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Import payment pressure weighs rupee down by nearly Re1

Published

2 years ago

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  • Rupee closes at 220.68 against dollar.
  • Currency snaps gaining streak due to import payment pressure.
  • Analyst says currency to consolidate between 215 to 220.

KARACHI: The Pakistani rupee lost nearly Re1 against the dollar in the interbank market after coming under pressure due to import payments and political uncertainty.

The local currency was gaining ground against the greenback in the last three consecutive sessions and gained Rs1.1 and was trading below 219.

The rupee closed at 220.68 after losing Rs0.95, or 0.43%, against the greenback in the interbank market compared to Tuesday’s close of 219.73. 

Commenting on the rupee’s movement, Arif Habib Limited’s Head of Research Tahir Abbas told Geo.tv that the local unit is facing a “little pressure” in the interbank market. 

He said that it seems like Pakistan has received funding from the Asian Development Bank (ADB) and the foreign exchange reserves stand in a better position. 

“Most likely, allocation of $2 billion in funds from the World Bank will be received in November or December,” he said, adding that the International Monetary Fund’s (IMF) review scheduled in November will provide some relaxation and some targets will be eased up. 

He further added that Prime Minister Shehbaz Sharif’s visit to China next month is expected to tap into new investment opportunities and there might be talks about rescheduling. 

“This is a daily basis depreciation, however, the currency will consolidate between 215 to 220,” he added. 

Speaking to Geo.tv, Pakistan-Kuwait Head of Research Samiullah Tariq said that the rupee movement is market-determined, so the supply drives the demand. 

He added that there is a bit of pressure from the imports and the political uncertainty impacted the currency. 

Tariq maintained that the market depended on the ADB’s funds and that it would reverse the impact. However, according to the recent government system, the number of dollar outflows will be the same as inflows. 

He added that the effect of backlog from the two-three days can be seen on the parity. 

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Business

Trade ties between Pak-Oman: Both nations decide to activate “Joint Business Council”.

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18 hours ago

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Jam Kamal Khan, federal minister for commerce, visited Oman Chamber of Commerce and Industry in Muscat alongside chairman Faisal Abdullah Al Rawas.

To enable closer economic collaboration, both sides decided during the meeting to activate joint Business Council between OCCI and the federation of Pakistan Chambers of Commerce and industry.

Concurrent with the conference, the Embassy of Pakistan arranged a b2b networking event in association with OCCI to gather Omani Businessmen and Pakistani Business Delegates investigating trade prospects.

Speaking on the occasion, Jam Kamal Khan said, “Our present trade figures do not fairly represent the depth of our connection. We can quickly raise the current Trade volume to two or three times its present level by just eliminating logistical and communication barriers.

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Despite economic gains, PSX remains strong.

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19 hours ago

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Amidst the ongoing negotiations with the International Monetary Fund (IMF) regarding a loan tranche, the Pakistan Stock Exchange (PSX) has resumed its upward trajectory in recent days.

The KSE-100 Index gained 600 points on Friday, the penultimate working day of the business week, and then increased to 115,730 points as traders showed confidence and engaged in trading.

After experiencing fluctuations, the PSX gained strength on Thursday, as the major index surpassed 115,000 points.

The KSE 100-Index closed at 115,094.23 points after gaining 1,009.70 points, or 0.89 percent. 115,247.39 was the intraday high, and 14,429.93 was the lowest.

According to experts, one important factor is Moody’s Ratings’ upgrade of Pakistani banks. Investor confidence has also increased due to the expectation of a positive conclusion from the negotiations with the International Monetary Fund (IMF).

In its assessment, Moody’s stated, “We have shifted our outlook on Pakistan’s banking system from stable to positive to reflect the banks’ resilient financial performance as well as improving macroeconomic conditions from very weak levels a year ago.”

The major index of the Pakistan Stock Exchange (PSX) surpassed 115,000 on Thursday, indicating a surge in the market.

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Pakistan resolves to meet benchmarks, and the IMF promises economic help.

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19 hours ago

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In the midst of an ongoing economic review, the delegation from the International Monetary Fund (IMF) has promised Pakistan economic cooperation.

In order to assess the delivery of a $1 billion tranche under the $7 billion rescue deal, IMF officials are now in Pakistan.

Today, March 14, marks the completion of the two-week-long economic review and negotiations between the global lender’s representatives and Pakistani authorities.

The team met with Finance Minister Muhammad Aurangzeb at the Ministry of Finance for the last round of negotiations.

The nation’s economic team’s actions and performance were praised by the visiting officials.

Aurangzeb promised the IMF during the conference that all economic goals would be met. He said that as long as the loan program is in place, no goals would be broken.

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