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Tag: State Bank of Pakistan

  • Pakistan’s foreign exchange reserves increase by $416 million to $15.993 billion

    Pakistan’s foreign exchange reserves increase by $416 million to $15.993 billion

    KARACHI: The liquid foreign exchange reserves of Pakistan increased by $416 million to $15.993 billion by week ended November 29, 2019, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $15.577 billion a week ago.

    The reserves held by the central bank grew by $431 million to $9.113 billion as compared with $8.682 billion a week ago.

    The central bank said that during this fiscal year SBP reserves have increased by $1.8 billion.

    The FX swaps / forward liabilities have reduced by $1.95 billion between June-October 2019.

    Increase in the liquid SBP reserves and the reduction of the swaps / forward liabilities reflects the build-up of FX buffers, the SBP said.

    The reserves held by commercial banks, however, reduced by $15 million to $6.88 billion by week ended November 29, 2019 as compared with $6.895 billion a week ago.

  • Import, export of gold prohibited under foreign exchange laws

    Import, export of gold prohibited under foreign exchange laws

    KARACHI: The import and export of gold are prohibited, except with the general permission, under updated foreign exchange manual issued by State Bank of Pakistan (SBP).

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  • Bearer prize bonds of Rs40,000 worth Rs233 billion documented

    Bearer prize bonds of Rs40,000 worth Rs233 billion documented

    KARACHI: People have documented an amount of Rs233 billion invested in bearer prize bonds of Rs40,000 denominations following the government announcement of discontinuation.

    According to statistics of Central Directorate of National Savings (CDNS) people have Rs323 billion bearer bonds of Rs40,000 denomination by October 2019, which is around 90 percent of the total invested amount till May 2019.

    The government on June 24, 2019 announced to discontinue the circulation of Rs40,000 denomination national prize bonds in initial phase.

    The investment in prize bonds of Rs40,000 denominations reached to record level of Rs258.72 billion by May 2019.

    However, since announcement the stock of bearer prize bonds was gradually falling and reduced to only Rs26.15 billion by October 2019.

    The State Bank of Pakistan (SBP) following the announcement issued procedure for the banks to facilitate general public in exchanging the unregistered prize bonds through three different modes.

    The SBP has barred the exchange of bearer prize bonds against cash.

    However, it can be redeemed against registered or premium prize bonds or can be converted into national saving schemes or face value (direct transfer to the bank account of bond bolder).

    The bearer instruments have been known as parking lot for undocumented economy. Therefore, the government launched registered prize bonds of Rs40,000 denomination in March 2017 which could be purchased against certain requirements including Computerized National Identity Card (CNIC) and valid bank account.

    Following the ban on bearer prize bonds and its conversion through option of known documented manner, the investment in premium prize bonds of Rs40,000 denomination jumped up to Rs17 billion by October 2019 as compared with Rs6.17 billion as of May 2019, showing an increase of 175 percent.

    According to the SBP the bearer instrument can also be exchanged in savings schemes such as Special Saving Certificates (SSC) or Defence Saving Certificates (DSC).

    The total investment into the saving certificates increased to Rs2.4 trillion by October 2019 as compared with Rs2.2 trillion by May 2019.

    The government is intended to transform all the bearer prize bonds into to registered securities. In this regard the Central Directorate of National Savings in collaboration with SBP is planning to issue scripless registered prize bonds amongst all denominations with objective to document the economy.

  • SBP directs banks to provide daily branch-level cash position

    SBP directs banks to provide daily branch-level cash position

    KARACHI: State Bank of Pakistan (SBP) on Wednesday directed the banks to provide branch-wise cash position on daily basis.

    A circular issued by the central bank said that through a circular dated October 04, 2018 wherein SBP introduced daily branch-level reporting of cash receipts and payments, with a view to monitor and manage cash operations across the industry.

    In order to further enhance the control over reported data, it has been decided to route the data reporting through Data Acquisition Portal (DAP).

    Banks are therefore advised to report daily branch wise cash receipts & payments data via DAP with effect from December 09, 2019.

    In the previous circular issued in October 2018, the SBP said that While appreciating the efforts of banks in efficient reporting through DAP, SBP intends to further improve the reporting mechanism with a view to monitor and manage the cash operations, banks would be required to upload/submit branch wise cash receipt and withdrawal position at each day end.

    Accordingly, SBP has made necessary development in SBP Data Acquisition Portal (DAP) to facilitate banks in submission of branch wise daily position.

    In order to acquaint the respective officials of banks, SBP is organizing an orientation session.

    Therefore, banks are requested to nominate, at least two, officials to participate in the session.

  • Currency notes sent by post to Pakistan liable to confiscation

    Currency notes sent by post to Pakistan liable to confiscation

    KARACHI: Sending currency notes and coins into Pakistan by post is illegal and liable to confiscation under updated Foreign Exchange Manual issued by State Bank of Pakistan (SBP).

    The SBP said that laws in force are prohibiting the bringing or sending into Pakistan from any place outside Pakistan, of Pakistan and foreign currency notes or bank notes, un-issued or in circulation, or coin, except with the general or special permission of the State Bank.

    Under Notification No.-1F.E.2/2017-SB dated the August 30, 2017, State Bank has granted general permission for bringing into Pakistan notes legal tender in Pakistan not exceeding Rs 3,000/- (Rupee Three Thousand Only) from India and Rs 10,000/- (Rupee Ten Thousand Only) from any country other than India, in value, in all per person at any one time.

    The State Bank has also granted under Notification No.F.E.30/49-SB dated the November 5, 1949 and Notification No. F.E. 5/92-SB dated the 28th December, 1992 general permission to the travellers to Pakistan, to bring with them without limit foreign currency notes except un-issued notes and coin, except coin which is legal tender in India, which can be brought only up to Rs.5/- in value per person at any one time.

    The SBP said that the permission contained above is valid only for bringing in of Pakistan or foreign currency notes or coin by travellers personally with them, but not for sending them into Pakistan by post or otherwise which is illegal.

    Currency notes and coin sent by post to Pakistan are liable to be confiscated, which is besides the legal action that will be taken under the Act in such cases.

    The SBP said that Pakistan currency notes up to Rs 3,000 and Rs 10,000, which the persons leaving Pakistan are permitted to take with them to India and to any country other than India respectively, are not intended for expenditure in foreign countries, but are meant for immediate expense on their return to Pakistan 3and/or for in-flight purchases on PIA’s international flights.

    The central bank directed authorized dealers should bring this to the notice of travellers when issuing exchange to them for travel purposes.

  • SBP welcomes Moody’s stable outlook on Pakistan

    SBP welcomes Moody’s stable outlook on Pakistan

    KARACHI: State Bank of Pakistan (SBP) on Tuesday welcomed Moody’s change in outlook on Pakistan from negative to stable.

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  • Limits of US Dollars taking out of Pakistan

    Limits of US Dollars taking out of Pakistan

    KARACHI: State Bank of Pakistan (SBP) has categorized age limits for taking out of Pakistan US Dollars or equivalent amount of foreign exchange.

    According to updated foreign exchange manual the SBP granted general permission to any person to take out of Pakistan US Dollars or equivalent thereof in other foreign currencies as per the following limit:

    Up to five years $1,000 or annual ceiling per person $6,000

    From 5 years to 18 years $5,000 or annual ceiling per person $30,000

    Above 18 years $10,000 or annual ceiling of $60,000

    In pursuance of sub-section (2) of Section 8 of the Act, the State Bank has issued Notification No. F.E.2/98-SB dated July 21st, 1998 granting general permission to: –

    (a) Authorized Dealers to send out of Pakistan, cheques, drafts or bills of exchange which have been acquired by them in the normal course of their business and within the terms of their authorization.

    (b) Any person maintaining an account expressed in a foreign currency, and held under any permission, general or otherwise, granted by the State Bank of Pakistan to take or send out of Pakistan, cheques or drafts drawn on such account.

    (c) Any person, other than a person to whom foreign exchange is issued for travelling purposes only, to send out of Pakistan foreign exchange issued to him by an Authorized Dealer.

    (d) Any person to take out of Pakistan foreign exchange issued to him by an Authorized Dealer in Pakistan and endorsed on his passport and

    (e) Any person not ordinarily resident in Pakistan, to take out of Pakistan the unspent amount of foreign currency brought by him into Pakistan, provided the period of his continuous stay in Pakistan does not exceed three months.

    As an exception, NGOs, UN/Other Donor Agencies would be able to draw foreign currency from their accounts without any limit for taking it to Afghanistan to the extent of such remittances.

    Authorized Dealers would issue Certificates to these entities in duplicate, one copy of which would be submitted to Customs Authorities and the second would be kept by the concerned NGO/agency which would, however, be stamped by Customs Authorities as ‘Amount allowed to be taken out’.

    The record of all such transactions would be kept by Authorized Dealers for SBP inspection.

  • Foreign exchange reserves increase by $115 million

    Foreign exchange reserves increase by $115 million

    KARACHI: The liquid foreign exchange of the country increased by $115 million by the week ended November 22, 2019, the State Bank of Pakistan (SBP) said on Thursday.

    The total foreign exchange reserves increased by $115 million to $15.577 billion by week ended November 22, 2019 as compared with $15.462 billion a week ago.

    The foreign exchange reserves held by the central bank increased by $240 million to $8.682 billion by week ended under review as compared with $8.442 billion a week ago.

    The foreign exchange reserves held by commercial banks fell by $125 million to $6.895 billion by week ended November 22, 2019 as compared with $7.020 billion a week ago.

  • Remitting up to $50,000 allowed for medical treatment abroad

    Remitting up to $50,000 allowed for medical treatment abroad

    KARACHI: Authorized dealers have been allowed to remit foreign exchange up to $50,000 on account of medical treatment abroad of resident Pakistanis only.

    According to Foreign Exchange Manual updated up to March 14, 2019 issued by State Bank of Pakistan (SBP), authorized dealers may remit foreign exchange up to $50,000/- or equivalent in other foreign currencies on account of medical treatment of resident Pakistanis only after satisfying themselves about bona fides of the transaction. Remittances should be sent directly to the account of concerned reputable foreign Hospital via SWIFT, telegraphic transfer or demand draft after obtaining the following documents:

    a. Appendix V-72 duly filled in by the patient/next of kin/sponsor.

    b. Invoice/estimate of the foreign hospital.

    c. A ‘self-declaration’ from the patient, his/her next of kin or from sponsor declaring amount of foreign exchange essentially required for treatment abroad.

    According to the foreign exchange manual, in addition, authorized dealers may also release cash foreign exchange equivalent to US$ 5,000/- each to the patient and one attendant which should be duly endorsed on his/her/their passport(s).

    In case of foreign exchange requirements for medical treatment abroad in excess of the above limit, the concerned authorized dealer will forward the case to the Director, Foreign Exchange Operations Department, SBP-Banking Services Corporation, Head Office, Karachi along with justification and documentary evidence for consideration.

    The authorized dealers will retain all related record including the documents submitted by the applicant as mentioned in this paragraph for on-site inspection by the State Bank’s Inspection Team.

    In order to facilitate and guide their individual customers desirous of availing above services, authorized dealers are advised to ensure the following:

    a) Information regarding provision of FX services for medical treatment abroad should be displayed at prominent place at each authorized branch of the authorized dealer.

    b) Adequate stock of major foreign currencies should be maintained at all authorized branches to meet cash related requirements for such facility.

    c) Brochures containing information regarding services related to medical treatment abroad may be made available at all branches. However, such information must be placed at official websites of the authorized dealers alongwith list of branches providing such services.

    Further, such list should also be available at all branches of the Authorized Dealer for guidance of customers.

    d) The officials dealing with such services should be trained/ made acquainted with the existing foreign exchange rules and regulations governing individual FX needs.

  • SBP enhances limit to $5,000 for pension transactions under home remittance services

    SBP enhances limit to $5,000 for pension transactions under home remittance services

    KARACHI: State Bank of Pakistan (SBP) on Monday enhanced the limit of pension transactions up to $5,000 per month under home remittance services.

    According to a circular issued by the SBP the transactions limits by individuals under various categories had been enhanced to $5,000 per month from $1,500 per month.

    The limits have been enhanced to facilitate overseas Pakistanis.

    The central bank on October 22, 2018 allowed banks and exchange companies to effect Business to Customer (B2C) and Customer to Business (C2B) transactions through foreign correspondent entities under their existing/new home remittance agency arrangements subject to inclusion of respective ceilings along with terms and conditions.

    The limits defined under circular issued on October 11, 2019 were $1,500 for: freelance of computer and information system services; other freelance services; and pension transactions.

    In the latest circular, the SBP said that ll other instructions on the subject shall remain unchanged.

    The SBP said that before finalization, exchange companies are required to forward draft of all addendum/new agency agreements.

    The SBP will provide its input, if any, on the draft addendum/new agreement but the ultimate responsibility to adequately safeguard their interest would remain on the exchange companies.

    Furthermore, the AD’s failure to comply with the above mentioned instructions may attract regulatory penalty under Section 23K of the Foreign Exchange Regulation Act, 1947.