KARACHI: KSE-100 index companies recorded record profitability in FY21, growing by 60 per cent YoY to Rs884 billion mainly led by macro recovery post COVID-19 lockdowns in FY20.
This profitability was significantly higher than last 5-Year and 10-Year CAGRs of 8 per cent and 11 per cent, respectively, analysts at Toplines Securities.
The profitability of KSE-100 index was also better than that recorded in pre COVID-19 era of FY19, when profitability of KSE-100 stood at Rs624 billion, which means that profitability in FY21 is up 41 per cent in two-years. This boost in profitability was augmented by pent up demand and expansionary policy adopted by the State Bank of Pakistan (SBP) and the government.
To recall, SBP had reduced the Policy Rate by 625 basis points to 7 per cent in the first half of the fiscal year 2019/2020 and had maintained the Policy Rate of 7 per cent through FY21.
SBP also introduced relief schemes for corporates like Temporary Economic Refinance Facility (TERF), loan restructuring schemes and SBP Rozgar scheme. These schemes helped corporates get concessional financing, get loan repayment extensions and concessional financing for payment of employee salaries. This coupled with government pro-growth budget also aided profitability growth.
This is also evident from the fact that Finance Cost of KSE-100 index companies was down 37 per cent YoY to Rs87 billion in FY21. Net Sales of KSE-100 companies were up by 7 per cent YoY to Rs7 trillion whereas Gross Profits improved by 23 per cent YoY to Rs1.9 trillion. Consequently, Gross Margins improved to 27 per cent vs. 23 per cent in FY20.
In fourth quarter of FY21, profitability of KSE-100 index was up 85 per cent YoY and 6 per cent QoQ to Rs246 billion. Net sales of KSE-100 companies improved by 38 per cent YoY and 11 per cent QoQ.
For our analysis, we have taken 93 companies out of the total 100 companies (that have announced their results) which represent 98 per cent of KSE-100 market capitalization. We believe that adding remaining companies would not materially impact profitability growth trend.
KARACHI: Pakistan President Dr. Arif Alvi has inaugurated a property exhibition for the UAE based Non-Resident Pakistanis (NRPs) arranged by Pakistani banks offering Roshan Digital Account (RDA), in partnership with builders and developers, to showcase their products being offered under RDA.
The president expressed the hope that Non-Resident Pakistanis (NRPs) living in UAE would take maximum advantage of the State Bank’s Roshan Apna Ghar scheme and use it to fulfill their and their families’ housing needs in Pakistan, according to a statement issued by the State Bank of Pakistan (SBP) on Saturday.
Abdul Razak Dawood, Advisor to Prime Minister on Commerce, Textile, Industries & Production and Investment was also present at the occasion.
The exhibition was attended by a large number of Pakistanis, various UAE based Pakistani associations, Senior State Bank of Pakistan (SBP) management, Presidents/CEOs of commercial banks, UAE and Pakistan based property developers, and Pakistan’s Embassy officials in UAE.
Appreciating the vast potential of UAE based NRPs, President Dr. Arif Alvi said Pakistanis living in the UAE have significantly contributed towards development and economic growth of UAE and most of them regard UAE as their second home. He said that UAE is a major destination for Pakistani workers and their contribution in remittances is significant.
He observed that SBP, with the active support of commercial banks, has provided NRPs a unique opportunity to buy a home that hitherto, had been a very difficult task for various reasons. He felt satisfied that finally an end-to-end digital process had made it possible for NRPs. He shared his thoughts divulging on various strengths as a nation that Pakistanis should be proud of.
In his welcome address, Governor SBP, Dr. Reza Baqir expressed his heartfelt gratitude to President Dr. Arif Alvi for sparing time and inaugurating the exhibition. He said that SBP has been able to introduce RDA and Roshan Apna Ghar following the vision of Prime Minister Imran Khan to integrate the NRPs with the country’s economy.
Recounting the massive success of RDA, the Governor elucidated that RDA has proved to be a huge success and become a household name connecting over 250,000 NRPs under one umbrella besides attracting over USD2.5 billion since its launch in September last year.
Adding further, he said that the overwhelming success of RDA and Naya Pakistan Certificates (NPCs) speak volumes of the immense popularity of the incumbent regime in the hearts and minds of NRPs.
He said it has been a priority of the government and SBP to resolve the issues of NRPs living across the globe, as they fully understand their potential for lifting the country’s economy. He said that international organizations were appreciating the economic growth of the country despite odds.
He noted that economy was heading in right direction and the unprecedented increase in foreign exchange reserves is an expression of confidence of overseas Pakistanis in the government’s economic policies.
Speaking on the occasion, Abdul Razaq Dawood assured the audience that economy is heading in the right direction and maintaining a healthy growth path. He especially mentioned textile and cement sector where growth trends are remarkable, while automobile, consumer goods and food and likes are following similar trend.
Dawood said that country’s exports growth has already picked up and he is confident that it will keep the momentum and grow further this year.
He also mentioned SBP’s Temporary Economic Refinance Facility (TERF) for helping industry expand and modernize, besides SBP’s various initiatives for facilitating the public at large.
Roshan Apna Ghar is an initiative of SBP for Non Resident Pakistanis (NRPs) to buy, build or renovate their homes in Pakistan through their own investment or bank financing.
A statement said that the central bank had launched dedicated landing webpage on promoting housing and construction finance on its website.
The page contains extensive information on housing and construction finance and Mera Pakistan Mera Ghar (MPMG), Government’s flagship markup subsidy scheme for affordable and low cost housing finance.
The webpage provides information on various measures taken by SBP to promote housing and construction finance such as issuance of separate Prudential Regulations for housing finance, establishment of a high level Steering Committee, allocation of mandatory targets for housing and construction finance, incentives & penalties and market facilitation.
Moreover, a dedicated webpage for MPMG is also available to facilitate the potential applicants who intend to avail housing finance under MPMG.
The MPMG page covers information about the scheme comprehensively including eligibility criteria, tenor of the loan, maximum amount of loan, markup rates to be charged, maximum list of documents required and subsidy being provided by the Government. Through this page, potential applicants can also access websites of participating banks directly wherein loan application forms under various categories are available.
An installment repayment schedule of the loans and an instalment calculator are also available on this webpage.
The webpage also shares monthly data of housing and construction finance extended by the banks. Progress made under MPMG in terms of the latest statistics including data of amount applied, approved and disbursed under MPMG on monthly basis is also available on MPMG webpage.
Visitors will also be able to view the testimonials of the actual borrowers who have availed subsidized housing finance under MPMG by visiting the website. It is expected that this dedicated webpage will facilitate the visitors by providing them actionable information, guidance, and support they require for easy access to financing under MPMG.
KARACHI: Overseas Pakistanis have remitted $8.034 billion during first quarter (July – September) of the fiscal year 2021/2022, State Bank of Pakistan (SBP) said on Friday.
KARACHI: The foreign exchange reserves of the country fell by $151 million to $26 billion by the week ended October 01, 2021 as compared with $26.151 billion a week ago, the State Bank of Pakistan (SBP) said on Thursday.
The foreign exchange reserves of the SBP declined by $126 million to $19.169 billion by the week ended October 01, 2021 as compared with $19.295 billion by the week ended September 24, 2021.
The foreign exchange reserves held by commercial banks also declined by $25 million to $6.831 billion as compared with $6.856 billion a week ago.
KARACHI: The State Bank of Pakistan (SBP) has made biometric verification mandatory for foreign currency sale transactions.
The central bank on Wednesday issued amendments to the exchange companies manual to stop the undesirable outflow of cash foreign currency.
The SBP introduced following regulatory measures:
i. Persons travelling to Afghanistan will be allowed to carry only USD1,000/- per person per visit with a maximum annual limit of USD6,000.
ii. Exchange companies will be required to conduct biometric verification for all foreign currency sale transactions equivalent to USD500/- and above and outward remittances. This requirement will be applicable with effect from October 22, 2021.
iii. Exchange Companies will sell the cash foreign currency and make outward remittances, equivalent to USD10,000/- and above, against receipt of funds through cheque or banking channels only.
The SBP said that the regulatory measures will help to improve documentation of sale of foreign currency by exchange companies and place a check on undesirable outflow of foreign currency.
Following is the text of circular No. 6 of the SBP
Amendments in Instructions for Exchange Companies
Attention of Exchange Companies and Exchange Companies of ‘B’ Category is invited to instructions contained in Para 9 (i) (f)&(g), 9(iii) (f)&(g) of Chapter 3 and Para 12 (i) (c) & (d) of Chapter 8 of Exchange Companies Manual.
2. In order to strengthen regulatory regime for Exchange Companies, it has been decided to amend/change the applicable regulations relating to scope of business of Exchange Companies and Exchange Companies of ‘B’ Category. Accordingly, the relevant instructions in the following Paras of Exchange Companies Manual stand replaced as under:
Para 9 (i) (f) Chapter 3 of Exchange Companies Manual
“For all foreign currency sale transactions equivalent to USD 500/- or above, Exchange Companies shall retain copies of identification documents i.e., Computerized National Identity Card (CNIC) /National Identity Card for Overseas Pakistanis (NICOP)/ Pakistan Origin Card (POC) / Passport (having valid visa on it or any other proof of legal stay of a foreigner in Pakistan) after having seen the document in original. In addition, Exchange Companies shall also carry out biometric verification of Pakistani Nationals for all such transactions and maintain the record thereof”.
Para 9 (i) (g) Chapter 3 of Exchange Companies Manual
“All sale transactions of USD 10,000/- or above (or equivalent in other currencies) shall be conducted by the Exchange Companies through Cheque/ Bank Transfer from the personal account of the customer. Instrument/ transaction reference number and issuing bank’s name shall be mentioned on the transaction receipt along with identification document number of the customer.”
Para 9 (iii) (f) Chapter 3 of Exchange Companies Manual
“Exchange Companies shall retain copies of identification documents i.e., Computerized National Identity Card (CNIC)/National Identity Card for Overseas Pakistanis (NICOP)/Pakistan Origin Card (POC)/Passport (having valid visa on it or any other proof of legal stay of a foreigner in Pakistan) for conducting transfers/ remittances transaction regardless of the amount. The name, address and identification document number of the customer shall also be mentioned on the receipt after due verification and with stamp of “original seen”. In addition, Exchange Companies shall also carry out biometric verification of Pakistani Nationals for all transactions and maintain record thereof”.
Para 9 (iii) (g) Chapter 3 of Exchange Companies Manual
“All outward transactions of USD 10,000/- or above (or equivalent in other currencies) shall be conducted by the Exchange Companies through Cheque/ Bank transfers from the personal account of the customer. Instrument/ transaction reference number and issuing bank’s name shall be mentioned on the transaction receipt along with identification document number of the customer.”
Para 12 (i) (c) Chapter 8 of Exchange Companies Manual
“For all foreign currency buy and sale transactions equivalent to USD 500/- or above, Exchange Companies of ‘B’ Category shall retain copies of identification documents i.e., Computerized National Identity Card (CNIC) /National Identity Card for Overseas Pakistanis (NICOP)/ Pakistan Origin Card (POC) / Passport (having valid visa on it or any other proof of legal stay of a foreigner in Pakistan) after having seen the document in original. In addition, Exchange Companies of ‘B’ Category shall also carry out biometric verification of Pakistani Nationals for all such sale transactions and maintain the record thereof”.
Para 12 (i) (d) Chapter 8 of Exchange Companies Manual
“All sale transactions of USD 10,000/- or above (or equivalent in other currencies) shall be conducted by the Exchange Companies of ‘B’ Category through Cheque/ Bank Transfer issued from the personal account of the customer. Instrument/ transaction reference number and issuing bank’s name shall be mentioned on the transaction receipt along with identification document number of the customer.”
3. All above instructions are applicable with immediate effect. However, for implementing the requirements for biometric verification, Exchange Companies and Exchange Companies of ‘B’ Category shall make necessary arrangements, including procurement of hardware and software and establishing connectivity with NADRA latest by October 21, 2021, while the instructions shall be applicable with effect from October 22, 2021.
4. All other terms and conditions on the subject shall remain unchanged.
