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

E&P Companies Will Invest $5 Billion in Pakistan’s Petroleum Industry

Published

2 days ago

Farwa

Over the next three years, local and foreign companies involved in Pakistan’s oil and gas exploration and production sector have shown a strong desire to invest more than $5 billion in the nation’s energy sector.

Recent changes to the Petroleum Policy and the implementation of an exclusive tight gas policy, which provide better incentives and a more investor-friendly regulatory framework, are credited with the increase in investor confidence.

These strategic changes are expected to boost domestic energy production, open up new avenues for growth, and draw large amounts of both domestic and foreign investment.

Business

With inflation slowing, the SBP is anticipated to lower the policy rate for the eighth time in a row.

Published

2 days ago

Farwa

Businesspeople anticipate another reduction in the policy rate when the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) releases the updated rate.

The interest rate for the upcoming two months will be announced by the central bank. It is still unclear if the rate will stay the same or be lowered to reflect stakeholder expectations.

According to experts, the policy rate will be lowered in order to further boost the nation’s economic sector.

Interest rates may be lowered for the seventh time in a row if the inflation rate declines significantly more than anticipated.

In its last six sessions, the MPC had cut the policy rate by 10 percent. In January 2025, it decreased the rate by one percent to 12pc.

12PC POLICY RATE

In January, the State Bank of Pakistan (SBP) announced cut in key policy rate by 100 basis points (bps) to 12 percent from 13pc in line with expectations of the business community.

The policy rate, which had been at 22 percent since June 2024, was slashed by 1,000 basis points to 12 percent.

The SBP governor said the decision was taken with careful consideration. “Although inflation is expected to decline next month (February), core inflation remains a pressing concern,” he stated.

Ahmed highlighted strong remittance inflows and robust export growth as key factors supporting the current account.