Business

Rupee to recover against dollar as Pakistan gets ready to seal IMF deal

Published

1 year ago

Farwa

Govt serious about taking prior actions to sign SLA.
Rupee gains 2.18% against dollar this week.
Market remains hopeful that IMF agreement will proceed.

KARACHI: The rupee is expected to start its recovery drive against the US dollar as the government’s efforts to secure the International Monetary Fund’s (IMF) bailout programme has boosted the market’s positive sentiments and due to an increase in dollar supply, The News reported Sunday citing traders and analysts.

The government seems serious about taking some prior actions that could help meet the IMF conditions to seal the state-level agreement with the global lender.

During the outgoing week, the local currency gained about 2.18% against the greenback in the interbank market, raising from 275.30 on Monday to 269.28 on Friday.

Although no agreement to unlock the funds from a $6.5 billion bailout was achieved between Islamabad and the IMF during the fund’s 10-day visit, both parties concurred to continue long negotiations because the South Asian nation’s worsening economic crisis does not appear to have a quick resolution.

Pakistan must come to an agreement with the IMF for further money to secure more aid, avoid default, and rebuild foreign currency reserves that have decreased to $2.9 billion.

The stock market embarked on a selling binge, but there was no reaction to both sides’ failure to reach a staff-level accord. It increases the IMF timeframe by at least another 10–12 days and, given the rate at which reserves are depleting, constitutes a serious concern.

Despite a setback, the market remains hopeful that the IMF agreement will proceed, particularly given the several harsh “prior actions” Pakistan has already done.

“As the IMF needs to see some progress on the terms, the staff-level agreement (SLA) is still not in place. In about a week, the SLA might be signed and then sent to the IMF board for final approval. Overall, progress that is good,” said a currency dealer.

A positive effect is happening in the currency market by the exporters, due to dual movement in the currency, who are realising export proceeds, and providing much-needed liquidity in the market, according to Tresmark’s client note.

“For the first time in many months, the market also witnessed material selling in the forward tenors by exporters. In the grey market the last quote was 280/282 and there is some panic there as well as speculators want to book their profits and exit the market,” it said.

There was still a substantial backlog of imports and payments, which would exceed any inflow of export proceeds. But in the medium term, and given that the IMF agreement would go ahead with follow-up from friendly countries and multilateral institutions, demand might go to take a huge hit, it added.

“With that, entities involved in the export business will see a boom where as those in the import business will witness a bust. In the short term the market may stay above the 270/$ level, but may fall back to 262/$ level in the medium term,” the client note stated.

Business

PSX surpasses the historical 71,500-point threshold.

Published

1 day ago

Farwa

Investors celebrated as the PSX finally crossed the historic 71,500 point threshold, signalling a critical turning point in the state of the economy in the country.

The KSE-100 index jumped more than 740 points, soaring to a record high of 71,650 points, demonstrating the tenacity and optimism that pervaded the Pakistani financial market.

This outstanding accomplishment indicates strong growth possibilities for the foreseeable future and demonstrates investors’ faith in the nation’s economic prospects.

The Pakistan Stock Exchange (PSX)’s KSE-100 index saw a minor decline of 60.92 points on Friday, or 0.09 percent, and ended the day at 70,483.66 points.

In the foreign exchange market, the US dollar lost value in relation to the Pakistani rupee at the same time.

Currency dealers claim that on the first day of the workweek, the value of the US dollar dropped by 11 paisas to Rs278.20 in the interbank market, significantly strengthening the rupee.

Business

Outsourcing: Investors from Turkey stop by the airport in Karachi

Published

1 day ago

Farwa

Turkish investors, who are interested in outsourcing Pakistan’s airport industry, sent a high-level team to Karachi Airport.

The domestic arrival and departure lounge at Karachi airport was visited by the Turkish investment group, according to information. The investors were briefed about the workings of the Karachi airport by a delegation of the Civil Aviation Authority, headed by Secretary Aviation Saif Anjum.

An update on the volume of people and business leaving the airport was also provided to Turkish investors. It is anticipated that the delegation would tour the cargo terminal and CAA headquarters today.

The nation’s three main airports, Karachi, Lahore, and Islamabad, were formerly to be outsourced by the federal government.

Interest in outsourcing three of Pakistan’s airports has been expressed by local parties as well as investors from Germany, France, the Netherlands, Qatar, the United Arab Emirates, Malaysia, and Turkiye.

The timeframe for proposal submission for Islamabad International Airport’s outsourcing was extended by the Civil Aviation Authority (CAA) earlier on March 21.

The government’s top objective in the process of outsourcing international airports, according to Prime Minister (PM) Shehbaz Sharif, is openness.

First, he stated that Pakistan is willing to participate in a public-private partnership to outsource a portion of the airport’s commercial activities.

Business

The inaugural flight of Azerbaijan Airlines is between Baku and Karachi.

Published

4 days ago

Farwa

The national airline of Azerbaijan launched direct flights from Baku to Karachi today. There will be two weekly flights on this route, on Thursdays and Sundays.

The first flight will land in Karachi, and Azerbaijan’s ambassador, Khazar Farhadov, will be there to greet it.

This evening also marks the departure of the inaugural flight from Karachi to Baku, in addition to the arrival of the flight from Baku.

Azerbaijan Airlines said last month that it would be growing its network and flight operations in Pakistan.

Aviation insiders have verified that Azerbaijan Airlines is preparing to launch service to Karachi in the coming month of April.

In addition to its current services in Islamabad and Lahore, the airline plans to launch its Karachi route on April 18, with the inaugural flight anticipated to depart on that date.

Azerbaijan Airlines has been given permission to operate flights on the Karachi route, according to sources within the Civil Aviation Authority (CAA).

Following a bilateral agreement between the two nations, Azerbaijan Airlines has been given permission to extend its operations in Pakistan.