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Tag: State Bank of Pakistan

  • SBP approval mandatory for opening currency exchange outlets at airports

    SBP approval mandatory for opening currency exchange outlets at airports

    KARACHI: State Bank of Pakistan (SBP) on Thursday directed exchange companies to take approval from the central bank before opening outlets at any airport in the country.

    In a circular, the SBP said that in order to facilitate the Exchange Companies and Exchange Companies of ‘B’ category in timely opening of their outlets (Currency Exchange Booths / Branches) at Pakistani airports under Pakistan Civil Aviation Authority (CAA) license, the following procedure will be applicable with immediate effect:

    a. Exchange Companies and Exchange Companies of ‘B’ category desirous of participating in CAA tender(s) for award / renewal of license of currency exchange booth(s) / branch(es) at any Pakistani airport(s) shall obtain in-principle approval from SBP before participating in each CAA tender.

    b. Application(s) complete in all respects by Exchange Companies and Exchange Companies of ‘B’ category for obtaining in principal approval to participate in CAA tender(s) must reach Exchange Policy Department at least 7 working days prior to the last date of application submission in CAA tender(s).

    Exchange Companies

    c. In principle approval for participation in CAA tender(s) shall be given by SBP to those Exchange Companies which have better compliance ratings, financial health, corporate governance etc. as mentioned in Para 3(iii) and (iv) of Chapter 4 of Exchange Companies Manual.

    d. Application(s) of Exchange Companies for in-principle approval for participation in CAA tender(s) for opening of currency exchange booth(s) / branch(es) at airports shall be treated independent of their Annual Network Expansion Plan and may be submitted to the Director, Exchange Policy Department any time during the year as per CAA tender timelines.

    Exchange Companies of ‘B’ category

    e. Exchange Companies of ‘B’ Category are not allowed to participate in CAA tender(s) for award of new license of currency exchange booth(s) / branch(es) as at present they are not allowed expansion of their branch network.

    f. Exchange Companies of ‘B’ category holding valid CAA license of currency exchange booth(s) / branch(es) shall apply for permission to participate in fresh tenders at airports/locations where they already operate after expiry of CAA license subject to compliance as applicable to Exchange Companies with requirement of Para 3(iii) and (iv) of Chapter 4 of Exchange Companies Manual.

    The SBP said that while submitting the application for participation in CAA tender, Exchange Companies and Exchange Companies of ‘B’ category shall deposit non-refundable fee of Rs.50,000/- per outlet in RTGS Clearing account number 427516 of the State Bank and submit the payment receipt as evidence of having paid the applicable fee.

    The central bank warned that failure to comply with the above instructions shall attract regulatory action against the concerned Exchange Company / Exchange Company of ‘B’ Category under the relevant provisions of the Foreign Exchange Regulation Act, 1947.

  • SBP sells T-Bills worth Rs461.37 billion in auction

    SBP sells T-Bills worth Rs461.37 billion in auction

    KARACHI: The government has raised Rs461.37 billion for budget financing through auction of market treasury bills in an auction held on Wednesday.

    State Bank of Pakistan (SBP) said that it had offered treasury bills in three-, six- and 12 months maturities. However, the central bank only received bids in only three months securities.

    The central bank received bids of Rs516.38 billion at face value of Rs528.928 billion. The SBP accepted bids worth Rs461.37 billion at face value of Rs472.578 billion for three months treasury bills.

    The SBP accepted the bids at 10.55 percent cut-off yield, which was unchanged when compared with the auction held on February 13, 2019.

    The central bank has set the target for auction to sell securities worth Rs650 billion.

  • Banks to remain open on Saturday, Sunday for receiving Hajj applications

    Banks to remain open on Saturday, Sunday for receiving Hajj applications

    KARACHI: State Bank of Pakistan (SBP) on Tuesday said that the commercial banks will remain open on March 2-3 (Saturday – Sunday) to facilitate pilgrims in depositing Hajj applications along with dues.

    The SBP directed 14 designated banks including National Bank of Pakistan, Habib Bank, United Bank, MCB Bank, Allied Bank, Bank of Punjab, Bank Alfalah, Zarai Taraqiati Bank, Faysal Bank, Askari Bank, Bank Al-Habib, Habib Metropolitan Bank, Meezan Bank, and Dubai Islamic Bank) to open all of their designated branches on 2nd and 3rd March 2019 (Saturday and Sunday), for the purpose.

    Accordingly, all designated branches of these 14 banks will remain open on Saturday & Sunday from 10:00 a.m. to 2:30 p.m. for collection of Hajj applications along with dues from intending pilgrims of Hajj 2019 across the country.

  • SBP announces freight support for sugar export

    SBP announces freight support for sugar export

    KARACHI: State Bank of Pakistan (SBP) on Friday said that it will disburse freight support payments to sugar mills in Punjab Province at variable rates to be calculated on daily basis as per prescribed formula.

    The rates would be based on white sugar price index published by International Sugar Organization (https://www.isosugar.org/prices.php).

    Further, the international sugar price on the date of sugar export quota allocation will be applicable for calculation of rate of freight support irrespective of the export price, the SBP said.

    In a circular, the central bank invited attention of banks to EPD Circular Letter No. 22 dated December 18, 2018 regarding export of sugar.

    In this regard, ADs may find enclosed letter No. FD(W&M)2-3/2018 dated January 31, 2019 (Annexure-I) received from Finance Department, Government of the Punjab regarding release of funds for freight support on export of sugar subject to terms and conditions mentioned therein.

    The SBP advised the banks to process the cases of eligible sugar mills for cash freight support against the export of sugar as per following mechanism:

    Banks will forward the shipment-wise requests of sugar mills on prescribed format through their respective Departmental/Business/Group Heads to the Director, FEOD, SBP-BSC, Head Office, Karachi or the Chief Manager, Field Office of SBP-BSC, as the case may be, for claiming freight support quoting the reference of this circular letter along with the attested / authenticated copies of the following documents:

    FEOD’s approval letter for allocation of sugar export quota.

    Manual Form-E/Electronic Form-E (EFE).

    Goods Declaration Form (GDF).

    Bill of Lading/ Truck Receipt/ Railway Receipt. In case export has been made through House Bill of Lading, it must be accompanied by relevant Master Bill of Lading.

    Commercial / Customs Invoice.

    Export Proceeds Realization Certificate and / or Advance Payment Voucher properly showing utilization. Where shipment has been made against Advance Payment, shipping documents must have been submitted by the AD under Para 27, Chapter 12 of F.E Manual – 2018.

    Freight support will be paid to sugar mills on first come first served basis. Freight support will be allowed only after full realization of export proceeds against E-Form.

    Exporters must ship the sugar within 60 days from the date of FEOD’s approval regarding quota allocation to be eligible for freight support. Both date of approval and date of shipment are included in counting of the 60 days period. For shipment by sea, the date of shipment is the “Shipped on Board” date on Bill of Lading. For shipment by land route, the “Out of Charge” date will be considered as the date of shipment.

    It is reiterated that in case of non-performance within the stipulated time against the quota allocated by FEOD, ADs will recover a penalty of 15% of total contract value from the exporter and deposit the same with the FEOD, SBP-BSC, Head Office, Karachi through DD/ PO in favor of Government of Pakistan. In case of partial shipment, the penalty shall be recovered by the AD proportionately. Further, sugar mills/ exporters who are defaulters of banks will not be allowed to export sugar/ paid freight support.

    Sugar mills will approach the respective office of SBP-BSC through their AD claiming the freight support within 60 days from realization of export proceeds or date of shipment, whichever comes later. Further, both dates of submission of claim and realization of export proceeds or date of shipment, whichever applicable, will be considered in calculating number of days. No claims will be entertained after aforementioned time period.

    SBP-BSC will return discrepant claim to the respective AD and the same must be resubmitted after removing the discrepancies within 30 days from the date of SBP-BSC’s letter (both dates inclusive), after which no such application will be entertained.

    Only such sugar mills having presence in Punjab and submitting certificate from the office of Cane Commissioner Punjab at the time of allocation of sugar export quota will be eligible for sugar freight support.

    Approved claim will be disbursed to the respective AD in its account maintained with SBP-BSC for onward credit to the exporter’s account within 24 hours of disbursement.

    Format of application by the sugar mills (Annexure-II) and the undertaking by AD (Annexure-III) are enclosed.

    Incomplete requests shall not be considered, the SBP said.

  • SBP launches three Sharia compliant refinancing schemes for SMEs

    SBP launches three Sharia compliant refinancing schemes for SMEs

    KARACHI: State Bank of Pakistan (SBP) has issued three Shariah Compliant Refinance Schemes that are expected to provide level playing field to the Islamic banking industry, a statement said on Friday.

    Currently, SBP offers various subsidized refinance facilities to the banks / DFIs to channelise the funds into priority sectors.

    It is worth mentioning here that Shariah compliant Islamic Export Refinance facility and Islamic long term financing facility for the exporters are available to the Islamic banking industry.

    However, addition of Shariah compliant financing facility for Renewable Energy, financing facility for storage of agricultural produce and Refinance facility for modernization of SMEs will meet the long awaited demand of the industry, especially for the Agriculture and SME sectors.

    Mudarabah based facilities would provide long term cheaper liquidity to the end users. The financing under Islamic financing facility for Renewable Energy will be available in two categories.

    These are (i)prospective sponsors desirous of setting up renewable energy power projects with capacity ranging between 1 – 50 MW and (ii) consumers willing to install facility using renewable energy source for generation of electricity ranging between 4 KW – 1 MW for own use and/or for supplying to the distribution company.

    Islamic Financing facility for storage of agricultural produce will be available for setting up silos, warehouses and cold storages. Refinance facility for modernization of SMEs will be available for purchase of new imported/ local plant & machinery for SMEs.

  • Forex reserves decline by $101 mn to $14.795 bn

    Forex reserves decline by $101 mn to $14.795 bn

    KARACHI: Pakistan’s total foreign exchange reserves declined by $101 million to $14.795 billion by week ended February 15, 2019 as compared with Rs14.895 billion a week ago, State Bank of Pakistan (SBP) said on Thursday.

    During the week ending February 15, 2019, the official reserves of SBP were decreased by $163 million to $8.043 billion from $8.206 billion a week ago, due to external debt servicing and other official payments.

    The reserves held by commercial banks however increased by $62 million to $6.751 billion as compared with $6.689 billion a week ago.

  • SME financing crosses over Rs500 billion: SBP

    SME financing crosses over Rs500 billion: SBP

    KARACHI: State Bank of Pakistan (SBP) on Tuesday said that SME financing by banks has first time crossed the milestone of Rs500 billion.

    SME financing was recorded at Rs 513 billion at the end of CY 2018 compared to Rs 450 billion in the corresponding period last year, exhibiting growth of 14 percent.

    The growth in SME financing was even more prominent in the last six months of CY 2018 (July-Dec, 2018) wherein it registered an increase of 25 percent.

    This increase in SME financing attracts greater significance keeping in view the fact that SBP policy rate during CY 2018 witnessed a rising trend.

    Due to continued focus of State Bank for facilitating SMEs access to formal sources of finance, SME financing increased significantly during CY 2018.

    The substantial increase in SME financing is mainly attributable to implementation of the policy for promotion of SME finance issued by the State Bank of Pakistan in December 2017.

    The SME policy ensured provision of enabling regulatory environment for SME finance, prescribing SME financing targets for banks/DFIs, sensitizing banks to adopt SME financing as a viable business proposition, advising banks to provide non-financial advisory services for making SMEs bankable, simplifying procedures for SME financing and introduction of new SBP refinance schemes for SMEs through banks/DFIs.

    Under the policy so far more than 2,500 bankers have been trained through focused trainings by the training institute of the central bank.

    Similarly, awareness has also been created among more than 20,000 stakeholders including SMEs through special programs held by SBP and SBP BSC all across the country.

    The impact of SBP interventions resulted into significant rise in outstanding SME finance by banks/DFIs coupled with 2.3 percent decrease in non-performing SME portfolio of banks over last year.

    It is pertinent to mention that Government of Pakistan is also providing all out support to promote SME sector.

    The substantial tax incentives to the banks on their incremental financing to SMEs announced in recent economic reforms bill is in line with measures identified in government’s 100-day agenda for development of SME sector.

    This will continue to encourage banks to fulfill the financing needs of SMEs.

    It is worth mentioning that SME sector is contributing 30 percent towards country’s GDP, employ more than 80 percent of non-agricultural workforce and generate 25 percent in export earnings. Thus, SME sector has huge potential for employment generation and poverty alleviation.

  • Taking out of jewellery and precious stones prohibited

    Taking out of jewellery and precious stones prohibited

    KARACHI: The laws have prohibited export from Pakistan of jewellery or precious stones except with the general or special permission of the State Bank (SBP).

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  • Carrying above $10,000 without source to be dealt under anti-money laundering laws

    Carrying above $10,000 without source to be dealt under anti-money laundering laws

    KARACHI – The government of Pakistan has announced that carrying an amount above $10,000 without source will be dealt under anti-money laundering (AML) laws.

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