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Get the latest State Bank of Pakistan (SBP) news, monetary policy updates, exchange rates, banking regulations, and economic insights.

Foreign exchange reserves up by $91 million

KARACHI: The liquid foreign exchange reserves of the country increased by $91 million to $18.362 billion by week ended January 24, 2020, State Bank of Pakistan (SBP) said on Thursday.

The foreign exchange reserves of the country were at Rs18.271 billion a week ago.

The reserves held by the central bank increased by $184 million to $11.915 billion by week ended January 24, 2020 from $11.731 billion a week ago.

The reserves held by commercial banks fell by $93 million to $6.447 billion from $6.538 billion.

January 30, 2020
Import payments on open account allowed to facilitate commercial importers

KARACHI: State Bank of Pakistan (SBP) has allowed imports on open account for the import of raw materials and spare parts to facilitate small and medium manufacturing units and commercial importers.

The SBP in a circular issued on Tuesday said that F.E. Circular No. 07 dated July 20, 2018 whereby imports on open account basis was confined to industrial and manufacturing sector only for import of raw materials and spare parts for their own use.

These instructions were amended vide EPD Circular Letter No. 13 dated August 29, 2018 and EPD Circular Letter No. 15 dated September 14, 2018 to allow open account imports for specified sectors.

In order to facilitate small and medium manufacturing units and commercial importers, the above instructions have been further modified.

Henceforth, Authorized Dealers are allowed to effect import payments on open account basis on behalf of manufacturing and industrial users and commercial importers for import of raw materials and spare parts only to be used as input by the manufacturing/industrial concerns.

Authorized Dealers are advised to ensure meticulous compliance of above and other applicable regulatory instructions including those of Para 6, Chapter 2 of Foreign Exchange Manual which requires them, inter alia, to satisfy themselves that the transaction will not involve and is not designed for the purpose of contravention or evasion of any of the provisions of the Foreign Exchange Regulation Act, 1947 or of any rules, directions or orders issued thereunder.

January 29, 2020
SBP enhances borrowing limit under LTFF to Rs5 billion

KARACHI: The State Bank of Pakistan (SBP) has enhanced the maximum borrowing limit under Long Term Financing Facility (LTFF) to Rs5 billion from Rs2.5 billion.

In a statement on Tuesday, the central bank said that it had extended the scope of LTFF to cover all permissible export oriented sectors.

This step is aimed at setting up of diverse export oriented projects in Pakistan and to boost exports in multiple sectors.

Further, to accommodate enhanced financing requirements of exporters for setting up long term export oriented projects, maximum limit of Rs. 2.5 billion has been enhanced to Rs. 5 billion per project under LTFF.

In line with the above measure, SBP has also provided additional concessional financing of Rs.200 billion to banks including Rs. 100 billion under Long Term Financing Facility (LTFF) and Rs. 100 billion under Export Refinance Scheme (EFS), to be utilized by June 30, 2020.

Going forward, to further promote SME exporters, SBP in consultation with the relevant stakeholders, is in the process of devising an elaborate mechanism for the allocation of LTFF and EFS to SME exporters.

These changes are likely to be announced in March 2020.

January 28, 2020
SBP allows 100% advance payment for import

KARACHI: State Bank of Pakistan (SBP) has allowed 100 percent advance payment for import of various goods against letter credit.
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January 28, 2020
SBP keeps policy rate unchanged at 13.25%

KARACHI: The State Bank of Pakistan (SBP) announced on Tuesday that it has decided to maintain the policy rate at 13.25%. SBP Governor Dr. Raza Baqir conveyed this decision, which was made during the Monetary Policy Committee (MPC) meeting. The SBP emphasized that the outlook for inflation remains steady, prompting the committee to retain the current monetary policy stance.
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January 28, 2020
Murtaza Syed appointed as SBP deputy governor

KARACHI: The federal government has officially appointed Dr. Murtaza Syed as Deputy Governor of the State Bank of Pakistan (SBP), in accordance with Section 10(4) of the SBP Act of 1956 (as amended), the central bank announced on Tuesday. Dr. Syed assumed his responsibilities at the SBP on January 27, 2020, bringing with him a wealth of experience in macroeconomic policy and research.
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January 28, 2020
Foreign exchange reserves increase to $18.271 billion

Pakistan’s liquid foreign exchange reserves saw a notable increase of $148 million, reaching a total of $18.271 billion by the week ending January 17, 2020, according to a statement released by the State Bank of Pakistan (SBP) on Thursday.
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January 23, 2020
SBP to announce monetary policy on January 28

The State Bank of Pakistan (SBP) is set to unveil its monetary policy for the upcoming two months on Tuesday, January 28, 2020, as confirmed by a statement released on Tuesday.
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January 21, 2020
Banks asked to ensure compliance in collection of donations for Dam Fund

KARACHI: State Bank of Pakistan (SBP) on Monday said any laxity by banks in collection of donations for Dam Funds will tantamount to contempt of court.

“The apex court of the country [Supreme Court of Pakistan] is monitoring progress in the matter of donations to the Fund. Any laxity by banks or their staff at branches will attract penal action and may also tantamount to contempt of court,” the SBP said.

The banks are therefore, advised to ensure meticulous compliance of above instructions and extend full cooperation to donors in deposit of their donations/contributions, the SBP added.

The central bank said that in a recent hearing of the subject case, the Honorable Supreme Court of Pakistan has observed that there are complaints that banks are not accepting donations from people contributing to the Dam Fund, and are also not actively facilitating donors in remittance of the funds stuck abroad.

In order to address the issues being faced by donors, banks are advised to ensure that the arrangements made for collection of donations and contributions to the Dam Fund shall remain in place at every bank branch on an ongoing basis; requiring all concerned to provide necessary support and facilitation to donors.

The banks are further directed to ask their overseas branches to facilitate the donors in depositing and remittance of donations to the Fund in accordance with the legal and regulatory framework of concerned jurisdiction.

The banks shall display SBP’s helpline number and email address on their websites and branch notice boards for lodging of complaints by donors if they face any difficulty in depositing and contributing to the Fund.

January 21, 2020
Current account deficit narrows by 75% in July – December

KARACHI: The current account deficit has narrowed by 75 percent during first half (July-December) 2019/2020 owing to significant inflows and reduction in trade deficit.

According to statistics of Balance of Payment (BoP) issued by State Bank of Pakistan (SBP) on Monday, the current account deficit reduced to $2.153 billion in first six months of current fiscal year as compared with the deficit of $8.614 billion in the corresponding period of the last fiscal year.

The trade deficit fell by 30 percent to $11.69 billion during first half of current fiscal year as compared with the deficit of $16.77 billion in the same half of the last fiscal year, according to data issued by Pakistan Bureau of Statistics (PBS).

The imports fell by 17 percent to $23.23 billion during July – December 2019 as compared with $27.95 billion in the corresponding period of the last fiscal year.

However exports witnessed 3.15 percent growth to $11.53 billion in the first half of current fiscal year as compared with $11.18 billion in the corresponding period of the last fiscal year.

The overseas Pakistanis sent $11.39 billion in first half of the current fiscal year as compared with $11.03 billion in the corresponding period of the last fiscal year.

January 20, 2020