Connect with us

Business

Pakistan has the region’s lowest foreign exchange reserves: SBP Governor

Published

2 months ago

on

Governor Jameel Ahmed expressed before the Senate Standing Committee on Finance that inflation is anticipated to increase in the last quarter of the current fiscal year and the initial quarter of the subsequent year. He emphasized that Pakistan is required to fulfill $4.5 billion in external debt obligations by July 2025.

Ahmed affirmed that a UAE safe deposit will be settled as planned this month. He stated that, for the first time in two decades, the current account exhibited a surplus as of November in the current fiscal year.

The decrease in the interest rate has diminished debt servicing expenses from PKR 9.8 trillion to PKR 8.3 trillion. During the conference, it was disclosed that Pakistani banks incur approximately $800 million each year for ATM card and internet transaction services. The committee proposed the implementation of a local payment card to alleviate this load.

The committee chairman said that if banks do not cease dollar payments for local services, legislative action will be contemplated. He voiced apprehension regarding money shortages amidst the expenditure of billions on card services.

Although the PayPak card was introduced in 2016, the initiative did not achieve significant popularity. Ahmed asserted that remittances may attain $35 billion this fiscal year, exceeding the budgetary objective by $5 billion. He observed that the central bank presently possesses $11.7 billion in reserves and engages in market intervention by purchasing excess dollars or selling when required.

The State Bank anticipates a profit of PKR 3.4 trillion for this fiscal year, with fiscal capacity in debt servicing potentially reaching PKR 1.5 trillion, hence facilitating the attainment of budgetary objectives.

On December 17, 2024, the SBP governor revealed that Pakistan repaid a debt of two billion dollars during the preceding two years.

During a television chat show, the SBP governor indicated that foreign exchange reserves have risen.

He indicated that the current account will exhibit a surplus of 700 million dollars in November.

The governor of the central bank stated that the State Bank of Pakistan has acquired dollars from the interbank market.

He also stated that remittances from abroad will exceed 35 billion US dollars in the current financial year.

The governor’s comments followed the State Bank of Pakistan’s (SBP) reduction of the policy rate by 200 basis points in its monetary policy on Monday.

The State Bank of Pakistan (SBP) announced that the Monetary Policy Committee (MPC) has resolved to reduce the policy rate by 200 basis points to 13 percent, effective December 17, 2024.

It stated that inflation decreased to 4.9 percent year-over-year in November 2024, consistent with the MPC’s projections.

Related Topics:
Continue Reading

Business

Trade ties between Pak-Oman: Both nations decide to activate “Joint Business Council”.

Published

1 day ago

on

By

Jam Kamal Khan, federal minister for commerce, visited Oman Chamber of Commerce and Industry in Muscat alongside chairman Faisal Abdullah Al Rawas.

To enable closer economic collaboration, both sides decided during the meeting to activate joint Business Council between OCCI and the federation of Pakistan Chambers of Commerce and industry.

Concurrent with the conference, the Embassy of Pakistan arranged a b2b networking event in association with OCCI to gather Omani Businessmen and Pakistani Business Delegates investigating trade prospects.

Speaking on the occasion, Jam Kamal Khan said, “Our present trade figures do not fairly represent the depth of our connection. We can quickly raise the current Trade volume to two or three times its present level by just eliminating logistical and communication barriers.

Continue Reading

Business

Despite economic gains, PSX remains strong.

Published

1 day ago

on

By

Amidst the ongoing negotiations with the International Monetary Fund (IMF) regarding a loan tranche, the Pakistan Stock Exchange (PSX) has resumed its upward trajectory in recent days.

The KSE-100 Index gained 600 points on Friday, the penultimate working day of the business week, and then increased to 115,730 points as traders showed confidence and engaged in trading.

After experiencing fluctuations, the PSX gained strength on Thursday, as the major index surpassed 115,000 points.

The KSE 100-Index closed at 115,094.23 points after gaining 1,009.70 points, or 0.89 percent. 115,247.39 was the intraday high, and 14,429.93 was the lowest.

According to experts, one important factor is Moody’s Ratings’ upgrade of Pakistani banks. Investor confidence has also increased due to the expectation of a positive conclusion from the negotiations with the International Monetary Fund (IMF).

In its assessment, Moody’s stated, “We have shifted our outlook on Pakistan’s banking system from stable to positive to reflect the banks’ resilient financial performance as well as improving macroeconomic conditions from very weak levels a year ago.”

The major index of the Pakistan Stock Exchange (PSX) surpassed 115,000 on Thursday, indicating a surge in the market.

Continue Reading

Business

Pakistan resolves to meet benchmarks, and the IMF promises economic help.

Published

1 day ago

on

By

In the midst of an ongoing economic review, the delegation from the International Monetary Fund (IMF) has promised Pakistan economic cooperation.

In order to assess the delivery of a $1 billion tranche under the $7 billion rescue deal, IMF officials are now in Pakistan.

Today, March 14, marks the completion of the two-week-long economic review and negotiations between the global lender’s representatives and Pakistani authorities.

The team met with Finance Minister Muhammad Aurangzeb at the Ministry of Finance for the last round of negotiations.

The nation’s economic team’s actions and performance were praised by the visiting officials.

Aurangzeb promised the IMF during the conference that all economic goals would be met. He said that as long as the loan program is in place, no goals would be broken.

Continue Reading

Trending