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Pakistan rupee firm as dollar supply matches demand

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  • Analysts see rupee trading in range down the line.
  • Dealers to assess impact of AIIB’s $500 on market.
  • IMF tranche delay remains cause of economic concern.

The Pakistani rupee Tuesday closed unchanged against the US dollar in the interbank market as demand for the dollar and the supply reached equilibrium.

The local unit closed at 223.95 per dollar, according to the State Bank of Pakistan (SBP), which had finished the session at the same value on Monday — after depreciating Re0.01. 

Currency dealers don’t see the rupee going far from the base as they are currently assessing the impact of the $500 million inflows received from the Asian Infrastructure Investment Bank (AIIB) Tuesday.

The SBP received $500 million from the AIIB, confirmed Finance Minister Ishaq Dar Tuesday.

“Asian Infrastructure Investment Bank (AIIB) has transferred today, as per their Board’s approval, to State Bank of Pakistan/Government of Pakistan US $ 500 million as program financing,” tweeted the finance minister.

Moreover, dealers said a delay in the arrival of a tranche of the IMF’s Extended Funding Facility may weigh on the rupee-dollar parity in the days to come. 

Pakistan and the IMF talks are continuing, with both sides yet to strike a broader agreement on a revised macroeconomic framework for the current financial year, reported The News, citing sources. 

The lingering of the talks may delay the conclusion of the ninth review and release of the $1 billion tranche till the next calendar year 2023.

The SBP raised its benchmark interest rate by 100 basis points to 16% in an effort to tame high inflation. The SBP has confirmed that the $1 billion Eurobond repayment that is due on December 5 will be made on December 2.
“This repayment will not have any impact on foreign reserves as the funding has already been arranged,” it said. In addition, $7 billion worth of loan payments has also been rolled over.

Moreover, the Karachi interbank offered rate (KIBOR), a gauge of what banks charge each other to borrow the rupee, hits a record high on Monday, as the money market was surprised by the State Bank’s decisions to raise interest rates by 100 basis points.

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In January 2025, RDA inflows reach 9.564 billion USD.

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Remittances under the Roshan Digital Account (RDA) increased from US $9.342 billion at the end of 2024 to US $9.564 billion by the end of January 2025.

The most recent data issued by the State Bank of Pakistan (SBP) revealed that remittance inflows in January totaled US$222 million, compared to US$203 million in December and US$186 million in November 2024.

Millions of Non-Resident Pakistanis (NRPs), including those who own a Non-Resident Pakistan Origin Card (POC), desire to engage in banking, payment, and investing activities in Pakistan using these accounts, which offer cutting-edge banking options.

Nearly 778,697 accounts were registered under the scheme by the end of January 2025, according to the data.

By the end of January, foreign-born Pakistanis had contributed US $59 million to Roshan Equity Investment, US $479 million to Naya Pakistan Certificates, and US $799 to Naya Pakistan Islamic Certificates.

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FBR lowers Karachi’s built-up structure property valuation rates

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A year-by-year breakdown of the depreciation value of residential and commercial built-up properties is included in the updated property valuation rates for Karachi that the FBR has announced.

The notification said that built-up structural values on residential property will be gradually reduced.

A residential home’s built-up structure, which is five to ten years old, will lose five percent of its worth.

In a similar vein, constructions between the ages of 10 and 15 will lose 7.5% of their value, while those between the ages of 15 and 25 would lose 10%. Built-up structures that are more than 25 years old will be valued similarly to an open plot.

Furthermore, age will also be used to lower the valuation of built-up properties, such as apartments and flats.

Structures that are five to ten years old will depreciate by ten percent, while those that are ten to twenty years old will depreciate by twenty percent. A 30% depreciation will be applied to properties that are 20 to 30 years old, while a 50% reduction will be applied to those that are above 30 years old.

In terms of commercial built-up properties, buildings that are 10 to 15 years old will lose 5% of their value, while those that are 15 to 25 years old will lose 8%. The value of properties that are more than 25 years old will drop by 10%.

In contrast, there would be a 15% boost in the value of commercial properties in the Defence Housing Authority (DHA) that face any Khayaban.

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Remittances Increase 25.2% in January 2025: $3.0 Billion Inflow

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Remittances from Pakistani workers totalled US$3.0 billion in January 2025, representing a 25.2% increase from the previous year.

The cumulative remittances for July through January of FY25 were 20.8 billion dollars, up 31.7 percent from 15.8 billion dollars during the same period in FY24.

In January 2025, the United States of America contributed 298.5 million dollars, the United Kingdom contributed 443.6 million dollars, the United Arab Emirates contributed 621.7 million dollars, and Saudi Arabia contributed 728.3 million dollars.

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