Business

Rupee slide slows down due to current account numbers

Published

2 years ago

Farwa

Rupee closes at 220.95 after losing 0.03% in interbank market.
Analyst says rupee’s outlook has improved significantly.
Since the start of fiscal year 2022-23, rupee has lost Rs16.1.

KARACHI: The downward slide of the Pakistani rupee slowed on Thursday as the encouraging current account deficit number has lent some support to the local unit.

According to the State Bank of Pakistan (SBP), the local currency closed at Rs220.95 in the interbank market after depreciating registering a meagre loss of 0.03% against the greenback compared to Wednesday’s close of 220.88.

The market took positive cues from the current account deficit released a day earlier, which narrowed 37% to $2.2 billion in the first quarter of the current fiscal year due to lower imports and a rise in exports.

Commenting on the rupee’s movement, Pakistan-Kuwait Head of Research Samiullah Tariq said better than expected current account deficit number has improved the sentiment. “Slight movement was exhibited by the rupee,” he said.

Regarding the outlook, Tariq said it had improved significantly with a lower current account deficit number.

Since the start of the fiscal year 2022-23, the rupee has lost Rs16.1 or 7.85% against the US currency — which leaves its imprint on every corner of the global economy as it is the currency in which vital raw materials are bought and sold.

Dar rules out need for ‘steps’ to support rupee

A day earlier, Finance Minister Ishaq Dar ruled out the need for any particular supportive measures for the rupee, stoking optimism among traders that the ‘Darnomics’ will soon be able to crack the country’s monetary conundrum.

“The rupee has been heavily undervalued,” Dar said during an interview with Bloomberg in Washington, where he has been attending annual meetings of the International Monetary Fund (IMF) and the World Bank.

“It is due to speculation — and some players in the market have been responsible for that,” he said.

“I thank those players in the market who have realised that that game at the cost of the national currency will not continue,” he asserted while highlighting that the exchange rate stabilised after traders learned he would take office.

Responding to a query if he was planning to take any “specific steps” to boost the rupee, he said: “I don’t think so. We don’t have the luxury of physically spending foreign exchange — it’s very scarce at the moment.”

Business

Pakistan suffers a loss of millions due to inoperable airports.

Published

19 hours ago

Farwa

The Pakistani economy is strengthening and trending in the right direction, according to Federal Minister of Finance and Revenue Senator Muhammad Aurangzeb on Thursday.

Speaking at the Pakistan Saudi Arabia Business Forum, Aurangzeb stated that the goal of the government was to support the private sector rather than engage in commerce. His goal was to encourage business-to-business (B2B) trade and investment, thus he welcomed the delegation from Saudi Arabia.

Within the last 12 to 14 months, the minister saw a considerable improvement in macroeconomic stability. With the help of foreign exchange reserves sufficient to cover two months’ worth of imports, Pakistan steadied its currency, decreased its current account deficit to less than $1 billion, and produced a primary surplus.

Strong remittances, expanding exports, and a drop in inflation from 38% to 6.9% have all contributed to the consolidation of these benefits, according to Muhammad Aurangzeb. Companies have also profited from the insurance rate reduction.

Even if Pakistan’s credit rating has improved, more work needs to be done to bring it up to at least a B-. Both on the debt and equity sectors, he claimed, institutional flows were returning to the nation.

As the International Monetary Fund (IMF) board approved an extended program for the nation, the Islamabad Stock Exchange set a record high.

He stated that the IMF program will implement structural reforms in addition to ensuring macroeconomic stability for the long run.

The government of Pakistan remains committed to structural changes, sustainable growth, and tax reform, as stated by Muhammad Aurangzeb.

Business

Pakistan’s economy is getting better, according to Muhammad Aurangzeb

Published

19 hours ago

Farwa

The Pakistani economy is strengthening and trending in the right direction, according to Federal Minister of Finance and Revenue Senator Muhammad Aurangzeb on Thursday.

thus,Speaking at the Pakistan Saudi Arabia Business Forum, Aurangzeb stated that the goal of the government was to support the private sector rather than engage in commerce. His goal was to encourage business-to-business (B2B) trade and investment, thus he welcomed the delegation from Saudi Arabia.

As the International Monetary Fund (IMF) board approved an extended program for the nation, the Islamabad Stock Exchange set a record high.

He stated that the IMF program will implement structural reforms in addition to ensuring macroeconomic stability for the long run.

The government of Pakistan remains committed to structural changes, sustainable growth, and tax reform, as stated by Muhammad Aurangzeb.

Business

Remittances from Workers

Published

2 days ago

Farwa

In September of this year, the State Bank of Pakistan reported that remittances from overseas Pakistanis amounted to 2.8 billion dollars, reflecting a 29% increase compared to the remittances received in September of the previous year.

The SBP reports that, with a cumulative inflow of 8.8 billion US dollars in the first quarter of the financial year, workers’ remittances increased by 38.8 percent compared to the first quarter of the previous year.

Remittance inflows in September 2024 were primarily derived from Saudi Arabia at $681.3 million, the United Arab Emirates at $560.3 million, the United Kingdom at $423.6 million, and the United States of America at $274.9 million.