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Rupee makes recovery against US dollar, closes at 204.56

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  • Local currency gains 0.14%, against greenback.
  • Traders say rupee is expected to recover this week as uncertainty over the revival of IMF programme is vanishing.
  • Last week, rupee closed at 204.85 against US dollar. 

The Pakistani rupee recovered on Monday, closing at 204.56 against the US dollar in the interbank market. 

According to data released by the State Bank of Pakistan (SBP), the local currency gained 0.14%, against the greenback.

Last week, the local currency closed at 204.85. 

Traders said that the Pakistani rupee is expected to strengthen further this week as uncertainty over the revival of an International Monetary Fund (IMF) programme is vanishing and the country is inching closer to reach a staff-level agreement with the global money-lender.

Market players are also eyeing an increase in inflows from remittances ahead of the Eid-ul-Adha festival, the traders added.

“We expect the rupee to gain slightly against the dollar next week amid improved sentiment as clarity is coming on the IMF programme,” a commercial bank trader said. 

“An expected increase in dollar inflows in the shape of workers’ remittances may also support the domestic currency”.

Traders said pre-Eid inflows were particularly high as most Pakistanis working abroad send more money to families to buy sacrificial animals. Eid-ul-Adha will be celebrated in Pakistan on July 10 (Sunday).

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Huge investment potential exists in the telecom and IT sectors. Shaza Fatima

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According to Shaza Fatima Khawaja, Minister of State for IT and Telecommunication, there are numerous investment prospects in Pakistan’s IT and telecom sectors.

She noted that the current administration is dedicated to fostering foreign investment in the nation, in line with the Prime Minister’s goal.

According to a news release, CEOs Wateen Adil Rashid and Muhammad Shahbaz Khan of Taavun (Pvt) Limited, who paid her a visit on Tuesday, spoke with Minister of State for IT and Telecommunication Shaza Fatima Khawaja.

She declared that the private sector would receive complete support because it is essential to growing our exports.

Regarding youngsters, she stated that they are our greatest asset and that efforts are being made to further their growth.

Sheikh Nahyan bin Mubarak Al Nahyan of the United Arab Emirates was thanked by Shaza Fatima for his particular interest in promoting additional investment in Pakistan’s telecom industry.

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WB pledges complete support for changes aimed at stabilizing Pakistan’s economy.

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Federal Minister for Finance and Revenue, Muhammad Aurangzeb, met with President of the World Bank Group, Ajay Banga, according to a press release from the ministry of finance here. During the meeting, the minister discussed Pakistan’s progress under the nine-month Standby Arrangement (SBA) program as well as ongoing reforms in priority areas of taxation, energy, and privatization.

According to the statement, the minister also extended an invitation to the president to visit Pakistan, and both parties acknowledged the necessity of a rolling 10-year country framework plan.

The minister also talked on safeguarding Pakistan’s eligibility for concessional funding and future project pipeline during a meeting with Masatsugu Asakawa, President of the Asian Development Bank (ADB).

The chief executive officer of the US International Development Finance Corporation (DFC), Scott Nathan, also met with the minister of finance.

They discussed during the conference how DFC may increase its investments in Pakistan after resolving unresolved conflicts in a cooperative manner.

According to the minister, the government is supporting creative financing strategies to maximize PPP potential and private sector participation.

According to the statement, he gave his word that the government will do everything in its power to assist investment projects by both foreign and local businesses in Pakistan.

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The cost of a liter of petroleum increased by much to Rs 8.14.

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Prices for gasoline and high-speed diesel were raised by the government on Monday by Rs4.53 and Rs8.14, respectively, for the upcoming two weeks.

In relation to this, the ministry of finance released a notice.

Diesel now costs Rs 290.38 per litre, while petrol is now priced at Rs 293.94 per liter following the most recent increase.

Additionally, light diesel cost Rs6.54 more per litre, to Rs174.34. A 6.69% increase in price to Rs193.8 per liter was made for kerosene oil.

The impact of the developing Middle East situation and the expanding global market are the main factors contributing to the transformation.

Before the most recent spike, the price of gasoline and HSD had risen by almost $4 and $4.50 per barrel, respectively, on the global market during the previous two weeks.

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