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No respite: Rupee continues to weaken against dollar, closes at 236.84

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  • Rupee has been under renewed pressure against US dollar this month.
  • It has lost 8.66 against the greenback during the week.
  • Market experts believe this is primarily due to strengthening US dollar index.

KARACHI: The Pakistani rupee continued to weaken against the US dollar on Friday as high demand for the greenback kept the local unit under pressure.

The local currency registered a decline for the 11th consecutive session, closing the week at 236.84 against the greenback after losing nearly Re1 or 0.41%. The dollar now stands only Rs3.1 short of the all-time high level of Rs239.94 on July 28, 2022.

The rupee has been under renewed pressure against the US dollar this month. Market experts believe this is primarily due to the strengthening US dollar index, alongside a rise in the import of food-related items.

The rupee — which has been continuously losing its value despite the revival of the International Monetary Fund (IMF) programme — weakening streak can be attributed to a host of reasons including low dollar inflows amid pressure for import and debt servicing.

Moreover, political uncertainty is also impacting the rupee value. Pakistan has not been able to receive financing from multilateral financial institutions, despite securing the funding from IMF last month, which has been putting pressure on the country’s forex reserves — which dipped $176 million, clocking in at $8.62 billion as of September 9, 2022.

However, it is not just the rupee, leading currencies of the world have also lost value against the US dollar in recent times, which was also affecting the Pakistani currency.

Foreign exchange reserves held by the State Bank of Pakistan (SBP) dipped by $176 million.

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Islamic Sukuk Bonds: Government Is Expected To Begin Bond Auction Next Week

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There is now more positive economic news for the people of Pakistan. The government is anticipated to begin the Sukuk Islamic Bond auction next week, after the central bank’s announcement of a large drop in the policy rate.

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SIFC Encourages Green Tourism: Reforming Visas to Increase Investment

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Enhancing investment in the tourism sector, Green Tourism Pakistan’s initiative has received backing from the Special Investment Facilitation Council.

Visa-On-Arrival for 126 countries, Visa-Free Entry for Gulf Cooperation Council nations, and 24-hour expedited visa processing are some of the main features of the Green Tourism Visa Policy.

It is anticipated that these endeavors will draw in about 80 million dollars in foreign direct investment and 8.3 billion rupees in domestic investment.

Green Tourism Private Limited has introduced hunting resorts in Naltar, Hunza, and Skardu, along with four- and five-star city hotels, to improve the tourism experience.

In the first phase of the project, 17 of the 78 areas have seen the start of development activity.

Approved is a central authority for Green Tourism that will supervise the growth of Air Operations.

To promote Religious Tourism, extra precautions have been taken to guarantee the security of visitors from all religions, including Sikhs and Buddhists.

Furthermore, in order to improve the quality of the tourist experience, the green guide quality program has been introduced to supply top-notch tour guides.

There is now a deluxe bus excursion from Islamabad to Peshawar that promotes local culture.

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July 2024 export data from Pakistan shows a significant rise.

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The Strategic Investment Facilitation Council (SIFC) has been instrumental in improving Pakistani products’ access to international markets, as seen by the significant surge in exports from the country at the start of the 2024–25 fiscal year.

With a 7.26% rise over the same month the previous year, July 2024 exports to the US were $476.017 million. After increasing by 7.74% annually, the United Arab Emirates emerged as the second-largest export destination.

The third and fourth places were occupied by exports to the UK ($183.303 million) and China ($60.100 million). A substantial increase in exports to Afghanistan was recorded in July of this year, rising from $46.262 million to $88.065 million, largely due to successful anti-smuggling efforts.

With a combined export volume of $553.951 million, more important export destinations included Germany, the Netherlands, Italy, Spain, Saudi Arabia, and Turkey.

A bright future for the national economy is suggested by the growing confidence major international markets have in Pakistani exports. Through the efforts of SIFC and the government, this greater access to global markets has been made possible.

Pakistan’s economy is predicted to remain stable as a result of the export growth that SIFC has enabled.

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