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Pakistan’s deposit protection program now covers one million rupees.

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An increase in the guarantee sum for qualified depositors of member banks was announced by the Deposit Protection Corporation (DPC) on Tuesday. The increase was from Rs500,000 to Rs1 million.

All of the eligible depositors across the country would be afforded complete protection as a result of this improvement, which was approved by the board of directors of the DPC.

The decision was made with the intention of protecting the interests of depositors and fostering financial stability inside the country, according to the State Bank of Pakistan (SBP).

A whopping 77.7 million accounts held by member banks are now protected by the DPC as a result of this revised guarantee. This contributes to the protection of about 96% of the total account holders in the banking sector, which equates to approximately 80 million personal accounts.

A number of experts considered that the DPC’s guarantee was insufficient in protecting depositors, particularly during times of economic uncertainty. Previously, the DPC’s guarantee was restricted to a maximum of Rs500,000.

It is anticipated that the decision to raise the limit will boost the trust of depositors and encourage a greater number of persons to interact with the banking system. This means that the decision comes at a vital time.

To ensure that access to this safety net is uncomplicated and uncomplicated, it is important to note that the deposit protection facility is accessible to all eligible depositors at no additional cost.

To emphasize the significance of preserving a healthy banking environment, the guarantee will not be activated until the State Bank of Pakistan (SBP) declares a bank to be a failed organization.

The State Bank of Pakistan, also known as SBP Bank Bank depositors are protected by deposit protection charges (DPC) Deposit rates

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Business

Irfan Siddiqui meets with the PM and informs him about the Senate performance of the parliamentary party.

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The head of the Senate’s Foreign Affairs Standing Committee and the PML-N’s parliamentary leader paid Prime Minister Muhammad Shehbaz Sharif a visit in Islamabad.

Senator Irfan Siddiqui gave the Prime Minister an update on the Parliamentary Party’s Senate performance.

Additionally, Senator Irfan Siddiqui gave the Prime Minister an update on the Senate Standing Committee on Foreign Affairs’ performance.

He complimented the Prime Minister on his outstanding efforts to bring Pakistan’s economy back on track and meet its economic objectives.

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Business

SIFC Increases Direct Foreign Investment: Investment in the Energy Sector Rises by 120%

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The Special Investment Facilitation Council is intended to help Pakistan’s energy sector attract $585.6 million in direct foreign investment in 2024–2025. The amount invested at the same time previous year was $266.3 million.

This is a notable 120% rise, mostly due to investments in gas exploration, oil, and power. Such expansion indicates heightened investor confidence and emphasizes the development potential in important areas.

The State Bank reports that foreign investment in other vital industries has increased by 48% to $771 million.

This advancement is a blatant testament to SIFC’s efficient investment procedure and quick project execution.

The purpose of the Special Investment Facilitation Council is to establish Pakistan as an investment hub by aggressively promoting regional trade and investment in the energy sector and other critical industries.

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Business

Discos report losses of Rs239 billion.

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When compared to the same period last year, the data indicates that discos have decreased their losses in the first quarter of the current fiscal year.

The distribution businesses recorded losses of Rs239 billion in the first three months of the current fiscal year, a substantial decrease from the Rs308 billion losses sustained during the same period the previous year.

Additionally, the distribution businesses’ rate of recovery has improved. It has increased to 91% in the first quarter of this year from 84% in the same period last year, indicating success in revenue collection.

Regarding circular debt, the Power division observed a notable change. Last year, between July and October, the circular debt grew by Rs301 billion. Nonetheless, this year’s first four months saw a relatively modest increase in circular debt, totaling about Rs11 billion.

These enhancements show promising developments in the electricity sector’s financial health in Pakistan, where initiatives are being made to accelerate recovery rates and slow the expansion of circular debt.

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