Rupee closes at 224.11 against US dollar in interbank market.
Local currency lost 21% against the greenback so far in 2022.
Analysts expect the rupee to reach 270 against dollar by June 2023.
Pakistani rupee remained under pressure on Tuesday as demand from importers seeking to pay their bills increased in the market.
The rupee closed at 224.11 against the US dollar after registering a meagre decline of 0.09% in the interbank market compared to Monday’s close of 223.91.
A currency dealer explained that banks are often urged to only settle import amounts that match the bank’s export amounts. The interbank market’s equilibrium is preserved by managing demand and supply.
Moreover, investors kept a close eye on the talks between Pakistan and the International Monetary Fund (IMF) which are currently at a stalemate.
An IMF review for the release of the next tranche under bailout funding has been pending since September.
Federal Minister for Finance and Revenue Ishaq Dar claimed last week that Pakistan met all targets for the review. However, the IMF resident chief said discussions with the Pakistani “authorities in these areas are ongoing, especially as not all end-September quantitative targets have been met”.
Pakistan made a payment of $1 billion Sukuk on Friday. However, the investors remained concerned about a fast depletion of the foreign reserves amid dried dollar inflows. The loss of foreign exchange reserves is unquestionably caused by the servicing and repayment of the debt.
Despite the rupee’s 21% decline against the greenback so far in 2022, there is a lot of uncertainty surrounding the Pakistani currency. Since 2019, Pakistan has adopted a market-based exchange rate regime.
Even though the official exchange rate has recently remained in the Rs221-225 range, the black market rate is currently trading at a premium of more than 10% at Rs240-250, The News reported.
Except for a few currencies available to travellers at a premium of 3%, there is scarcely any foreign currency supply in that market as a result of the central bank’s strict regulations for exchange companies.
The resurgence of the black market has been badly affecting dollar inflows, particularly inward remittances. Analysts expect the rupee to reach 270 against US dollar by June 2023.
KARACHI: The open market exchange rate between the US dollar and the Pakistani rupee (PKR) was Rs279.4 on February 07, 2025, with a selling rate of Rs281.1. The interbank exchange rate between the US dollar and the Pakistani rupee is Rs 278.45, according to Interbank.
There was no movement in the US dollar (USD) from the previous closure of Rs278.
Chinese companies have been invited by Sindh Chief Minister Syed Murad Ali Shah to visit Karachi and other regions of Sindh Province in order to observe the quickly growing businesses and investigate prospects in fields like clean energy, infrastructure development, and public transit projects.
Speaking in Beijing to a delegation headed by the chairman of NORINCO International Co., Ltd., he stated that all facilities required would be provided by the governments of Sindh Province and Pakistan.
With assistance from NORINCO International, the Sindh Chief Minister stated that the Provincial Government will firmly urge North Vehicle and BeiBen to think about setting up a Vehicle Assembly Plant in the Dhabeji Special Economic Zone.
In order to strengthen collaboration in the fight against money laundering, terrorist financing, and associated crimes, the Saudi Press Agency announced this week that the Saudi cabinet, led by Crown Prince Mohammed bin Salman, had approved a memorandum of understanding (MoU) with Pakistan’s Financial Monitoring Unit (FMU).
Due to its severe money laundering and terrorism funding issues in recent years, Pakistan was added to the Financial Action Task Force’s (FATF) grey list in June 2018.
The nation was taken off the gray list in October 2022 after enacting extensive measures to fortify its financial system.
The FMU is Pakistan’s financial intelligence unit, created under the Anti-Money Laundering Act of 2010 and tasked with collaborating with foreign partners and evaluating reports of suspicious transactions.
According to the SPA, “the cabinet approved a memorandum of understanding regarding cooperation in exchanging investigations related to money laundering, terrorist financing, and related crimes between the Financial Monitoring Unit in the Islamic Republic of Pakistan and the General Department of Financial Investigation at the Presidency of State Security in the Kingdom of Saudi Arabia.”
The MoU is an indication of Saudi Arabia and Pakistan’s growing strategic partnership. A significant Pakistani diaspora resides in the Kingdom, and numerous Pakistani businesses have established a presence there.
Saudi Arabia has been a key supporter of Pakistan’s economy, bolstering its reserves with substantial deposits in the State Bank of Pakistan and offering deferred oil payment facilities.