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Tag: State Bank of Pakistan

  • Foreign exchange reserves decline by $40 million

    Foreign exchange reserves decline by $40 million

    KARACHI: Pakistan’s liquid foreign exchange reserves have declined by $40 million to $15.462 billion by week ended November 15, 2019 as compared with $15.502 billion a week ago, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves held by SBP, however, increased by $45 million to $8.442 billion by week ended November 15, 2019 as compared with $8.397 billion a week ago.

    The reserves held by commercial banks fell by $85 million to $7.020 billion as compared with $7.105 billion a week ago.

  • Share of payment to Chinese imports increases 21.42pc

    Share of payment to Chinese imports increases 21.42pc

    KARACHI: The share of import payment to China has increased to 21.42 percent during first four months (July – October) 2019/2020 as compared with share of 18 percent in the corresponding period of the last fiscal year.

    The total payment for import from China was at $3.14 billion during first four months of current fiscal year out of Pakistan’s total import bill of $14.65 billion for the same period, according to statistics released by State Bank of Pakistan.

    The total payment for import from China was at $3.45 billion in first four months of fiscal year 2018/2019 when total import bill for the period was $19.02 billion.

    The payment for total import bill has registered 23 percent decline to $14.656 billion during first four months of current fiscal year as compared with $19.016 billion in the corresponding months of the last fiscal year.

    The payment for import from China, however, also declined but by 9.14 percent to $3.14 billion during first four months of current fiscal year as compared with $3.45 billion in the same period of the last fiscal year.

    China is remained the largest exporting country for Pakistani markets during the first four months of current fiscal year.

    The United Arab Emirates (UAE) is the second largest exporting country for Pakistani markets during the period under review.

    However, the import payment to UAE fell sharply by 30 percent and stood at $2.44 billion during first four months of current fiscal year as compared with $3.5 billion in the corresponding period of the last fiscal year.

    The share of import payment to UAE in total import payment of Pakistan also fell to 16.68 percent during July – October 2019/2020 as compared with share of 18.44 percent in total import bill in July – October 2018/2019.

    Pakistan has taken several measures during the past couple of years to discourage imports of luxury and non-essential items.

    The decline in import bill during the first four months can be attributed to those measures taken by the government.

  • Pakistan spends $531mn on vehicle import in 4 months

    Pakistan spends $531mn on vehicle import in 4 months

    KARACHI: Pakistan has spent $531 million on vehicle import in the first four months (July – October) of the current fiscal year, according to official data released on Wednesday.

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  • SBP asks banks to enhance efforts for achieving agri credit disbursement target

    SBP asks banks to enhance efforts for achieving agri credit disbursement target

    KARACHI: State Bank of Pakistan (SBP) has asked banks to enhance their efforts to achieve qualitative aspects of the assigned targets for agriculture financing.

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  • SBP likely to keep policy rate unchanged: analysts

    SBP likely to keep policy rate unchanged: analysts

    KARACHI: State Bank of Pakistan (SBP) likely to keep policy rate unchanged in upcoming monetary policy, analysts said on Tuesday.

    The analysts at Arif Habib Limited said that the monetary policy committee of SBP will convene on Friday (22nd November 2019) to announce the monetary policy for the next two months.

    We expect the SBP to keep policy rates unchanged in the upcoming monetary policy statement. Despite significant reduction in yields of 10-yr PIB, T-Bills, and revision on National Savings Scheme (NSS) rates, we see a status quo stance due to the following reasons:

    i) Inflation is likely to remain elevated in upcoming months and expected to peak out in January 2020 at 12.50 percent which would reduce real interest rates to 75bps (compared to last 10 months average of ~290bps),

    ii) Government is expected to continue attracting foreign investment in T-Bills to increase foreign exchange reserves, and

    iii) Monetary easing might have negative repercussions on the current account and exchange rates.

    To recall, SBP kept policy rate unchanged in last monetary policy statement (held on 16th September 2019) on account of

    i) Inflation forecast which was broadly similar between new and old base (11-12 percent for FY20),

    ii) Higher core inflation, and iii) Regular adjustment in utility prices and increase in food prices could pose upside risk to inflation forecast.

  • SBP facilitates exports against advance payment

    SBP facilitates exports against advance payment

    KARACHI: State Bank of Pakistan (SBP) has amended framework related to trade based money laundering in order to facilitate receiving export payment.

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  • Foreign investment increases to $1.1 billion owing to debt securities attraction

    Foreign investment increases to $1.1 billion owing to debt securities attraction

    KARACHI: Pakistan’s total inflow of foreign investment has increased to $1.1 billion during first four months (July – October) 2019/2020 as compared with outflow of $77.5 million in the corresponding months of the last fiscal year, State Bank of Pakistan (SBP) said on Monday.

    The inflows can be attributed to attractive avenue in the debt securities for foreign participants.

    The total portfolio investment has been recorded at $436.7 million during first four months of the current fiscal year as compared to a negligible amount in the same period of the last fiscal year.

    The total inflow of foreign private investment was at $665.7 million during first four months of the current fiscal year as compared with $77.6 million outflow in the corresponding months of the last fiscal year.

    The foreign direct investment also grew by 238.7 percent to $650 million during period under review as compared with $192 million in the same period of the last fiscal year.

    The inflow of portfolio investment in capital market was recorded at $15.6 million as compared with outflow of $269.5 million.

  • SBP to announce monetary policy on Nov 22

    SBP to announce monetary policy on Nov 22

    KARACHI: State Bank of Pakistan (SBP) will announce monetary policy on Friday, November 22, 2019 for next two months, said a statement on Monday.

    The SBP kept the policy rate unchanged at 13.25 percent in its monetary policy announcement on September 16, 2019.

    In the previous monetary policy, the SBP noted two key developments since the last MPC meeting.

    First, the interbank foreign exchange market had adjusted relatively well to the introduction of the market-based exchange rate system.

    The initial volatility and associated uncertainty in the exchange market had subsided.

    Reflecting these improved sentiments and continued adjustment in the current account, the rupee had strengthened modestly against the US dollar since the last MPC, unlike its previous trend.

    Second, on the external front, the US Fed, as anticipated, reduced its policy rate by 25 basis points (bps), followed by policy rate cuts by other major central banks around the world.

    This would help in lowering pressures on emerging markets’ currencies and potentially increase financial inflows.

  • SBP issues instructions to banks on FX/SWAP trade confirmation

    SBP issues instructions to banks on FX/SWAP trade confirmation

    KARACHI: State Bank of Pakistan (SBP) on Friday issued instructions to banks regarding foreign exchange (FX)/SWAP trade confirmation.

    The SBP said that it had earlier issued instructions through a circular on October 09, 2012 under which the banks provide FX/SWAP trade confirmations duly signed by their authorized signatories, as per standardized hard copy format (hard copy) on the transaction date.

    They are also required to provide SWIFT MT-300 confirmation message (SWIFT message) in addition to said hard copies.

    It has, however, been observed that some of the banks occasionally fail to send said hard copies/ SWIFT messages on the transaction date.

    Such lapses pose serious difficulties in timely verification of trade terms and other trade related details thereby unnecessarily exposing the banks to critical settlement risk.

    The banks are also required to keep this department updated on any changes in their list of authorized signatories along with contact details, however, intermittent non-compliance to these instructions has also been noted.

    In order to ensure smooth settlement process, the banks are advised to:

    Ensure that all SWIFT messages, of a given transaction date, are invariably transmitted to this department with zero tolerance for any leftover SWIFT message.

    This means that transmission date of a SWIFT message should not be later than the trade commitment date (transaction date) of related FX/SWAP trade.

    Further, in order to bring efficiency in the process, transmission of hard copy may be discontinued from now onwards.

    However, submission of hard copy would be mandatory in situations where a bank is unable to transmit SWIFT message due to any reason of whatsoever in nature.
    Submit an updated list of authorized signatories with specimen signatures and contact details, on quarterly basis (format attached).

    Such updated list for quarter ending Jul-Sep19 may be submitted by November 28, 2019. The future reports may be submitted within 10 working days from end of a calendar quarter.

    In case of any future changes of authorized person(s) during a quarter, this department will be immediately notified of such changes but not later than 3 working days.