KARACHI:The money that Pakistan keeps in its bank, called the State Bank of Pakistan (SBP), went up by $4 million in just one week. At the same time, the Pakistani Rupee (PKR) got stronger compared to the US dollar. This shows that things are looking better for how much the Pakistani Rupee is worth when traded with the US dollar.
The State Bank of Pakistan (SBP) shared on Thursday that the money it keeps in reserve, called reserves, went up by $4 million, reaching a total of $8.021 billion by the end of the week on March 22, 2024.
The SBP didn’t say exactly where this extra money came from, but experts who work with money in banks said the SBP has been buying more dollars from other banks.
Overall, the country’s reserves, including both the SBP’s and those held by commercial banks, reached $13.427 billion during that same week, with $5.405 billion belonging to commercial banks.
Meanwhile, the value of the Pakistani rupee compared to the US dollar kept getting stronger, reaching Rs278.03 on Thursday in the main bank market. This raised concerns among experts because even though Pakistan doesn’t have a lot of dollars in reserve and has been buying more than it’s selling, the rupee’s value is still holding steady for now.
The government is currently talking with the International Monetary Fund (IMF) to get the last part of a $3 billion loan deal, which could add more money to the SBP’s reserves. But in April, Pakistan has to pay $1 billion for Euro bonds, which will take away some of the money from the reserves again.
The new finance minister hasn’t announced a plan yet for dealing with the growing foreign debts and paying them back, which is the main reason why Pakistan is spending more money than it’s earning from other countries. It’s estimated that Pakistan will have to pay about $25 billion for these debts in the next financial year, which means the government will need to work hard to get more dollars and might have to sell some of the country’s valuable assets to get them.
CBC on ASAAN accounts
The State Bank of Pakistan (SBP) is helping ASAAN Mobile Accounts (AMAs) customers by making things easier for them. They’ve decided to waive the need for Call Bank Confirmation for a little while.
Here’s what that means: Normally, when you open an AMA, the bank or Microfinance Bank (MFB) has to do something called “Call Back Confirmation” (CBC) within 60 days. But now, they only have to do this within 30 days from when you open your account.
This change is meant to make things smoother for AMA customers, especially women. It allows them to keep using financial services without any hassle, all through a simple digital process.
The SBP is really working hard to get more people included in banking services. They’ve taken many steps to bring in those who are not currently using banks.
Here’s the deal: Banks and Microfinance Banks have to do CBC for all AMA customers whose accounts were opened after May 10, 2023, and haven’t had their biometric verification done yet. This change will come into effect after the temporary waiver ends.
Extended Banking hours
The State Bank of Pakistan (SBP) has made it easier for taxpayers to pay their government duties and taxes by extending banking hours on Saturday and even opening banks on Sunday.
Starting this week, banks will stay open for longer hours on Saturday, until 4:00pm, and will also be open on Sunday. This will help people who find it difficult to visit banks during regular working hours.
To make sure that payments are processed quickly, the SBP has instructed the National Institutional Facilitation Technologies (NIFT) to organize special clearings at 4:00pm on both Saturday (March 30) and Sunday (March 31). This means that payments made during these extended hours will be processed on the same day.
To avoid any delays in processing tax receipts, banks have been told to make sure that all government-related payments made during these special hours are promptly attended to. Any payments received during these extended hours will be processed on March 31.
Additionally, banks have been advised to keep their branches open for as long as necessary on both March 30 and 31 to facilitate these special clearings for government transactions organized by the NIFT. This move aims to make it more convenient for taxpayers to fulfill their obligations to the government.