Business

Rupee continues recovery against dollar on hopes of IMF deal within few days

Published

1 year ago

Farwa

The rupee gained further ground against the US dollar as Pakistan was able to secure $500 million from the Industrial and Commercial Bank of China (ICBC) and the expectation of striking a deal with the International Monetary Fund (IMF).

The local currency gained by Rs3.46 against the greenback in the interbank market during the intraday trade. The local unit was seen changing hands 275 at around 11:47pm.

The rupee closed the week on Friday by gaining significant ground against the US dollar. According to the State Bank of Pakistan (SBP), it appreciated by Rs6.63, or 2.38% in the interbank market and closed at 278.46.

Speaking to Geo.tv, Exchange Companies Association of Pakistan (ECAP) General Secretary Zafar Paracha citing a few reasons for the earlier dollar appreciation said that the hype was created by the country’s financial institutions and international players that manipulated and caused the rates to increase.

“Currently, the dollar decreased against the rupee due to the market correction and it is still in the ebb and flow. Financial credentials cannot be changed in one day which can cause the currency to depreciate or appreciate at such a scale,” said Paracha.

The destabilised currency damages Pakistan’s image and foreign direct investment (FDI) and local investors are discouraged due to this reason, he added.

He anticipated that keeping in view the IMF agreement and the inflows from the friendly countries, the dollar should remain in the range of 260 to 265.

Paracha also mentioned that the political condition of Pakistan has been impacting the dollar rates which never had happened before. This time we are on the very weaker side that’s why IMF is also pushing us, he noted.

He also highlighted that the financial conditions are not bad as it is being indicated. Our inflow is $50 billion and our outflow is $60 billion, he said, adding that Pakistan requires $10 to 15 billion which has been halted.

“If we had managed it well, reducing our expenditures and the subsidies of $17.4 billion which the government gives to our elites then it would make a huge impact”, he maintained.

There is a very dire need of increasing our tax base, not the tax rate. No one except the salaried class and big companies pay the tax. Therefore, the government need to increase the tax base, he concluded.

Earlier today, a government official expressed hope of striking a deal with the Washington-based lender.

Another official assured that Pakistan was expecting to strike the staff-level agreement (SLA) with the IMF in the next few days, however, the Fund was reluctant to give any time frame for finalising the agreement.

Business

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

Published

22 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

22 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.