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IMF deal pushes Pakistani rupee up by 11.1 against dollar

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KARACHI: The Pakistani rupee on Tuesday gained massively in the interbank market during the intraday trade after the government struck a deal with International Monetary Fund (IMF).

The country on Friday secured a $3 billion short-term financial package from the IMF, giving the economy some much-awaited respite as it teeters on the brink of default.

The greenback was changing hands with the rupee at Rs274.98 after losing Rs11.1 in the interbank during the intraday trade. It closed at 285.99 on June 27 — the last trading session before the Eid holidays.

The dollar had on May 11 soared to a record-high Rs290.93 in the interbank. Since then, it has posted a drop of Rs23.43.

Speaking to Geo News, Topline Securities CEO Mohammad Sohail said that the rupee has gained up to 3% as expected.

“The sustainability of the gains will be confirmed in the coming days as the government claims that the partial funds under the deal will be disbursed by the mid of July.”

Sohail added that the government has also claimed that it would secure around $4-$5 billion from Saudi Arabia, the United Arab Emirates, and the Islamic Development Bank — which would improve the dollar liquidity issues.

The Topline Securities chief executive said that if these payments materialise, the rupee will likely remain strong and stable.

“However, the pressure could increase if the payments get delayed.”

If we believe the government’s claims that Pakistan’s reserves will increase to $14 billion by August, then the rupee will likely stabilise around 270 or 280, he added.

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Islamic Sukuk Bonds: Government Is Expected To Begin Bond Auction Next Week

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There is now more positive economic news for the people of Pakistan. The government is anticipated to begin the Sukuk Islamic Bond auction next week, after the central bank’s announcement of a large drop in the policy rate.

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SIFC Encourages Green Tourism: Reforming Visas to Increase Investment

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Enhancing investment in the tourism sector, Green Tourism Pakistan’s initiative has received backing from the Special Investment Facilitation Council.

Visa-On-Arrival for 126 countries, Visa-Free Entry for Gulf Cooperation Council nations, and 24-hour expedited visa processing are some of the main features of the Green Tourism Visa Policy.

It is anticipated that these endeavors will draw in about 80 million dollars in foreign direct investment and 8.3 billion rupees in domestic investment.

Green Tourism Private Limited has introduced hunting resorts in Naltar, Hunza, and Skardu, along with four- and five-star city hotels, to improve the tourism experience.

In the first phase of the project, 17 of the 78 areas have seen the start of development activity.

Approved is a central authority for Green Tourism that will supervise the growth of Air Operations.

To promote Religious Tourism, extra precautions have been taken to guarantee the security of visitors from all religions, including Sikhs and Buddhists.

Furthermore, in order to improve the quality of the tourist experience, the green guide quality program has been introduced to supply top-notch tour guides.

There is now a deluxe bus excursion from Islamabad to Peshawar that promotes local culture.

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July 2024 export data from Pakistan shows a significant rise.

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The Strategic Investment Facilitation Council (SIFC) has been instrumental in improving Pakistani products’ access to international markets, as seen by the significant surge in exports from the country at the start of the 2024–25 fiscal year.

With a 7.26% rise over the same month the previous year, July 2024 exports to the US were $476.017 million. After increasing by 7.74% annually, the United Arab Emirates emerged as the second-largest export destination.

The third and fourth places were occupied by exports to the UK ($183.303 million) and China ($60.100 million). A substantial increase in exports to Afghanistan was recorded in July of this year, rising from $46.262 million to $88.065 million, largely due to successful anti-smuggling efforts.

With a combined export volume of $553.951 million, more important export destinations included Germany, the Netherlands, Italy, Spain, Saudi Arabia, and Turkey.

A bright future for the national economy is suggested by the growing confidence major international markets have in Pakistani exports. Through the efforts of SIFC and the government, this greater access to global markets has been made possible.

Pakistan’s economy is predicted to remain stable as a result of the export growth that SIFC has enabled.

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