Monday, December 5

Tag: State Bank of Pakistan

Workers’ remittances continue to rise

KARACHI:State Bank of Pakistan has said that workers’ remittances remained above $2 billion for the fourth consecutive month in September. They increased to $2.3 billion, 31.2 percent higher than the same month last year and nine percent higher than in August, said the central bank in a statement on Monday. On a cumulative basis, remittances rose to a record $ 7.1 billion in Q1-FY21, 31.1 higher than the same period last year. The level of remittances in September was slightly higher than SBP’s projections of $ 2 billion. Efforts under the Pakistan Remittances Initiative (PRI) and the gradual re-opening of major host destinations such as Middle East, Europe and United States contributed to the sustained increase in workers’ remittances, said SBP.

Clarification on Foreign Currency Accounts Rules 2020

Karachi:State Bank of Pakistan Sunday said that on 6th October 2020, the Federal Government issued Foreign Currency Accounts Rules, 2020 under the provisions of Protection of Economic Reforms Act, 1992. There has been no change in the general or special permissions given by the State Bank to individuals under the foreign exchange regulations. According to paragraph iv, Chapter 6 of the Foreign Exchange Manual, foreign currency accounts can be fed by remittances received from abroad, travelers’ cheques issued outside Pakistan and encashment of securities issued by Govt. of Pakistan. A foreign currency account of a citizen of Pakistan resident in Pakistan can also be fed with cash foreign currency only if the account holder is a filer as defined in Income Tax Ordinance, 2001. The recen...

(Commerce): Need stressed to include women voices at all business forums

Islamabad: The voices of women need to be ensured and strengthened at the key business forums. This participation has become even more important after-Covid19 scenario to assess what has been the impact of the pandemic on women-led business ventures. The experts from public and private sectors, said this while speaking at the online meeting ‘Challenges of women-led exporting enterprises amid Covid-19’ organized by the Sustainable Development Policy Institute (SDPI). Muhammad Adeel, Joint Director, State Bank of Pakistan (SBP), was of view that the information regarding incentives for women-led enterprises should be widely disseminated by public and private forums. He said that the misconception that approaching banks to get loans is a cumbersome procedure, needs to be removed now. SBP c...

Pakistan’s Liquid Foreign Reserves Position

Karachi: State Bank of Pakistan here Thursday said the total liquid foreign reserves held by the country stood at US$19,351.0 million on 02-October-2020. The break-up of the foreign reserves position is as under: i) Foreign reserves held by the State Bank of Pakistan: US$12,154.7 million ii) Net foreign reserves held by commercial banks: US$7,196.3 million iii) Total liquid foreign reserves: US$19,351.0 million During the week ended 02-October-2020, SBP made external debt repayment of US$580 million. After accounting for official inflows, including US$300 million received from Asian Development Bank (ADB), SBP reserves decreased by US$205 million to US$12,154.7 million.

SBP introduces incentive and penalty mechanism for banks to promote housing and construction financing

Karachi:Building upon its earlier measure of setting mandatory target for banks to extend mortgage loans and financing for developers and builders, State Bank of Pakistan (SBP) has introduced a mechanism to incentivize meeting these targets. The mechanism also penalizes the banks for any shortfall in meeting the target. According to this mechanism, commencing from December 31, 2020, banks will find an incentive of maintaining reduced Cash Reserve Requirement (CRR) with SBP, in the next quarter, in case they achieve or exceed the target of financing for housing and construction of buildings set for the quarter. The amount of CRR to be maintained for the forthcoming quarter will be reduced by an amount equal to increase in housing and construction finance from 30thJune 2020 to the end of ...

(Finance): SBP issues guidelines for DFIs to undertake Shariah compliant business

Karachi:State Bank of Pakistan (SBP) Friday said that to enlarge the scope of Shariah compliant financial services in the country, State Bank of Pakistan (SBP) has taken another important step by issuing guidelines for Development Finance Institutions (DFIs) to undertake Shariah compliant businesses and operations. Further, keeping in view the various developments, such as changes in the licensing and regulatory regime for banks, SBP has also updated the guidelines, introduced in 2004, for establishing Islamic banking Institutions. The updated guidelines deal with the establishment of a full-fledged Islamic bank, Islamic banking subsidiary and Islamic banking branches of conventional banks. In addition, these guidelines cover different areas including minimum capital adequacy, requireme...