SECP issues regulatory directive for life insurers

ISLAMABAD: November 11: The Securities and Exchange Commission of Pakistan (SECP) has issued a regulatory directive to the life insurers to file their products in accordance with the standardized submission requirements. The existing insurance regulatory framework describes the broad type of product-related information to be submitted at the time of registration of a life insurer or at the time of introduction of new products or amendments to existing products.

WORKERS’ REMITTANCES RISE OVER 6%, SBP

Overseas Pakistani workers remitted an amount of $5275.61 million in the first four months (July – October) of the current fiscal year 2013‐14 (FY14), showing a growth of 6.27 percent when compared with $4964.21 million received during the same period of last fiscal year (July- October FY13).

The inflow of remittances in July- October FY14 from Saudi Arabia, UAE, USA, UK, other GCC countries (including Bahrain, Kuwait, Qatar and Oman), and EU countries amounted to $1459.63 million, $1060.93 million, $850.05 million, $807.63 million, $604.46 million and $149.30 million respectively as compared with the inflow of $1308.61 million, $1046.83 million, $841.28 million, $697.33 million, $559.51 million and $134.53 million respectively in July- October FY13. Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the first four months of current fiscal year amounted to $343.61 million as against $376.12 million received in the first four months of last fiscal year.

In October 2013, the inflow of remittances from Saudi Arabia, UAE, USA, UK, other GCC countries (including Bahrain, Kuwait, Qatar and Oman), and EU countries amounted to $353.46 million, $276.48 million, $225.25 million, $197.08 million, $157.32 million and $40.11 million respectively as compared with the inflow of $347.52 million, $293.74 million, $217.56 million, $197.18 million, $163.37 million and $37.48 million respectively in October, 2012. Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during October 2013 amounted to $97.97 million

Old design banknotes of Rs 50 & Rs 1000 to phase out

                The State Bank of Pakistan has decided to phase out the old design banknote of Rs. 50 & Rs 1000 denominations. The commercial/microfinance banks will stop issuance of old design banknote of Rs. 50 & Rs 1000 denominations with effect from 1^st November, 2013 (Friday). However these banknotes in circulation will remain legal tender till further order. The commercial/microfinance banks have been advised to accept these banknotes from the public by exchanging the same with banknotes and coins of all other denominations. Banks shall start surrendering the above old design banknotes in suitable lots to the offices of SBP Banking Services Corporation in due course. 

SBP launches Livestock Insurance Scheme for borrowers

The State Bank of Pakistan, in collaboration with SECP, banks, insurance companies and provincial livestock & dairy departments, has developed a framework for Livestock Insurance for borrowers. It is aimed at improving access to finance to the livestock & dairy sector by mitigating risk of loss of livestock due to disease, natural calamities & accidents.

The livestock sector contributes 55% in Agriculture GDP and 11.4% to the overall GDP. It is an important tool for poverty alleviation and for raising the living standards of the poor especially in rural areas. However, banks’ financing to Livestock/Dairy & meat is only Rs 56 billion which constitutes 17% of total agri. lending of Rs. 336 billion in 2012-13. One of the major reasons for modest off take of credit to this sector is the limited availability of appropriate insurance products or other risk mitigation tools.