pakistan (SBP) has advised the public not to share their banking information to fake calls.
In a statement issued on Monday, the SBP said that it had come to the central bank’s knowledge that fraudsters were attempting to defraud the banking customers by seeking bank account details on the pretext of biometric verification.
In many cases, this is being done through fake calls by masking the official helpline or registered numbers of banks.
The receivers apparently believe that the call is genuine or from the bank and share their personal information including bank Account Number, ID, Password, CNIC Number, etc. resulting in loss of funds even during the calls.
The fraudsters generally impersonate as officials of State Bank of Pakistan, Army Officer or representative of Superior Courts of law, etc. on pretext of biometric verification of accounts.
In this context, public is advised to immediately contact their banks on their registered numbers/helpline themselves instead of responding the incoming calls and sharing their credentials.
It is informed that SBP/Banks/Micro Finance Banks do not conduct biometric verification of Banks’ existing customers through telephone calls. If public receive any such call, they may share details of these cases/incidents with law enforcement agencies or SBP helpline at 021-111-727-273 or email at [email protected].
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SBP revises refinance scheme for renewable energy
The State Bank of Pakistan (SBP) on Friday announced a revised refinancing scheme aimed at boosting renewable energy projects. The new scheme sets a maximum loan amount of Rs6 billion for individual projects up to 50 megawatts.
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Foreign exchange reserves down by $387 million to $14.486 billion
KARACHI: The liquid foreign exchange reserves of the country have declined by $387 million to $14.486 billion by week ended July 19, 2019 as compared with $15.249 billion a week ago, State Bank of Pakistan (SBP) said on Thursday.
The reserves held by the central bank fell by$389 million to $7.612 billion by week ended July 19, 2019 as compared with $8.001 billion a week ago. The central bank said that its reserves were reduced due to external debt servicing and other official payments.
The reserves held by commercial banks were flat at $7.250 billion as compared with $7.248 billion.
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SBP asks banks to provide shipment details in advance payment cases
KARACHI: State Bank of Pakistan (SBP) has directed banks to provide details of shipments made against advance payments during a month.
The SBP has made changes in the existing International Transactions Reporting System (ITRS) that will be reported by the authorized dealers.
The SBP said that a new schedule A-4/O-4 has been introduced in ITRS for capturing utilization against advance payments recorded on Advance Payment Vouchers (APV) and reported through ITRS schedule A- 2/O-2.
The banks will use this schedule for reporting shipments made during the reference month against advance payments received earlier, the SBP said.
Purpose of Schedule A-1/O-1 has been revised to capture all post-shipment export proceeds including final/full as well as part payments other than advance payments.
Purpose of Schedule A-2/O-2 has also been revised to capture only APVs. Part payments will be reported on schedule A-1/O-1, the SBP said.
Two variables have been added in schedule E-4/P-4 for reporting reference of refund on M-form against exports proceeds realized earlier.
CNIC has been made mandatory for non-business transactions in schedule E-4/P-4
Updated ITRS client application for banks / Authorized Dealers has been placed on Knowledge Centre of SBP Data Acquisition Portal (DAP).
The central bank advised the authorized dealers to use revised format for reporting data pertaining to Jul 2019 onwards.
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SBP issues revised instructions for foreign currency dealings
KARACHI: State Bank of Pakistan (SBP) has amended Foreign Exchange Manual and issued revised Chapter 11 of the manual related to dealings in foreign currency notes and coins etc. by the authorized dealers including banks and exchange companies.
Following is the revised chapter 11 issued by the SBP dated July 16, 2019:
1. Introduction.
Authorized Dealer’s license to deal in foreign exchange includes an authorization to deal in foreign currency notes and coins as well. In addition to Authorized Dealers, the State Bank has granted licenses to Exchange Companies and issued restricted authorizations to selected hotels to deal in foreign currency notes and coins etc. as per the scope of business mentioned in their licenses/authorizations.
This chapter sets out the regulations which govern the purchase and sale of foreign currency by the Authorized Dealers.
2. Purchase of foreign currency notes from the public.
All incoming persons, whether Pakistani or foreign national, can bring with them without any limit foreign currencies and other instruments against the submission of a declaration to the Customs authorities on amount exceeding US$ 10,000 or equivalent in terms of SBP Notification No. F.E.1/2012-SB dated the 16th June, 2012, wherever applicable.
Such currencies/instruments may be freely purchased by the Authorized Dealers against payment in PKR. Authorized Dealers may also purchase foreign currencies withdrawn by the account holders from their foreign currency accounts and from the walk-in-customer against payment in PKR subject to fulfillment of applicable AML/CFT regulations/guidelines issued by the State Bank.
Authorized Dealers should issue a certificate of currency encashment on the prescribed form (Appendix V-9).
In cases where the foreign currency offered for sale by a traveller had been originally obtained from an Authorized Dealer, the repurchase should be endorsed on the traveller’s passport in the case of Pakistan nationals only.
3. Purchase of foreign currency notes and coins etc. from other Authorized Dealers, Exchange Companies and Hotels.
Authorized Dealers may also purchase foreign currency notes, coins and other instruments freely from other Authorized Dealers, Exchange Companies and hotels licensed/authorized by the State Bank.
4. Disposal of non-convertible currency notes.
Many countries have restrictions on import of their own currency notes and do not allow their repatriation through banking system. Surplus collection of such foreign currency notes can be disposed of in the international centres at market rates.
Authorized Dealers should arrange with their overseas branches or correspondents to keep them fully informed of such restrictions on such currencies’ import, repatriation and also about demonetization, currency re-organization etc. in foreign countries. Such information may also be passed on by the Authorized Dealers to those Exchange Companies/hotels which are their customers.
5. Availability of adequate stock of foreign currency notes with the Authorized Dealers.
It is the responsibility of Authorized Dealers to ensure that adequate stocks of foreign currency notes are available with their authorized branches at all times for meeting the requirements of their customers.
For this purpose, Authorized Dealers may replenish their stocks of foreign currency notes either by purchasing the same from other Authorized Dealers/Exchange Companies or by importing them from their overseas branches and correspondents.
6 Ensuring quality of foreign currency notes.
In order to ensure provision of good quality notes to the public, Authorized Dealers should avoid stapling of foreign currency notes and deliver the same from their counters in unstapled condition with proper banding of note packets, if so required.
7. Sale of foreign currency notes to the public.
Authorized Dealers may sell foreign currency notes to persons proceeding abroad within the amount of foreign exchange allowed through special permission by the State Bank or under the authority delegated to them in Chapter 17 subject to compliance of the related provisions.
8. Sale of foreign currency notes and coins etc. to other Authorized Dealers.
Authorized Dealers may freely sell foreign currency notes, coins and other instruments to other Authorized Dealers.
9. Disposal of surplus foreign currency notes.
When Authorized Dealers are unable to dispose of their holdings of foreign currency notes by sale to the public or other Authorized Dealers, they may dispose of the same by receiving credit thereagainst in their Nostro accounts as per the following:
i) By exporting surplus foreign currency notes to their branches, correspondents or agents abroad.
ii) By selling surplus foreign currency notes to the Exchange Companies operating in Pakistan.
10. Acceptance of surplus foreign currency notes by SBP-Banking Services Corporation from the Authorized Dealers.
Authorized Dealers are also allowed to sell their surplus foreign currency notes (US Dollar, UK Pound Sterling, Euro and UAE Dirham) to SBP–Banking Services Corporation, Karachi Office as per the following procedure:
i. Authorized Dealers having above-mentioned surplus foreign currencies will approach the SBP-Banking Services Corporation, Karachi Office.
ii. Packets of foreign currency notes (100 pieces) only in the denomination of 50 and above will be acceptable.
iii. The packets will be opened and notes will be counted by the staff of SBP – Banking Services Corporation, Karachi Office in the presence of the representative of the concerned Authorized Dealer.
iv. Counted currency notes will be re-packed and sealed under the joint signatures of representatives of the concerned Authorized Dealer and official of SBP-Banking Services Corporation, Karachi Office.
v. The Authorized Dealer will remain responsible for any forged/counterfeit notes, if found subsequently in the deposited currency.
vi. SBP will provide credit of the counter value in the Nostro Account of the AD in the same value date, on confirmation of balances from SBP-Banking Services Corporation, Karachi Office.
11. Provision of foreign currency notes by SBP-Banking Services Corporation to the Authorized Dealers.
Authorized Dealers may purchase foreign currency notes from SBP-Banking Services Corporation, Karachi Office after giving credit of counter value in SBP’s Nostro account in the respective currency.
SBP-Banking Services Corporation, Karachi Office will provide foreign currency notes to the Authorized Dealer on having confirmation from the State Bank to the above effect.
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Foreign exchange reserves increase to $15.249 billion
KARACHI: The total liquid foreign exchange reserves of the country increased by $990 million to $15.249 billion by week ended July 12, 2019 as compared with $14.259 billion a week ago, State Bank of Pakistan (SBP) said on Thursday.
The official reserves of the SBP increased by $918 million to $8 billion during the week under review as compared with $7.083 billion in the preceding week. The central bank said that the official reserves were increased due to inflows of $991.4 million from International Monetary Fund (IMF) as first tranche of $6 billion extended fund facility for Pakistan.
The reserves held by commercial banks also increased by $73 million to $7.248 billion by week under review as compared with $7.175 billion in the preceding week.
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SBP designates three systemically important banks for 2019
KARACHI: State Bank of Pakistan (SBP) has designated three Domestic Systemically Important Banks (D-SIBs) for the year 2019, a statement said on Thursday.
The State Bank announced the designation of D-SIBs for the year 2019 under the Framework for Domestic Systemically Important Banks (D-SIBs) that was introduced in April 2018.
The framework introduced by State Bank is consistent with the international standards and practices and takes into account the local dynamics.
It specifies the methodology for the identification and designation of D-SIBs, enhanced regulatory and supervisory requirements, and implementation guidelines.
These enhanced requirements aim to further strengthen the resilience of the Systemically Important banks against shocks and augment their risk management capacities, the SBP said.
The identification of D-SIBs involves two-step process. In the first step, sample banks are identified each year based on the quantitative and qualitative criteria. In the second step, D-SIBs are designated from among the sample banks on the basis of institutions’ systemic score in terms of their size, interconnectedness, substitutability, and complexity.
In line with D-SIBs framework, State Bank has carried out the annual assessment on the basis of financials of end December 2018. As per this assessment, three banks viz. Habib Bank Ltd., National Bank of Pakistan, and United Bank Ltd. have been designated as D-SIBs for the year 2019. These banks will be subject to enhanced supervisory requirements and following Higher capital surcharge in the form of additional common equity tier-1 capital (CET-1) with effect from March 31, 2020:
BUCKET Name of Institution Additional CET-1 Requirement for Bucket D Empty 3.5% C National Bank of Pakistan and Habib Bank Ltd. 2.0% B Empty 1.5% A United Bank Ltd (UBL). 1.0% Besides, branches of Global-Systemically Important Banks (G-SIBs) operating in Pakistan will hold additional CET1 capital against their risk-weighted assets in Pakistan at the rate as applicable on the respective principal G-SIB.
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Tax collection from salary income declines by 44 percent: State Bank
KARACHI: Tax collection from salary income declined by 44 percent due to changes in income tax rates for all income slabs, according to a report issued by State Bank of Pakistan (SBP).
The SBP said that during first nine-months of fiscal year 2018/2019 the tax collection on salaries remained much lower than in the same months of preceding year.
The Federal Board of Revenue (FBR) collected Rs53.5 billion as tax from salary income during July – March of Fiscal year 2018/2019 as compared with collection of Rs95.2 billion in the same period of the preceding fiscal year.
“Tax collection on salaries also remained much lower than last year. In absolute terms, tax on salaries declined by Rs 41.7 billion during the review period, mainly due to changes in income tax rates for all income slabs,” the SBP said.
Direct taxes having a share of 37 percent in overall FBR tax collection recorded a decline of 0.8 percent during Jul-Mar FY19 in contrast to a rise of 12.2 percent during the same period last year.
Measures like the suspension of tax on mobile top-ups; reduction in come tax rates on salaries; reduction in the withholding tax rate on dividends; and spending under the PSDP explain the decline in direct taxes.
Within direct taxes, major hit emerged from withholding taxes (largest contributor in direct taxes), which recorded a contraction of 8.7 percent during Jul-Mar FY19 against a rise of 16.1 percent during the same period last year.
One-half of the decline in total withholding taxes is in the category of telephone/mobiles. Collection from telephone was only Rs 5.3 billion during Jul-Mar FY19 compared to a collection of Rs 38.0 billion during the same period last year.
This lower collection from telephone/mobile phones was not surprising amid suspension of taxes on mobile phone top-up by the Supreme Court.
Receipts from contracts were also lower compared to last year largely owing to a cut in the PSDP. Voluntary payments increased by Rs 34.3 billion during Jul-Mar FY19.
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SBP sells treasury bills worth Rs2,212 billion in auction
KARACHI: State Bank of Pakistan (SBP) has raised Rs2,212 billion for budget financing in an auction of market treasury bills.
The SBP on Thursday conducted auction of 3-, 6 and 12-month Market Treasury Bills (MTBs).
The SBP received bids of Rs2,238 billion at face value of Rs2,326 billion in all three maturities.
The central bank accepted bids at Rs2,212 billion at face value of Rs2,297 billion.
The banks are seen more interested in lending in short-term government papers as they offered Rs1,991 billion in three-month MTB at face value of Rs2,054 billion.
The SBP accepted the bids in three-month papers at realized amount of Rs1,978 billion at face value of Rs2,040 billion. The cut-off yield in three-month papers increased to 13.7499 percent as compared with previous auction of Rs12.7422 percent.
The SBP also accepted bids at face value amounting Rs144.21 billion and Rs112.72 billion in 6-month and 12-month treasury bills respectively. The cut-off yield in these two instruments recorded at 13.95 percent and 14.1 percent, respectively.
Banking experts said that the financial institutions were more aggressive in lending their money in government papers considering safe investment and high returns.
The recent policy rate hike also attracted the commercial banks to enhance their exposures in government papers.
The experts said that the reason to raise huge amount from private banks was government decision for not borrowing any more from the central bank.