Tag: Raza Baqir

  • Forex reserves fall to $20.679bn

    Forex reserves fall to $20.679bn

    The Foreign Exchange reserves of Pakistan fell by $157 million or 0.75 per cent to clock in at $20.679 billion, said the central bank on Thursday.

    The total liquid foreign reserves held by the country stood at $20.836 billion in the previous week.

    The reserves held by the State Bank of Pakistan (SBP) decreased by $146 million to $13.527 billion due to external debt repayments. The reserves of commercial banks also reduced to $7.152 billion from $7.163 billion last week.

    Earlier, Pakistan received inflows amounting to $2.5 billion on Thursday evening as proceeds of recently launched Eurobonds.

    The central bank has confirmed on its Twitter account that SBP has received the government’s proceeds of $2.5 billion against Eurobond issuance, resulting in $16 billion surges in foreign exchange reserves. 

    After a gap of almost three years, Pakistan has entered the international capital market for Eurobonds trading. A multi-tranche transaction of 5-,10-, and 30- year Eurobonds was performed to build up the foreign exchange reserves. 

    During the past two years, Pakistan got almost $3 billion in foreign inflows and out of these, $2.5 billion from Eurobonds arrival on Thursday evening.

    Besides, in the last week of March, International Monetary Fund (IMF) gave around $500 million to Pakistan as a loan under Extended Fund Facility (EFF) for support. 

    As of April 2, 2021, SBP’s liquid foreign exchange reserves were $20.679 billion. With the addition of Eurobond proceeds, these foreign exchange reserves would likely cross the $23 billion mark.

  • SBP could soon be launching digital currency in Pakistan

    SBP could soon be launching digital currency in Pakistan

    State Bank of Pakistan (SBP) Governor Dr Reza Baqir has said the central bank is carefully studying the options to launch digital currency in Pakistan.

    Speaking to a private media outlet, Baqir highlighted the role of the central bank in the wake of COVID-19 in Pakistan. He also talked about his vision to bring digitisation to the country’s financial sector.

    “The launch of digital coin in Pakistan will have a twofold benefit to us. Not only does it boosts our efforts for financial inclusion, but the central bank-issued digital currency will allow progress in our fight towards anti-money and countering terrorism financing,” said Baqir.

    On the entry of global fintech companies like stripe in the Pakistani market, Baqir said that big international payment providers are “very welcome” in Pakistan.

    “Pakistan is the home to the fifth-largest concentration of people. It is a market where people are generally tech-savvy, and it is a market that is waiting to burst as far as digitisation is a concern,” said Baqir.

    “We are very open, and we embrace any global mobile payment operator that wants to come to Pakistan.”

  • PM directs banks to ease loan procedure for people under Naya Pakistan Housing Scheme

    PM directs banks to ease loan procedure for people under Naya Pakistan Housing Scheme

    Prime Minister (PM) Imran Khan virtually directed the National Bank of Pakistan (NBP) to simplify loan procedures so that the masses can get loans to own a house under Naya Pakistan Housing Programme.

    PM Imran’s telethon was attended by Senator Shibli Faraz, chairman of Naya Pakistan Housing and Development Authority, Lt. General (r) Anwar Ali Hyder, Governor of State Bank of Pakistan (SBP) Raza Baqir, NBP President Arif Usmani, and SBP Executive Director Samar Hasnain.

    PM also said that NBP should direct its staffers to facilitate the loan applicants now as bankers have never been helpful towards cashless people in Pakistan.

    He further added that the European countries have facilitated their people to own a home. However, it will be a new practice for our country.

    “Once people start building homes, there will a boom in the construction industry which will bring about a revolutionary change in Pakistan. The construction of homes, besides revenue generation, will lead to job creation,” he said.

    The PM further added that the rent that the buyers would pay will be considered as instalments of the total cost of the flat as per the new model of this mortgage system, and the markup rates have been reduced to a maximum of five per cent.

    So far, 3,000 labourers have registered while 1,500 got housing based on open balloting. The project aims at providing accommodation to people with an annual income of less than Rs500,000.