Business

Rupee snaps three-day losing streak against dollar

Published

2 years ago

Farwa

Local currency gains Rs1.28 against the dollar.
Paracha says it was a “very good” day for economy.
ECAP official expects market sentiment to improve.

The Pakistani rupee has kickstarted the week on a positive note against the US dollar as exporters encashed large amounts of payments, boosting the market sentiment.

The local currency gained Rs1.28 or 0.46% against the dollar in the interbank market to close at 275.29, according to the State Bank of Pakistan (SBP), up from Friday’s close of 276.58. Meanwhile, the rupee remained stable at 283 in the open market.

During the last week, the rupee plunged to a historic low against the dollar after Prime Minister Shehbaz Sharif said that the International Monetary Fund (IMF) was giving Pakistan “a tough time”.

In a video statement, Exchange Companies Association of Pakistan (ECAP) General Secretary Zafar Paracha said that Monday was “very good” for Pakistan’s economy as the rupee appreciated around 6 in the interbank market during intraday trade.

He said that the rupee’s recovery has started as the exporters, who had earlier stopped their payments, have encashed them. He added that there has been pressure to sell dollars in the interbank market.

“It is expected that the market’s sentiments will move towards betterment. The sentiments are changing as the people had [earlier] thought that the dollar would reach 300,” said the ECAP’s secretary general.

He urged the people to sell their dollars for profit-taking. “This would bring stability to our country, our foreign exchange reserves will increase, the rating will improve, the rate of our sukuk bonds will also get better and it will provide ease to the government in holding negotiations with the IMF.”

Paracha added that the staff-level agreement with the Fund will be signed on February 9. “However, the IMF’s conditions will raise inflation and for that, the government needs to manage its expenses.”

He warned that if the people have to bear the brunt of the taxes, then this could lead to an anarchic situation in the country. He said that the government needs to take steps carefully as the political situation is also unstable.

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.