Business

Rupee’s clawback against US dollar persists

Published

2 years ago

Farwa

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

Pakistan’s gold prices continue to decline.

Published

12 hours 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

12 hours 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

12 hours 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.