Business

SBP forex reserves plummet to lowest level since April 2014

Published

2 years ago

Farwa

Lack of foreign assistance put a heavy dent in reserves.
Overall liquid foreign currency reserves stand at $12 billion.
SBP cites external debt repayments as reason behind this decline.

The State Bank of Pakistan’s (SBP) foreign currency reserves have dropped to levels worth just eight weeks of imports, their lowest since April 2014, central bank figures showed on Thursday.

In a statement, the central bank said the foreign currency reserves held by the SBP were recorded at $6,116.2 million as of December 16, down $584 million compared with $6,700 on December 9.

The drop means the reserves have fallen further from last week’s barely 1.5 months of import cover, even as it battles decades of high inflation and scrambles to secure International Monetary Fund (IMF) funds.

Overall liquid foreign currency reserves held by the country — including net reserves held by banks other than the SBP — stood at $12,000.1 million.

SBP forex reserves plummet to lowest level since April 2014

Net reserves held by banks amounted to $5,883.9 million. The central bank cited external debt repayments as a major reason behind this decline.

Pakistan has recently been battling to stave off a balance of payments pressures due to dwindling foreign currency reserves and a widening current account deficit.

The lack of foreign assistance amid delay in the revival of the IMF programme in the presence of a higher trade deficit and increasing foreign debt payments put a heavy dent in the reserves.

The ninth-review talks have been delayed apparently due to Fund’s criticism over an increased fiscal deficit.

The government is unwilling to impose more taxes for higher revenues, while the IMF insists the government must consolidate the economy.

Moreover, Pakistan’s rupee has shed nearly 26% since the start of the year, hitting its weakest level on record in September, due to falling reserves and the higher import bill.

Business

PEL Ships Transformers to Start US Exports

Published

17 hours ago

Bilal

Through stable and efficient trade regulations, the Special Investment Facilitation Council has helped promote Pakistani industrial exports internationally.

With the first shipment of transformers departing Pakistan for the United States on March 13, 2025, Pak Electron Limited formally started exporting its goods to the United States.

PEL wants to increase its worldwide visibility and investigate new overseas prospects. Under its power and appliances segment, the company produces high-quality goods like transformers and home appliances.

Additionally, PEL has alliances with major global corporations including General Electric, Mitsubishi, and Hitachi.

Business

The FBR has extended the deadline for sales tax returns until March 27.

Published

17 hours ago

Bilal

The Federal Board of Revenue (FBR) extended the deadline for submitting Sales Tax and Federal Excise reports to March 27, 2025, to assist taxpayers.

The FBR has issued an official notification concerning the prolongation, as per reports.

The initial deadline for submitting Sales Tax and Federal Excise reports for the February 2025 tax period, originally set for March 18, 2025, has been extended to March 27, 2025.

The determination has been rendered pursuant to Section 74 of the Sales Tax Act 1990 and Section 43 of the Federal Excise Act 2005.

FBR officials indicated that the extension is intended to alleviate challenges encountered by taxpayers, permitting them to complete their returns within the specified timeframe without inconvenience.

Taxpayers are encouraged to utilize the extended deadline and submit their returns punctually to evade any possible fines.

The FBR regularly extends tax return deadlines to assist the corporate sector and facilitate seamless tax compliance.

Business

Stocks fall as PSX is under selling pressure.

Published

2 days ago

Bilal

The benchmark KSE-100 Index dropped more than 600 points during Monday’s opening trading hours, sending the Pakistan Stock Exchange (PSX) plunging.

The benchmark index had dropped 635 points and was now trading at 117,806.25.

The PSX’s decline was attributed primarily to selling pressure.

Important industries include fertilizer, auto assemblers, refineries, OMCs, and oil and gas exploration firms. Due to widespread selling, index-heavy stocks such as EFERT, INDU, MARI, OGDC, PPL, and PSO saw negative trading.

Remember that throughout the past week, the PSX has been in a bullish trend, reaching historical highs.

This prolonged increase was fueled by hope for a possible staff-level deal for the International Monetary Fund’s (IMF) $1 billion second EFF tranche.