KARACHI, August 30, 2021: The State Bank of Pakistan (SBP) has released the latest exchange rates for customers, providing valuable insights into the currency landscape.
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KIBOR rates on August 27, 2021
KARACHI: State Bank of Pakistan (SBP) on Friday issued following Karachi Interbank Offered Rates (KIBOR) on August 27, 2021.
Tenor BID OFFER 1 – Week 6.89 7.39 2 – Week 6.94 7.44 1 – Month 7.00 7.50 3 – Month 7.13 7.38 6 – Month 7.29 7.54 9 – Month 7.42 7.92 1 – Year 7.50 8.00 -
PM launches house financing scheme for NRPs
KARACHI: State Bank of Pakistan (SBP) on Friday said that Prime Minister Imran has launched a new housing scheme to facilitate Non-Resident Pakistanis (NRPs) in buying houses for themselves and their families.
The central bank in a statement said that the prime minister praised the efforts and hard work of the SBP and government agencies in crossing another impressive milestone of $2 billion in deposits in Roshan Digital Accounts (RDA) and developing an exclusive product, Roshan Apna Ghar, for Overseas Pakistanis’ investment in housing in Pakistan.
He said that RDA has provided an excellent platform to overseas Pakistanis to digitally connect to Pakistan’s banking system and meet their financial services needs in Pakistan.
The prime minister was addressing a gathering of Ministers, Presidents and CEOs of Banks, SBP officials and other distinguished guests at the launch of Roshan Apna Ghar – an initiative of SBP for overseas Pakistanis.
The Prime Minister expressed optimism that Roshan Apna Ghar would facilitate overseas Pakistanis to buy a house for themselves and / or their families in Pakistan, which has been quite difficult for many of them due to host of manual procedures, mandatory physical visits to Pakistan with long stay to complete the process and the hassle of trips to many offices.
He said that with the introduction of Roshan Apna Ghar, an end to end digital process right from submission of application to the bank to disbursement of funds by banks, overseas Pakistanis would find it much easier to buy a housing unit in Pakistan for themselves or their loved ones either through their own savings or bank financing.
In his welcome address, Governor SBP, Dr. Reza Baqir thanked the Prime Minister for his vision and firm resolve to integrate the overseas Pakistani community with the country’s economy.
Highlighting the performance of Roshan Digital Account, he said that RDA is now a very well established brand, which has so far connected over 215,000 expats with the country’s banking system and attracted over $2,050 million since its launch in September last year. He said it took about 8 months to cross the first major milestone of $1 billion whereas the next 1 billion were received in less than 4 months, which is indicative of the increasing momentum.
Introducing the new product, Dr. Baqir said that Roshan Apna Ghar is an initiative of SBP for Non Resident Pakistanis (NRPs)to buy, build or renovate their homes in Pakistan through own investment or bank financing.
Complete information on the initiative as well as directions on how to avail it are available at the SBP portal. Overseas Pakistanis will be able to complete their transaction completely remotely and digitally and their investment will be fully repatriable.
He elaborated that financing is available in both conventional and Shariah compliant variants at attractive rates for a period of three to 25 years.
Through the Roshan Apna Ghar initiative, overseas Pakistanis will also be able to obtain financing under the Mera Pakistan Mera Ghar scheme of the government as well that has been exclusively designed for those who do not already own a house and offers financing at economical rates starting from 3 percent.
Governor Baqir emphasized that SBP, with the support of all stakeholders, will continue to bring as much ease as possible for overseas Pakistanis.
Speaking at the occasion, the Minister for Finance and Revenue, Shaukat Tarin, said that the innovation of Roshan Digital Account has proved to be a huge success and instrumental in receiving substantial investment of over $1.4 billion in Naya Pakistan Certificates.
He lauded the introduction of Roshan Apna Ghar by State Bank and said that it is another splendid idea of SBP and will attract substantial investment in the real estate sectorby overseas Pakistanis.
He went on to add that both NPCs and the Roshan Apna Ghar are here to achieve the greater goal of attracting investments by overseas Pakistanis, which are more sustainable and reliable.
He said that Ministry of Finance with the help of State Bank will make every effort to introduce new avenues of investments for overseas Pakistanis.
Under Roshan Apna Ghar, two types of financing facilities are being offered. First, Standard Financing in which both lien based and non-lien based financing is available.
In lien-based financing, the NRPs can obtain house finance facility against lien on their RDA deposit balances or Naya Pakistan Certificates. Banks can finance up to 100 per cent of the property value for purchase or construction of a house; for renovation of house, financing is capped at 40 per cent of the property value.
Non-lien based financing is the typical housing finance offered against mortgage of the property to be purchased; banks may fund up to 85% of the property value for purchase or construction of house, and up to 30% of the property value for renovation of house.
Second, the house financing facility under Mera Paksitan Mera Ghar (Government Mark-up Subsidy Scheme) is also available for RDA holders under Roshan Apna Ghar product as per already defined criteria under respective tiers.
In this case, the financing rates applicable to the Mera Pakistan Mera Ghar scheme would apply.Insurance of the property, up to the extent of financing amount, is also free.
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SBP issues customers exchange rates on August 27
KARACHI, August 27, 2021: The State Bank of Pakistan (SBP) has unveiled the latest exchange rates for customers on Friday, August 27, 2021.
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KIBOR rates on August 26, 2021
KARACHI: State Bank of Pakistan (SBP) on Thursday issued following Karachi Interbank Offered Rates (KIBOR) on August 26, 2021.
Tenor BID OFFER 1 – Week 6.86 7.36 2 – Week 6.93 7.43 1 – Month 7.00 7.50 3 – Month 7.14 7.39 6 – Month 7.29 7.54 9 – Month 7.43 7.93 1 – Year 7.51 8.01 -
SBP issues customers exchange rates on August 26
KARACHI, August 26, 2021: The State Bank of Pakistan (SBP) has released the most recent exchange rates for customers on Thursday, August 26, 2021.
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State Bank launches house acquisition scheme for NRPs
KARACHI: The State Bank of Pakistan (SBP) on Wednesday said it is launching new housing scheme for Non-Resident Pakistanis (NRPs).
The central bank said that it will launch Roshan Apna Ghar this week for non-resident Pakistanis for acquisition of property in Pakistan.
Non-resident Pakistanis can now purchase or obtain financing for a house in Pakistan through Roshan Digital Account.
Roshan Digital Account is a major initiative of State Bank of Pakistan, launched on 10th September, 2020, in collaboration with commercial banks operating in Pakistan.
These accounts provide innovative banking solutions for millions of NRPs seeking to undertake banking, payment and investment activities in Pakistan.
Under the initiative, several financial products have been provided to the Overseas Pakistanis including Naya Pakistan Certificate for investment, Roshan Apni Car for car financing and Roshan Samaaji Khidmat for donation to charities.
Roshan Apna Ghar is the new lifestyle banking product in the same category. Non-resident Pakistanis can now easily buy or obtain financing with the comfort of sitting in their houses abroad without the need to visit a bank branch.
They can buy or finance a house from bank’s pre-approved projects or any other property. The tax regime is simple and final. In case of sale of property, the principal amount invested can be remitted abroad without needing any permission.
The profit rates are attractive. Financing is available in both conventional and Shariah compliant version.
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Tarin chairs meeting of monetary, fiscal policies board
ISLAMABAD: Finance Minister Shaukat Tarin on Wednesday chaired a meeting of the Monetary and Fiscal Policies Co-ordination Board.
Other members of the Board present in the meeting were the Adviser to the Prime Minister on Commerce & Investment, Deputy Chairman Planning Commission, Governor SBP, Dr. Asad Zaman and senior officials of the Finance Division.
Finance Minister briefed the Members of the Board on the current economic situation of the country and highlighted the major incentives given in the budget due to which business confidence is improving and economy is moving on strong economic recovery path.
It was also informed that all key economic indicators relating to real sector of the economy, fiscal sector, monetary and external sectors are going well and government is proactively executing all policy measures to achieve the major socio-economic targets of the current fiscal year.
He also highlighted the possible risks to the economic activities and strategy to counter these risks which were appreciated by the members of the Board.
Secretary Finance briefed the Members of the Board on budgetary allocations for various activities and informed about the ways and means to maintain the fiscal discipline.
He also shared the strategy to contain the non-development expenditure with the focus to optimally utilize resources of the country and improve the service delivery at large for the common man.
Governor SBP informed the Board about Monetary Policy stance. He shared the analysis of the SBP on policy rate, credit availability, exchange rate movement and inflationary situation.
He also explained that policy mix is supporting the growth momentum and highlighted the increase in commodities prices in the global market which have implications for higher import bill and inflation.
It was also informed that it is encouraging signs that exports are picking up along with increase in import of machineries which will enhance productive capacity of the economy and create exportable surplus.
He also explained the policy measures which SBP is executing to encourage business activities in various sectors of the economy and highlighted that there are ample opportunities for investors/exporters and youth of the country to take benefits from SBP’s schemes to extend or initiate their business.
Deputy Chairman Planning Commission apprised the meeting about the execution of development activities.
He also highlighted the possible options for resource mobilization and to utilize them effectively for development of potential sectors of the economy.
The Adviser to the PM on Commerce and Investment briefed about the structure of trade of the country along with major destinations.
He also presented the various measures which are under execution to enhance exports in potential areas. He also mentioned the various categories of imports which can be rationalized by focusing on their substitutes.
A comprehensive road map was also discussed to minimize trade deficit of the country. It was also highlighted that fiscal and monetary facilitation will continue for potential sectors of the economy.
Dr. Asad Zaman appreciated the major fiscal and monetary measures of the government which are supporting the business activities. He also highlighted the potential areas where Pakistan has comparative advantages in export market and also identified some low hanging fruits for import substitution.
He emphasized that the goal of well-coordinated Monetary and Fiscal Policies is to achieve full employment.
Minister for Finance & Revenue emphasized the importance of Monetary and Fiscal Policies Co-ordination Board for designing and executing policies to achieve economic targets and overcome the possible risks.
He advised to make this forum more effective for maintaining better coordination of policies to achieve the planned macroeconomic goals.
The chair urged that the Board should be more proactive in reviewing the impact of Fiscal and Monetary Policies on economic growth, employment and external sector of the economy, he concluded.
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SBP issues instructions on third party sales
KARACHI: The State Bank of Pakistan (SBP) on Wednesday issued revised instructions on sale of third party products in order to bring transparency.
In addition to the typical banking products or services, banks often offer or sell other financial products that are provided by other financial institutions, generally referred to as bancassurance or third party products.
Such offers are often prone to misdeclaration about the quality or pricing of products.
Further, banks also don’t assume any responsibility after the sale of products, which leads to difficulties for customers and disputes.
To address such concerns and bring transparency to such transactions, SBP has issued a comprehensively revised set of instructions on the sale of third party products. In addition, these instructions will also facilitate the sale of products through digital channels and promote financial inclusion.
The key features of the revised instructions are as follows:
· It will be mandatory for banks to assess the suitability of customers for the sale of third party products. In addition, they will take extra care while selling such products to vulnerable consumer segments like widows, senior citizens, etc.
· All Islamic banks along with Islamic branches of conventional banks will strictly ensure that the sale of third party products is in compliance with Shariah law and SBP regulations while their agreements with third parties should also be approved by their Shariah board.
· Banks are directed to use their audit and compliance function to ensure compliance of SBP’s regulations in their business practices related to the sale of third party products.
· Senior management and board of directors will ensure that risks to consumers in the sale of third party products are identified and addressed in a proficient manner.
· With added disclosure requirements, banks have been required to mention explicitly that the product is being sold as an agent or distributor of a third party.
· To further increase accountability of bank employees involved in selling third party products, banks have been advised to develop and enforce code of conduct.
· Banks will ensure collection/registration/analysis of consumer complaints and feedback for continuous improvements in the sale of third party products by banks.
· Banks will introduce proportionate controls to foster consumer convenience and financial inclusion, especially for less risky/small size/ low value products being sold through Alternate Delivery Channels (ADCs).
· Banks have been directed to ensure the provision of special training to their staff for the sale of third party products and take disciplinary action against the concerned employee(s) in case of fraud.
· The direct debit facility can only be used if the consent of customers is obtained in writing or through electronic means in case Alternate Delivery Channels (ADC) are used for distribution.
· Banks have been directed to design and implement a Call Back Confirmation (CBC) mechanism to ensure and verify the identity of consumers and the genuineness of the transaction. To confirm the information provided by the customer, CBC mechanism based on a predefined script should be used for suitability assessment and his/her understanding of the product.
The instructions will be applicable from November 01, 2021, and will supersede previous instructions issued vide CPD Circular No.2 of 2012.
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KIBOR rates on August 25, 2021
KARACHI: State Bank of Pakistan (SBP) on Wednesday issued following Karachi Interbank Offered Rates (KIBOR) on August 25, 2021.
Tenor BID OFFER 1 – Week 6.88 7.38 2 – Week 6.94 7.44 1 – Month 7.01 7.51 3 – Month 7.16 7.41 6 – Month 7.31 7.56 9 – Month 7.44 7.94 1 – Year 7.51 8.01