Local unit closes at 287.29 against the US dollar.
Rupee down 2.25 against greenback in interbank market.
Importers have resumed the panic buying of US dollars.
Pakistani rupee touched a record low on Tuesday as the country struggles to unlock critical International Monetary Fund (IMF) funding while dwindling foreign exchange reserves become another source of concern for investors.
The local unit, in the interbank market, closed at 287.29 against the US dollar, 0.78%, or Rs2.25, down from Monday’s close of 285.04.
Last month, the rupee hit a record low, closing at Rs285.09 per US dollar on March 2, 2023, the data released by the State Bank of Pakistan (SBP) showed.
A trend curve of rupee-dollar parity. — Arif Habib Limited
Financial pundits believe that importers have resumed the panic buying of US dollars, while the supply of foreign currency remained low in the interbank market.
Pakistan’s loan programme is yet to materialise months after it raised taxes and energy prices and allowed the currency to depreciate to meet IMF’s conditions. The nation has missed multiple deadlines to resume its bailout.
The cash-strapped nation secured a $6 billion IMF bailout in 2019. It was topped up with another $1 billion last year to help the country following devastating floods, but the IMF then suspended disbursements in November due to Pakistan’s failure to make more progress on fiscal consolidation.
After months-long unfruitful talks, the Washington-based lender has asked Pakistan to seek commitments for new loans from Saudi Arabia and the United Arab Emirates before it revives the bailout.
The IMF’s resident representative for Pakistan said the country has a few more tasks to complete to meet requirements for a $6.5 billion bailout. The lender approved a $3 billion loan program for Sri Lanka last month to ease its economic crisis.
“Uncertainty on IMF and friendly countries inflow affecting rupee,” said Mohammad Sohail, CEO of Topline Securities.
“Some of the ruling coalition partners are due to visit Saudi Arabia next week and it is a key event to watch,” it added.
Finance Minister Ishaq Dar will be leading a high-powered delegation to the US which will attend the upcoming annual spring meeting of the Bretton Woods Institutions, known as the IMF and World Bank, from April 10 to 16.
Moreover, the country’s foreign exchange reserves have also declined in recent weeks, which is another source of concern for investors. The forex reserves held by the central bank stand at a critical level of only $4.24 billion (as of March 24, 2023).
Remittances under the Roshan Digital Account (RDA) increased from US $9.342 billion at the end of 2024 to US $9.564 billion by the end of January 2025.
The most recent data issued by the State Bank of Pakistan (SBP) revealed that remittance inflows in January totaled US$222 million, compared to US$203 million in December and US$186 million in November 2024.
Millions of Non-Resident Pakistanis (NRPs), including those who own a Non-Resident Pakistan Origin Card (POC), desire to engage in banking, payment, and investing activities in Pakistan using these accounts, which offer cutting-edge banking options.
Nearly 778,697 accounts were registered under the scheme by the end of January 2025, according to the data.
By the end of January, foreign-born Pakistanis had contributed US $59 million to Roshan Equity Investment, US $479 million to Naya Pakistan Certificates, and US $799 to Naya Pakistan Islamic Certificates.
A year-by-year breakdown of the depreciation value of residential and commercial built-up properties is included in the updated property valuation rates for Karachi that the FBR has announced.
The notification said that built-up structural values on residential property will be gradually reduced.
A residential home’s built-up structure, which is five to ten years old, will lose five percent of its worth.
In a similar vein, constructions between the ages of 10 and 15 will lose 7.5% of their value, while those between the ages of 15 and 25 would lose 10%. Built-up structures that are more than 25 years old will be valued similarly to an open plot.
Furthermore, age will also be used to lower the valuation of built-up properties, such as apartments and flats.
Structures that are five to ten years old will depreciate by ten percent, while those that are ten to twenty years old will depreciate by twenty percent. A 30% depreciation will be applied to properties that are 20 to 30 years old, while a 50% reduction will be applied to those that are above 30 years old.
In terms of commercial built-up properties, buildings that are 10 to 15 years old will lose 5% of their value, while those that are 15 to 25 years old will lose 8%. The value of properties that are more than 25 years old will drop by 10%.
In contrast, there would be a 15% boost in the value of commercial properties in the Defence Housing Authority (DHA) that face any Khayaban.
Remittances from Pakistani workers totalled US$3.0 billion in January 2025, representing a 25.2% increase from the previous year.
The cumulative remittances for July through January of FY25 were 20.8 billion dollars, up 31.7 percent from 15.8 billion dollars during the same period in FY24.
In January 2025, the United States of America contributed 298.5 million dollars, the United Kingdom contributed 443.6 million dollars, the United Arab Emirates contributed 621.7 million dollars, and Saudi Arabia contributed 728.3 million dollars.