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Tag: State Bank of Pakistan

  • SBP suspends service charges to facilitate banks

    SBP suspends service charges to facilitate banks

    KARACHI: The State Bank of Pakistan (SBP) on Wednesday announced temporary suspension of 0.12 percent service charges levied on banks against deposit of re-issuable balance.

    Through FD Circular No. 03/2015, dated August 26, 2015, 0.12 percent service charges have been levied on the banks against deposit of re-issuable balances with SBP BSC offices or NBP chest branches.

    In order to facilitate the banks in managing the excess liquidity, consequent to large volumes of withdrawals on the eve of Eid and the COVID-19 pandemic, it has been decided to extend the temporary suspension of 0.12 percent service charges on deposit of re-issuable balances with SBP BSC offices or NBP chests branches.

    Accordingly, banks can deposit re-issuable balances with SBP BSC offices or NBP chests without levy of 0.12 percent service charges on deposit of re-issuable balances till June 30, 2021.

  • SBP directs banks to ensure payment of prize bonds

    SBP directs banks to ensure payment of prize bonds

    KARACHI: State Bank of Pakistan (SBP) on Monday directed commercial banks to ensure payment of prize bonds i.e. prize money and face value.

    The SBP said that it had observed that commercial banks have not been extending the desired level of support to their customers in availing the facility on payment of prize money and face value of National Prize Bonds through their bank branches.

    In view of the above, all authorized commercial banks are advised to ensure compliance to the following instructions:

    i. The head office / regional offices of each commercial bank shall reiterate the instructions referred at para. 1 above and advise all the designated branches to extend maximum support to their customers in this regard.

    ii. Efforts shall be made to increase the number of designated branches for the subject facility so as to enhance the outreach and ensure adequate geographic coverage.

    iii. The information about availability of this facility shall be prominently displayed on the banks’ official website as also in the premises of the designated branches for information of the general public.

    iv. Customer service officials shall facilitate / brief customers on the availability of this facility in their respective branches.

  • Remittances fall by 18.6 percent in May 2020

    Remittances fall by 18.6 percent in May 2020

    KARACHI: The inflow of workers’ remittance has registered 18.6 percent decline in May 2020 due to job losses and closure of borders due to coronavirus.

    The inflow of workers’ remittances was at $429.2 million in May 2020 as compared with $2.3 billion in the same month of the last year, showing decline of 18.6 percent, State Bank of Pakistan (SBP) said on Friday.

    During this pandemic situation, job losses of overseas workers and closure of international borders are the main factors affecting remittances’ flow. Moreover, in last year, the whole month of Ramadan fell in May 2019, the SBP said.

    During May 2020, workers’ remittances stood at $1,872.8 million, showing an increase of $82.8 million or 4.6 percent over previous month (April 2020, $1,790.0 million).

    Workers’ Remittances amounted to US $ 20,654.5 million during July – May FY20, up by 2.7 percent or US $ 551.5 million over July – May FY19 (US $ 20,103.0 million).

    Major contribution to workers’ remittances during May 2020 came from Saudi Arabia (US $ 436.2 million), USA (US $ 428.3 million), UAE (US $ 323.4 million) and UK (US $ 284.8 million) recording an increase of 25.7 percent and 6.6 percent for UK and USA respectively whereas a decrease of 3.4 percent and 8.6 percent for Saudi Arabia and UAE respectively as compared to April 2020.

  • SBP adopts flexible monetary policy stance on adverse impact of COVID-19

    SBP adopts flexible monetary policy stance on adverse impact of COVID-19

    ISLAMABAD:  The adverse impact on the economy due to COVID-19 has forced the State Bank of Pakistan (SBP) to adopt flexible monetary policy stance, according to Pakistan Economic Survey 2019/2020 released on Thursday.

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  • Foreign exchange reserves slip by $215 million

    Foreign exchange reserves slip by $215 million

    KARACHI: Pakistan’s foreign exchange reserves have declined by $215 million to $16.705 billion by week ended June 05, 2020, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $16.92 billion by week ended May 29, 2020.

    The foreign exchange reserves held by the SBP fell by $266 million to $10.096 billion by week ended June 05, 2020 as compared with $10.362 billion a week ago.

    The central bank attributed the decline to the government external debt repayments of $301 million during the week.

    The foreign exchange reserves held by commercial banks however increased by $51 million to $6.609 billion by week ended June 05, 2020 as compared with $6.558 billion a week ago.

  • SBP disburses Rs96 billion under refinance scheme to dilute COVID impact

    SBP disburses Rs96 billion under refinance scheme to dilute COVID impact

    KARACHI: Dr. Reza Baqir, Governor, State Bank of Pakistan (SBP) has said that so far around 1320 companies availed SBP’s refinance scheme and a sum of Rs96 billion has been disbursed to the applicants during last three months of current fiscal year to dilute adverse impact of COVID-19.

    The SBP governor was exchanging views with Presidents of Karachi, Lahore, Islamabad, Quetta, Faisalabad, Sarhad, Sialkot, Gujranwala, Multan, Mirpurkhas Chambers and also the FPCCI at a meeting held a day earlier via video link, said a statement issued by Karachi Chamber of Commerce and Industry (KCCI).

    The SBP governor said that the refinance scheme was launched as a risk sharing initiative to facilitate SMEs during the ongoing difficult times and minimize the negative impact on numerous businesses caused by the outbreak of coronavirus pandemic.

    He was of the opinion that this meeting via video link with the business and industrial community of entire Pakistan should be held regularly on monthly basis so that the SBP could better understand business community’s requirements and accordingly devise strategies.

    President KCCI Agha Shahab Ahmed Khan, in his remarks, urged the State Bank of Pakistan to publicize details of all the companies who have availed SBP’s refinance scheme with a view to make this scheme transparent otherwise, it is likely that the banks will be accused of giving loans to their favorites and undeserving in future.

    He further stated that several public sector organizations including the State Bank of Pakistan have been following dissimilar definitions for SMEs that creates a lot of confusion and needs to be clarified.

    In response, Governor State Bank assured that the issue has been rectified and all the institutions including SBP are following a uniform definition for SMEs which will be shared with KCCI so that they could understand the overall ambit of SME sector.

    Agha Shahab said that some highly influential people having good contacts in the banking sector have easy access to financing facilities but a large segment of society remains deprived hence, there is a need to ease the overall criteria and paperwork for loan disbursement so that maximum people could benefit from these facilities and are able to survive in the extremely difficult and extraordinary situation being suffered by the business community of entire Pakistan.

    “SBP’s refinance facility offers loans at an attractive interest rate of just 3 percent but many people simply don’t want to pay any interest as it is strictly prohibited in Islam. Hence, the State Bank must look into the possibility of launching another refinance facility with zero percent markup which would certainly provide huge support to the business community in distress”, he added.

  • Bank deposits touch new peak of Rs15.48 trillion

    Bank deposits touch new peak of Rs15.48 trillion

    KARACHI: The deposits of banking system high record high at Rs15.48 trillion in May 2020 despite sharp cut in policy rate cut and Eid festival.

    According to statistics released by State Bank of Pakistan (SBP) on Monday the deposits of banking system sharply grew by 15 percent to Rs15.48 trillion by end of May 2020 as compared with deposits of Rs13.459 trillion in the same month of the last year.

    The deposits of banking system by May 2020 also grew by 7 percent when compared with Rs14.475 trillion in April 2020.

    The banking system witnessed record high deposits despite cut in key policy rate by the SBP during the past two months.

    The SBP in its latest monetary policy announcement on May 15, 2020 reduced the policy rate by 100 basis points to bring down to 8 percent.

    The cumulative reduction in key policy rate was 525 basis points during the past two months.

    Further, the deposits hit record high despite Eid festival when people opt to withdraw cash. However, on this Eid-ul-Fitr the SBP had not issued fresh currency notes due to coronavirus.

    Banking experts said that due to partial halt in business activities and easing lockdown to allow opening of markets in the last days of the month of Ramazan helped the banking system to have massive deposits.

  • SBP issues fake call alert; advises not to share account information

    SBP issues fake call alert; advises not to share account information

    KARACHI: The State Bank of Pakistan (SBP) on Sunday issued alert warning general public that unscrupulous elements are making phone calls to collect account holders information.

    “It has come to the knowledge of SBP that unscrupulous elements are making phone calls to individuals, impersonating as officials of SBP or other agencies, seeking personal information regarding their deposit accounts on the pretext that SBP is collecting information from banking customers in light of emergency declared in the country due to COVID-19,” the SBP said.

    In some instances, the fraudsters also claim that the information is required to ensure smooth functioning of their accounts in case ATM services become unavailable.

    The central bank said that it never seeks details of account holders of any bank and all such calls made on its behalf are a hoax and with fraudulent intentions.

    Public is advised not to respond to any such calls and provide any information.

    Please report such calls to your bank immediately.

    In addition, these call can also be reported to SBP helpline at 021-111-727-273 (during business hours) or at email [email protected].

  • Foreign exchange reserves decline by $1.68 billion

    Foreign exchange reserves decline by $1.68 billion

    KARACHI: The liquid foreign exchange reserves of the country fell by $1.68 billion to $16.92 billion by week ended May 29, 2020, State Bank of Pakistan (SBP) said on Thursday.

    The total foreign exchange reserves of the country were $18.599 billion a week ago.

    The foreign exchange held by the central bank fell by $1.712 billion to $10.362 billion by week ended May 29, 2020 as compared with official reserves of $12.074 billion.

    This decline is primarily attributed to the government external debt repayments of $1.669 billion.

    The foreign exchange held by commercial banks however increased by $34 million to $6.558 billion by week ended May 29, 2020 as compared with $6.524 billion a week ago.

  • SBP takes additional cash management measures amid rapid spread of coronavirus

    SBP takes additional cash management measures amid rapid spread of coronavirus

    KARACHI: The State Bank of Pakistan (SBP) has implemented additional measures for cash movement amidst the rapid spread of COVID-19. In a notification issued to the CEOs and Presidents of banks, the SBP emphasized the importance of these measures to protect those directly involved in cash management and operations.

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