Business

Rupee snaps multisession losing streak

Published

2 years ago

Farwa

Rupee mostly remains stable in Friday’s trade
Hopes of dollar inflows underpin buoyant close.
Dollar continues to outshine world currencies.

KARACHI: The rupee Friday closed the session a shade higher versus the US dollar, snapping the multi-day losing streak, mostly on bets of financial assistance from friendly countries and multilateral lenders, dealers said.

According to the State Bank of Pakistan (SBP), the rupee closed at 221.92 after an appreciation of Re0.03 or 0.01% in the interbank market compared to its Thursday’s closing of 221.95 against the dollar.

The local unit ended at 221.95 per dollar after losing Re0.52 or 0.23% on Wednesday.

Moreover, the dollar has been gaining against major currencies after Federal Reserve Chair Jerome Powell signalled US interest rates will likely peak at a higher level than markets expected.

On the other hand, the pound sterling sank after the Bank of England raised rates but warned of a “very challenging outlook.”

Analysts said the SBP’s allowing the exchange companies to trade 20% of remittances in the open market will ease pressure on the rupee.

The SBP on Thursday allowed exchange companies to trade 20% of remittances in the open market to ease pressure on the rupee.

Federal Minister for Finance Ishaq Dar earlier this week announced clearance of Letters of Credit (LCs) up to $50,000, which spiked the dollar demand from importers.

Last week, the exchange businesses requested Dar to allow at least half of the remittances to be used by the open market. They expected that the possibility of receiving half of the remittances would lessen the demand for the dollar and lower its rate in the currency market.

“On our request, the governor State Bank of Pakistan has enabled the exchange companies to sell 20% of workers’ remittances to the general public,” said Malik Bostan, chairman of the Exchange Companies Association of Pakistan (ECAP) said in a statement.

Bostan, along with other members of ECAP held a meeting with governor SBP Jameel Ahmad and thanked him for helping exchange companies whenever they face any problem.

“Due to the low rate of exchange companies, customers are selling in the black market instead of selling to exchange companies as their rate is 10 to 15 rupees more per dollar than exchange companies,” he said.

Business

Pakistan suffers a loss of millions due to inoperable airports.

Published

1 day 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

1 day 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.