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Rupee’s clawback against US dollar persists

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  • Local unit closes at Rs220.65 against dollar.
  • Rupee gains on expectations of a fresh loan tranche from IMF.
  • Analysts anticipate rupee will rise further.

KARACHI: October’s best-performing currency continued to gain against the US dollar Tuesday on expectations of a fresh loan tranche from the International Monetary Fund (IMF).

According to the State Bank of Pakistan (SBP), the local unit gained Rs0.24, or 0.11%, against the greenback in the interbank market, closing at 220.65 compared to Monday’s close of 220.89.

Rupee regained ground following a decline in the Real Effective Exchange Rate (REER) index in September and on expectations of a fresh loan tranche from the Washington-based lender.

REER index depreciated to 90.9 in September, compared with 94.4 in the previous month, the State Bank of Pakistan reported on Sunday. The REER index shows the rupee might strengthen further in the coming days.

In addition, the expectation that Pakistan would meet its obligations to pay off its foreign debt on schedule contributed to a surge in the price of Pakistani sovereign bonds, which helped buoy sentiments regarding the local unit.

Analysts anticipate that the rupee will rise further as soon as World Bank inflows begin coming in as well. Meanwhile, Prime Minister Shehbaz Sharif is in Beijing to hold talks on the rollover of Chinese loans, which now total $26.7 billion and include public and publicly guaranteed debt.

From Asia’s worst to best-performing currency

The Pakistani rupee had one of the strongest performances in Asia in October, rising by 3.3% against the dollar.

The Pakistani currency was closely followed by the Singapore dollar which appreciated by 1.38%, the Philippine peso (1.15%), and South Korean won (0.46%).

The rupee had a successful month. In October, the rupee value increased by 3.3%, said Topline Securities, which cited statistics from Bloomberg. The rupee was one of the best-performing currencies in Asia, it added.

After hitting historic lows in value in both July and August, the rupee suddenly began to appreciate in the final week of September. It started appreciating following the start of Ishaq Dar’s fourth term as Pakistan’s finance minister.

However, the local unit was under pressure on account of the political unrest brought on by the start of the PTI-long march towards Islamabad.

The rupee was able to gain ground thanks to Dar’s recent warning to speculators about currency manipulation and the decline of the REER.

Business

A bid of ten billion rupees has been submitted by Blue World Consortium for the privatization of the Pan-India Airport (PIA).

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A bid of 10 billion rupees has been made by the Consortium to privatize Pakistan International Airlines.

There is only one bid from the Blue World Consortium.

The Blue World City Consortium has been the only group to submit documentation.

Through circulation, the Federal Cabinet will approve the reserve price of PIA.

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Business Leaders Are Encouraged To Keep Up With New Regulations Regarding Pakistan’s Textile Exports To Germany

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Despite the fact that Pakistan is a significant exporter of textiles to Germany, business leaders in Pakistan need to remain updated about developing laws. A conference on textiles was organized in Karachi, and German Consul General Dr. Rudiger Lotz underlined this point at the event.

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During his meeting with the Qatar Businessmen Association, the Prime Minister of Pakistan extended an invitation to invest in key sectors.

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Meeting with the Qatar Businessmen Association (QBA) delegation, Prime Minister Muhammad Shehbaz Sharif talked about strengthening economic ties and looking into new cooperation opportunities.

His Excellency Sheikh Faisal Bin Qassim Al-Thani led the QBA delegation, which was made up of prominent businesspeople from Qatar who each represented important economic sectors. During the discussion, prominent members of Qatar’s business sector and important leaders from Pakistan discussed how to improve trade, investment, and economic ties.QBA members in attendance included Sheikh Mansoor bin Jassim Al Thani, Chairman of the Mansoor Jassim Al Thani Group; Mr. Nabil Abu Issa, CEO of Blue Salon; Mr. Khalid Ahmed Al Mannai, Executive Director of Mannai Corporation; Mr. Salah Mohammed Jaidah, Chairman MENA & Chief Country Officer of Deutsche Bank; Mr. Yousuf Ebrahim Al-Mahmoud, Director of Sendian Group; and Mr. Salah Mohammed Jaidah, Chairman MENA & Chief Country Officer of Deutsche Bank.

By highlighting the many prospects in industries like energy, infrastructure, and finance, the prime minister made Pakistan an alluring place for foreign investment.

All of these delegates showed interest in Pakistan’s economic situation, namely in the future energy, technological, and infrastructure development initiatives under consideration.
Throughout the discussion, both parties looked at possible partnerships that may promote innovation, job creation, and sustainable development in both nations. The QBA members expressed interest in increasing their investments in Pakistan’s infrastructure and energy sectors in a positive response to the Prime Minister’s request. The significance of bilateral cooperation was emphasized in order to support regional economic growth and stability.

The meeting was also attended by Federal Ministers for Commerce Kam Kamal Khan, Finance and Revenue Mohammad Aurangzeb, and Information and Broadcasting Attaullah Tarar, as well as Deputy Prime Minister and Foreign Affairs Senator Mohammad Ishaq Dar and Defense Minister Khawaja Muhammad Asif.

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