Business

Dollar gains further ground to near historic high against rupee

Published

2 years ago

Farwa

Rupee registers losses for 15th consecutive session.
Rupee falls to 239.71 after losing 0.03% in interbank market.
Local unit is nearing historic low against dollar.

KARACHI: Registering losses for the 15th consecutive session, the Pakistani rupee lost further ground Thursday as the US dollar neared a historic high.

The rupee fell to 239.71 after losing 0.03%, down in value from the previous session’s close of 239.65, in the interbank market..

The rupee now stands only Rs0.23 short of an all-time low level of Rs239.94 on July 28, 2022.

The rupee, which has been one of the worst performing currencies in the emerging markets, has depreciated by nearly 9% so far this month due to wide-ranging factors.

Analyst Yousuf Rahman at KASB Securities told The News that debt servicing was one of the reasons behind the rupee’s decline as gross financing needs for the year are estimated at $32 billion.

Rahman also noted that floods have forced the government to import vegetables, grains, and cotton to replace damaged crops — increasing the pressure on the rupee.

“This has further added strain on the import bill and there have been news of consistent dollar outflows from grey channels, particularly through the Afghanistan border,” Rahman said.

He said the fundamentals and sentiments for the battered rupee won’t improve until anticipated inflows from friendly countries happen.

“Once additional financing is received from the World Bank, ADB [Asian Development Bank], and allied countries, the rupee may stabilise around the 215 mark,” Rahman added.

The revival of the International Monetary Fund (IMF) bailout programme and the release of a $1.1 billion loan tranche from the Fund last month supported the rupee briefly in late August. However, the currency is again struggling.

“Dollar strength and high commodity prices are impacting regional and major currencies,” said Komal Mansoor, the head of research at Tresmark.

“[The] Indian rupee also traded above 80/dollar this week, and they have spent $90 billion to defend their already stable currency. Yuan, euro, and sterling have all depreciated to multi-year lows,” Mansoor said.

But the local currency hitting new lows is worrisome for the economy because it shows the government’s inability to stabilise forex reserves and reverse negative sentiment, he added.

“Some sort of a two-way direction is crucial for the currency”.

Business

There are US$13,280.5 million in foreign exchange reserves in Pakistan.

Published

2 days ago

Farwa

According to a representative for the central bank, as of April 19, 2024, the nation’s total liquid foreign reserves were valued at US$ 13,280.5 million. A loss of US$74 million left the State Bank of Pakistan’s foreign reserves at US$7,981.2 million.

Commercial banks have $5,299.3 million in reserves for Pakistan.

In the week that concluded on April 12, the State Bank of Pakistan’s (SBP) foreign exchange reserves increased by $14.4 million to $8.055 billion.

“In a weekly statement, SBP stated that it has repaid US$ 1 billion in principal and interest on Pakistan’s International Bond, which matures this week.”

But at $13.374 billion, the nation’s total reserves decreased by $68 million. In the same way, commercial banks’ reserves dropped to $5.319 billion, a reduction of $82 million.

Business

NIMA seminar to increase Pakistan’s ship recycling industry’s capacity

Published

2 days ago

Farwa

According to a release, important players from a range of maritime industries attended the conference to discuss issues facing the shipping sector.

It further stated that the symposium cleared the path for the resurgence of a sustainable future in ship recycling.

Participants in the conference included representatives of the Gadani Ship Breaking Labour Union, PSBA, KS&EW, KPT, PMSA, GEMS, and the federal and Balochistani governments.

Furthermore, global perspectives and ideas were offered by international specialists such as Rabia Razzaque from UN-ILO and Professor Raphael Baumler from the World Maritime University.

The seminar emphasized Pakistan’s capacity to emerge as a pioneer in the field of environmentally friendly ship recycling.

In order to protect the environment and the safety of employees, the participants emphasized the importance of following international standards and regulations.

During his speech, Chief Guest Senator Nisar Ahmed Khoro emphasized the importance of the maritime industry’s resurgence and the crucial necessity for coordinated efforts from all parties involved.

A new age of economic prosperity, worker safety, and environmental responsibility for Pakistan’s maritime industry was called for as he urged the stakeholders to work together on a comprehensive SENSREC program.

Vice Admiral Ahmed Saeed (Retd), the president of NIMA, emphasized the significance of environmental stewardship and safety in ship recycling procedures.

Business

Inflows into the Roshan Digital Account surged to $7.660 billion on March 24.

Published

2 days ago

Farwa

According to the data, remittance inflows for the month of March totaled US$ 182 million, whereas they were US$ 141 million in February and US$ 142 million in January 2024.

Millions of Non-Resident Pakistanis (NRPs), including those who own Non-Resident Pakistan Origin Cards (POCs), can now engage in banking, payment, and investing activities in Pakistan with the help of these accounts, which offer cutting-edge banking solutions.

According to a statement from the State Bank of Pakistan, the number of accounts registered under the program increased by 11,091 from 668,701 accounts in February 2024 to 679,792 accounts in March 2024.

As of March 2024, the central bank reported that foreign nationals of Pakistan have invested US $312 million in Naya Pakistan Certificates, US $528 million in Naya Pakistan Islamic Certificates, and US $31 million in Roshan Equity Investment.

It is important to note that former prime minister Imran Khan introduced the Roshan Digital Account initiative in September 2020 with the goal of giving Pakistanis living abroad access to digital banking services for the first time.