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Tag: State Bank of Pakistan

  • Riba case adjourned to April 04

    Riba case adjourned to April 04

    KARACHI: The full bench of Federal Shariat Court continued hearing of Riba case in the bench registry at Karachi on March 25 and 26, 2022.

    The full bench comprises of Chief Justice Muhammad Noor Meskanzai, Honourable Justice Dr. Syed Muhammad Anwer and Honourable Justice Khadim Hussain M. Shakih.

    READ MORE: Court hearing on Riba-free banking in Pakistan

    Ahmed Ali from Meezan Bank appeared before the Court and gave a detailed presentation on Islamic banking system and replacement of conventional banking with the Islamic Banking System.

    Maulana Isamtullah as amicus curiae advanced his arguments on banking interest.

    READ MORE: PMRC, HBL Islamic Banking raise Rs1bn Sukuk

    Mufti Ihsan Waqar, Chairman, Shariah Advisory Board of National Bank of Pakistan filed his written submissions about Riba and Islamic Banking system. Learned Additional Advocate General, Sindh appeared before the court and submitted his opinion on Riba.

    The matter was subsequently adjourned and will now be heard on 4th April 2022 at the principal seat of the Federal Shariat Court at Islamabad.

    READ MORE: SBP issues five-year strategic plan for growth of Islamic banking

    The State Bank of Pakistan (SBP) defines Riba as:

    The word “Riba” means excess, increase or addition, which correctly interpreted according to Shariah terminology, implies any excess compensation without due consideration (consideration does not include time value of money). This definition of Riba is derived from the Quran and is unanimously accepted by all Islamic scholars.

    The meaning of Riba has been clarified in the following verses of Quran (Surah Al Baqarah 2:278-9)

    READ MORE: SBP launches report on SDGs from banking perspective

    “O those who believe; fear Allah and give up what still remains of the Riba if you are believers. But if you do not do so, then be warned of war from Allah and His Messenger. If you repent even now, you have the right of the return of your principal; neither will you do wrong nor will you be wronged.”

    “The origination of term interest dates back to 17th century with the emergence of banking system at global level. Interest means giving and/or taking of any excess amount in exchange of a loan or on debt. Hence, it carries the same meaning/value as that of Riba as defined in the previous question. Further, it is narrated that “the loan that draws interest is Riba”.

    There is consensus among the Muslim scholars of all the fiqhs that interest is Riba in all its forms and manifestations.

  • Bank holiday declared for Zakat deduction

    Bank holiday declared for Zakat deduction

    KARACHI: The State Bank of Pakistan (SBP) on Monday declared bank holiday on Monday April 04, 2022 for deduction of Zakat.

    In a statement, the central bank said it will remain closed for public dealing on Monday, April 4, 2022, which shall be observed as “Bank Holiday” for the purpose of deduction of Zakat.

    READ MORE: Banks to observe extended hours for tax collection

    All banks / development financial institutions (DFIs) / Microfinance Banks (MFBs) shall, therefore, remain closed for public dealing on the afore-mentioned date.

    However, all employees of the banks / DFIs / MFBs will attend the office on Bank Holiday treating it as a normal working day (except for public dealing).

    READ MORE: SBP takes regulatory action against exchange company

  • SBP issues KIBOR rates on March 28, 2022

    SBP issues KIBOR rates on March 28, 2022

    KARACHI: March 28, 2022 – The State Bank of Pakistan (SBP) on Monday announced the latest Karachi Interbank Offered Rates (KIBOR), a key benchmark used by financial institutions to determine borrowing costs for businesses and consumers.

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  • Customers’ exchange rates on March 28, 2022

    Customers’ exchange rates on March 28, 2022

    KARACHI, March 28, 2022 – The State Bank of Pakistan (SBP) has published the exchange rates for Monday, March 28, 2022. These rates are determined based on the weighted average rates of commercial banks and are provided for informational purposes only, according to the SBP.

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  • IR offices to work till midnight on March 31

    IR offices to work till midnight on March 31

    ISLAMABAD: The offices of Inland Revenue (IR) will observe extended working hours on last two days of the current month and facilitate tax payment till midnight on March 31, 2022.

    According to a notification issued by the Federal Board of Revenue (FBR) on Monday, the offices of Inland Revenue including Large Tax Offices (LTOs), Medium Tax Offices (MTOs), Corporate Tax Offices (CTOs) and Regional Tax Offices (RTOs) will remain open and observe extended working hours till 8:00 PM on Wednesday March 30, 2022 and till 12:00 midnight on Thursday March 31, 2022 to facilitate the taxpayers in payment of duty and taxes.

    READ MORE: Banks to observe extended hours for tax collection

    The FBR directed Chief Commissioners Inland Revenue to establish liaison with the State Bank of Pakistan (SBP) and authorized branches of National Bank of Pakistan (SBP) to ensure transfer of tax collection by these branches to the respective branches of SBP on the same date to account for the same towards the collection for the month of March 2022.

    READ MORE: Tax collection from property purchase climbs up 24%

    Earlier on March 24, 2022 the SBP issued instructions in this regard.

    The SBP in a statement said that in order to facilitate the collection of government receipts/duties / taxes, it has been decided that the field offices of SBP Banking Services Corporation (SBP-BSC) and authorized branches of National Bank of Pakistan (NBP) will observe extended banking hours till 8:00 P.M. and 10:00 P.M. on 30th and 31 March, 2022, respectively.

    READ MORE: FBR registration made mandatory for housing projects

    Accordingly, NIFT has been advised to arrange a special clearing at 8:00 P.M. on 31st March, 2022 (Thursday) for same day clearing of payment instruments.

    All banks are advised to keep their concerned branches open on 31″ March, 2022 (Thursday) till such time that is necessary to facilitate the special clearing for Government transactions by the NIFT.

    READ MORE: Advance tax on purchase of immovable property

  • SBP issues KIBOR rates on March 25, 2022

    SBP issues KIBOR rates on March 25, 2022

    KARACHI: State Bank of Pakistan (SBP) on Friday issued the Karachi Interbank Offered Rates (KIBOR) as of March 25, 2022.

    Following are the latest KIBOR rates:

     TenorBIDOFFER
    1 – Week9.8610.36
    2 – Week10.0710.57
    1 – Month10.8211.32
    3 – Month11.7111.96
    6 – Month12.2412.49
    9 – Month12.2712.77
    1 – Year12.3012.80
    SBP issues KIBOR rates on March 24, 2022
  • SBP takes regulatory action against exchange company

    SBP takes regulatory action against exchange company

    KARACHI: The State Bank of Pakistan (SBP) has taken regulatory actions against an exchange company and suspended its operations, according to a statement issued on Friday.

    The central bank suspended with immediate effect the authorization of an Exchange Company namely M/s. Noble Exchange International (Pvt) Limited till further orders for violation of SBP rules and regulations, according to a statement issued on Friday.

    The Exchange Company, its head office, branches, franchises have been debarred from undertaking any kind of business activity during the suspension period.

    READ MORE: Banks to observe extended hours for tax collection

  • Banks to observe extended hours for tax collection

    Banks to observe extended hours for tax collection

    The State Bank of Pakistan (SBP) has directed banks to observe extended working hours on the last two days of March 2022. This decision aims to streamline the tax payment process and provide convenience to individuals and businesses fulfilling their financial obligations.

    (more…)
  • Customers’ exchange rates on March 25, 2022

    Customers’ exchange rates on March 25, 2022

    KARACHI, March 25, 2022 – The State Bank of Pakistan (SBP) has disclosed the exchange rates for Friday, March 25, 2022. These rates are established on the weighted average rates of commercial banks and are presented for informational purposes only, as stated by the SBP.

    (more…)
  • SBP launches report on SDGs from banking perspective

    SBP launches report on SDGs from banking perspective

    KARACHI: Dr. Reza Baqir, Governor State Bank of Pakistan (SBP) has unveiled a report titled ‘SDGs and sustainability report – Pakistan banking sector perspective’ in Dubai on March 23, 2022, the central bank said on Friday.

    The report was launched in an event on the theme ‘The Future of Green and Sustainable Finance – The Role of the Sustainable Development Goals (SDGs) organized by the Global Ethical Finance Initiative (GEFI) in collaboration with the Government of Scotland and United Kingdom Islamic Finance Council (UKIFC).

    READ MORE: Banks approve housing loans worth Rs7.4 billion in event

    This is the first ever report from the banking perspective that not only maps progress on Sustainable Development Goals (SDGs) 2030, set by the United Nations, by banks but also highlights specific gaps in achieving them. Other speakers included Ivan McKee, Minister for Trade, Scotland and the event was attended by policy makers, senior bank executives, financial advisors, diplomats and academics who shared insights on the SDGs. 

    In his keynote address, Dr. Reza Baqir highlighted SBPs and Government of Pakistan’s commitment to the SDGs, demonstrated by initiatives to achieve these goals and work to ensure sustainability. He emphasized that Pakistan is one of the first few countries to adopt SDGs 2030 agenda through a unanimous resolution of Parliament. He highlighted that the seven pillars of Vision-2025 of Government of Pakistan are fully aligned with the SDGs and provide a comprehensive long-term strategy for achieving inclusive growth and sustainable development.

    READ MORE: Financing for Mera Pakistan Mera Ghar gains momentum

    In pursuit of SDGs, Dr. Reza highlighted some of the key initiatives undertaken by State Bank of Pakistan in the recent times including a landmark policy entitled ‘Banking on Equality’ to address gender gap in financial inclusion and flagship Mera Pakistan Mera Ghar (MPMG) scheme to provide financing for low cost and affordable housing in the country, which was nonexistent prior to 2021.

    He stated that MPMG has helped to provide shelter to those who are underprivileged but also stimulated the economy. The flagship scheme has so for attracted applications amounting to Rs357 billion out of which housing loans of Rs157 billion has been approved with disbursement of Rs56 billion.

    The Governor specially mentioned SBP’s innovative renewable energy financing facility, which encourages banks to increase green financing portfolio and reduce carbon footprint.

    READ MORE: Court hearing on Riba-free banking in Pakistan

    Dr. Reza Baqir lauded the work done so far by Pakistani banks on SDGs. However he stressed that Banks Boards and management should explicitly convey their commitment and support for implementation of SDGs to their teams and other stakeholders to embed this message.

    He also said that banks should develop implementations plans with identification of time lines and responsibilities to achieve SDGs in conjunction with capacity building programs.

    In conclusion, Dr. Baqir emphasized on the need to institutionalize and deepen the reforms to advance the implementation of SDGs to making our planet a better place to live for the generations to come.

    The Governor SBP also participated in the fireside chat during the event with Ivan McKee, Minister for Trade, Scotland. During discussion, Dr. Reza Baqir brought attention to the important role of private sector finance in the funding of the SDGs commitments.

    READ MORE: Pakistan’s CAD mounts to $12 billion in eight months

    He said that space for private sector investments is huge, and in this regard the Government is providing the required facilitation and regulatory flexibility.  He also emphasized that emerging market countries also need innovative financial structures from International Financial Institutions and multilaterals to meet the enormous financial needs to meet sustainability requirements.