Forex processing at banks to go digital by Feb end
Managing Director of State Bank of Pakistan's Banking Services Corporation Muhammad Ashraf Khan said majority of the banks would start processing 88 percent of foreign exchange digitally by the end of February and 98 percent by April 2021.
"The digitalisation of foreign exchange, which started in March 2020, has been expanded from 8 to 13 banks, while banks will completely discontinue paper-based submissions after June 2021," said MD SBP-BSC, speaking at a meeting during his visit to the Karachi Chamber of Commerce & Industry (KCCI).
Khan said the initiative to digitalise foreign exchange operations was taken to facilitate the business community by completely eradicating the paperwork and expediting the overall process, which had successfully been implemented by many banks.
Head of Foreign Exchange Operations Department SBP Shakeel Muhammad Paracha, Director Exchange Policy Department SBP Arshad Mehmood Bhatti, Vice President KCCI Shamsul Islam Khan, Chairman of KCCI's Banking & Insurance Subcommittee Qazi Zahid Hussain, Adviser Banking & Insurance Subcommittee Ateeq ur Rehman and others attended the meeting.
MD SBP-BSC said everything had been transferred from manual to digital processing and now the customers had the freedom to get online anytime either from their home or office to apply for delivery of remittances without any paperwork, while the customers would receive updates and objections (if any) about his transaction on his/her registered email address.
While assuring full support and cooperation, Khan stressed that the business and industrial community must come forward to adopt the digital mode for foreign exchange in which the customers could get registered themselves and track progress of case.
Stocks fell, the first day of the futures' rollover week, with banks leading the losses after furious investors buffeted the sector for disappointing dividend announcements, dealers said. Pakistan stock exchange (PSX) KSE-100 shares index shed 0.73 percent or 337.61 points to close at 45,890.04 points. KSE-30 shares index shed 0.89 percent or 171.55 points to close at 19,059.09 points. Volumes increased to 722.052 million shares from 694.8 million in the last trading session. Out of 414 active scrips, 162 advanced, 230, retreated, and 22 remained unchanged.
Ahsan Mehanti At Arif Habib Corp said stocks closed bearish amid pressure in the future contracts rollover week and uncertainty over FATF meeting decision on Pakistan's exit from grey list.
"Fertiliser and banking sector outperformed on surge in local fertiliser prices and strong banking financials. However, investor concerns over likely Rs700 billion additional taxes in reinstated IMF program, 27 percent decline in foreign direct investment in January and political noise weighed on trade."
Topline Securities in its daily market review said equities witnessed profit-taking as investors took cautious stance owing to the virtual FATF plenary session and the futures rollover week.
Banks were the major laggards with HBL, UBL, and MCB Bank cumulatively lost 190 points, while Oil and Gas Development Company, Pakistan Petroleum Limited, and Pakistan Oilfields (POL) dented the index by 70 points, the brokerage report added.
An analyst at Arif Habib Limited said market fell on the first day of the rollover week, mostly because of the disappointing dividend announcements by banks, while UBL's result, scheduled for Wednesday, was also being anticipated to be in line with bleak market expectations .
"FATF plenary session starts today with the anticipation of status quo, which has also caused a bit of concern among investors holding on to the positions in hope of positive conclusion," the Arif Habib Ltd analyst added.
Banking sector came under selling pressure and as a result UBL lost 4.1 percent, HBL 3.5 percent, Bank AlFalah 3.3 percent, and BOP closed 2.0 percent down. Cement sector was no different. Kohat Cement lost 3.1 percent, Cherat Cement 2.3 percent, while Fauji Cement and D.G Khan Cement shed 1.1 percent each.