SBP - Banking Sector / Federal Board of Revenue

Pakistan’s digital banks now have the advantage of hindsight. The challenge—and opportunity—is to combine the courage and innovative spirit of the first wave, the focus and sequencing of the second, and the platform thinking of the third, while remaining deeply grounded in Pakistan’s economic, technological, and social realities. Those that do, will not merely digitize banking; they will redefine how money moves in everyday Pakistani life.
 
The Federal Board of Revenue (FBR) is preparing to extend its Track & Trace System (TTS) to additional high-risk sectors as part of a broader effort to strengthen revenue collection, curb illicit trade, and improve transparency across industrial supply chains, according to experts familiar with regulatory reforms.


As per reports, the system relies on the use of Unique Identification Marks (UIMs), which are affixed to goods at the production stage and allow authorities to monitor production volumes and product movement across the supply chain, from manufacturing to retail. The electronically generated, tamper-resistant marks provide near real-time visibility of output and sales, enabling more accurate verification of tax declarations.

In sectors such as fuel, pharmaceuticals, beverages, and cement, experts said video systems cannot detect adulteration, track serialised products at scale, or establish legal product origin, functions considered essential for effective taxation and compliance.


Regulatory experts said the effectiveness of the TTS stems primarily from the security features embedded in UIMs. These marks generate unit-level data that allows enforcement agencies to independently verify production and sales, reducing reliance on self-reported figures by manufacturers. Products without valid UIMs can be quickly identified as non-compliant, facilitating targeted enforcement.

Sector assessments cited by officials show that the system has already produced tangible results. Authorities have detected undeclared production capacity, seized unstamped goods, and recovered smuggled or non-duty-paid stocks in sectors where the system is operational.

The use of UIM-based data has shifted enforcement away from routine raids toward intelligence-led action.


Beyond revenue protection, experts noted that the system also benefits consumers by enabling verification of legitimate, tax-paid products. This, they said, helps distinguish genuine goods from counterfeit or illicit items, supports public health objectives, and strengthens confidence in branded products.
 
hydrabadi_arab said:
.... The use of UIM-based data has shifted enforcement away from routine raids toward intelligence-led action. ...
Click to expand...
This is the way forward. Install monitoring mechanisms as much as possible and at many places as possible.

Pakistan should at least have a complete data of its economy.
 
No use.Only corruption will skyrocket
 

Fitch affirms Pakistan’s debt ratings at ‘B-’​

Khaleeq Kiani
January 22, 2026

ISLAMABAD: Fitch Ratings, one of the world’s top three agencies, on Wednesday affirmed Pakistan’s long-term debt ratings at ‘B-’ (B-negative), which it had upgraded in April last year, and assigned a Recovery Rating of ‘RR4’ following the removal of the ratings from Under Criteria Observation (UCO).

In a statement issued from its regional office in Hong Kong, the agency said the rating actions reflect the application of Fitch’s new Sovereign Rating Criteria, effective September 2025, and the inclusion of recovery assumptions into sovereign debt ratings for the first time.

The recovery rating RR4 denotes ‘average’ recovery expectation from default in a scale of six categories, starting from RR1 for outstanding, RR2 for superior, RR3 for good and RR4 for average. This is followed by RR5 for below average and RR6 for poor.
 
The senior unsecured long-term debt ratings of Pakistan and The Pakistan Global Sukuk Programme Company Ltd are equalised with Pakistan’s Long-Term Foreign-Currency Issuer Default Rating (IDR), reflecting Fitch’s expectation of average recovery prospects in a default scenario, given Pakistan’s high levels of general government debt and interest payments as a percentage of revenue, and the absence of any other clearly identifiable criteria factors that would cause us to notch the debt ratings up or down from the IDR.


On April 15, 2025, Fitch upgraded Pakistan’s Long-Term Foreign-Currency IDR to ‘B-’ with a stable outlook, from ‘CCC+’. In terms of environmental, social, and governance (ESG) key rating drivers for the Long-Term Foreign-Currency IDR and, in turn, the debt ratings, Pakistan has an ESG Relevance Score of ‘5’ for political stability and rights and for the rule of law, institutional and regulatory quality and control of corruption, as is the case for all sovereigns.

These scores reflect the high weight that World Bank Governance Indicators (WBGI) have for sovereign rating model. Pakistan has a WBGI ranking at the 22nd percentile. The bond and sukuk ratings are sensitive to any changes in Pakistan’s Long-Term Foreign-Currency IDR, which could change with sensitivities.

It notes that factors that could individually or collectively lead to a negative rating for downgrade include failure to keep government debt and debt-servicing metrics on a firm downward path, renewed deterioration in external liquidity conditions, for example, from delays in IMF programme reviews or insufficiently tight economic policy settings.
 

Exchange firm’s licence cancelled​


Shahid Iqbal
January 24, 2026

KARACHI: The State Bank of Pakistan (SBP) on Friday cancelled the licence of another exchange company over serious violations of regulatory instructions, a move currency dealers say is part of a broader plan to give more space to bank-owned exchange companies.

At least three exchange companies lost their licences in 2025, while Glaxy Exchange became the first casualty of 2026.

“The State Bank has, with immediate effect, cancelled the authorisation/licence of M/s Glaxy Exchange (Private) Limited on account of serious violations of SBP’s regulatory instructions.

The exchange company, including its head office and outlets, can no longer undertake any kind of foreign exchange-related business activity,” said an SBP notification.

Sources in the financial market dealing with currency exchange said the SBP governor had recently hinted at closing at least four exchange companies in 2026.

However, the central bank did not specify the nature of the violations, while exchange companies said the issue was related to compliance, which has become common under the current regulatory framework.

“We have been facing a serious burden of ‘over-regulation’, and most exchange companies are spending most of their time just to remain compliant with SBP requirements,” said an exchange company owner in Karachi.

At least three exchange companies lost licences in 2025
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The owner of Glaxy Exchange could not be contacted, but a former employee said the company had been incurring losses for more than a year and was seeking a buyer, similar to United Bank Limited’s acquisition of Wall Street Exchange Company a few years ago. That deal was reportedly finalised at Rs1.5 billion, and the company had the largest branch network in the country.

Glaxy Exchange has around 15 to 16 branches nationwide, but its financial position had weakened as currency trading volumes declined sharply over the past three years due to strict monitoring of dollar movements.

“About 90 per cent of exchange companies posted losses in 2025,” said another currency dealer. He added that while the SBP was encouraging mergers among exchange companies, it was simultaneously asking banks to expand their exchange branch networks to as many as 100 branches per bank.
 

SBP governor warns of complex cyber threats​


The Newspaper's Staff Reporter
January 24, 2026

KARACHI: State Bank of Pakistan (SBP) Governor Jameel Ahmad on Friday cautioned that the cyber threat landscape has become increasingly complex, driven by highly skilled, well-resourced groups and further complicated by rising geopolitical tensions.

Addressing a ceremony recognising institutions and individuals for completing Pakistan’s first-ever industry-wide cybersecurity drills for the banking sector, he said that the domestic shortage of skilled cybersecurity professionals limits institutions’ ability to safeguard against cyber threats effectively.

The increasing interconnection and complexity of the financial system, combined with innovation and massive technology adoption, have introduced new risks and vulnerabilities.

“To provide a clear strategic direction and roadmap to the industry for enhancing overall cyber resilience of the banking sector, the SBP will soon issue a comprehensive Cyber Resilience Strategy for regulated entities. We are calling the strategy the Cyber Shield 2025-30,” the SBP chief said.
 

Rs92bn circular debt drives push for integrated energy plan​

Steering committee, data system approved as OGDC gets Rs7.7b circular debt payment

ZAFAR BHUTTAJanuary 24, 2026

debt design mohsin alam


Debt. Design: Mohsin Alam

ISLAMABAD:
Amid chronic circular debt and persistent divisions between key ministries that have contributed to chaos in the energy sector, the government is moving ahead with the Integrated Energy Plan by bringing all stakeholders on board to address fragmented decision-making, silo-based ad-hoc planning, resource inefficiencies and the absence of uniform policy inputs.

Energy is a fundamental driver of economic growth, social progress and human development. However, the lack of a pre-defined planning structure, tools and processes for a sustainable integrated energy planning ecosystem has, in the past, resulted in fragmented decision-making, silo-driven planning, inefficient resource utilisation and inconsistent policy inputs.
 

SBP injects Rs2tr liquidity​


Rupee edges up slightly while global safe-haven rally lifts bullion prices

Our Correspondent
January 24, 2026


tribune


KARACHI: The State Bank of Pakistan (SBP) injected around Rs2 trillion in liquidity into the banking system through both conventional and Shariah-compliant Open Market Operations (OMOs) on January 23, 2026.

Under the conventional OMO (reverse repo purchase), the SBP injected Rs1.6488 trillion for a seven-day tenor at an accepted cut-off rate of 10.51%. The amount was accepted against bids of Rs1.614 trillion, with all bids cleared at the same rate, reflecting strong market demand for short-term liquidity.

Simultaneously, through the Shariah-compliant Mudarabah-based OMO, the central bank accepted Rs550 billion (face value), with a realised value of Rs531.0 billion, for a seven-day tenor at a rate of return of 10.51%.

This was out of total bids of Rs644 billion offered by Islamic banks and institutions. A portion of the bids at the same rate was accepted on a pro-rata basis, indicating oversubscription at the cut-off level.

Meanwhile, the Pakistani rupee edged up slightly in the interbank market on Friday, appreciating by Rs0.01 to close at 279.86 against the US dollar, compared with Thursday's close of 279.87.

Gold prices in Pakistan surged to another all-time high on Friday, tracking an extraordinary rally in international bullion markets. Globally, spot gold climbed to fresh records near the $5,000 per ounce mark as investors flocked to safe-haven assets amid escalating geopolitical risks and growing expectations of interest rate cuts in the United States.


In the domestic market, the price of gold per tola jumped by Rs9,100 to reach Rs514,662, according to rates issued by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). Similarly, the price of 10-gram gold rose by Rs7,802 to Rs441,239. On Thursday, gold had settled at Rs505,562 per tola after a decline of Rs800.
 
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Private credit expanded by Rs578 billion during FY2026 (till January 9), with textiles, wholesale and retail trade, chemicals, and consumer financing leading.

The State Bank has decided to lower the average cash reserve requirement from 6.0 percent to 5.0 percent to support credit growth.

The committee also noted that the IMF had slightly upgraded Pakistan’s global growth forecast for FY2026, while highlighting risks from elevated global tariff uncertainty and volatile commodity prices.

Due to these developments, the MPC maintained the real policy rate to stabilize inflation within the target range of 5 to 7pc over the medium term. The committee also emphasised the need for a coordinated and prudent monetary and fiscal policy mix, along with structural reforms to enhance productivity, to increase exports, and achieve high growth on a sustainable basis.
 
In a poll by Reuters, analysts expected another 50- to 100-basis-point reduction in the monetary policy rate today, bringing the rate to 9.5 or 10 per cent, owing to easing inflation, rising foreign exchange reserves, and a relatively stable rupee.

Ahead of the rate cut announcement, belief had been strengthened by the government’s reduction of cut-off yields across most tenors to single digits for the first time in four years on January 21.

Local businessmen were looking for a steeper decline in the interest rate to restore investor confidence in the economy.

During the last rate cut, the business community expressed their dismay at the 50 basis point cut, with the president of the Karachi Chamber of Commerce expressing that “such a token adjustment falls far short of what is urgently required to revive Pakistan’s fragile economy and restore business confidence.”
 
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