Tag: State Bank of Pakistan

  • Pakistan’s forex reserves inch up to $17.05 billion

    Pakistan’s forex reserves inch up to $17.05 billion

    The State Bank of Pakistan’s (SBP) foreign reserves saw inflows of $36 million in the week ending April 16, 2022, representing a 0.3 per cent increase week over week.

    According to the SBP weekly update posted on Thursday, the country’s total liquid foreign exchange reserves increased by $16.9 million (+0.1 per cent) to $17.045 billion on April 16, 2022, up from $17.028 billion the previous week. SBP reserves rose by $36.1 million to $10.88 billion (+0.3 per cent), up from $10.85 billion the week before.

    Likewise, commercial banks’ net foreign reserves stood at $6.1 billion, down $19.3 million (-0.3 per cent) on a weekly basis.

    Read more: Pakistani rupee plunges by Rs1.05 against the US dollar

    In the interbank market on Thursday, however, the Pakistani Rupee (PKR) resumed its downward trend versus the US Dollar (USD). It fell by Rs1.04 to the dollar, Rs1.15 to the Australian Dollar (AUD), Rs2.04 to the Canadian Dollar (CAD), Rs2.42 to the Pound Sterling (GBP), and Rs2.96 to the Euro (EUR).

  • New bank timings announced by SBP, Saturday will now be observed as a working day

    New bank timings announced by SBP, Saturday will now be observed as a working day

    Pursuant to the federal government’s directive issued on April 13, the State Bank of Pakistan (SBP) would observe a six-day work week with amended timings.

    During Ramzan, working hours for the central bank, development finance institutions (DFIs), microfinance banks (MFBs), and all commercial banks, are as follows:

    Monday to Thursday and Saturday from 8:00 am to 3:00 pm with a prayer break from 1:00 pm to 1:30 pm.

    Fridays: from 8:00 am to 1:00 pm without a break, according to a notification from SBP.

    Public dealing hours

    Banks and MFBs have been advised to adhere to the following public dealing business hours:

    Monday through Thursday and Saturday from 8:00 am to 1:00 pm (no break).

    Fridays from 8:00 am to 12:00 pm (no break).

    Banks and MFBs may observe longer business (banking) hours for public dealing from 8:00 am to 2:00 pm (without break) on weekdays excluding Fridays, depending on their business needs.

    The abovementioned schedule will take effect immediately and will not be changed or withdrawn unless it is amended or canceled.

  • SBP determined to curb inflation, improve foreign exchange reserves

    SBP determined to curb inflation, improve foreign exchange reserves

    In a recent interview, the Governor of the State Bank of Pakistan (SBP), Dr. Reza Baqir expressed concern over the continuous deterioration in foreign exchange reserves but remained optimistic that a renewal of loans will be witnessed in the near future, which, coupled with SBP’s initiatives, will enhance market confidence.

    He claimed that the decline in reserves is “clearly alarming, but we are convinced that the central bank’s initiatives will prevent further deterioration”.

    According to data issued by the central bank on April 7, the reserves massively declined by $728 million to $11.32 billion as of April 1.

    The decline, according to SBP, is primarily attributable to debt repayment and government payments linked to the settling of an arbitration judgment.

    In addition to this, the currency even hit new lows in the week, forcing the SBP to intervene by boosting the policy rate, declaring a 100 per cent cash margin on 177 commodities with instant effect, and hiking the markup percentage by 2.5 per cent for borrowing under the Export Finance Scheme (EFS).

    In response to the Monetary Policy Committee’s (MPC) recent rate hike, Baqir stated that the move was made to tackle growing inflation and lessen external pressures. “The foreign exchange market has been under a lot of pressure for more than a month. A number of factors contributed to it: first, there was political uncertainty; second, our reserves were drained due to debt payments”.

    Consequently, the Pakistani rupee ended its devaluation run on April 8, and the KSE-100 Index witnessed positive sentiment, ending the day with an impressive gain of 658 points.

    The SBP Governor also discussed the skyrocketing petrol prices, which remain elevated because of the Russia-Ukraine conflict, adding more pressure on the local currency.

    The central bank made a determined decision after analyzing the statistics to lower inflation, improve foreign exchange reserves, and boost business confidence.

  • State Bank of Pakistan hikes interest rate to 12.25% in an emergency meeting

    State Bank of Pakistan hikes interest rate to 12.25% in an emergency meeting

    Following an emergency meeting, the State Bank of Pakistan (SBP) raised interest rates by 250 basis points, as mounting political uncertainty and rising worldwide oil prices threaten to drive the country into a full-fledged economic catastrophe.

    The key rate is now 12.25 per cent, as per the latest statement released by the central bank on Thursday. According to the report, this makes the real rate “mildly positive” and will assist maintain external and price stability.

    The judgment came a few hours before the Supreme Court was due to rule on the constitutionality of Prime Minister Imran Khan’s disputed move to dissolve parliament and hold new elections. Pakistan may find it difficult to persuade the International Monetary Fund (IMF) to grant a much-needed loan tranche due to the political limbo.

    At the recent briefing, SBP governor, Reza Baqir, said, “We thought it’s important to take decisive action”.  He added that the body does not intend to do anything else.

    The central bank claimed that intensified domestic political turmoil contributed to the rupee’s 5 per cent loss and caused a jump in local bond rates, as well as Pakistan’s Eurobond yields and Credit Default Swap (CDS) spreads. Oil prices are likely to remain elevated, and the Federal Reserve of the United States is expected to compress sooner than expected, according to the report.

    The PKR broke all records on Thursday, selling at more than Rs189 per dollar in intraday trading in the interbank market, continuing a slump that has witnessed its decline of more than 10 per cent since March 4.

    Read more: Pakistan to import 32.7 million barrels of oil to cover petroleum needs

    Pakistan’s political instability, in addition to money from the IMF, is causing delays in a planned $1 billion green bond offering. A refinancing from China is also expected; the repayment in recent weeks caused Pakistan’s foreign-exchange reserves to plummet to their lowest level since records began in 2010.

    In a meeting last month, SBP cautioned that it might convene earlier than planned to avoid a crisis. It revised its average inflation prediction for the fiscal year ending in June from 9 per cent to little more than 11 per cent.

  • IMF approves one billion dollar loan tranche for Pakistan

    IMF approves one billion dollar loan tranche for Pakistan

    The International Monetary Fund’s (IMF) Executive Board has approved the $1 billion loan tranche of their programme for Pakistan.

    Federal Minister for Finance and Revenue Shaukat Tarin taking to Twitter confirmed the news.

    “I am pleased to announce that IMF Board has approved 6th tranche of their programme for Pakistan,” he wrote.

    https://twitter.com/shaukat_tarin/status/1488928059562545159

    The sixth review was scheduled for January 12, 2022, and later January 28, but was postponed twice on Pakistan’s request, to attain more time for implementing IMF conditions.

    In order to meet another condition of the IMF, the government had successfully managed to get the State Bank of Pakistan (Amendment) Bill, 2021, cleared from the Upper House of Parliament — which was the last stumbling block in reviving the stalled programme.

  • PPP’s Gilani resigns as Leader of the Opposition in the Senate after absence from key session

    PPP’s Gilani resigns as Leader of the Opposition in the Senate after absence from key session

    Former Prime Minister (PM) Yusuf Raza Gilani announced in the Senate today that he has handed over his resignation to his party (PPP) as Leader of the Opposition in the Senate.

    Gilani’s statement comes after his absence from the Senate on January 28 when the State Bank of Pakistan (SBP) Amendment Bill 2021 was passed.

    Addressing Chairman Senate Sadiq Sanjarai, Gilani said, “When the voting happened [on January 28], you adjourned the session for 30 minutes, which means you facilitated the government, not the Opposition. During the first round, the majority was of the Opposition. When the House assembled again for the vote, there was a tie.”

    “In the history of Pakistan Senate, it was the first time the Chairman senate had to give a vote. As a neutral person, you should have not done this. As the custodian of the House, you should have protected the rights of both sides of the House,” said Gilani.

    “The role of the Speaker and Chairman Senate has to be totally neutral. They cannot be biased in any way.”

    “I am not astonished by the harsh words of my opponents but I am astonished by the silence of my well-wishers. There are few ministers, if they would have said something [of this sort], it would have been an honour for me. But those who don’t have credibility, are turncoats, are saying that I helped the government. I am saying by your vote they won. At least the credit should be given to you [Sanjrani], not to me ke dhandali ho rahi hai [there is rigging]. There should be no rigging.”

    “In the end, I will say that I have already submitted my resignation to my party that I don’t want to be the Leader of the Opposition,” said Gilani.

    It is pertinent to mention here that it was Pakistan Muslim League-Nawaz’s (PML-N) leader Dr Musadik Malik, who first pointed out the absence of Gilani from the Senate the day the SBP Amendment Bill 2021 was passed amid an outcry from the Opposition on suffering back-to-back defeats in the House, where it otherwise enjoys a dominating numerical strength.

    Taking to Twitter Malik said, “Leader of the Opposition Yusuf Raza Gilani is missing. One vote, i.e. of Mr Gilani, is missing and the bill to make Pakistan a slave of the IMF was passed. And those who made him Leader of the Opposition voted for the government.”

    Gilani later appeared on Geo News programme, ‘Aaj Shahzeb Khanzada Kay Sath’, and said that he had not received the agenda of the Senate till 1am of the night between January 27 to January 28.

    Speaking about his absence from the Senate as SBP Amendment Bill 2021 got passed, Gilani said, “It was humanly impossible for me to reach in six hours to Islamabad.”

    “If and when can’t make history. There were a lot of honorable members who were missing. I will question the Dilawar Khan group as to why they voted in favour of the government. The Dilawar group was pressurised to vote for the government.”

    Speaking on Dilawar Khan group, Pakistan People’s Party (PPP) Senator Raza Rabbani said, “The parties in the Opposition must carry out a purge of the soft-at-heart members and those senators who sit on the Opposition benches but vote for the treasury.”

    “Friday (January 28) was a collective day of shame for the parliament, in particular the Senate, when it passed a document of surrender, a document which financially makes Pakistan a colony of the international donors and imperialists,” said Rabbani.

    PPP Senator Mustafa Nawaz Khokhar regretted that there was a group of people who sat on the Opposition benches but never voted for the Opposition on crucial occasions. He said these people came to the Opposition’s fold when they want to get some benefits and then they vote for the government to get benefits from it as well.

  • PML-N’s Musadik Malik questions Yusuf Raza Gilani’s absence as Senate passes SBP Amendment Bill

    PML-N’s Musadik Malik questions Yusuf Raza Gilani’s absence as Senate passes SBP Amendment Bill

    The Senate on Friday passed the State Bank of Pakistan (SBP) Amendment Bill 2021 amid an outcry from the Opposition on suffering back-to-back defeats in the House, where it otherwise enjoys a dominating numerical strength.

    The bill was passed by the upper house with the treasury benches enjoying a one-vote lead of 43 members over the Opposition’s 42. The bill was presented by Finance Minister Senator Shaukat Tarin.

    Pakistan Muslim League-Nawaz (PML-N) leader Dr Musadik Malik, taking to Twitter, said, “Leader of the Opposition Yusuf Raza Gilani is missing. One vote, i.e. of Mr Gilani, is missing and the bill to make Pakistan a slave of the IMF was passed. And those who made him Leader of the Opposition voted for the government.”

    Taking to Twitter, Gilani’s son, Kasim Gilani said his father was absent from the Senate session because he had to attend Ghulam Rabbani Khar’s Qul. “To schedule secret sessions at midnight deliberately to overlap with bereavements is a violation of all norms of our culture, politics, and decency.”

    “The government summoned the session post midnight knowing well that the Qul of Noor Rabbani Khar was scheduled for today. YRG was in Multan and would not have been able to make it to Islamabad by 10am in anyway ent and he had to attend the Qul of his long time friend, political colleague, and father of two PPP MNAs.”

    On January 25, the Senate session was adjourned for Friday, January 28.

    The SBP Amendment Bill, 2021, promises complete autonomy to the central bank and places a complete restriction on the government’s borrowing from the central bank. However, the government can now borrow at a market rate from commercial banks, which will benefit private banks owned by business elites, according to the Opposition.

    The bill was passed by a majority vote. Chairman Senate Sadiq Sanjrani then adjourned the session till January 31.

  • ‘Govt will be removed in a democratic way, will take to streets on February 27’: Bilawal Bhutto

    ‘Govt will be removed in a democratic way, will take to streets on February 27’: Bilawal Bhutto

    Pakistan People’s Party (PPP) chairperson Bilawal Bhutto-Zardari has said that the government forcibly passed the anti-people mini-budget in ‘the dark of night’.

    Talking to the media along with former Prime Minister (PM) Yusuf Raza Gilani, Bilawal Bhutto said that they protested inside and outside the Parliament against the mini-budget. They were promised that tax will not be imposed on a few items, but that was false as well.

    “The people of Pakistan are demanding that we take to the streets against this government and our CEC has decided that we will take to the streets on February 27,” added Bilawal.

    Bilawal Bhutto further said that they had talked about removing the government in a democratic way and also talked about a no-confidence motion.

    The PPP chairperson further said that the mini-budget was also passed in the dark of night and the State Bank of Pakistan (SBP) bill was also forcibly passed by parliament, after which the SBP will no longer be accountable to parliament.

  • Pakistan decides to make cryptocurrency illegal

    Pakistan decides to make cryptocurrency illegal

    The State Bank of Pakistan (SBP) and the federal government have come together to make a decision to ban the usage of all types of cryptocurrencies.

    The 38-page report has been submitted by the SBP Deputy Governor Seema Kamil to the Sindh High Court to declare it illegal.

    On October 20, 2021, the provincial high court directed the government to form a committee presided by the federal secretary of finance to determine cryptocurrency’s legal status and submit a detailed report.

    The submitted report has stated that digital currency is based on virtual business that could be used for terrorism financing and money laundering.

    It also listed eleven countries that banned digital currency including Saudi Arabia and China and urged the court to impose high penalties over unauthorised usage as these countries have implemented.

    The court ordered that the report should be submitted to the finance and law ministries for a final decision on its legal status. They will decide if a ban would be within constitutional jurisdiction.

    The hearing was heard by the two-bench judge headed by Justice Karim Khan Agha. The next hearing will be held on April 12 this year.

    Meanwhile, a TV host and crypto entrepreneur, Waqar Zaka pleaded to make digital currency legal. In his view, it would benefit the economy of the country.

    It was reported previously that Pakistanis have lost almost 18 crores in a cryptocurrency-related scam. Almost 55,000 people have become victims of the scam. In total, 11 mobile applications have been identified as part of the fraud.

    As per FIA Cyber Crime Reporting Sindh chief Imran Riaz, the applications that are involved include, MCX, HFC, HTFOX, FXCOPY, OKIMINI, BB001, AVG86C, BX66, UG, TASKTOK, 91fp.

  • No PTI minister present in front row of Parliament, Opposition lashes out at non-seriousness of govt

    No PTI minister present in front row of Parliament, Opposition lashes out at non-seriousness of govt

    Pakistan Muslim League-Nawaz (PML-N) leader Khawaja Asif took to Twitter to lash out at the ruling Pakistan Tehreek-e-Insaf (PTI) and said, “The ongoing session of the Assembly, which has been called to pass the catastrophic budget and the State Bank of Pakistan’s (SBP) slavery bill, is currently suspended due to lack of quorum.”

    “Neither the government has its members beside it nor its allies,” tweeted Asif, adding, “How will both, the budget and the SBP’s bill will get passed.”

    “No minister is present in the front row,” said Asif.

    Meanwhile, Pakistan People’s Party (PPP) Chairperson Bilawal Bhutto-Zardari during his speech in the National Assembly (NA) on Tuesday lamented how the ruling Pakistan Tehreek-e-Insaf (PTI) has imposed taxes on the people of Pakistan. He further said that PTI was bringing a “tsunami of taxes” through the mini-budget.

    He also criticised the government over the SBP Amendment Bill 2021, which was approved by a National Assembly panel on Monday, saying that the IMF had demanded the central bank’s autonomy during the eras of PPP and PML-N as well but neither party had agreed.

    He said Leader of the Opposition in the National Assembly Shehbaz Sharif had talked about a national dialogue on the country’s economy but the government refused because of its “stubbornness”.

    PML-N’s Rana Sanaullah pointed out the lack of quorum as the opposition walked out in protest over the absence of Finance Minister Shaukat Tarin. The session was subsequently suspended for a short while.

    When the opposition returned, Federal Minister for Energy Hammad Azhar defended the government’s economic performance and blamed its predecessors for the country’s financial problems.