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Tag: State Bank of Pakistan

  • Unregistered prize bonds worth Rs206 billion surrendered on discontinuation announcement

    Unregistered prize bonds worth Rs206 billion surrendered on discontinuation announcement

    KARACHI: An amount of around Rs206 billion has been surrendered following the government announcement of discontinuation the circulation of unregistered prize bonds of Rs40,000 denomination.

    According to information received to PkRevenue.com, the total investment in unregistered Rs40,000 denomination prize bonds fell to Rs52.46 billion by August-end 2019 as compared with Rs258 billion in May 2019.

    The government on June 24, 2019 announced to discontinue the circulation of Rs40,000 denomination bearer prize bonds.

    In compliance to the government announcement the State Bank of Pakistan (SBP) also issued instructions to banks. The central bank issued procedure for the banks to facilitate general public in exchanging the unregistered prize bonds with three different modes.

    The SBP said that the bearer prize bonds of Rs40,000 cannot be exchanged against cash. However, it can be redeemed against registered prize bonds or can be converted into national saving schemes or face value (direct transfer to the bank account of bond bolder).

    The SBP asked the banks that such prize bonds would not be sold after June 24, 2019 and will not be encashed/redeemed after March 31, 2020. No further draws of Rs40,000 denomination national prize bonds would be held.

    The SBP issued the following instructions regarding handling of Rs.40,000/- denomination National Prize Bonds are issued herewith for information, guidance and meticulous compliance:

    a) National Prize Bonds of Rs.40,000/- denomination shall not be sold after June 24, 2019 and will not be encashed/redeemed after March 31, 2020.

    b) No further draws of Rs.40,000/-denomination National Prize Bonds shall be held.

    c) Cash payment for encashments of bonds is not allowed. However, the bond holder (s) shall have the following options to replace / encash these bonds:

    1. Conversion of premium prize bonds (registered)

    2. Replacement with special saving certificate (SSC)/Defence Saving Certificate (DSC)

    3. Encashment at face value.

    d) Appended below is the SOP for processing requests under the aforementioned options for compliance by all banks:

    1. Conversion to Premium Prize Bonds (Registered)

    i. The bonds can be converted to premium prize bonds (registered) through the 16 field offices of SBP Banking Services Corporation, and authorized branches of six commercial banks i.e. National Bank of Pakistan (NBP), Habib Bank Limited (HBL), United Bank Limited (UBL), MCB Bank Limited (MCB), Allied Bank Limited (ABL) and Bank Alflah Limited (BAFL).

    ii. The bond holder shall be required to submit a written request for conversion of bearer bonds to premium prize bonds (registered) to be registered in his (her) name on the prescribed application.

    iii. The bond holder shall also be required to submit prescribed applications forms for registrations / purchase of premium prize bond as per the procedure in vogue.

    Replacement with the Special Saving Certificate (SSC)/Defence Saving Certificate (DSC)

    i. The bonds can be replaced with SSC / DSC through the 16 field offices of SBP Banking Services Corporation, authorized commercial banks and National Savings Centers.

    ii. All authorized commercial banks shall, therefore, accept requests for replacement of bearer bonds with SSC or DSC on the prescribed application form.

    iii. The bondholder shall also be required to submit application form for purchase of SSC/DSC (SC-1) as per the prescribed procedure.

    Encashment at Face Value:

    i. The bonds will only be encashed by transferring the proceeds to the bond holder’s bank account through the 16 field offices of SBP Banking Services Corporation as well as the authorized commercial bank branches.

    ii. All commercial banks shall receive requests for encashment of bearer bonds on the prescribed application form.

    A cop of the application form, duly signed and stamped, shall be provided to the bondholder as an acknowledgement receipt.

    The SBP said that it is needless to mention that the National Prize Bonds of Rs40,000 denomination tendered at the counters of banks shall be subject to through scrutiny to ascertain their genuineness. In this regard, details regarding the security features in Rs40,000 denomination National Prize Bonds are available online.

    Moreover, the prize bonds encashed / replaced by general public may be surrendered to concerned SBP BSC office through respective regional office of the commercial banks. For the purpose, the regional office may intimate the SBP BSC office three days in advance so that necessary arrangements for receipt of the bonds can be made.

    It is imperative to mention that a notice regarding the above / mentioned facilities must be displayed at prominent places within branch premises for awareness and information of general public.

  • SBP governor emphasizes on rapid digitization of payments; cash payments major hurdle in documentation of economy

    SBP governor emphasizes on rapid digitization of payments; cash payments major hurdle in documentation of economy

    KARACHI: Dr. Reza Baqir, Governor, State Bank of Pakistan (SBP) has said that cash payments are major hindrance in documentation of economy and stressed the need for rapid digitization of payment system.

    The SBP governor was addressing on Saturday at a workshop titled ‘Digital Payments Reforms’ organized by the central bank in collaboration with the World Bank at its headquarters in Karachi.

    Dr. Reza Baqir, highlighted the issues that have been longstanding and needed attention of all the stakeholders.

    The governor emphasized the need for rapid digitization of payments in order to realize the full benefits for the economy as cash is still the preferred mode of payments for our routine and day to day activities.

    He noted that the heavy reliance on cash and the limited use of digital channels reduces economic efficiency, hinders financial and economic development and impedes the goal of documenting the economy.

    To address these issues, he emphasized the importance of building a modern and robust payment system in the country that enables the provision of cost effective and easily available digital financial services to the general public. This, he stated is a key strategic objective of SBP.

    Governor Baqir shared SBP’s plans for leading an aggressive adoption and implementation of the National Payment Systems Strategy in the country.

    He emphasized that interoperability is key to achieving faster digitization goals. Governor also informed the participants that a new faster payment gateway will be launched next year to facilitate instant transfer of funds.

    He identified government payments and receipts and merchant payments to be the key elements in accelerating digitization of payments in the country.

    He also noted the need for reducing the high cost, especially the interchange fee in the payments industry and emphasized to all stakeholders to work collaboratively for increasing digital access points in the country.

    The objective of the workshop was to share the draft National Payment Systems Strategy and solicit the input of key stakeholders involved in its implementation.

    The workshop was attended by senior officials from PTA, NADRA, SECP, FBR, the PM office’s Strategic Reforms and Implementation Unit, Banks, Telcos, Electronic Money Institution (EMIs), PSO/PSPs and Fintechs.

    Governor SBP, Dr. Reza Baqir led the workshop, while Chairman PTA, Major General (Retired) Amir Azeem Bajwa, and Country Director World Bank, Illango Patchamuthu were also present at the occasion.

    Stakeholders who attended the meeting shared valuable suggestions for increasing the pace of digitization of payment system. The discussion led to the identification of a number of next steps for the group.

    At the conclusion of the meeting, Governor Baqir thanked the participants for their concrete and specific suggestions which would help improve the development and implementation of the National Payment Systems Strategy.

  • SBP imposes Rs1,123 million penalty on commercial banks for violating rules, regulations

    SBP imposes Rs1,123 million penalty on commercial banks for violating rules, regulations

    KARACHI: State Bank of Pakistan (SBP) has imposed penalty to the tune of Rs1,123 million during first quarter (July – September) of current fiscal year 2019/2020 for violating rules and regulations.

    (more…)
  • Pakistan’s foreign exchange reserves fall by $769 million to $15 billion

    Pakistan’s foreign exchange reserves fall by $769 million to $15 billion

    KARACHI: Pakistan’s total foreign exchange reserves declined by $769 million to $15 billion by week ended September 27, 2019, State Bank of Pakistan (SBP) said on Thursday.

    The total foreign exchange reserves of Pakistan declined by $768.9 million to $15.003 billion by week ended September 27, 2019 as compared with $15.772 billion a week ago.

    The official reserves held by the SBP came down by $723.7 million to $7.741 billion by week ended September 27, 2019 as compared with $8.465 billion a week ago.

    The SBP said that its official reserves were declined due to foreign debt repayment.

    The reserves held by commercial banks also fell by $45.2 million to $7.262 billion as compared with $7.307 billion a week ago.

    The foreign exchange reserves hit record high of $23.084 billion on week ended July 01, 2016.

  • Banks directed to adopt standard QR codes for payments in Pakistan

    Banks directed to adopt standard QR codes for payments in Pakistan

    KARACHI: State Bank of Pakistan (SBP) has directed all commercial banks and other financial institutions to adopt EMVCo’s EMV QR Code Specifications for Payment Systems (QRCPS).

    The SBP said that Quick Response (QR) Codes have been emerging as low cost payment acceptance alternative to Point of Sale (POS) terminals in Pakistan, especially for small merchants.

    Although QR codes have been deployed in substantial numbers, the volume of transactions has not achieved desired levels primarily due to their lack of interoperability.

    Therefore, as a first step towards achieving interoperability of Payment QR Codes in Pakistan, SBP after extensive stakeholder consultations has decided that henceforth all Institutions issuing and/or acquiring QR codes for payments in Pakistan shall adopt EMVCo’s EMV QR Code Specifications for Payment Systems (QRCPS).

    Further, non-EMV QR Codes already deployed in Pakistan shall comply with this standard by 31st March, 2020.

    The SBP said that institutions issuing/acquiring QR Codes shall also ensure:

    Compliance with branding guidelines for QR Codes displayed at merchant locations (attached at Annexure-A).

    Data related to issuance and usage of QR codes, as per Annexure-B, is submitted on quarterly basis to Payment Systems Department (PSD) within a fortnight of quarter end.

    Compliance of SBP’s instructions, guidelines, rules and regulations on Consumer Protection and Dispute Resolution issued and amended from time to time.
    Further, institutions acquiring QR Codes are also encouraged to:

    Promote innovative uses of QR codes like invoice/challan based payments, branch based Inter-bank Fund Transfers (IBFT) etc.; and

    Plan for achieving inter scheme interoperability in due course of time.

  • Pakistan’s forex reserves decrease by $125 million

    Pakistan’s forex reserves decrease by $125 million

    KARACHI: The liquid foreign exchange reserves of the country fell by $125 million to $15.773 billion by week ended September 20, 2019, State Bank of Pakistan (SBP) said on Thursday.

    The total foreign exchange reserves of the country a week ago were at $15.898 billion.

    The foreign exchange reserves held by the SBP declined by $135 million to $8.465 billion by week ended September 20, 2019 as against $8.6 billion a week ago.

    The SBP said that the reserves were declined due to external debt payments.

    The reserves held by commercial banks, however, increased by $10 million to $7.307 billion as compared with $7.297 billion a week ago.

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    Pakistan foreign exchange reserves increase by $148 million to $15.898 billion

  • Banks to observe extended working hours on Sept 30 for tax collection: SBP

    Banks to observe extended working hours on Sept 30 for tax collection: SBP

    KARACHI: The State Bank of Pakistan (SBP) on Thursday said the banks will observe extended working hours on September 30, 2019 to facilitate collection of duty and taxes on the last day of first quarter of current fiscal year

    In order to facilitate the collection of Government receipts / duties / taxes, it has been decided that authorized branches of National Bank of Pakistan (NBP) as well as field offices of SBP Banking Services Corporation (SBP-BSC) shall observe extended banking hours upto 9:00 P.M. on September 30, 2019 (Monday), the SBP said.

    Accordingly, NBP branches will settle their transactions with respective SBP-BSC field offices on the same day i.e. September 30, 2019 for which purpose a special clearing has been arranged at 7:00 P.M. by the NIFT, it added.

    All banks are, therefore, advised to keep their concerned branches open on September 30, 2019 (Monday) till such time that is necessary to facilitate the special clearing for Government transactions.

  • Complete record of destruction of banknotes available: SBP

    Complete record of destruction of banknotes available: SBP

    KARACHI: State Bank of Pakistan (SBP) on Tuesday said it has all the records related to destructed old design Rs500 banknotes. The central bank also denied media report about record missing of such banknotes.

    In a statement, the SBP said that apropos news item appearing in a section of media regarding unavailability of record pertaining to destruction of old design Rs.500 banknotes.

    “The SBP categorically denies and rejects the media reports regarding unavailability of the record of old design Rs.500 banknotes demonetized in Oct 2012.”

    The destruction of banknotes is an ongoing activity and is carried out across the country at field offices of SBPBSC, the record for the same is available in respective field offices.

    “The Audit team however, just visited SBPBSC Karachi and assumed that the record available at Karachi is the total record available with the SBP, which is factually incorrect,” the SBP said.

    “The complete record of banknote’s destruction is available at SBPBSC field offices located in 16 cities across the country,” it added.

  • FBR taking significant steps to improve tax administration: IMF

    FBR taking significant steps to improve tax administration: IMF

    ISLAMABAD: International Monetary Fund (IMF) on Friday said that Federal Board of Revenue (FBR) is undertaking significant steps to improve tax administration and its interface with taxpayers.

    An International Monetary Fund (IMF) mission, led by Ernesto Ramirez Rigo, visited Islamabad and Karachi during September 16–20, 2019 to take stock of economic developments since the start of the Extended Fund Facility (EFF) and discuss progress in the implementation of economic policies.

    A full mission for the first review under the EFF, is planned for late-October. At the conclusion of the staff visit, Ramirez Rigo issued the following statement:

    “While the authorities’ economic reform program is still in its early stages, there has been progress in some key areas. The transition to a market-determined exchange rate has started to deliver positive results on the external balance, exchange rate volatility has diminished, monetary policy is helping to control inflation, and the SBP has improved its foreign exchange buffers.

    “There has been a significant improvement in tax revenue collections, with taxes showing double-digit growth net of exporters refunds. Moreover, the FBR is undertaking significant steps to improve tax administration and its interface with taxpayers. Staff and the authorities have analyzed the worse than expected fiscal results of FY2018/19, which were partially the result of one-off factors and should not jeopardize the ambitious fiscal targets for FY2019/20. Importantly, the social spending measures in the program have been implemented.

    “The near-term macroeconomic outlook is broadly unchanged from the time of the program approval, with growth projected at 2.4 percent in FY2019/20, inflation expected to decline in the coming months, and the current account adjusting more rapidly than anticipated. However, domestic and international risks remain, and structural economic challenges persist. In this context, the authorities need to press ahead with their reform agenda.

    “In order to complete the first review, an IMF staff team plans to return to Pakistan in late-October to assess the end-September program targets.”