Bank deposits grow 16.5% in one year
Most businesses, individuals opted to save money amid Covid outbreak
Banks’ lending . PHOTO: FILE
KARACHI:
Total deposits in banks grew 16.5% over the last one year to Rs17.08 trillion in January 2021, as a majority of businesses and households opted to avoid non-essential spending and saved a maximum amount to fight unforeseen challenges during the Covid-19 pandemic.
Bank deposits had stood at Rs14.67 trillion at the end of January 2020, the State Bank of Pakistan (SBP) reported.
“A large number of businesses and households did not make unnecessary expenditures during the uncertain times of Covid-19.
They opted to save money and park the savings in banks. This led to a rapid growth in deposits of banks,” Meezan Bank Product Development and Shariah Compliance Senior Executive Vice President Ahmed Ali Siddiqui told The Express Tribune. Businesses kept their expansion plans on hold and waited for the return of economic stability.
Business
February 9, 2021
ISLAMABAD: The government has decided to pay outstanding amount of Rs403 billion to 46 independent power producers (IPPs) and Rs161 billion will be released instantly, sources said on Monday.
The sources said the payment of Rs403 billion will be made in two instalments. First instalment will be 40 percent of the payable and will be paid one-third each in five-year sukuk and 10-year Pakistan Investment Bonds, while remaining 60 percent will be cleared within six months of the first instalment via the similar means.
Release of the payments will help ease pressure on companies and reduce circular debt. The Economic Coordination Committee (ECC) of the cabinet took the decision during a meeting chaired by Minister for Finance and Revenue Hafeez Shaikh.
Business
February 9, 2021
KARACHI: The government plans to raise Rs4.920 trillion from the sale of treasury bills and bonds up to the end of April 2021 to help plug the budget gap.
The State Bank of Pakistan (SBP) on Monday said it would hold fortnightly auctions for three, six and 12 months Market Treasury Bills between February and April. Total target for the six auctions is Rs4.300 trillion.
The central bank would sell Rs350 billion worth of three-, five- 10-, 15-, 20-, and 30-year fixed rate Pakistan Investment Bonds and Rs180 billion worth of three, five and 10 years floating rate PIBs. It would also auction Rs90 billion worth of a two-year floating rate PIBs in the period under review.
Foreign investors dump $162mln of debt assets in 8 months
Business
February 7, 2021
KARACHI: Foreign investors offloaded around $162 million from government securities, as they preferred to keep exposure to Pakistan’s debt market lower amid soft interest rate and Covid-related uncertainty, analysts said on Saturday.
Foreign investors continued to remain net sellers of the government papers, namely treasury bills and Pakistan Investment Bonds (PIBs) from July 01, 2020 to February 02, 2021, showed the State Bank of Pakistan’s (SBP) data.
The breakdown showed they invested a total of $561.6 million and sold $399.8 million short-term and long-term government papers in the period under review.
Foreigners bought $294.97 million worth of T-bills, while they sold $561.64 million short-term government securities. Moreover, foreign investment in PIBs stood at $104.86 million. Foreign divested $52,000 from long-term instruments.