Business

Pakistan rupee outperforms Asian peers against US dolla

Published

10 months ago

Farwa

Value of other Asian currencies relative to the dollar decreased.
Rupee outperformed global currencies, recovering all of its losses in Sept.
The crackdown has worked in curbing the open market rate.

As a result of a crackdown on currency smuggling and illegal foreign exchange trade, the Pakistani rupee has become the best-performing currency in Asia so far this fiscal year, The News reported on Tuesday.

According to data based on the MSCI Asia Emerging and Frontier Markets Index released by Topline Securities on Monday, the rupee has appreciated by 1.7% versus the dollar between July 1 and October 9, 2023.

But at the same time, the value of the other Asian currencies relative to the dollar decreased. In relation to the dollar, the Malaysian ringgit plummeted by 1.4%, the Korean won by 2.5%, the Thai baht by 5%, and the Bangladeshi taka by 1.9%.

When Pakistan’s caretaker government took office in August, the currency was under tremendous pressure. But in September, the rupee outperformed global currencies, recovering all of its losses and rising by 6% against the dollar.

On September 5, the rupee plunged to a record low of 307.1 against the dollar, but since the country’s central bank and security forces started taking action the next day to stop black market activity, the rupee has recovered sharply. In just five weeks, the rupee has risen by about 9% against the dollar.

“The crackdown has worked in curbing the open market rate,” said Fahad Rauf, the head of research at Ismail Iqbal Securities. “The economic fundamentals have not changed. Any further appreciation would probably create another bubble. SBP should step in to buy dollars and encourage exporters,” he added.

In addition to a crackdown on illegal dollar transactions, the State Bank of Pakistan’s structural reforms related to foreign exchange companies, exporters selling dollars, and panic selling by hoarders have allowed the rupee to retain its upward trend.

The rupee closed at 281.65 per dollar in the interbank market on Monday. It ended at 282.69 in the previous session. Analysts expect the rupee to surpass the 280 per dollar level in the coming days. This assumption is due to a number of factors, including: the IMF appears to be moving towards approval; another tranche will give the rupee wings; the closure of the Afghan border has reduced smuggling, especially of gold, which was the primary means of wealth transfer; the current account is expected to show a surplus; and remittances are anticipated to come as a pleasant surprise.

The government’s attempts to eliminate the abuse of the Afghan Transit Trade (ATT) and the continued decline in oil prices will be very advantageous to the balance of payments, strengthening the rupee.

Business

An investigation was “launched” into PTA’s inability to get Rs. 78 billion back from Telcos

Published

19 hours ago

Farwa

The PTA has reportedly been instructed to reply to NAB by July 29. According to the enquiry, the national exchequer has suffered losses as a result of the delay in collecting dues.

The PTA has been asked to provide NAB with information about any pertinent records, court proceedings, and overdue bills. The NAB Karachi has summoned the PTA officials to appear with all pertinent documentation.

All of the principle sum has to be paid by the LDI firms, according to sources. But due to judicial stay orders, the collection of dues has been impeded.

These sources further state that a steering group has been established by the Ministry of IT to supervise the issue of dues recovery.

In a previous event, the tariffs levied on importing cell phones from outside were clarified by the Pakistan Telecommunication Authority (PTA).

Contrary to what some internet reports claim, PTA clarified in response to recent news regarding the tariffs on mobile phone imports that there hasn’t been a formal decision to remove these levies in Pakistan.

the PTA.Pakistanis living abroad will be the only ones free from these levies, according to the PTA. A SIM card can be inserted and the phone restarted to temporarily register a device for non-PTA mobile subscribers.

Business

Weekly inflation in Pakistan increased by 0.17 percent.

Published

19 hours ago

Farwa

The SPI for the week under review in the aforementioned group was reported at 321.95 points, as opposed to 321.40 points during the previous week, according to the PBS statistics.

The SPI for the combined consumption group saw a 20.09 percent increase in the week under review compared to the same week the previous year.

The weekly SPI includes 51 necessary items for every spending group and 17 urban areas, with a base year of 2015–16 = 100.

The SPI for the lowest consumption category, which is up to Rs 17,732, grew by 0.08 percent from 311.97 points to 312.22 points this past week.

0.18 percent,The index of consumption for the lowest consumption groups, which are Rs 17,732-22,888, Rs 22,889-29,517, Rs 29,518-44,175 and above Rs 44,175; increased by 0.13 percent, 0.15 percent, 0.18 and 0.19 percent, respectively.

Nineteen (37.25%) of the fifty-one commodities had price increases over the week, eight (15.69%) had price decreases, and twenty-four (47.06%) had unchanged pricing.

On a weekly basis, the following commodities saw significant price decreases: tomatoes (9.19%), onions (2.14%), LPG (1.04%), bananas (0.53%), wheat flour (0.35%), potatoes (0.17%), pulse masoor (0.16%), and bread (0.05%).

Chicken (4.80%), garlic (2.01%), pulse gramme (1.87%), eggs (1.71%), beef (0.93%), gur (0.89%), pulse moong (0.84%), fresh milk (0.45%), firewood (0.23%), and cigarettes (0.12%) were among the items whose average prices increased significantly week over week.

The commodities that saw a year-over-year decline were: wheat flour (31.75%); cooking oil (13.44%); vegetable ghee 2.5 kg (10.42%); vegetable ghee 1 kg (9.85%); mustard oil (8.33%); eggs (5.82%); rice basmati broken (4.15%); and tea package (2.52%).

Gas prices for Q1 (570.00%), onions (96.01%), pulse gramme (40.39%), powered milk (39.11%), garlic (34.61%), pulse moong (29.77%), men’s sandals (25.01%), beef (23.52%), salt powder (23.28%), pulse mash (22.50%), and energy saver (17.96%) were among the commodities whose average prices increased year over year.

Business

The price of gold has drastically dropped in Pakistan.

Published

2 days ago

Farwa

As per the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the cost of 24-karat gold per tola decreased by Rs 2,300, standing at Rs 250,500.

A kilogramme of 24-karat gold costing Rs1,972 less at the local market, making it worth Rs2114,763. Ten grammes of 22-karat gold had a price decrease to Rs196,866 as well.

After losing a significant $43 during the day, the rate per ounce of gold on the international market also decreased. It currently stands at $2,370.

On Thursday, the price of 24-karat silver also experienced a decline, falling by Rs60 to settle at Rs2,860 petal.