Business

Rupee continues recovery against dollar on hopes of IMF deal within few days

Published

2 years ago

Farwa

The rupee gained further ground against the US dollar as Pakistan was able to secure $500 million from the Industrial and Commercial Bank of China (ICBC) and the expectation of striking a deal with the International Monetary Fund (IMF).

The local currency gained by Rs3.46 against the greenback in the interbank market during the intraday trade. The local unit was seen changing hands 275 at around 11:47pm.

The rupee closed the week on Friday by gaining significant ground against the US dollar. According to the State Bank of Pakistan (SBP), it appreciated by Rs6.63, or 2.38% in the interbank market and closed at 278.46.

Speaking to Geo.tv, Exchange Companies Association of Pakistan (ECAP) General Secretary Zafar Paracha citing a few reasons for the earlier dollar appreciation said that the hype was created by the country’s financial institutions and international players that manipulated and caused the rates to increase.

“Currently, the dollar decreased against the rupee due to the market correction and it is still in the ebb and flow. Financial credentials cannot be changed in one day which can cause the currency to depreciate or appreciate at such a scale,” said Paracha.

The destabilised currency damages Pakistan’s image and foreign direct investment (FDI) and local investors are discouraged due to this reason, he added.

He anticipated that keeping in view the IMF agreement and the inflows from the friendly countries, the dollar should remain in the range of 260 to 265.

Paracha also mentioned that the political condition of Pakistan has been impacting the dollar rates which never had happened before. This time we are on the very weaker side that’s why IMF is also pushing us, he noted.

He also highlighted that the financial conditions are not bad as it is being indicated. Our inflow is $50 billion and our outflow is $60 billion, he said, adding that Pakistan requires $10 to 15 billion which has been halted.

“If we had managed it well, reducing our expenditures and the subsidies of $17.4 billion which the government gives to our elites then it would make a huge impact”, he maintained.

There is a very dire need of increasing our tax base, not the tax rate. No one except the salaried class and big companies pay the tax. Therefore, the government need to increase the tax base, he concluded.

Earlier today, a government official expressed hope of striking a deal with the Washington-based lender.

Another official assured that Pakistan was expecting to strike the staff-level agreement (SLA) with the IMF in the next few days, however, the Fund was reluctant to give any time frame for finalising the agreement.

Business

FBR to Enhance Revenues: Enacts Significant Reforms, Attains Record Revenue Collection

Published

17 hours ago

Farwa

The Federal Board of Revenue has effectively executed significant reforms in the past year, enhancing tax administration, compliance, and digital transformation under the leadership of Prime Minister Shehbaz Sharif.
The FBR implemented AI-driven risk identification algorithms to improve tax audits and introduced a customer relationship management dashboard for real-time compliance monitoring.
Moreover, AI-driven Customs Intelligence and digital invoicing systems have transformed tax collection and customs operations.
The implementation of faceless customs assessment has markedly diminished clearance waits, optimizing international trade.
The unified sales tax return has streamlined the tax filing procedure, while the continuous advancement of a tier-3 data center seeks to enhance data security and AI-driven surveillance.
To enhance transparency, the FBR digitized its litigation management system for faster dispute resolution.

Business

Bilal Bin Saqib designated as main advisor to the Pakistan Crypto Council

Published

18 hours ago

Farwa

The government has designated Bilal Bin Saqib MBE as the Chief Adviser to the Finance Minister on the Pakistan Crypto Council to reinforce Pakistan’s dedication to technological advancement while implementing effective policy measures that bolster the national economy, facilitate digital transformation, and ensure a secure, transparent financial system for all.

A press release from the finance ministry on Wednesday states that Bilal Bin Saqib, acknowledged by Forbes, is a Web3 investor, strategic advisor, and thought leader in the blockchain sector.

Saqib was featured in Forbes’ 30 Under 30 list and has received recognition from King Charles III, the late Queen Elizabeth II, and the Mayor of London for his contributions to the community.

He received the 1632nd Points of Light Award, conferred by the British Prime Minister to acknowledge change-makers in the nation. He was awarded the MBE (Member of the British Empire) in 2023 for his contributions to the National Health Service in the UK.

In this pivotal role as the Chief Adviser to the Finance Minister on the Pakistan Crypto Council, Saqib will lend his great knowledge and experience to Pakistan’s efforts to integrate cryptocurrency and blockchain technologies into its financial ecosystem while ensuring the development of a robust regulatory framework for digital assets in alignment with global best practices.

Furthermore, he will counsel the Finance Ministry on investigating the application of artificial intelligence (AI) to improve governmental efficiency, refine decision-making processes, and foster innovation in public sector operations.

Saqib’s nomination signifies a pivotal advancement in Pakistan’s dedication to harnessing the revolutionary capabilities of digital currencies, safeguarding financial security, alleviating risks, and accurately evaluating the influence of cryptocurrencies on the nation’s economy.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb endorsed the appointment of Bilal Bin Saqib, emphasizing the significant impact his extensive expertise and innovative vision are expected to have on shaping Pakistan’s stance in the swiftly advancing digital economy.

Business

Cooking oil prices climb with the onset of Ramadan.

Published

18 hours ago

Farwa

Edible oils, such as cooking and mustard oils, experienced a significant price increase, with the price of open edible oil escalating from Rs480 to Rs500 per litre.

A local merchant reported, “Mustard oil has risen in price by Rs20 per litre, now costing Rs520.”

Different brands of cooking oil were noted to be priced variably in Karachi’s markets, indicative of the prevailing inflationary trend in food products.

The escalation in edible oil prices corresponded with the surging costs of fruits, prompting consumer apprehension around heightened expenditures during Ramadan.