The State Bank of Pakistan (SBP) made a net profit of PKR 1.163 trillion in FY20 as opposed to a net loss of PKR 1.043 billion in FY19.
SBP recently announced:
The stability in the exchange rate allowed the SBP to return to profitability after incurring a loss in the preceding year. The profit so earned by the bank in the year ended June 30, 2020, is the highest in its history.
In its Annual Performance Review, SBP said that the high-interest rate in the first three quarters of the year allowed the bank to collect a significant amount of interest income.
The Annual Performance Review further said that the total assets of the central bank were recorded at PKR 12.273 trillion in June 2020. They were PKR 11.467 trillion during the same month in 2019.
Total liabilities of the bank stood at PKR 11.219 trillion as of June 30, 2020, which was Rs10.761 trillion as of June 30, 2019, with an increase of PKR 0.458 trillion.
According to the publication, SBP Governor Reza Baqir said:
Despite numerous challenges during FY20, Pakistan’s economy performed relatively better, particularly on the external and fiscal fronts.
During the first half of the year, the policy focus remained on stabilizing the economy and building adequate buffers.
The country also witnessed a smooth transition to a market-determined flexible exchange rate regime and prohibition of government borrowing from SBP.
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