Business

Rupee sinks further, falls to new low against US dollar

Published

1 year ago

Farwa

Local unit closes at 287.29 against the US dollar.
Rupee down 2.25 against greenback in interbank market.
Importers have resumed the panic buying of US dollars.

Pakistani rupee touched a record low on Tuesday as the country struggles to unlock critical International Monetary Fund (IMF) funding while dwindling foreign exchange reserves become another source of concern for investors.

The local unit, in the interbank market, closed at 287.29 against the US dollar, 0.78%, or Rs2.25, down from Monday’s close of 285.04.

Last month, the rupee hit a record low, closing at Rs285.09 per US dollar on March 2, 2023, the data released by the State Bank of Pakistan (SBP) showed.

A trend curve of rupee-dollar parity. — Arif Habib Limited

Financial pundits believe that importers have resumed the panic buying of US dollars, while the supply of foreign currency remained low in the interbank market.

Pakistan’s loan programme is yet to materialise months after it raised taxes and energy prices and allowed the currency to depreciate to meet IMF’s conditions. The nation has missed multiple deadlines to resume its bailout.

The cash-strapped nation secured a $6 billion IMF bailout in 2019. It was topped up with another $1 billion last year to help the country following devastating floods, but the IMF then suspended disbursements in November due to Pakistan’s failure to make more progress on fiscal consolidation.

After months-long unfruitful talks, the Washington-based lender has asked Pakistan to seek commitments for new loans from Saudi Arabia and the United Arab Emirates before it revives the bailout.

The IMF’s resident representative for Pakistan said the country has a few more tasks to complete to meet requirements for a $6.5 billion bailout. The lender approved a $3 billion loan program for Sri Lanka last month to ease its economic crisis.

“Uncertainty on IMF and friendly countries inflow affecting rupee,” said Mohammad Sohail, CEO of Topline Securities.

“Some of the ruling coalition partners are due to visit Saudi Arabia next week and it is a key event to watch,” it added.

Finance Minister Ishaq Dar will be leading a high-powered delegation to the US which will attend the upcoming annual spring meeting of the Bretton Woods Institutions, known as the IMF and World Bank, from April 10 to 16.

Moreover, the country’s foreign exchange reserves have also declined in recent weeks, which is another source of concern for investors. The forex reserves held by the central bank stand at a critical level of only $4.24 billion (as of March 24, 2023).

Business

Pakistan’s gold prices continue to decline.

Published

2 days ago

Farwa

The price of ten grams of 24 carat gold dropped by Rs 1,201 to Rs 205,418 from Rs 206,619, while the price of ten grams of 22 carat gold dropped to Rs 188,300 from Rs 189,400, according to the All Sindh Sarafa Jewellers Association.

Silver, priced at Rs. 2,620 per tola and Rs. 2,254.80 per ten grams, stayed at that level. As reported by the organization, the price of gold dropped by $11 on the global market, to $2,297 from $2,308.

Business

Price of LPG “slashed” by Rs. 20 per kilogram

Published

2 days ago

Farwa

Sources claim that LPG rates have been lowered by Rs 20, making the cost per kilogram drop from Rs 280 to Rs 260.

It is noteworthy to remark that the costs of LPG were reduced by Rs 20 per kilogram earlier, resulting in a total reduction of Rs 40 per kilogram within a few weeks.

The price of liquefied petroleum gas for the month of May 2024 was lowered by the Oil and Gas Regulatory Authority (OGRA) on April 30.

The LPG tariffs were lowered by Rs 11.88 to Rs 238.46 per kilogram in accordance with the OGRA’s notice. On Wednesday, May 1, 2024, the new rates will go into effect.

In April of last year, the price per kilogram of LPG was Rs 250.34. pricing reduction of Rs 140.18 has resulted in a new pricing for home LPG cylinders set for May 2024 of Rs 2813.85.

The OGRA reported a drop in liquefied petroleum gas pricing in April. The price of LPG is now Rs 250.34 per kg instead of Rs 256.78 due to a reduction of Rs 6.44 per kg.

The price of the household cylinder was fixed at Rs 2954.03 for the month of April, down from Rs 3030.12, a decrease of Rs 76.9.

Business

ADB delegation stops by FBR headquarters

Published

2 days ago

Farwa

Senior Director ADB Tariq Niazi oversaw the expedition, which also involved Sana Masood, Farzana Noshab, and Senior Public Sector Management Specialist Laisiasa Tora. The meeting included presentations from economists as well, according to an FBR press release.

The officers focused on structural and policy adjustments as they discussed the Domestic Resource Mobilization Program’s implementation at the meeting.

$300 million was given to the Pakistani government by ADB in December 2023 as a result of the hard work and dedication of FBR. Better laws, regulations, and institutional capability for the FBR were established by Sub-Program I.

With the $300 million in funding provided by the Asian Development Bank (ADB) to the Government of Pakistan in December 2023, the delegation conveyed satisfaction with the program’s effective launch.

The FBR also underlined how crucial digitization is to recording the economy and boosting productivity in a sustainable way.

In order to promote the Government of Pakistan’s Digital Tax Administration Project, both parties decided to look into measures to improve their cooperation.