$280m IMF tranche being
Finance Minister Ishaq Dar on Thursday disclosed that Pakistan would
receive IMF tranche worth $280 million next month (August).
Rs3.32bn earned thru quota auction
The government has earned Rs 3.32 billion during the past two years by
auctioning the discretionary quota of textiles, Commerce Minister Ishaq Dar disclosed. He
said the PPP regime had generated only Rs 730 million in two-and-a-half years through the
auction, while the PML government has earned a record amount as not a single piece of
textile was allotted from the discretionary quota.
HBL levies fee on replacement of securities
If you are a Habib Bank client you need now to pay Rs 1000 if you want
to replace the security against which you have borrowed money from your bank.
A recent HBL circular says that in addition to the processing charges
for credit lines Rs 1000 "are to be invariably recovered at the time of replacement
of securities under lien to the Bank."
It says this additional charge would not be recovered at the time of
annual review of credit facilities and in case of HBL's own deposits or certificates under
Dollar shoots up to Rs51.90
The US dollar shot up to Rs 51.90 in interbank market on Thursday
against Rs 51.80-51.85 on Wednesday as some banks had to foot more than $20 million worth
of fuel import bill.
Senior bankers said there was a buying pressure in the inter- bank
market that kept the dollar pegged at Rs 51.90 throughout the day. They said the State
Bank managed to keep the dollar from rising by helping the banks in footing the fuel
import bill of the government.
SBP injects Rs4.75bn
The State Bank injected Rs4.75 billion into the cash-strapped
inter-bank money market on Thursday by buying Treasury Bills of one-week to maturity.
Senior bankers said the two-way open market operation of SBP had
attracted Rs7.7 billion worth of bids for sale of T-bills and Rs8.95 billion worth of bids
for purchase. They said while the SBP rejected all bids for sale it accepted Rs4.75
billion worth of bids for purchase at an annual return of 8.25 per cent.
ADBP recovers Rs273m in stuck-up loans
Agricultural Development Bank of Pakistan (ADBP) has recovered dues
amounting to Rs 273 million, out of Rs 388.8 million from defaulters from different parts
of Sialkot district.
This was disclosed at a revenue officers' meeting on Thursday which was
presided over by the deputy commissioner. The meeting was further informed that more than
Rs 305.7 million was recovered from the defaulters as agriculture tax.
Liquidity in money market to rise by Sept
The interbank money market, which has been short of funds for the past
few days, is set to see an inflow of over Rs 100 billion by end of September.
Bankers say it is hard to predict how the creation of such a huge
liquidity would impact on the market but many of them fear it might lower the deposit
Bankers say around Rs 17 billion inflow is expected into the market in
this month, Rs 53 billion more during August and Rs 31 billion by end of September
all through maturity of government security papers.
But the market has been short of funds for the past few days after the
State Bank restored the original cash reserve requirement of 5 per cent of banks deposits
from July 12 sucking in about Rs 17 billion from the market.
Bankers say call rates which, oscillated between 0.5-1.0 per cent for
the last one and a half months or so, have been in the range of 12-13 per cent for past
few days. They say some banks are even borrowing funds from the State Bank to square their
Nevertheless the situation would change. "The inflow of Rs 17
billion or so in the remaining part of this month would make the market quite
liquid," said treasurer of a foreign bank. "Then in August and September there
would be respective inflows of Rs 53 billion and Rs 31 billion." The banker felt that
it would not be easy for SBP to mop up all of this liquidity because that would require
appreciation of yield on T-bills and thus push up lending rates.
Treasurer of a local bank said another way for mopping up this
liquidity could be sale of dollars by the State Bank in the inter -bank market. But he
said as the foreign exchange reserves were not likely to grow fast due to widening trade
deficit it would be difficult for SBP to see much of foreign exchange in the market.
Banks asked to wind up prize schemes by Dec 31
The State Bank of Pakistan (SBP) on Tuesday directed banks to phase out
existing deposit schemes based on incentives, whether in cash or any kind, completely by
December 31, 1999.
In circular BPRD No 29, issued to all banks/NBFIs, the SBP asked banks
running "lottery" schemes to submit "a time-bound action plan for their
termination, latest by December 31, 1999."
The central bank has also instructed the banks to stop the on-going
advertisement campaign in print and electronic media relating to such schemes within seven
Besides, no new deposit mobilization scheme based on incentives,
whether in cash or kind, will be launched, the SBP circular said.
All public advertisements soliciting deposits from the general public
will henceforth expressly indicate the annualised rate of expected return on their
deposits, the circular added.