Business

Govt set to introduce digital currency to stabilse rupee

Published

1 year ago

Farwa

Digital currency will be issued on government’s guarantee.
Central Bank Digital Currency is conducting feasibility analysis.
Digital currency to save expenses incurred on printing of currency notes.

KARACHI: The government has decided to launch digital currency in a bid to save currency printing and distribution costs, The News reported on Tuesday.

The digital currency will also help in appreciating rupee value, improving the economy, and making extensive financial transactions.

The value of the digital currency will be on par with the Pakistani rupee like a unit of Chinese digital currency, which is equal to one Chinese Yuan.

Supported by the State Bank of Pakistan, the Pakistani digital currency will be issued on the government’s guarantee like currency notes. The SBP has started working on introducing the digital currency and it is getting the services of the experts.

A dedicated department — Central Bank Digital Currency — is conducting the cost benefits and feasibility analysis of the digital currency for smooth transactions after its launching.

The government wants to gradually replace currency notes with digital currency but also wants to keep the digital currency and currency notes in parallel with the ratio of 80:20 so that in case of any unforeseen situation, an alternate in the form of currency notes is available.

The digital currency will also save expenses incurred on printing of currency notes, distributing them into different cities, and destroying old notes. Besides, every transaction made through digital currency will be documented, which will help enforce monetary policy effectively.

Digital currency also has a huge potential to foster cross-border trade and investment, while providing unbanked individuals with access to financial services.

It also has the potential to significantly improve the financial industry’s efficiency, resiliency, and reliability, according to the World Bank. Blockchain is one type of distributed ledger.

Business

February 7, 2025: The value of the Pakistani Rupee (PKR) in relation to the US dollar is unchanged.

Published

1 day ago

Farwa

KARACHI: The open market exchange rate between the US dollar and the Pakistani rupee (PKR) was Rs279.4 on February 07, 2025, with a selling rate of Rs281.1. The interbank exchange rate between the US dollar and the Pakistani rupee is Rs 278.45, according to Interbank.

There was no movement in the US dollar (USD) from the previous closure of Rs278.

Business

The NORINCO Group is invited by CM Sindh to explore opportunities.

Published

2 days ago

Farwa

Chinese companies have been invited by Sindh Chief Minister Syed Murad Ali Shah to visit Karachi and other regions of Sindh Province in order to observe the quickly growing businesses and investigate prospects in fields like clean energy, infrastructure development, and public transit projects.

Speaking in Beijing to a delegation headed by the chairman of NORINCO International Co., Ltd., he stated that all facilities required would be provided by the governments of Sindh Province and Pakistan.

With assistance from NORINCO International, the Sindh Chief Minister stated that the Provincial Government will firmly urge North Vehicle and BeiBen to think about setting up a Vehicle Assembly Plant in the Dhabeji Special Economic Zone.

Business

A deal with Pakistan to fight financial crimes has been approved by the Saudi cabinet.

Published

2 days ago

Farwa

In order to strengthen collaboration in the fight against money laundering, terrorist financing, and associated crimes, the Saudi Press Agency announced this week that the Saudi cabinet, led by Crown Prince Mohammed bin Salman, had approved a memorandum of understanding (MoU) with Pakistan’s Financial Monitoring Unit (FMU).

Due to its severe money laundering and terrorism funding issues in recent years, Pakistan was added to the Financial Action Task Force’s (FATF) grey list in June 2018.

The nation was taken off the gray list in October 2022 after enacting extensive measures to fortify its financial system.

The FMU is Pakistan’s financial intelligence unit, created under the Anti-Money Laundering Act of 2010 and tasked with collaborating with foreign partners and evaluating reports of suspicious transactions.

According to the SPA, “the cabinet approved a memorandum of understanding regarding cooperation in exchanging investigations related to money laundering, terrorist financing, and related crimes between the Financial Monitoring Unit in the Islamic Republic of Pakistan and the General Department of Financial Investigation at the Presidency of State Security in the Kingdom of Saudi Arabia.”

The MoU is an indication of Saudi Arabia and Pakistan’s growing strategic partnership. A significant Pakistani diaspora resides in the Kingdom, and numerous Pakistani businesses have established a presence there.

Saudi Arabia has been a key supporter of Pakistan’s economy, bolstering its reserves with substantial deposits in the State Bank of Pakistan and offering deferred oil payment facilities.