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Rupee maintains winning streak against dollar

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Rupee maintains winning streak against dollar

KARACHI: The Pakistani rupee recorded gains for the eighth consecutive session against the dollar on Tuesday, amid the finance minister’s statement regarding the strengthening of the rupee value, dealers said. The exchange rate witnessed a gain of Rs1.65 to reach Rs225.64 against the dollar from the previous day’s closing of Rs227.29 at the interbank exchange … Read more

Rupee gains for sixth consecutive session

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Rupee

KARACHI: The Pakistani rupee extended gains against the dollar on Friday amid improved investors’ sentiments as Ishaq Dar took charge of the finance ministry, dealers said.

The exchange rate witnessed a gain of Rs1.18 to reach Rs228.45 against the dollar from the previous day’s closing of Rs229.63 at the interbank exchange market.

Analysts said the rupee rally against the dollar is driven by sentiment, while the exporters are selling dollars in the market over the likely increase in the value of the rupee in the near term.

The speculations regarding the local unit seem decreased following the finance minister’s announcement that no one would be allowed to manipulate the money market.

On the flip side, the current rally of the rupee is likely to be short-lived as the macroeconomics of the country are deteriorating where the foreign exchange reserves of the country witnessed a significant decline.

An expansion in the current account deficit is also likely on the back of the government’s import of essential items to meet local demand.

The foreign exchange reserves of the State Bank of Pakistan (SBP) fell $341 million, clocking in at an alarming level of $8 billion during the week ended September 23, compared with $8.34 billion on September 16.

The total liquid foreign exchange reserves held by the country stood at $13.76 billion. The net foreign reserves held by commercial banks amounted to $5.76 billion.

An ease in the current account deficit was witnessed during the current fiscal year. Pakistan’s current account deficit shrank 19 per cent during the first two months of the fiscal year 2023 due to a lower import bill and increase in exports.

Cumulatively, the country recorded a current account deficit amounting to $1.92 billion in the first two months of ongoing fiscal year, compared with $2.37 billion in the same period of last fiscal year, depicting a decline of $456 million, a report by the State Bank of Pakistan (SBP) showed.

The decline in the current account deficit is due to an 11 per cent surge in exports and around 2 per cent contraction in the import bill, the central bank said.

The local currency remained under pressure since the start of the current fiscal year. The rupee lost Rs23.6 or 11.52 per cent from Rs204.85 to dollar on June 30, 2022 to the current level of Rs228.45.

At the open market, the buying and selling of the dollar was recorded at Rs225 and Rs227.5 at 5:00pm PST.

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PSX adds 531 points over rupee gains

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PSX adds 531 points over rupee
  • The Pakistan stock market closed higher after witnessing a bullish session throughout the day.
  • The benchmark KSE-100 Index settled at 41,151 level.
  • The market opened in a positive zone as the rupee made a sharp recovery.

KARACHI: The Pakistan stock market closed higher after witnessing a bullish session throughout the day on Monday, as the global commodities prices witnessed a significant decline, besides a recovery in the value of the rupee.

An analyst at Topline Securities said the Pakistan equities closed in the green zone, where the benchmark KSE-100 Index settled at 41,151 level.

“The trading session kicked off on a positive note over declining international commodities prices and strengthening rupee against the dollar which led the market to remain in a positive zone,” he added.

The Pakistan Stock Exchange KSE-100 shares Index gained 531.33 points, or 1.31 per cent to close at 41,151.54 points. The KSE-30 shares Index gained 206.94 points, or 1.36 per cent, to close at 15,419.88 points.

An analyst at Arif Habib Limited said the bulls dominated the market throughout the day.

The market opened in a positive zone as the rupee made a sharp recovery against the dollar in the interbank foreign exchange market, he added.

“The investors gained confidence over the clarity on the political ground as the volumes climbed significantly in the main board, while hefty volumes were witnessed in the third tier stocks,” he remarked.

As many as 326 scrips were active of which 224 advanced, 79 declined and 23 remained unchanged.

The ready market volumes stood at 213.02 million shares, compared with the turnover of 165.29 million shares in the last trading session.

The companies which reflected the highest gains included Premium Textile up Rs55.89 to close at Rs854.89/share, and Pak Tobacco up Rs55 to close at Rs845/share.

The companies which reflected the most losses included Nestle Pakistan down Rs105 to close at Rs5,600/share, and Sapphire Textile down Rs69.26 to close at Rs1,104.74/share.

The highest volumes were witnessed in TRG Pakistan with a turnover of 27.47 million shares. The scrip gained R8.60 to close at Rs126.65/share, followed by Cnergyico PK with a turnover of 17.36 million shares. It gained 15 paisas to close at Rs4.93/share.

Unity Foods remained the third with a turnover of 15.40 million shares. It gained Rs1.26 to finish at Rs23.06/share.

 

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Rupee recovers as market awaits new Finance Minister

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Rupee recovers as market awaits
  • The exchange rate witnessed a gain of Rs2.63 to reach Rs237.02 against the dollar from Friday’s closing of Rs239.65.
  • The latest recovery in the value of the local unit can also be attributed to a decline in the international oil prices.
  • Foreign exchange reserves also recorded a decline on the back of less inflows and higher imports.

The rupee recorded a major gain against the dollar on Monday as the market rejoiced at the news of the likely appointment of Ishaq Dar as the new finance minister.

The exchange rate witnessed a gain of Rs2.63 to reach Rs237.02 against the dollar from Friday’s closing of Rs239.65 at the interbank exchange market.

Analysts said that the market is optimistic that the upcoming finance minister will likely take measures to arrest the flight of the dollar to support the local economy.

Dar, known for keeping the rupee overvalued against the dollar, is expected to become the country’s new finance minister after Miftah Ismail officially resigns from his post.

The latest recovery in the value of the local unit can also be attributed to a decline in the international oil prices which slid to below $80/barrel.

Pakistan is a net importer of petroleum products and any change in the global oil prices directly impacts the current account of the country.

The expected inflows of the foreign currency in the future from multilateral institutions and friendly countries to help Pakistan fight against flood losses also helped the rupee regain its ground.

The government also secured some economic support from Saudi Arabia, to provide the required stability to the exchange rate.

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Rupee records marginal gains against dollar

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Rupee records marginal gains against dollar

KARACHI: The rupee ended its 15-day losing streak against the dollar on Friday, amid an ease in the current account deficit during the ongoing fiscal year, dealers said.

The exchange rate witnessed a gain of 6 paisas to reach Rs239.65 against the dollar from the previous days’ closing of Rs239.71 at the interbank exchange market.

The marginal increase in the value of the local currency came after it witnessed a continuous decline for 15 consecutive sessions on the back of deteriorating macroeconomics of the country.

However, surging dollar value in the international market, declining foreign exchange reserves and a likely increase in the current account deficit in the coming months remain major challenges for the local unit to maintain its gaining momentum.

On the global stage, the dollar continued its flight against major currencies after the US Federal Reserve’s announcement in which it raised the key US interest rate again, which took the policy rate to 3.0-3.25 per cent.

Pakistan’s current account deficit shrank 19 per cent during the first two months of the fiscal year 2023 due to a lower import bill and increase in exports.

Cumulatively, the country recorded a current account deficit amounting to $1.92 billion in the first two months of ongoing fiscal year, compared with $2.37 billion in the same period of last fiscal year, depicting a decline of $456 million, a report by the State Bank of Pakistan (SBP) showed.

The decline in the current account deficit is due to an 11 per cent surge in exports and around 2 per cent contraction in the import bill, the central bank said.

The government also secured some economic support from Saudi Arabia, to provide the required stability to the exchange rate.

The Saudi Fund for Development (SFD) has confirmed a rollover of a $3 billion deposit maturing on December 5, for one year. The deposit is placed with the SBP and is part of its foreign exchange reserves.

The country’s current account and trade deficit are expected to widen in the future as the government is moving to import essential food items. The industrial activities have also been badly disrupted which will massively impact the exports of the country.

Likewise, the foreign exchange reserves of the country have also recorded a decline on the back of less inflows and higher imports.

The foreign currency reserves held by the State Bank of Pakistan (SBP) recorded a decline of $278 million to reach $8.34 billion during the week ended September 16, compared with $8.62 billion on September 9.

The overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $14.06 billion. The net reserves held by banks amounted to $5.72 billion.

The local currency remained under pressure since the start of the current fiscal year. The rupee lost Rs34.8 or 16.98 per cent from Rs204.85 to dollar on June 30, 2022 to the current level of Rs239.65.

At the open market, the buying and selling of the dollar was recorded at Rs241.5 and Rs244 at 4:45pm PST.

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Rupee records minor loss against dollar

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Rupee records minor loss against dollar

KARACHI: The rupee remained almost stable before closing the day with a slight fall against the dollar on Thursday, amid a decline in the current account deficit during the ongoing fiscal year.

The exchange rate witnessed a loss of 6 paisas to reach Rs239.71 against the dollar from the previous days’ closing of Rs239. 65 at the interbank exchange market.

The fall in the value of the rupee came amid the US Federal Reserve’s announcement in which it raised the key US interest rate again, which took the policy rate to 3.0-3.25 per cent.

The latest hike in the policy rate has added to the dollar’s strength, and put major currencies, including the Pakistani rupee under severe pressure.

Pakistan’s current account deficit shrank 19 per cent during the first two months of the fiscal year 2023 due to a lower import bill and increase in exports.

Cumulatively, the country recorded a current account deficit amounting to $1.92 billion in the first two months of ongoing fiscal year, compared with $2.37 billion in the same period of last fiscal year, depicting a decline of $456 million, a report by the State Bank of Pakistan (SBP) showed.

The decline in the current account deficit is due to an 11 per cent surge in exports and around 2 per cent contraction in the import bill, the central bank said.

The local unit has remained under pressure throughout September, despite inflows from the International Monetary Fund (IMF), which were expected to help the government in attracting further investment and loan agreements from other multilateral institutions and friendly countries.

Although the government has had some success in securing some economic support from Saudi Arabia, it failed to provide the required stability to the exchange rate.

The announcement by the Saudi Fund for Development (SFD) for the rollover of the deposits failed to support the rupee in the interbank foreign exchange market.

The SFD has confirmed a rollover of a $3 billion deposit maturing on December 05, for one year. The deposit is placed with the SBP and is part of its foreign exchange reserves.

Additionally, the recent floods across the country have further dented the economic activities. The catastrophic floods are estimated to have caused more than $10 billion losses, as standing crops in all provinces have been destroyed.

The country’s current account and trade deficit are expected to widen in the future as the government is moving to import essential food items. The industrial activities have also been badly disrupted which will massively impact the exports of the country.

Pakistan’s trade deficit swelled 31 per cent on a month-on-month basis to hit $3.5 billion, data by the Pakistan Bureau of Statistics (PBS) showed.

Pakistan’s petroleum group imports witnessed a growth of 6.97 per cent during the first two months (July-August) of the fiscal year 2023 and stood at $3.30 billion, compared with $3.08 billion during the same period of last fiscal year.

Likewise, the foreign exchange reserves of the country have also recorded a decline on the back of less inflows and higher imports.

The foreign exchange reserves held by the State Bank of Pakistan (SBP) fell $176 million to reach 8.62 billion during the week ended September 9, compared with $8.79 billion on September 2.

The overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $14.31 billion. The net reserves held by banks amounted to $5.69 billion.

The local currency remained under pressure since the start of the current fiscal year. The rupee lost Rs34.86 or 17 per cent from Rs204.85 to dollar on June 30, 2022 to the current level of Rs239.71.

At the open market, the buying and selling of the dollar was recorded at Rs241.7 and Rs244.1 at 4:30pm PST.

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Rupee’s losing streak against dollar continues

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Rupee records marginal gains against dollar

KARACHI: The rupee free fall remained unabated against the dollar on Tuesday as the macroeconomics of the country worsened besides a lack of funding to boost the foreign exchange reserves.

The exchange rate witnessed a loss of Re1 to reach Rs238.91 against the dollar from the previous days’ closing of Rs237.91 at the interbank exchange market.

Currency experts said that the local unit continued to take battering as the dollar is strengthening against major currencies in the international market.

The recent floods across the country have added more pressure on the rupee due to expectedly higher imports ahead on account of agriculture and food due to massive devastation of essential crops, they added.

The country’s current account and trade deficit are expected to widen further as the government is moving to import essential food items. The industrial activities have also been badly disrupted which will massively impact the exports of the country.

Pakistan’s trade deficit swelled 31 per cent on a month-on-month basis to hit $3.5 billion, data by the Pakistan Bureau of Statistics (PBS) showed.

According to data released by PBS, the petroleum group imports registered a 29.93 per cent growth in August 2022 on a month-on-month basis to stand at $1.86 billion compared with $1.43 billion in July 2022.

Pakistan’s petroleum group imports witnessed a growth of 6.97 per cent during the first two months (July-August) of the fiscal year 2023 and stood at $3.30 billion, compared with $3.08 billion during the same period of last fiscal year.

Likewise, the foreign exchange reserves of the country have also recorded a decline on the back of less inflows and higher imports.

The foreign exchange reserves held by the State Bank of Pakistan (SBP) fell $176 million to reach 8.62 billion during the week ended September 9, compared with $8.79 billion on September 2.

The overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $14.31 billion. The net reserves held by banks amounted to $5.69 billion.

The country’s current account deficit rose 531 per cent to over $17 billion during the fiscal year 2022 due to massive increase in goods import bill. Overall, the current account deficit was $17.4 billion during the fiscal year 2022, compared with $2.8 billion in the fiscal year 2021, depicting an increase of $14.6 billion.

The local currency remained under pressure since the start of the current fiscal year. The rupee lost Rs34.06 or 16.62 per cent from Rs204.85 to dollar on June 30, 2022 to the current level of Rs238.91.

At the open market, the buying and selling of the dollar was recorded at Rs242.5 and Rs244.8 at 4:30pm PST.

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Rupee free fall continues in interbank market

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Rupee free fall continues in interbank market

KARACHI: The rupee continued its downward momentum against the dollar on Friday as it shed 96 paisas in the interbank foreign exchange market amid deteriorating macroeconomics of the country.

The exchange rate witnessed a loss of 96 paisas to reach Rs236.84 against the dollar from the previous days’ closing of Rs235.88 at the interbank exchange market.

The latest decline is the rupee’s 11th consecutive loss against the greenback. The local unit has remained under continuous pressure due to the weakening economy of Pakistan as it faces multifaceted issues.

The catastrophic floods all across the country has hit the industrial and agriculture activities alike. Almost all of the agriculture of Pakistan has been destroyed in the record monsoon rain and subsequent flash floods which will likely hit the growth rate.

Likewise, the government has not had any success in securing additional loan or investment agreements with global multilateral institutions and friendly countries.

The country’s current account and trade deficit are expected to widen further as the government is moving to import essential food items. On the flip side, the industrial activities have been badly disrupted which will massively impact the exports of the country.

Pakistan’s trade deficit swelled 31 per cent on a month-on-month basis to hit $3.5 billion, data by the Pakistan Bureau of Statistics (PBS) showed.

According to data released by PBS, the petroleum group imports registered a 29.93 per cent growth in August 2022 on a month-on-month basis to stand at $1.86 billion compared with $1.43 billion in July 2022.

Pakistan’s petroleum group imports witnessed a growth of 6.97 per cent during the first two months (July-August) of the fiscal year 2023 and stood at $3.30 billion, compared with $3.08 billion during the same period of last fiscal year.

Likewise, the foreign exchange reserves of the country have also recorded a decline on the back of less inflows and higher imports.

The foreign exchange reserves held by the State Bank of Pakistan (SBP) fell $176 million to reach 8.62 billion during the week ended September 9, compared with $8.79 billion on September 2.

The overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $14.31 billion. The net reserves held by banks amounted to $5.69 billion.

The country’s current account deficit rose 531 per cent to over $17 billion during the fiscal year 2022 due to massive increase in goods import bill. Overall, the current account deficit was $17.4 billion during the fiscal year 2022, compared with $2.8 billion in the fiscal year 2021, depicting an increase of $14.6 billion.

The local currency remained under pressure since the start of the current fiscal year. The rupee lost Rs31.99 or 15.61 per cent from Rs204.85 to dollar on June 30, 2022 to the current level of Rs236.84.

At the open market, the buying and selling of the dollar was recorded at Rs240.2 and Rs241.2 at 5:30pm PST.

 

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Rupee free fall continues in interbank market

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Rupee

KARACHI: The rupee continued to lose ground against the dollar on Tuesday, as the government failed to secure loan and investment agreements to provide support to the local unit. The exchange rate witnessed a loss of Rs2.1 to reach Rs231.92 against the dollar from the previous days’ closing of Rs229.82 at the interbank exchange market. … Read more

Rupee records sixth consecutive loss

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Rupee records minor loss against dollar

KARACHI: The free-fall in the value of the rupee against the dollar continued on Friday on the back of rising import bill as the government moves for the import of essential food items to meet local demand.

The exchange rate witnessed a loss of Rs2.76 to reach Rs228.18 against the dollar from the previous day’s closing of Rs225.42. The local currency fell to the historic low of Rs239.94 against the dollar on July 28, 2022.

The analysts attributed the continuous decline of the rupee to the destruction of major crops, which is expected to result in the surging imports of the food items.

The exports of food commodities are also likely to take a massive hit which will play a significant role in extending the current account deficit, they added.

The government is likely to revise the gross domestic product (GDP) targets due to the devastating floods which will slow down production in various sectors, against the International Monetary Fund’s (IMF) forecast of 3.5 per cent.

Pakistan’s trade deficit also widened in August, after witnessing an ease in the previous month, while the analysts predict a further uptick in imports mainly due to the food items’ imports.

According to the Pakistan Bureau of Statistics (PBS) data, the trade deficit clocked-in at $3.53 billion in August, compared with $2.73 billion, showing an increase of 28.89 per cent.

During the month, the imports recorded an increase of 20.84 per cent to $6.03 billion, compared with $4.99 billion during the previous month.

However, the foreign exchange reserves of the country got a boost after the State Bank of Pakistan (SBP) received inflows from the IMF under the Extended Fund Facility (EFF) programme.

The foreign exchange reserves held by the State Bank of Pakistan (SBP) recorded an increase of $1.16 billion, to clock-in at $8.8 billion in the week ended September 2, following the receipt of the $1.16 billion loan tranche from the IMF.

The total liquid forex reserves held by the country stood at $14.5 billion. The net foreign exchange reserves held by the commercial banks amounted to $5.7 billion.

The country’s current account deficit rose 531 per cent to over $17 billion during the fiscal year 2022 due to massive increase in goods import bill. Overall, the current account deficit was $17.4 billion during the fiscal year 2022, compared with $2.8 billion in the fiscal year 2021, depicting an increase of $14.6 billion.

The local currency remained under pressure since the start of the current fiscal year. The rupee lost Rs23.33 or 11.38 per cent from Rs204.85 to dollar on June 30, 2022 to the current level of Rs228.18.

At the open market, the buying and selling of the dollar was recorded at Rs231 and Rs233.5 at 4:30pm PST.

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Rupee’s winning streak ends in interbank

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Rupee’s winning streak ends in interbank

KARACHI: The rupee’s gaining momentum against the dollar ended on Friday as the country faces an economic crisis and record high inflation triggered by the disastrous flood.

The exchange rate witnessed a loss of 38 paisas to Rs218.98 against the dollar from the previous day’s closing of Rs218.60 in the interbank foreign exchange market. The local currency fell to the historic low of Rs239.94 against the dollar on July 28, 2022.

Currency experts said that the local unit shed gains as the Pakistani economy is facing multifaceted challenges in the shape of crop destruction and record high inflation.

Pakistan’s trade deficit widened in August, with analysts expecting a further uptick in the imports of essential items due to destruction of standing crops by the recent floods.

According to the Pakistan Bureau of Statistics (PBS) data, the trade deficit clocked-in at $3.53 billion in August, compared with $2.73 billion, showing an increase of 28.89 per cent.

During the month, the imports recorded an increase of 20.84 per cent to $6.03 billion, compared with $4.99 billion during the previous month.

Similarly, the Consumer Price Index (CPI) inflation in the country increased to 27.26 per cent on a year-on-year basis in August, the highest since November 1973.

Globally, the dollar was headed for its third weekly gain in a row and stood near its highest levels in decades against the euro and yen, with investors in little mood for selling ahead of US labour data that could bolster the case for aggressive interest rate hikes.

The shrinking foreign exchange reserves also remain a key challenge in stabilising the value of the rupee as it witnessed another decline during the outgoing week.

The foreign exchange reserves held by the central bank recorded a decline of $113 million to reach $7.69 billion during the week ended August 26, compared with $7.80 billion on August 19.

The overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $13.40 billion. The net reserves held by banks amounted to $5.70 billion.

The country’s current account deficit rose 531 per cent to over $17 billion during the fiscal year 2022 due to massive increase in goods import bill. Overall, the current account deficit was $17.4 billion during the fiscal year 2022, compared with $2.8 billion in the fiscal year 2021, depicting an increase of $14.6 billion.

The local currency remained under pressure since the start of the current fiscal year. The rupee lost Rs14.13 or 6.89 per cent from Rs204.85 to dollar on June 30, 2022 to the current level of Rs218.98.

At the open market, the buying and selling of the dollar was recorded at Rs221 and Rs223 at 5:00pm PST.

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Rupee continues upward momentum

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Rupee

KARACHI: The rupee recovered for the third consecutive session on Thursday, as the State Bank of Pakistan (SBP) announced that it had received the funds from the International Monetary Fund (IMF), besides investment commitments from the friendly countries, dealers said. The exchange rate witnessed a gain of 15 paisas to Rs218.60 against the dollar from … Read more

Rupee recovers over IMF bailout

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Rupee’s winning streak ends in interbank

KARACHI: The rupee extended gains against the dollar on Wednesday, amid improved market sentiments over the International Monetary Fund (IMF) approval for the disbursement of $1.1 billion to Pakistan, dealers said.

The local unit gained Rs1.37 to reach Rs218.75 against the dollar from the previous day’s closing of Rs220.12 in the interbank foreign exchange market.

Currency market experts said that the rupee continued its positive momentum for the second day after the IMF executive board’s approval boosted the investors’ confidence. The local currency fell to the historic low of Rs239.94 against the dollar on July 28, 2022.

The IMF executive board completed its seventh and eighth reviews for Pakistan under the Extended Fund Facility (EFF), which is likely to lead to the release of a $1.1 billion tranche within a week.

Additionally, the IMF board has also approved an extension of the EFF till June 2023 instead of September 2022. The board also approved augmentation of access by $1 billion, bringing the total access to $6.5 billion.

The resumption of the IMF loan programme is likely to unlock financing and investment from other multilateral, bilateral creditors and friendly countries.

Pakistan has received financial commitments worth $37 billion in new foreign funding during the fiscal year 2023 from countries including China, Saudi Arabia, United Arab Emirates and Qatar.

The rupee witnessed a continuous decline against the greenback after the government lifted the ban on the imports of luxury and non-essential items.

On August 20, 2022, the government lifted the ban on the import of luxury and non-essential items, which was imposed in the wake of a massive rupee depreciation and significant foreign exchange reserves depletion.

The foreign exchange reserves of the country fell $91 million to $13.522 billion by the week ended August 19, 2022. The foreign exchange reserves of the country were at $13.613 billion a week ago, i.e., August 12, 2022.

The official foreign exchange reserves of the State Bank of Pakistan (SBP) witnessed a decline of $87 million to $7.81 billion by the week ended August 19, 2022 as against $7.897 billion a week ago.

The country’s current account deficit rose 531 per cent to over $17 billion during the fiscal year 2022 due to massive increase in goods import bill. Overall, the current account deficit was $17.4 billion during the fiscal year 2022, compared with $2.8 billion in the fiscal year 2021, depicting an increase of $14.6 billion.

The local currency remained under pressure since the start of the current fiscal year. The rupee lost Rs13.09 or 6.78 per cent from Rs204.85 to dollar on June 30, 2022 to the current level of Rs218.75.

At the open market, the buying and selling of the dollar was recorded at Rs222 and Rs224 at 4:45pm PST.

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Rupee recovers against dollar on IMF loan approval

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Rupee recovers against dollar on IMF loan approval

KARACHI: The rupee appreciated against the dollar on Tuesday, as the International Monetary Fund (IMF) approved an amount of $1.1 billion for Pakistan, dealers said.

The exchange rate witnessed a gain of Rs1.80 to end at Rs220.12 against the dollar from the previous day’s closing of Rs221.92 in the interbank foreign exchange market.

The dealers said the IMF Executive Board’s approval had supported the rupee during the day. It fell to the historic low of Rs239.94 against the dollar on July 28, 2022.

The IMF Executive Board completed its seventh and eighth reviews for Pakistan under the Extended Fund Facility (EFF), which is likely to lead to the release of $1.1 billion tranche.

This will take the total disbursement by the IMF under the EFF programme to $3.9 billion and will help support the foreign exchange reserves of the country.

Additionally, to support the programme implementation and meet the higher financing needs in FY23, as well as catalyse the additional financing, the IMF Board has approved an extension of the EFF till June 2023 instead of September 2022. The board also approved augmentation of access by SDR 720 million ($1 billion), bringing the total access to $6.5 billion.

The currency market witnessed a non-stop depreciation in the rupee value since the government lifted the ban on the imports of luxury and non-essential items. Besides, the prices of the international oil are also seeing a rising trend.

On August 20, 2022, the government withdrew the ban on the import of luxury and non-essential items. On May 19, 2022, it imposed this ban in the wake of a massive rupee depreciation and significant foreign exchange reserves depletion.

The foreign exchange reserves of the country fell $91 million to $13.522 billion by the week ended August 19, 2022. The foreign exchange reserves of the country were at $13.613 billion a week ago, i.e., August 12, 2022.

The official foreign exchange reserves of the State Bank witnessed a decline of $87 million to $7.81 billion by the week ended August 19, 2022 as against $7.897 billion a week ago.

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Rupee continues to bleed against dollar

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Rupee

KARACHI: The rupee continued its downward trend, as it declined to Rs221.92 against the dollar, amid deteriorating economic conditions of the country, dealers said. The local unit shed Rs1.26 to close at Rs221.92 to the dollar from Friday’s closing of Rs220.66 in the interbank foreign exchange market. The analysts said that the latest decline in … Read more

Rupee declines over political, economic turmoil

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Rupee’s winning streak ends in interbank

KARACHI: The rupee shed its value against the dollar on Tuesday, as the political tension rises coupled with the shortage of the foreign currency in the market, dealers said.

The local unit lost Re1 to close at Rs217.66 against the dollar from Monday’s closing of Rs216.66 in the interbank foreign exchange market.

The analysts said that the rupee declined as the greenback has strengthened against major currencies, besides the political tension in the country, which dented the investors’ confidence.

The political environment also heated up in the country as Pakistan Tehreek-e-Insaf (PTI) leaders are being charged in different cases. The political instability in the country is of much significance for improving the investors’ sentiments.

Additionally, the government lifted the ban on the import of non-essential and luxury items to meet the condition of the International Monetary Fund (IMF) for the revival of the Extended Fund Facility (EFF) programme, which also played a role in increasing pressure on the local unit, they added.

After the reports of Saudi Arabia helping Pakistan with financial support, Qatar is also expected to provide funds worth $2 billion in bilateral support to help ease Pakistan’s funding crunch and consequent risk of default, however these reports also failed to uplift the sentiments in the market.

SBP Deputy Governor Murtaza Syed, in a briefing said that Pakistan’s funding gap of $4 billion will be fulfilled through $2 billion funds from Qatar, $1 billion from Saudi Arabia, and a similar amount from the UAE.

Pakistan has been facing a constant challenge to boost its foreign exchange reserves to provide stability to the value of the rupee. Although the foreign exchange reserves held by the State Bank of Pakistan (SBP) witnessed a growth of $67 million, to reach $7.9 billion during the week ended August 12, it still is not enough to cover the import bill for three months.

The total liquid foreign reserves held by the country stood at $13.61 billion. The net foreign reserves held by commercial banks amounted to $5.72 billion.

The country’s current account deficit has also narrowed during July on the back of lower import bill. The trade deficit came in at $2.64 billion in July, down 47 per cent or $2.32 billion on a month-on-month basis.

The country’s current account deficit rose 531 per cent to over $17 billion during the fiscal year 2022 due to massive increase in goods import bill. Overall, the current account deficit was $17.4 billion during the fiscal year 2022, compared with $2.8 billion in the fiscal year 2021, depicting an increase of $14.6 billion.

The local currency remained under pressure since the start of the current fiscal year. The rupee lost Rs12.81 or 6.25 per cent from Rs204.85 to dollar on June 30, 2022 to the current level of Rs217.66.

At the open market, the buying and selling of the dollar was recorded at Rs220 and Rs222.5 at 4:45pm PST.

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Rupee gains 30 paisas against dollar

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Rupee gains 30 paisas against dollar

KARACHI: The Pakistani rupee gained 30 paisas to reach Rs214.65 against the dollar on Friday, amid prevailing positive sentiments, as the government is likely to secure major loan agreements, dealers said.

The local unit shed 30 paisas to close at Rs214.65 to the dollar from Thursday’s closing of Rs213.95 in the interbank foreign exchange market.

Currency experts said that the investors’ confidence got a boost from the likely successful completion of the International Monetary Fund (IMF) programme and financial support from Saudi Arabia besides swelling foreign exchange reserves.

Pakistan is reported to meet all prior conditions of the IMF for the disbursement of $1.17 billion under the Extended Fund Facility (EFF) programme. Additionally, Saudi Arabia is also reported to renew its $3 billion.

The kingdom will also provide a $100 million loan for oil per month, which will be received from Saudi Arabia in 10 months on deferred payments of $1 billion.

As the rupee began to batter the greenback in the interbank market, the exporters also opted to bring their receipts which they were holding for a better yield, resulting in dollar surplus in the country.

The country’s current account deficit has also narrowed during July on the back of lower import bill. The trade deficit came in at $2.64 billion in July, down 47 per cent or $2.32 billion on a month-on-month basis.

After a continuous decline during the recent past, the foreign exchange reserves of the country witnessed an increase as the foreign exchange reserves held by the State Bank of Pakistan (SBP) witnessed a growth of $67 million, to reach $7.9 billion during the week ended August 12, compared with $7.83 billion on August 5.

The total liquid foreign reserves held by the country stood at $13.61 billion. The net foreign reserves held by commercial banks amounted to $5.72 billion.

The country’s current account deficit rose 531 per cent to over $17 billion during the fiscal year 2022 due to massive increase in goods import bill. Overall, the current account deficit was $17.4 billion during the fiscal year 2022, compared with $2.8 billion in the fiscal year 2021, depicting an increase of $14.6 billion.

The local currency remained under pressure since the start of the current fiscal year. The rupee lost Rs9.8 or 4.78 per cent from Rs204.85 to dollar on June 30, 2022 to the current level of Rs214.65.

At the open market, the buying and selling of the dollar was recorded at Rs215.5 and Rs218.5 at 5:30pm PST.

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UNISAME calls for steps to curb further rupee depreciation

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UNISAME calls for steps to curb further rupee depreciation

KARACHI: The Union of Small and Medium Enterprises (UNISAME) has urged State Bank of Pakistan (SBP) Governor Syed Murtaza to take concrete measures to curb further rupee depreciation.

It also called for steps to ensure that the rupee regains its true value based on the price of gold and the rate of the dollar in the international market, according to which the parity rate works out to be Rs175 against the dollar.

The SBP may fix the rate at Rs175 to a dollar to stabilise the economy facing uncertainty, as importers and exporters are both not in a position to anticipate the cost of landed goods or the invoice value for exports.

UNISAME President Zulfikar Thaver said that what the country is witnessing is speculation of money exchange companies and the investors who are benefitting by making dollar a sort of parallel currency by parking all their undisclosed money in dollars.

Secondly, Afghanistan traders are buying dollars from Pakistan’s open market and creating shortage.

Thaver said that the Pakistan economy cannot bear anymore the burden of Afghanistan, which has been carrying on its activities of imports through Pakistan and indulging in full time trading via Pakistan in the name of transit trade.

The UNISAME Council experts said: “We welcome the genuine trade with Afghanistan and the facility of transit trade for Afghanistan as its exports and imports are routed through Pakistan but Afghani traders must not take advantage of this facility and arrange for its requirements of foreign currency through its own sources and procure the required dollars from the international market as per its own parity rates against the dollar. They can buy from the UAE or Singapore open markets.

The experts also urged the government to tighten the foreign exchange dealers and warn them to follow the rules and regulations and not indulge in arranging dollars for the money launderers and speculators and to cancel their licence if found guilty of this malpractice.

In fact, it would be wise to handover this exchange business to commercial banks who already have a full-fledged business of foreign currencies and if given this task they will be happy to widen their network at airports and trade centres, business plazas and malls.

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Rupee maintains winning streak in interbank market

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Rupee gains 30 paisas against dollar

The local unit gained Rs1.51 to close at Rs213.98 to the dollar from Friday’s closing of Rs215.49. The surge in the value of the rupee is due to the positive sentiments amid a likely disbursement of $1.17 billion from the IMF. The resumption of the IMF programme is likely to pave the way for Pakistan … Read more

Rupee gains for ninth consecutive session

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Rupee’s winning streak ends in interbank

KARACHI: The rupee continued its upsurge to reach Rs215.49 against the dollar on Friday, as Pakistan received the letter of intent (LoI) from the International Monetary Fund, dealers said.

The local unit gained Rs3.39 to close at Rs215.49 to the dollar from Thursday’s closing of Rs218.88 in the interbank foreign exchange market.

Currency experts said that the rupee has been on an upward stream as the market celebrated the positive news flow regarding the IMF programme.

Pakistan received the letter of intent (LoI) from the IMF on Friday, which will now be signed by the relevant authorities and sent back before the Fund’s board meeting. The country is expected to get two tranches worth $1.17 billion under a stalled loan programme.

The experts said that latest development on the IMF front provided further boost to the investors’ confidence in the market where the exporters have begun depositing their exports receipts while the importers wait for the exchange rate to stabilise, which played its role in strengthening the value of the local unit.

The country’s current account deficit has also narrowed during July on the back of lower import bill. The trade deficit came in at $2.64 billion in July, down 47 per cent or $2.32 billion on a month-on-month basis.

The resumption of the IMF programme is also likely to pave the way for Pakistan to attract funds from other multilateral lender institutions and friendly countries to provide stability to the value of rupee.

However, the foreign exchange reserves of the country are on a constant decline amid debt servicing and debt payments. The foreign currency reserves held by the State Bank of Pakistan (SBP) recorded a decline of $555 million to clock-in at $7.83 billion during the week ended on August 5, compared with $8.38 billion on July 29.

The overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $13.56 billion. The net reserves held by banks amounted to $5.73 billion.

The country’s current account deficit rose 531 per cent to over $17 billion during the fiscal year 2022 due to massive increase in goods import bill. Overall, the current account deficit was $17.4 billion during the fiscal year 2022, compared with $2.8 billion in the fiscal year 2021, depicting an increase of $14.6 billion.

The local currency remained under pressure since the start of the current fiscal year. The rupee lost Rs10.64 or 5.19 per cent from Rs204.85 to dollar on June 30, 2022 to the current level of Rs215.49.

At the open market, the buying and selling of the dollar was recorded at Rs211 and Rs214 at 5:15pm PST.

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Rupee upsurge continues, reaches Rs218.88/dollar

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Rupee

KARACHI: The Pakistani rupee gained Rs3.03 on Thursday to reach Rs218.88 against the dollar as the investors and traders rejoiced at the development regarding the likely inflows besides a reduced current account deficit.

The local unit gained Rs3.03 to close at Rs218.88 to the dollar from Wednesday’s closing of Rs221.91 in the interbank foreign exchange market.

The rupee has recorded gains in the interbank market for eight consecutive sessions after the Army Chief of Pakistan requested the US officials for their cooperation in the early resumption of the International Monetary Fund (IMF) programme.

Analysts said that the news inflows regarding a likely disbursement from the IMF and a reduction in the current account deficit enhanced the investors’ participation in the market. The trade deficit came in at $2.64 billion in July, down 47 per cent or $2.32 billion on a month-on-month basis.

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Rupee maintains winning streak in interbank market

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Rupee’s winning streak ends in interbank

KARACHI: The Pakistani rupee continued its upward momentum to hit Rs224.04 against the dollar on Friday, as positive sentiments prevailed in the market over the likely revival of the International Monetary Fund (IMF) programme.

The local unit gained Rs2.11 to close at Rs224.04 to the dollar from Thursday’s closing of Rs226.15 in the interbank foreign exchange market.

Analysts attributed the rupee’s gaining spree to the expected revival of the IMF programme which played a significant role in boosting the investors’ confidence in the local economy.

The local currency began its upward momentum after the Army Chief of Pakistan requested the US officials for their cooperation in the early resumption of the IMF programme, they added.

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Rupee continues to make sharp recovery against dollar

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Rupee

The rupee made another sharp recovery of Rs2.65 against the dollar on Thursday. The exchange rate ended at Rs226.15 in the interbank foreign exchange market. The local unit is making a continuous recovery after reports appeared regarding the Pakistan Army chief making a phone call to the US. KARACHI: The rupee made another sharp recovery … Read more

Dollar falls opposed to Rupee for fifth session

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Rupee recovers against dollar on IMF loan approval
  • The Pakistani rupee appreciated versus the US dollar in the interbank market on Thursday.
  • The rupee gained 2.65 or 1.17 percent, falling from Wednesday’s close of Rs228.80 to 226.15.
  • The dollar dropped by 9.8 or 4.19 percent the previous day.

For the fifth session in a row, the Pakistani rupee appreciated versus the US dollar in the interbank market on Thursday.

In comparison to the dollar, the rupee gained 2.65 or 1.17 percent, falling from Wednesday’s close of Rs228.80 to 226.15. The dollar dropped by 9.8 or 4.19 percent the previous day, which led to a substantial increase in the rupee.

Malik Bostan, the chairman of the Exchange Companies Association of Pakistan (ECAP), said that the previous administration’s promises would take time to fulfill.

However, this time, just a few days after Finance Minister Miftah Ismail stated that Pakistan’s import bill would decrease, it actually decreased by $2 billion.

According to data from the Pakistan Bureau of Statistics (PBS), imports have decreased by 38.3 percent over the past month as a result of the government’s decision to ban a variety of luxury goods in order to address the country’s cash deficit.

The decline in imports was accompanied by a decline in exports as well. The trade deficit decreased by 18.3% to $2.64 billion in July 2022 from $3.235 billion in July 2021, easing pressure on the currency. The shortfall was $4.96 billion in June 2022.

In addition, to hastily revive the IMF loan scheme, Chief of Staff Army (COAS) General Qamar Javed Bajwa recently called US Deputy Secretary of State Wendy Sherman.

Bostan claimed that immediately after this, the lender declared in a statement that Pakistan had met all requirements for the combined seventh and eighth reviews of the Extended Fund Facility, demonstrating the importance of the army chief’s call.

A board meeting is provisionally scheduled for late August after sufficient finance assurances are secured, according to a statement released on Tuesday by Esther Perez Ruiz, the IMF’s Resident Representative for Pakistan.

The dollar could drop to 180–190 against the Pakistani rupee if the IMF distributes the $1.2 billion later in August, according to Bostan, who also predicted that records will continue to be broken.

“This was the dollar’s actual value. The dollar wasn’t at such highs prior to the nation’s political unrest and the Punjab by-elections, which upended everything, including the markets “said he.

Bostan noted that there had previously been concerns about whether the government would last or not, but following the Election Commission of Pakistan’s ruling on the PTI’s illegal funding, the coalition has chosen to petition the Supreme Court, signaling that it intends to remain in power.

 

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Rupee records massive gains of Rs9.58

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UNISAME calls for steps to curb further rupee depreciation

KARACHI: The Pakistani rupee recorded a significant gain of Rs9.58 to reach Rs228.80 against the dollar on Wednesday as the government is reported to fulfill all the prior conditions of the International Monetary Fund (IMF).

The local unit gained Rs9.58 to close at Rs228.80 to the dollar from Tuesday’s closing of Rs238.38 in the interbank foreign exchange market.

Analysts said that various factors came into play to boost investors’ confidence. The IMF official’s announcement that Pakistan fulfilled all the prior conditions for the revival of the Extended Fund Facility (EFF) programme provided a breather to the economic activities, they added.

The resumption of the programme is also likely to pave the way for Pakistan to attract funds from other multilateral lender institutions and friendly countries to provide a boost to the foreign exchange reserves.

The political stability also played a significant role in the improved sentiments of the investors as the coalition government is likely to complete its term. Likewise, the trade deficit came in at $2.64 billion in July, down 47 per cent or $2.32 billion on a month-on-month basis.

Additionally, the finance ministry and the State Bank of Pakistan (SBP) on July 31, issued a joint press release about the government’s strategy for fiscal year 2022/23.

The SBP and the ministry of finance in a joint statement said the rupee was “fully expected to appreciate” in line with a reduced current account deficit and improved sentiment.

However, the narrowing forex reserves of the country remain a concern for keeping the value of rupee stable in the market. The foreign currency reserves held by the SBP recorded a decline of $754 million to clock-in at $8.57 billion during the week ended on July 22, compared with $9.32 billion on July 15. According to the central bank, the decrease came due to external debt and other payments.

The overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $14.41 billion. The net reserves held by banks amounted to $5.83 billion.

The current account deficit remains one of the key challenges for the stability of the rupee, as after moderating in the previous three months, it rose to $1.4 billion in May, on the back of lower exports and remittances partly due to the Eid holiday.

The trade deficit rose to $4.8 billion in June, more than $1.7 billion higher than its February low. While non-energy imports have continued to moderate in the last three months on the back of curtailment measures by the government and the SBP.

The local currency remained under pressure since the start of the current fiscal year. The rupee lost Rs23.95 or 11.69 per cent from Rs204.85 to dollar on June 30, 2022 to the current level of Rs228.80.

At the open market, the buying and selling of the dollar was recorded at Rs228 and Rs231 at 4:30pm PST.

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Rupee gains 46 paisas in the interbank

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Rupee’s winning streak ends in interbank

KARACHI: The Pakistani rupee gained 46 paisas to reach Rs238.38 against the dollar on Tuesday as positive sentiments prevailed after the government officials’ assurance. The local unit gained 46 paisas to close at Rs238.38 to the dollar from Monday’s closing of Rs238.84 in the interbank foreign exchange market. Analysts attributed the latest gains in the … Read more

Rupee anticipated to stabilize at 240 opposed to US dollar

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Rupee anticipated to stabilize
  • Rupee rebounded 57 paisa or 0.24 percent against the dollar on Friday to settle at 239.37.
  • The local currency has lost around 60 rupees over the past four months.
  • The estimated current account deficit for the quarter of July to September is only $235 million.

Traders are optimistic that the rupee would likely hold its current level of 240 against the dollar in the upcoming week due to an improvement in dollar inflows from exporters and remitters as well as a reduction in the political unrest the country had been experiencing.

After a two-week losing skid against the dollar, the battered rupee rebounded 57 paisa or 0.24 percent on Friday to settle at 239.37, bringing its decline for 2022 to 35 percent. This week, it lost almost 5% of its value.

Since February, the State Bank of Pakistan’s foreign exchange holdings have decreased by $7.811 billion, or about six weeks’ worth of imports, to $8.575 billion in July.

If there is a balance between inflows and outflows, we expect the rupee to stabilize at 240 levels in the coming sessions. Remittances and export revenues may provide support for the rupee, according to a foreign exchange broker.

The local currency has lost around 60 rupees over the past four months. Along with the Turkish Lira and the Sri Lankan rupee, the rupee has emerged as the currency with the lowest performance.

In order to prevent the balance of payments crisis from uncontrollably spreading to other areas of the economy, including the closure of manufacturing facilities, out-of-control inflation, and a breakdown in law and order, Tresmark said in a research note.

“We believe that the worst of the currency movement is over for this week. We also think the IMF permission will be granted within the next two weeks (before August 24 stated), but the government will need to come up with a Plan B if we don’t get any verbal assurances in the next week, it said.

The rupee is anticipated to stabilize. However, it is still necessary to analyze the rupee’s rapid depreciation in order to estimate a target. According to Tresmark, there are very slim chances for a recovery if the devaluation was purposeful or the result of an IMF policy decision in the past.

“However, there will be a gradual rebound of the local currency if the weakness was corrected to account for the unusual outflows in the previous month. If the latter, then making a deliberate attempt to lower prices should also be made because it will give hope to a terrible situation.

Imports have been restricted by the State Bank of Pakistan, and these efforts will start to pay off this quarter. It stated that the estimated current account deficit for the quarter of July to September is only $235 million.

Since Imran Khan, the former prime minister, won by-elections in the Punjab province, Pakistan has been engulfed in political turmoil.

Getting the home in shape “seems to be a window offered by all stakeholders before an inevitable resumption of political wrangling,” it continued.

 

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Rupee: Worst month since 1972

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UNISAME calls for steps to curb further rupee depreciation
  • The largest monthly decrease in history was in July, when the local currency fell by about Rs34.5, or more than 14 percent.
  • State Bank of Pakistan’s foreign exchange holdings have decreased by $7.811 billion, reaching $8.575 billion in July.
  • Heavy imports and rising commodity costs are to blame for the current account gap’s recent increase.

The Pakistani rupee experienced its worst month since 1972 amid a shortage of dollars and worries over a delay in an International Monetary Fund (IMF) rescue program, according to The News on Saturday.

The largest monthly decrease in history was in July, when the local currency fell by about Rs34.5, or more than 14 percent, versus the US dollar due to fears of a potential default and record-low foreign exchange reserves.

It should be mentioned that it is the second-worst global loss of the month after the value of the currency of Ukraine.

The nation is attempting to allay concerns that it could follow Sri Lanka into default this year as fresh political uncertainty following the Punjab by-elections cast doubt on its ability to secure its IMF loan tranche.

Ankur Shukla, a Mumbai-based analyst for Bloomberg Economics, asked: “What’s causing the recent plunge? Politics, according to the finance minister, are to blame. The governor of the central bank points to the rising dollar.

The underlying motivation is simpler: concern that the nation might not get IMF assistance swiftly enough to avoid following Sri Lanka into default.

The sharpest loss in the rupee demonstrates the mounting worries about the nation’s poor foreign liquidity position. Since February, the State Bank of Pakistan’s (SBP) foreign exchange holdings have decreased by $7.811 billion, reaching $8.575 billion in July, or almost six weeks’ worth of imports.

The current account deficit, meanwhile, increased from $2.8 billion to $17.4 billion in July-June (the fiscal year 2021-22) from the previous year. Heavy imports and rising commodity costs, particularly for oil, are to blame for the current account gap’s recent increase.

In response to market unease over political unpredictability postponing the IMF rescue for the country, the rupee, and the nation’s dollar-denominated bonds have fallen.

By getting billions of dollars from the Washington-based lender and countries like China and Saudi Arabia, Pakistan is aiming to ease worries that it may follow Sri Lanka into default this year.

In a research report, Arif Habib Limited claimed that the political risks and shifting paradigms had a negative impact on foreign investors’ and creditors’ trust, which had a significant negative impact on the currency.

“Although we think the rupee still has a long-term tendency to depreciate, in the near future, we anticipate some stability to be restored. We credit SBP efforts to reduce market speculation as well as inflows from bilateral and multilateral creditors, IMF inflows, and strengthening of some macroeconomic factors for this short-term stability.

Investors’ nerves are calmed by news that Pakistan’s army leader has asked the US to help expedite $1.2 billion in additional funding for Pakistan and by anticipation of early elections.

The rupee was able to recoup some of its losses and ended Friday at 239.37 to the dollar. On Thursday, it reached a low of 239,94. The rupee increased 0.24 percent from one day to the next.

The local currency recovered after experiencing a 13.31 percent decline in the previous ten trading sessions. The rupee, meanwhile, continued to experience intense pressure on the street market. To settle at 244 versus the dollar, it lost 4 rupees.

 

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