KARACHI – While commercial banks are pocketing handsome amounts through investing in risk-free and heavily weighted government guarantees, revenues of the State Bank of Pakistan (SBP) are drying up fast. The SBP’s Second Quarterly Report, which was issued on Friday, reveals that the central bank’s collections witnessed negative growth of Rs 55 billion during the current financial year. Last year, the bank’s collections grew by Rs 63.1 billion.
According to the report, the SBP’s collections during the current fiscal year added up to a meager Rs 80 billion against Rs 135 billion collected last year. This shows a slump of Rs 55 billion or 68.75 percent when compared with the last year’s figures. This sharp fall has reflected adversely on growth in the government’s non-tax revenues that, the SBP report shows, saw an absolute growth of Rs 17.3 billion this year against Rs 23.1 billion of FY 2009-10. The government’s collections under non-tax revenues during the current year stood at Rs 268 billion against last year’s Rs 250.7 billion.
“Growth in non-tax revenues dampened somewhat, largely due to a decline in transfer of SBP profits,” indicates the SBP quarterly report on the state of Pakistan’s Economy during October-December of FY11. The central bank’s profits have been showing a declining trend for the last couple of years. During the last fiscal year (2009-10) the State Bank’s net profits amounted to Rs 186.736 billion, down by 7.4 percent or Rs 14.96 billion when compared with Rs 201.698 billion earned during preceding year. “The decrease is mainly attributable to decrease in net exchange gains on (the) Bank’s foreign currency assets and liabilities coupled with a marginal decline in discount income on market treasury bills (MTB),” the SBP report noted. The bank’s statement of profit and loss for FY10 shows that the regulator has spent Rs 22.057 billion in total while its earnings standing at Rs 208.793 billion. While the preceding year (FY2009) had seen the bank’s profits and expenditures standing, respectively, higher at Rs 219.925 billion and Rs 17.227 billion. The report, however, noted that the above decrease was partly offset by gain on re-measurement of securities classified as held for trading.
