Business

Rupee continues losing streak against dollar

Published

2 years ago

Farwa

Massive devastation caused by floods worsens country’s economic crisis.
Rupee loses Rs1.64 against the US dollar in interbank market.
Rupee likely to continue its downward spiral this week, traders say.

The Pakistani rupee maintained its losing streak against the US dollar at the start of the new business week on Monday, as massive devastation caused by the floods continues to worsen the country’s economic crisis.

The local unit closed at Rs229.82 after losing Rs1.64 against the US dollar in the interbank market, as per the State Bank of Pakistan.

Traders say the Pakistani rupee is expected to continue its downward spiral against the dollar in the interbank market this week as lack of strong central bank intervention and no clear strategy to turn around the economy is depressing investors.

“Emerging currencies have suffered a lot due to the appreciation of the US dollar against the major currencies following relentless Federal Reserve rate hikes and increased safe-haven demand, but the Pakistani rupee’s sharp fall of more than 4% in the last six trading sessions has fuelled investor uncertainty,” said a foreign exchange trader.

The interbank market is tracking losses in the open market. The temporary hold on imports has shifted the problem to smuggling from Afghanistan against cash dollar payments, which has increased appetite for dollars in the open market. Other secondary factors are cash forex requirements for Dubai travellers, declaration of dollars from inbound passengers, severe accessibility issues for encashing in parts of all provinces.

The difference between the Interbank and open market is creating an incentive for the foreign currency accounts (FCY) to withdraw US dollars and sell into the open market. Whereas ultra-low interest on FCY accounts is not helping in attracting fresh deposits, according to the Tresmark’s note.

Analysts do see multiple opportunities for inflows from friendly countries, bilateral institutions, and sovereigns (in the shape of flood aid). There is also a high probability that the mandate with the IMF may be increased by about $2.5 billion. But the energy crisis in Europe is going to test and stretch the global financial markets.

Business

Pakistan’s gold prices continue to decline.

Published

2 days ago

Farwa

The price of ten grams of 24 carat gold dropped by Rs 1,201 to Rs 205,418 from Rs 206,619, while the price of ten grams of 22 carat gold dropped to Rs 188,300 from Rs 189,400, according to the All Sindh Sarafa Jewellers Association.

Silver, priced at Rs. 2,620 per tola and Rs. 2,254.80 per ten grams, stayed at that level. As reported by the organization, the price of gold dropped by $11 on the global market, to $2,297 from $2,308.

Business

Price of LPG “slashed” by Rs. 20 per kilogram

Published

2 days ago

Farwa

Sources claim that LPG rates have been lowered by Rs 20, making the cost per kilogram drop from Rs 280 to Rs 260.

It is noteworthy to remark that the costs of LPG were reduced by Rs 20 per kilogram earlier, resulting in a total reduction of Rs 40 per kilogram within a few weeks.

The price of liquefied petroleum gas for the month of May 2024 was lowered by the Oil and Gas Regulatory Authority (OGRA) on April 30.

The LPG tariffs were lowered by Rs 11.88 to Rs 238.46 per kilogram in accordance with the OGRA’s notice. On Wednesday, May 1, 2024, the new rates will go into effect.

In April of last year, the price per kilogram of LPG was Rs 250.34. pricing reduction of Rs 140.18 has resulted in a new pricing for home LPG cylinders set for May 2024 of Rs 2813.85.

The OGRA reported a drop in liquefied petroleum gas pricing in April. The price of LPG is now Rs 250.34 per kg instead of Rs 256.78 due to a reduction of Rs 6.44 per kg.

The price of the household cylinder was fixed at Rs 2954.03 for the month of April, down from Rs 3030.12, a decrease of Rs 76.9.

Business

ADB delegation stops by FBR headquarters

Published

2 days ago

Farwa

Senior Director ADB Tariq Niazi oversaw the expedition, which also involved Sana Masood, Farzana Noshab, and Senior Public Sector Management Specialist Laisiasa Tora. The meeting included presentations from economists as well, according to an FBR press release.

The officers focused on structural and policy adjustments as they discussed the Domestic Resource Mobilization Program’s implementation at the meeting.

$300 million was given to the Pakistani government by ADB in December 2023 as a result of the hard work and dedication of FBR. Better laws, regulations, and institutional capability for the FBR were established by Sub-Program I.

With the $300 million in funding provided by the Asian Development Bank (ADB) to the Government of Pakistan in December 2023, the delegation conveyed satisfaction with the program’s effective launch.

The FBR also underlined how crucial digitization is to recording the economy and boosting productivity in a sustainable way.

In order to promote the Government of Pakistan’s Digital Tax Administration Project, both parties decided to look into measures to improve their cooperation.