Pakistan eases statutory liquidity reserve requirement for exchange companies
It will help them address cash flow issues SAMAA | Bilal Hussain - Posted: May 20, 2021 | Last Updated: 4 hours ago SAMAA | Bilal Hussain Posted: May 20, 2021 | Last Updated: 4 hours ago
A currency trader counts Pakistani Rupee notes as he prepares an exchange of U.S dollars in Islamabad, Pakistan December 11, 2017. REUTERS/Caren Firouz
The State Bank of Pakistan has revised the Statutory Liquidity Reserve requirement for exchange companies, reducing it from 25% to 15% of their capital.
It was mandatory for exchange companies to put a quarter of the paid-up capital, the worth of their business, with the central bank to settle things smoothly in case they defaulted.
LAHORE: Remittance flow into Pakistan increased by about 17 per cent in 2020, defying the gloomy projections and in spite of the global Covid-19 pandemic.
The growth in the home remittances from Pakistanis working abroad last year was much faster than 5.2pc increase in flows to the South Asian countries, according to the latest Migration and Development Brief published by the World Bank.
Previously, the bank had forecast significant decline in remittances to Pakistan and the rest of the countries in the region because of the coronavirus pandemic that forced nations across the world lock down their economies and send migrant workers back home to their countries of origin.
Daily Times
April 18, 2021
Currency traders and analysts expect that Pakistan will receive record monthly remittances up to $3 billion ahead of Eid festivities.
According to the State Bank of Pakistan, the country witnessed a 43 percent increase in workers’ remittances in March 2021 when it received $2.7 billion. It was the 10th consecutive month the Pakistani diaspora sent more than $2 billion to their homeland.
“Keeping in view the consistent inflows, we expect remittances to cross the $3 billion mark ahead of Eid,” said Malik Bostan, chairman of the Exchange Companies Association of Pakistan (ECAP). “The major support as usual is coming from Saudi Arabia and the UAE where large numbers of Pakistani workers reside, and many of them are unable to travel to their country to celebrate Eid with their families,” he continued. “We expect 20 to 30 percent seasonal growth in remittances.” “Pakistan is receiving great support from Saudi Arabia and the UAE,” Bostan said
SAMAA - Overseas Pakistanis send over $2 billion for the 10th consecutive month samaa.tv - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from samaa.tv Daily Mail and Mail on Sunday newspapers.