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Rupee snaps three-day losing streak against dollar

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2 years ago

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  • Local currency gains Rs1.28 against the dollar. 
  • Paracha says it was a “very good” day for economy.
  • ECAP official expects market sentiment to improve. 

The Pakistani rupee has kickstarted the week on a positive note against the US dollar as exporters encashed large amounts of payments, boosting the market sentiment.

The local currency gained Rs1.28 or 0.46% against the dollar in the interbank market to close at 275.29, according to the State Bank of Pakistan (SBP), up from Friday’s close of 276.58. Meanwhile, the rupee remained stable at 283 in the open market.

During the last week, the rupee plunged to a historic low against the dollar after Prime Minister Shehbaz Sharif said that the International Monetary Fund (IMF) was giving Pakistan “a tough time”.

In a video statement, Exchange Companies Association of Pakistan (ECAP) General Secretary Zafar Paracha said that Monday was “very good” for Pakistan’s economy as the rupee appreciated around 6 in the interbank market during intraday trade.

He said that the rupee’s recovery has started as the exporters, who had earlier stopped their payments, have encashed them. He added that there has been pressure to sell dollars in the interbank market. 

“It is expected that the market’s sentiments will move towards betterment. The sentiments are changing as the people had [earlier] thought that the dollar would reach 300,” said the ECAP’s secretary general. 

He urged the people to sell their dollars for profit-taking. “This would bring stability to our country, our foreign exchange reserves will increase, the rating will improve, the rate of our sukuk bonds will also get better and it will provide ease to the government in holding negotiations with the IMF.”  

Paracha added that the staff-level agreement with the Fund will be signed on February 9. “However, the IMF’s conditions will raise inflation and for that, the government needs to manage its expenses.”

He warned that if the people have to bear the brunt of the taxes, then this could lead to an anarchic situation in the country. He said that the government needs to take steps carefully as the political situation is also unstable. 

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Trade Agreements Worth $10.70 Million Were Signed At Expo For Pakistan And Indonesia To Increase Their Trade With The Support Of SIFC

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Through the assistance of the Special Investment Facilitation Council (SIFC), Pakistan and Indonesia have reiterated their dedication to improving their economic and commercial ties.

The participation of a Pakistani trade delegation was made possible by Indonesia at a recent trade expo, which resulted in the formation of agreements and memorandums of understanding with a total value of 10.70 million $. In addition to retail items and automobile components, these agreements span industries such as coconut, cocoa, ginger, spices, and retail goods.

As a key step toward improving economic ties, particularly with the Sindh business community, the participation of the group was praised by Tegu Viveko, who is acting as the Consul General of Indonesia.

Abid Nisar, the head of the Pakistan-Indonesia business council, has stated his confidence regarding the possibility of enhanced relations between the two countries, highlighting the historical and cultural origins of the connection.

In its capacity as a member of the G20, Indonesia intends to assist both nations in maximizing the benefits of their partnership in order to achieve better economic stability.

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Pakistan’s textile exports rose by 9.51% to $4.520 billion.

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Pakistan’s textile exports had a 9.51 percent increase in the first quarter of the current financial year (2024-25) compared to the same quarter of the previous year.

The Pakistan Bureau of Statistics (PBS) reported that textile exports from the country amounted to US $4.520 billion during July-September (2024-25), compared to US $4.127 billion during the same period in the previous year (2023-24).

The textile goods that facilitated trade expansion comprised cotton fabric, whose exports rose by 10.20 percent to $523.63 million from $475.187 million, and knitwear, which experienced a 14.13 percent increase in exports to $1,268.908 million from $1,111.818 million.

Other commodities that experienced trade growth included bed wear, with exports increasing by 13.31 percent to $794.972 million from $701.570 million; towels, which rose by 7.04 percent to $261.316 million from $244.134 million; and tents, canvas, and tarpaulin, which grew by 5.43 percent to $28.796 million this year compared to $27.312 million last year.

The export of readymade garments increased by 23.17 percent to $996.831 million from $809.316 million; art, silk, and synthetic textiles rose by 15.79 percent to $96.482 million; made-up articles (excluding towels and bed wear) grew by 12.10 percent to $191.050 million from $170.422 million; and the export of other textile materials surged by 8.73 percent to $187.145 million from $172.112 million.

The textile commodities that had negative trade growth were cotton yarn, with exports decreasing by 48.45 percent, from $315.404 million to $162.579 million, while raw cotton exports fell by 100 percent from 6.621 million to zero during the reviewed months.

The export of yarn, excluding cotton yarn, decreased by 15.15 percent, from $10.096 million to $8.566 million.

In September 2024, textile exports experienced a year-on-year growth of 17.92 percent compared to the same month in the previous year.

Textile exports from the country in September 2024 amounted to US $1,604.481 million, compared to US $1,360.902 million in September 2023.

Textile exports from the country experienced a nominal decline of 2.40 percent in September 2024, compared to the $1,644.333 million reported in August 2024, according to PBS statistics.

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PIA is designated as the official airline of IDEAS 2004.

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PIA has been designated as the official airline of IDEAS 2024. The PIA will utilise its aircraft for the promotion of IDEAS 2024.

In this context, the emblems of IDEAS 2024 have been affixed to two Boeing 777 aircraft and two Airbus planes of Pakistan International Airlines.

The International Defence Exhibition and Seminar (IDEAS) 2024 is scheduled to commence from November 19 to 22 at the Karachi Expo Centre.

The government of Pakistan places significant value on IDEAS. The show draws several delegates and is perceived as a means to promote their local arms trade.

The inaugural IDEAS launch took place in 2000, serving as a platform to promote Pakistan’s indigenous arms manufacturing industry while allowing international suppliers to provide solutions for the needs of Pakistan’s tri-services.

The event, consistently held at the Karachi Expo Centre, attracted forty-five foreign delegations in its inaugural year.

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