1/5 SBP Clarification: The provisional estimate for FY21 growth of 3.94 percent released by the National Accounts Committee (NAC) yesterday reflects the strong economic recovery underway since the beginning of this fiscal year, 2/5 which has been highlighted in recent monetary policy statements and quarterly reports of the SBP.
SBP had raised its own growth forecast in March on the basis of buoyant economic activity reflected in different high frequency data.

1/4 In August, workers’ remittances remained strong at $2.095 billion. They exceeded $2 billion for the third consecutive time since May, reaching an unprecedented level of $7.3 billion over a three-month period. Details: sbp.org.pk/press/2020/Pr-… 2/4 Remittances increased by 24.4 percent (y/y) in August and 37.2 (y/y) during June-August. This is largely in line with SBP projections.

1/4 Overseas Pakistanis sent a record $2768 mn in July, an increase of $740 mn (or 36.5%) over last July and an increase of $302 mn (or 12.2%) over June. This is the highest ever recorded workers’ remittances in a single month. For details: sbp.org.pk/press/2020/Pr-… 2/4 July’s strong yearly growth rate is around twice as high as the Eid-ul-Adha related seasonality typically experienced over the last decade, suggesting other factors are at play.

1/5 #SBP releases 3rd Quarterly Report on “The State of #Pakistan’s #Economy” for the year 2019-20. For full report:
English: sbp.org.pk/reports/quarte…
Urdu: sbp.org.pk/reports/quarte… 2/5 The Report finds that necessary stabilization fostered significant macroeconomic improvement and helped build buffers. These improvements provided valuable space to respond to the downturn since late March 2020 due to #COVID19, through timely fiscal and monetary stimulus.

1/6 Governor #SBP shares with Chambers of Commerce the measures to enhance utilization of Risk Sharing Facility under SBP’s Rozgar Scheme. For details: sbp.org.pk/press/2020/Pr-… 2/6 Governor shared the data of SBP’s major refinance schemes & relief package. He also gave details on the financing availed by both corporates and SMEs under its Rozgar Scheme and Risk Sharing Facility provided by the government.

1/4 By 15May20, Rs432 bn of principal repayments of loans have been deferred as part of the principal deferment scheme introduced by SBP in collaboration with the PBA. Around 600,000 borrowers have benefitted from this scheme and over Rs59 bn has been restructured/rescheduled. 2/4 Majority of the beneficiaries in the loan deferment/restructuring are microfinance borrowers who benefitted to the tune of Rs 37 billion.

1/6 #SBP enhances refinance limits under its #RozgarScheme to finance up to 100% of wages/salaries of businesses with average 3month wage bill of up to Rs500mn for onward payments for April, May and June, 2020. Details: sbp.org.pk/press/2020/Pr-… 2/6 For businesses with 3-month wage bill exceeding Rs500 million, SBP will now finance up to 75% with maximum financing of Rs1 billion.

1/4 Ministry of Finance and #SBP introduce risk-sharing mechanism to support bank lending to #SMEs and small businesses to avail SBP’s Refinance Facility to Support Employment. For details: sbp.org.pk/press/2020/Pr-… 2/4 Federal Government allocates Rs30 billion under a credit risk sharing facility for the banks spread over four years to share the burden of losses due to any bad loans in future.

1/9 #SBP introduces further incentives for businesses under #refinance scheme for payment of wages and salaries to the workers and employees to prevent layoffs. For details:
English: sbp.org.pk/press/2020/Pr-…
Urdu: sbp.org.pk/press/2020/Pr-… 2/9 To address the issue of providing security/collateral for small vendors/distributors, financing has been allowed against corporate guarantees of companies in value/ supply chain relationship with the borrowers.

Our fundamentals remain strong. Over last year, twin deficits shrank, FX reserves strengthened and exchange rate made flexible.This provided space to respond to Covid-19 shock and will ensure robust recovery once it subsides. Governor SBP remarks in interview with Kamran Khan 2/International community is firmly backing Pakistan’s economic management.EFF program with IMF was progressing very well before Covid-19. Since then, IMF has provided another $1.4 bn on concessional basis to combat the virus. WB and ADB will also make 100s of mlns of $ available

1/In response to a marked reduction in growth and inflation projections due the Coronavirus pandemic, MPC decided at its emergency meeting today, to cut the policy rate by a further 200 basis points to 9 percent. sbp.org.pk/press/2020/Pr-… 2/Today’s interest rate cut reduces forward looking real interest rates (defined as the policy rate less expected inflation) from around 2 percent to near zero, which is about the middle of the range across most emerging markets.

1/5 #SBP releases Second Quarterly Report on "The State of #Pakistan's #Economy" for the year 2019-20. For details:
English: sbp.org.pk/press/2020/Pr-…
Urdu: sbp.org.pk/press/2020/Pr-…
2nd #QuarterlyReport 2019-20: sbp.org.pk/reports/quarte… 2/5 According to the report, stabilization efforts & regulatory measures yielded notable improvements during the 1st half of FY20. Current account deficit contracted to 6-year low, foreign exchange reserves increased, primary budget recorded a surplus, and core inflation eased.

1/5 #SBP introduces temporary #refinance scheme to incentivize businesses not to lay off their workers during #COVID19 pandemic. For details:
English: sbp.org.pk/press/2020/Pr-…
Urdu: sbp.org.pk/press/2020/Pr-… 2/5 Refinancing will be available to finance wages and salaries of 3 months, Apr-Jun20, for all types of workers and employees including permanent, contractual, daily wagers and outsourced workers.

1/4 #SBP extends its relief package to borrowers availing loans under Refinance Schemes. Under various refinance schemes loans are provided with preferential terms and conditions to promote growth in priority sectors of #economy. See details here: sbp.org.pk/press/2020/Pr-… 2/4 Borrowers from corporate, consumer, #agriculture, #SMEs and microfinance sectors can avail deferment of principal amount for one year while continue servicing mark up. They can also apply for rescheduling/ restructuring if they are not able to service mark-up payment.

(1/4)Borrowers availing consumer finance (auto, housing, personal loans, credit card)& who were regular on their payments up till 31Dec19 can request banks to defer principal amount for 1 year without any fee or increase in markup.They will continue to service the mark-up amount. (2/4) Borrowers who are unable to service the mark-up amount or need deferment exceeding one year, may request the bank to reschedule/ restructure their facilities. For details: sbp.org.pk/bprd/2020/CL14…

1/4) Clearing of cheques is now easier & faster. #Banks will provide Direct Cheque Deposit Facility under which a crossed cheque may be presented by payee/beneficiary directly into paying/drawee bank instead of their bank branches. For more details: sbp.org.pk/psd/2020/C4.htm 2/4) Banks may also collect cheque from registered addresses of their customers upon their request or customers may drop their cheques in drop boxes of their banks installed in selected branches. For more details: sbp.org.pk/psd/2020/C4.htm

1/SBP in collaboration of Pakistan Banks Association (PBA) has announced a comprehensive relief package for households and businesses to manage their finances through this temporary phase of disruption amid COVID-19. Check out our page on Countering COVID: sbp.org.pk/corona.asp 2/ Banks’ overall pool of loanable funds increased by Rs800 billion by reducing their Capital Conservation Buffer from 2.50% to 1.50%. Also, regulatory retail limit of Rs125 million per SME has been permanently enhanced to Rs180 million to help banks provide more loans to SMEs.

1/ To support Pakistan's exporters that are facing liquidity problems because of declining orders due to COVID-19, SBP has announced three relaxations to help avoid penalties and keep exporters' borrowing limits intact for next year. 2/ One, required matching amount of exports is reduced to one and half times of borrowed funds from two times earlier to show performance.

1/6) Customer fees waived to promote #online and #mobile #banking to contain spread of #coronavirus. More details in press release: sbp.org.pk/press/2020/Pr-… 2/6) #SBP takes measures to promote #digitalpayments amid #COVID19 pandemic. Objective is to reduce need for visiting bank branches or ATMs and to promote use of internet #banking, mobile phone banking.

1/SBP takes measures to promote Digital Payments amid COVID-19 pandemic. Objective is to reduce need for visiting bank branches or ATMs and to promote use of internet banking, mobile phone banking. 2/ Charges have been waived for customers on fund transfers through online banking channels such as Inter Bank Fund Transfer (IBFT) and SBP’s Real Time Gross Settlement System.

1/4 Governor SBP Dr Reza Baqir speaks at @KhiIsbLitFests on Financial Inclusion And Women Empowerment. Women are financially excluded disproportionately more than other comparable countries. 17% of women have bank accounts compared with 64% in South Asia. 2/4 SBP is putting weight on technology to drive financial inclusion through "Asaan Mobile Accounts" and "Micro Payments Gateway" about to be launched soon.