Tag Archives: SBP

State Bank of Pakistan and World Bank ink agreement on Technical Cooperation for achieving SBP’s Strategic Goals

Karachi, January 29, 2017 (PPI-OT): State Bank of Pakistan (SBP) and the World Bank (WB) inked an agreement on Technical Cooperation for achieving the Strategic Goals under SBP’s Vision 2020 on January 28, 2017. This ……

State Bank of Pakistan Governor’s Press Conference on Monetary Policy – Press Note issued by State Bank of Pakistan

Karachi, January 26, 2017 (PPI-OT):Governor State Bank of Pakistan Mr. Ashraf Mahmood Wathra will unveil Monetary Policy Decision at a press conference on Saturday, January 28, 2017 at SBP Head Office Karachi.

For more information, ……

Facilitation for Collection of Government Duties / Taxes

Karachi, December 22, 2016 (PPI-OT):In order to facilitate collection of Government duties / taxes, the concerned branches of Commercial Banks will remain open on December 31, 2016 (Saturday) till such time that is necessary to facilitate special clearing for Government transactions.

For more information, contact:
Chief Spokesman
State Bank of Pakistan (SBP)
Central Directorate
I.I. Chundrigar Road, Karachi, Pakistan
Tel: +92-21-111-727-111
Tel: +92-21-39212562
Fax: +92-21-39212433 – 39212436
Email: syed.wasimuddin@sbp.org.pk
Website: www.sbp.org.pk

No question of refusing details of written off loans arises

Karachi, December 15, 2016 (PPI-OT):Apropos debate on written off loans that arises intermittently in print and electronic media, certain facts need to be put on record that will enhance quality of such debates thus enabling viewers/readers to analyze things in true perspective. State Bank has never refused to furnish information about written off loans of banks to the parliament. In fact, this information is always available publicly as it is mandatory for banks to disclose, as a part of their financial statements, the names of persons and amounts written off of Rs.500,000/- and above every year.

The recent demand of information by the Senate (upper house of the parliament) was about the names of borrowers of Rs. 5 million or more who obtained loans from a bank during the last five years along with the number of cases recovered and waived off. SBP clearly responded that none of the loan was waived off by the concerned bank out of the loans of Rs. 5 million or more disbursed during the aforesaid period. Further, information about number of loans disbursed by the bank during the last five years and recovery of loans was also furnished to Senate in consolidated form.

However, the names of individual borrowers of that bank, who availed loans during last five years and no write off involved in these cases, were not shared due to legal provisions of Section 33-A of the Banking Companies Ordinance, 1962 and Section 9 of Protection of Economic Reforms Act 1992 which bar sharing of customers’ individual information.

Section 33-A of the Banking Companies Ordinance, 1962, titled as Fidelity and secrecy, stipulates that—(1) Subject to sub-section (4), every bank and financial institution shall, except as otherwise required by law, observe the practices and usage customary among bankers and, in particular, shall not divulge any information relating to the affairs of its customers except in circumstances in which it is, in accordance with law, practice and usage customary among bankers, necessary or appropriate for a bank to divulge such information.

Whereas Section 9 of Protection of Economic Reforms Act 1992, titled Secrecy of banking transaction, says that secrecy of bonafide banking transaction shall be strictly observed by all banks and financial institutions, by whosoever owned, controlled or managed. SBP wishes to make it clear to all that it strongly believes in maintaining transparency in its affairs and stands ready for any accountability by the representatives of public in Parliament. Further, SBP has been and shall remain providing all information permissible under the law.

For more information, contact:
Chief Spokesman
State Bank of Pakistan (SBP)
Central Directorate
I.I. Chundrigar Road, Karachi, Pakistan
Tel: +92-21-111-727-111
Tel: +92-21-39212562
Fax: +92-21-39212433 – 39212436
Email: syed.wasimuddin@sbp.org.pk
Website: www.sbp.org.pk

Monetary Policy Statement

Karachi, November 26, 2016 (PPI-OT): After bottoming out in October 2015, CPI inflation has been following a rising trend, with sporadic seasonal diversions. This anticipated rise is explained by stability in commodity prices against earlier sharp decline, phasing out of second-round impact of oil prices, and some uptick in domestic demand. The year-on-year CPI inflation has increased from 1.6 percent in October 2015 to 4.2 percent in October 2016and core inflation is inching upwards as well.

These movements are also partially mirrored in the IBA-SBP survey of November 2016 that shows improvement in current and expected economic conditions along with a moderate rise in consumer confidence and inflation expectations for the next six months. This manageable inflationary environment over the near-term bodes well for the current growth momentum. A healthy uptick in private sector credit for fixed investment will further support future growth. Consequently, improving aggregate supply is expected to better cater to rising domestic demand in FY17.

However, international oil price movements may impact inflation. The current macroeconomic stability and net retirement of government borrowings from scheduled banks resulted in relatively easy liquidity conditions in the money market. Some support also came from increase in bank deposits as the growth in currency in circulation receded back to its past levels after rising exceptionally high in FY16. Volatility in the interbank market continued to remain low and the overnight money market repo rate stayed close to the policy rate in the post September 2016 monetary policy period. The global growth outlook for 2016 is mixed.

While growth prospects for the US economy remain positive, uncertainties exist for international financial markets and global trade amid anticipated interest rate hike by the US-Fed. Nonetheless, Pakistan’s continuous build up of external buffers over the last three years has improved its resilience against external uncertainties. This is reflected in the current level of foreign exchange reserves which cover more than four months of projected import payments. In addition, the recent improvement in Pakistan’s sovereign rating along with official financial inflows is projected to sustain its foreign exchange reserves.

However, unpredictability of non-trade flows will influence the current account in particular and the external sector in general during the rest of FY17.Based on above macroeconomic considerations and after detailed deliberations, the Monetary Policy Committee has decided to maintain the policy rate at 5.75 percent.

For more information, contact:
Chief Spokesman
State Bank of Pakistan (SBP)
Central Directorate
I.I. Chundrigar Road, Karachi, Pakistan
Tel: +92-21-111-727-111
Tel: +92-21-39212562
Fax: +92-21-39212433 – 39212436
Email: syed.wasimuddin@sbp.org.pk
Website: www.sbp.org.pk

Governor State Bank of Pakistan attends Financial Stability Board meeting in London

Karachi, November 22, 2016 (PPI-OT):The Financial Stability Board (FSB) met in London last week with Mr. Mark Carney, Governor of the Bank of England, in Chair to discuss current vulnerabilities, ongoing policy work and its work plan for 2017. Governor …