Connect with us

Business

Rupee depreciates against dollar for fifth straight session

Published

2 years ago

on

  • Rupee closes at 224.40 against dollar.
  • Local unit loses 0.01% against greenback.
  • It comes after forex reserves fell to four-year-low.

The Pakistani rupee Friday registered losses against the US dollar for the fifth straight session in the interbank market as the central bank-held foreign exchange reserves fell over 10% week-on-week.

The local unit closed at 224.40 against the greenback after losing 0.01% compared to Thursday’s close of 224.37, data released by the State Bank of Pakistan (SBP) showed.

The development comes after foreign exchange reserves held by the State Bank of Pakistan (SBP) plunged to an alarming level after falling 10.45% to a four-year low.

The foreign currency reserves held by the SBP were recorded at $6,714.9 million as of December 2, down $784 million compared with $7,825.7 on November 25, data released by the central bank showed.

The reserve crisis has raised fears that the country might not be able to meet its foreign debt payments, however, SBP Governor Jameel Ahmad believes that Pakistan can repay its debts.

In the latest episode of the SBP podcast series, Ahmad reiterated that all debt repayments were on track and that country’s foreign exchange reserves were expected to increase in the second half of the current fiscal year.

Commenting on the severity of the dollar crunch, the Ministry of Finance’s former adviser Dr Khaqan Hassan Najeeb, said that it was important to consider that Pakistan had only received $4 billion in the last five months (July-November 2022) — this was beside the rollover.

“The slow inflow of funds, heavy payments — including Sukuk payment — and a less than satisfactory financial account have all added pressure on the reserves which now barely cover a month and 10 days of import payment,” he stated.

But that’s not it as the International Monetary Fund’s (IMF) programme is also stalled after Pakistan did not meet the all requirements for the ninth review.

Finance Minister Ishaq Dar has constantly assured that the country will successfully complete the IMF programme. The country is in desperate need of external financing as the IMF’s review for the disbursement of its next tranche of funding has been delayed since September.

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Irfan Siddiqui meets with the PM and informs him about the Senate performance of the parliamentary party.

Published

2 days ago

on

By

The head of the Senate’s Foreign Affairs Standing Committee and the PML-N’s parliamentary leader paid Prime Minister Muhammad Shehbaz Sharif a visit in Islamabad.

Senator Irfan Siddiqui gave the Prime Minister an update on the Parliamentary Party’s Senate performance.

Additionally, Senator Irfan Siddiqui gave the Prime Minister an update on the Senate Standing Committee on Foreign Affairs’ performance.

He complimented the Prime Minister on his outstanding efforts to bring Pakistan’s economy back on track and meet its economic objectives.

Continue Reading

Business

SIFC Increases Direct Foreign Investment: Investment in the Energy Sector Rises by 120%

Published

2 days ago

on

By

The Special Investment Facilitation Council is intended to help Pakistan’s energy sector attract $585.6 million in direct foreign investment in 2024–2025. The amount invested at the same time previous year was $266.3 million.

This is a notable 120% rise, mostly due to investments in gas exploration, oil, and power. Such expansion indicates heightened investor confidence and emphasizes the development potential in important areas.

The State Bank reports that foreign investment in other vital industries has increased by 48% to $771 million.

This advancement is a blatant testament to SIFC’s efficient investment procedure and quick project execution.

The purpose of the Special Investment Facilitation Council is to establish Pakistan as an investment hub by aggressively promoting regional trade and investment in the energy sector and other critical industries.

Continue Reading

Business

Discos report losses of Rs239 billion.

Published

2 days ago

on

By

When compared to the same period last year, the data indicates that discos have decreased their losses in the first quarter of the current fiscal year.

The distribution businesses recorded losses of Rs239 billion in the first three months of the current fiscal year, a substantial decrease from the Rs308 billion losses sustained during the same period the previous year.

Additionally, the distribution businesses’ rate of recovery has improved. It has increased to 91% in the first quarter of this year from 84% in the same period last year, indicating success in revenue collection.

Regarding circular debt, the Power division observed a notable change. Last year, between July and October, the circular debt grew by Rs301 billion. Nonetheless, this year’s first four months saw a relatively modest increase in circular debt, totaling about Rs11 billion.

These enhancements show promising developments in the electricity sector’s financial health in Pakistan, where initiatives are being made to accelerate recovery rates and slow the expansion of circular debt.

Continue Reading

Trending