Pkrevenue.com

Tag: State Bank of Pakistan

  • SBP relaxes financing for under construction houses

    SBP relaxes financing for under construction houses

    KARACHI: The State Bank of Pakistan (SBP) has relaxed financing conditions for housing units in under construction projects.

    The central bank issued a circular dated February 25, 2022 to ease the conditions for house financing. It said that in order to further facilitate buyers of housing units in under construction projects, requirement of builder/developer to avail construction financing is being relaxed.

    READ MORE: Bank Alfalah tops in house financing under MPMG

    “Accordingly, purchasers of housing units in under construction projects may avail housing finance against their housing units in projects where builder/developer has not availed construction financing,” the SBP said.

    In such cases, the builder/developer will have to create mortgage charge over project’s land in favor of bank/DFI through an agreement. The charge will only be vacated after completion of the project and transfer of housing units to the purchasers. Moreover, the builder/developer will comply with all other provisions of subject guidelines, it added.

    Any bank/DFI can provide housing finance to a purchaser of a housing unit in such under construction projects.

    READ MORE: SBP launches webpage for promoting house financing

    However, if the purchaser wants to avail financing from a bank/DFI other than the mortgagee bank/DFI, then it will have to obtain NOC from the mortgagee bank/DFI in this regard.

    Moreover, financing bank/DFI of such purchasers will also be required to enter into bilateral arrangement with the mortgagee bank/DFI to secure its risk.

    With regard to the requirement of informed consent under guidelines, it is clarified that the builder/developer will be responsible to arrange written informed consent from the customers who intend to purchase housing units from their own sources without availing mortgage finance.

    The letters of written consent of such purchasers will be submitted to the bank/DFI in original by the builder/developer.

    The builders/developers are developing and marketing a number of multi-storey projects of housing units across the country. Although these under construction projects are exposed to project completion risk and performance risk of builders/developers, many individuals are attracted to book housing units in these projects owing to their affordability and option of payments through installments.

    However, the banks/DFIs have traditionally shied away from financing to the housing units in under construction projects due to issues in availability of legally enforceable title documents and registration of mortgages as per requirements of Prudential Regulations (PR) for Housing Finance.

    It may be noted that banks/DFIs extend project financing to builders/developers for construction of multistorey housing projects after adequately securing their project and builder risks through mortgage of project land and other securities. Utilizing these already established security arrangements with the builders/developers, the banks/DFIs may also extend housing finance against housing units in multistorey housing projects. This will expand options of affordable housing to the individual borrowers. This will also facilitate banks/DFIs in ensuring repayment/ settlement of their project financing through conversion of the same in housing finance.

  • SBP issues KIBOR rates on February 25, 2022

    SBP issues KIBOR rates on February 25, 2022

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

    Following are the latest KIBOR rates:

     TenorBIDOFFER
    1 – Week9.7310.23
    2 – Week9.7810.28
    1 – Month9.8910.39
    3 – Month10.3510.60
    6 – Month10.7711.02
    9 – Month10.8211.32
    1 – Year10.8711.37
    SBP issues KIBOR rates on February 24, 2022
  • Customers’ exchange rates on February 25, 2022

    Customers’ exchange rates on February 25, 2022

    KARACHI: The State Bank of Pakistan (SBP) on Friday issued customers’ exchange rates for February 25, 2022. The exchange rate is on the basis of weighted average rates of commercial banks.

    The SBP said the data is compiled and disseminated for information only. These exchange rates are estimates that quoted by various commercial banks to their clients.

    The banks provide their indicative exchange rates for commercial transactions with customers.

    CURRENCYBUYINGSELLING
    AED48.229148.3401
    AUD127.4254127.7125
    CAD138.4768138.7960
    CHF191.7645192.2155
    CNY28.038528.1011
    EUR198.6227199.0920
    GBP237.7227238.2703
    JPY1.53641.5400
    SAR47.189947.3003
    USD177.0187177.4415
    Customers’ exchange rates on February 24, 2022
  • Pakistan’s foreign exchange reserves dip to $23.226 bn

    Pakistan’s foreign exchange reserves dip to $23.226 bn

    KARACHI: The liquid foreign exchange reserves of Pakistan declined by $264 million to $23.226 billion by week ended February 18, 2022, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were $23.49 billion by week ended February 11, 2022.

    The official reserves of the State Bank fell by $289 million to $16.807 billion by week ended February 18, 2022 as compared with $17.096 billion a week ago.

    However, the foreign exchange reserves held by commercial banks increased by $25 million to $6.419 billion by week ended February 18, 2022 as compared with $6.394 billion a week ago.

    Pakistan foreign exchange reserves rise to $23.72 billion
  • SBP issues KIBOR rates on February 24, 2022

    SBP issues KIBOR rates on February 24, 2022

    KARACHI: State Bank of Pakistan (SBP) on Thursday issued the Karachi Interbank Offered Rates (KIBOR) as of February 24, 2022.

    Following are the latest KIBOR rates:

     TenorBIDOFFER
    1 – Week9.7110.21
    2 – Week9.7810.28
    1 – Month9.8710.37
    3 – Month10.3510.60
    6 – Month10.7410.99
    9 – Month10.7911.29
    1 – Year10.8511.35
    SBP issues KIBOR rates on February 23, 2022
  • Customers’ exchange rates on February 24, 2022

    Customers’ exchange rates on February 24, 2022

    Karachi, February 24, 2022: The State Bank of Pakistan (SBP) has issued the official exchange rates for February 24, 2022, offering insights into currency values against the Pakistani Rupee.

    (more…)
  • SBP issues KIBOR rates on February 23, 2022

    SBP issues KIBOR rates on February 23, 2022

    KARACHI: State Bank of Pakistan (SBP) on Wednesday issued the Karachi Interbank Offered Rates (KIBOR) as of February 23, 2022.

    Following are the latest KIBOR rates:

     TenorBIDOFFER
    1 – Week9.7410.24
    2 – Week9.7910.29
    1 – Month9.8910.39
    3 – Month10.2310.48
    6 – Month10.6010.85
    9 – Month10.6711.17
    1 – Year10.7411.24
    SBP issues KIBOR rates on February 22, 2022
  • Customers’ exchange rates on February 23, 2022

    Customers’ exchange rates on February 23, 2022

    Karachi, February 23, 2022: The State Bank of Pakistan (SBP) has published the official exchange rates for February 23, 2022, shedding light on the currency values against the Pakistani Rupee.

    (more…)
  • SBP launches electronic warehouse receipt financing

    SBP launches electronic warehouse receipt financing

    KARACHI: Dr. Reza Baqir, Governor State Bank of Pakistan (SBP), launched Electronic Warehouse Receipt Financing (EWRF) for Maize Crop on Tuesday at an event in Habibabad, District Kasur.

    During the event banks signed an agreement with a collateral management company to start operations under this newly developed system.

    READ MORE: SBP expands export finance scheme to improve inflows

    Congratulating the banks on initiation of EWRF for maize crop, Dr. Baqir said that banks must now extend credit to the farmers to its full potential and make it easier for them to avail financing as the farmers would now be able to offer banks adequate collateral to avail loans.

    He added that the system designed behind the EWRF is a win-win situation for all the three stakeholders including farmers, banks and the collateral companies as it offers a smooth and reliable process in terms of storage of the produce, receipts creation and provision of credit.

    READ MORE: Remittances increase to record $18 billion in 7 months

    He pointed out that last year only 59 percent of the credit needs of the farmers were met through banks, which must now increase substantially. He termed the farmers as the key beneficiary since they could now manage the risks emanating from price fluctuation in a better way. Farmers are often forced to sell their crops at lower prices during harvesting season due to unavailability of storage facilities and to meet their pressing cash requirements.

    With the availability of EWRF, they will now be able to meet their financing needs from banks. EWRF has also created an incentive for establishing modern storage facilities since it will create the demand for such facilities by farmers.

    Dr. Baqir highlighted that besides enhanced credit availability, EWRF will help to improve food security by minimizing post-harvest losses due to unavailability of modern storage spaces.

    It will also help in better price discovery that will increase farmers’ profitability and guide in better farming decisions. He also apprised that SBP has established a high level Taskforce for EWRF, comprising key stakeholders, to develop synergies and address bottlenecks and challenges in availing EWRF. This Taskforce will be responsible to steer the entire action plan, monitor performance, and provide strategic direction to boost EWRF in the country.

    At the launch event, key stakeholders including banks also shared their experiences of implementing the emerging EWRF regime, followed by a documentary video focused on creating awareness on EWRF. President & CEO Habib Bank Limited – the pioneer bank in launching EWR based financing in Pakistan, Mr. Muhammad Aurangzeb, said that launch of this initiative has created a great incentive for banks to extend financing to the farmers. It is the right step towards facilitating the farming community and will help in reaping the massive potential in the agricultural sector to contribute towards the growth of the country. Assuring continued support of Bank of Punjab (BOP) in facilitating farmers, its President & CEO, Mr. Zafar Masud opined that EWRF would not only assist the farmers in their economic well-being but also significantly help avoid post-harvest losses of various crops.

    The launch of EWRF is in line with SBP’s efforts to ensure availability of adequate credit for agriculture purposes. In this regard SBP has recently increased credit limits for farmers to meet their input requirements. Earlier, SBP set agriculture credit target for banks to an all-time high of Rs 1.7 trillion for FY22.

    The event was attended by various dignitaries from Federal and Provincial Governments, CEO Naymat Collateral Management Company Ltd., Presidents/CEOs of banks, warehouse operators, and farming community, among others.