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PKR continues winning streak against dollar

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  • Rupee gains 1.16 against greenback in interbank market.
  • Local currency closes at Rs227.29 against greenback.
  • Economists agree rupee will extend its rise in days to come.

KARACHI: The Pakistan rupee continued to strengthen on Monday in the interbank market, pushing the US dollar’s slide for the seventh consecutive session.

The local currency gained Rs1.16, or 0.51%, against the greenback in the interbank market and settled at Rs227.29.

Last week, the unit closed at Rs228.45, according to the data released by the State Bank of Pakistan (SBP).

Finance Minister Ishaq Dar’s return and his subsequent comments on the rupee’s undervaluation, as well as the likelihood that economic policy will remain stable going forward after he was appointed the finance minister, changed market sentiment from bearish to bullish on the currency.

When Dar stated that strengthening the rupee was his main objective, traders who had been long [on the dollar] started to sell. 

In a similar vein, exporters began selling forwards in considerable sums. The finance minister’s warning to speculators to discontinue their activities and the exporters’ healthy supplies of dollars helped support the rupee.

The local unit gained 11.2 rupees or 4.9% against the dollar in the interbank market last week, its second-biggest weekly rise since August 5, 2022, when the currency appreciated by 15.3 rupees.

The majority of economists agree the rupee will extend its rise in the days to come as various developments support this forecast.

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Islamic Sukuk Bonds: Government Is Expected To Begin Bond Auction Next Week

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There is now more positive economic news for the people of Pakistan. The government is anticipated to begin the Sukuk Islamic Bond auction next week, after the central bank’s announcement of a large drop in the policy rate.

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SIFC Encourages Green Tourism: Reforming Visas to Increase Investment

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Enhancing investment in the tourism sector, Green Tourism Pakistan’s initiative has received backing from the Special Investment Facilitation Council.

Visa-On-Arrival for 126 countries, Visa-Free Entry for Gulf Cooperation Council nations, and 24-hour expedited visa processing are some of the main features of the Green Tourism Visa Policy.

It is anticipated that these endeavors will draw in about 80 million dollars in foreign direct investment and 8.3 billion rupees in domestic investment.

Green Tourism Private Limited has introduced hunting resorts in Naltar, Hunza, and Skardu, along with four- and five-star city hotels, to improve the tourism experience.

In the first phase of the project, 17 of the 78 areas have seen the start of development activity.

Approved is a central authority for Green Tourism that will supervise the growth of Air Operations.

To promote Religious Tourism, extra precautions have been taken to guarantee the security of visitors from all religions, including Sikhs and Buddhists.

Furthermore, in order to improve the quality of the tourist experience, the green guide quality program has been introduced to supply top-notch tour guides.

There is now a deluxe bus excursion from Islamabad to Peshawar that promotes local culture.

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July 2024 export data from Pakistan shows a significant rise.

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The Strategic Investment Facilitation Council (SIFC) has been instrumental in improving Pakistani products’ access to international markets, as seen by the significant surge in exports from the country at the start of the 2024–25 fiscal year.

With a 7.26% rise over the same month the previous year, July 2024 exports to the US were $476.017 million. After increasing by 7.74% annually, the United Arab Emirates emerged as the second-largest export destination.

The third and fourth places were occupied by exports to the UK ($183.303 million) and China ($60.100 million). A substantial increase in exports to Afghanistan was recorded in July of this year, rising from $46.262 million to $88.065 million, largely due to successful anti-smuggling efforts.

With a combined export volume of $553.951 million, more important export destinations included Germany, the Netherlands, Italy, Spain, Saudi Arabia, and Turkey.

A bright future for the national economy is suggested by the growing confidence major international markets have in Pakistani exports. Through the efforts of SIFC and the government, this greater access to global markets has been made possible.

Pakistan’s economy is predicted to remain stable as a result of the export growth that SIFC has enabled.

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