Business

Rupee expected to recover to 250 against dollar: top currency dealer

Published

1 year ago

Farwa

Exchange companies now getting $15 million per day: Bostan.
Crackdown exposes nexus between black marketeers, banking staff: ECAP chief.
Permanent check on illegal dollar trade will help boost reserves.

ISLAMABAD: Chairman Exchange Companies Association of Pakistan (ECAP) Malik Bostan hopes in the backdrop of government’s crackdown against hoarders, black marketeers and smugglers of dollars, the country’s remittances may increase by 10-20%.

Talking to The News, he said because of the crackdown the foreign exchange companies, which earlier used to get around $5 million per day, are now getting $15 million per day i.e., 200% increase. For the same reason, he said the interbank and open market dollar rate has considerably come down and now stands around Rs295. He assured if the crackdown continued, the dollar will come down to below Rs250.

Bostan disclosed the crackdown against hoarders, black marketeers and smugglers of dollars has also exposed a nexus between black marketeers and banking staff. Huge amount of dollars, he said, was stashed in lockers of different banks, and the bank staff in coordination with the black marketers, used these dollars for hawala/hundi. Keys of these lockers were with the corrupt bank staff members, Bostan said, adding upon receiving messages from black marketers concerned, they (bankers) used to do the illegal trading of US dollars.

The chairman of ECAP claimed several FIRs have been lodged against the bankers involved in this illegal activity.

Bostan said the illegal dollar business has also corrupted many importers and exporters. He explained there is a trend of over-invoicing among importers and under-invoicing among exporters only for the sake of dollars’ illegal trade. The importers through their over-invoicing send more dollars abroad, whereas the exporters through under-invoicing leave a considerable part of their dollars in foreign banks. This hurt Pakistan and its foreign exchange reserves, Bostan said.

He also pointed out how the dollars were smuggled to Afghanistan. He believed a permanent check on illegal dollar trade in all its shapes will help Pakistan boost its foreign exchange reserves.

Following the crackdown, which began on Sept 6 after a military leadership push, tens of millions of dollars have already been deposited into the country’s interbank and open markets. Pakistani rupee, which had plumbed record lows to Rs308 in interbank and beyond Rs330 in open market early this month, is in recovery mode and has come down to Rs295 in interbank and Rs296 in open market. This trend is expected to continue if the crackdown against illegal trade of US dollar continues.

According to Bostan, he had requested Army Chief General Asim Munir to take action against hoarders, black marketeers and smugglers of dollars. Before the crackdown, the vast majority of people were going to black market dealers.

Business

Report: Solar is expected to set new records this year.

Published

14 hours ago

Farwa

In 2023, there was an expected 87% increase in growth. This year’s increase is 29% over the previous one, according to the research.

The cheapest source of electricity globally is solar power, and as such, it is expanding quicker than many anticipated, according to Euan Graham, an Ember electricity data analyst.

Ember estimates demonstrate the rapid growth of solar energy: in 2024 alone, new solar capacity will surpass the 540 GW of additional coal power added globally since 2010.

Expected to add 334 GW, or 56 percent of the global total in 2024, China continues to lead the globe in this industry.

According to the survey, it is followed by the US, India, Germany, and Brazil. These five nations will account for 75% of the new solar capacity in 2024.

According to the research, maintaining the sector’s growth required grid capacity and battery storage.

“Providing enough grid capacity and developing battery storage is critical for handling electricity distribution and supporting solar outside of peak sunlight hours as solar becomes more inexpensive and accessible,” the statement stated.

“Solar power might continue to surpass forecasts for the remainder of the decade if these issues are resolved and development is sustained.”

Business

The PSX has resumed operations, achieving a gain of 970 points.

Published

1 day ago

Farwa

The optimistic close at the PSX was propelled by rumors preceding the International Monetary Fund (IMF) executive board meeting on September 25, at which the approval of a $7 billion Extended Fund Facility (EFF) is expected, stated Ahsan Mehanti of Arif Habib Commodities.

Strong economic indicators, such as increasing remittances, escalating exports, and a declining trade deficit, further bolstered investor confidence. Furthermore, the Asian Development Bank’s (ADB) commitment to a $2 billion yearly concessional loan until 2027, along with a robust rupee, significantly contributed to the market’s favorable performance, he stated.

Widespread purchasing at the PSX was noted among blue-chip stocks, with major players like Mari Petroleum (MARI), Engro Fertilizers (EFERT), United Bank Limited (UBL), Meezan Bank Limited (MEBL), and Fauji Fertilizer Company (FFC) recording substantial increases. According to Topline Securities, these stocks collectively resulted in a significant 682-point increase in the index.

Pioneer Cement Limited (PIOC) announced its fiscal year 2024 results, revealing a profits per share (EPS) of Rs 22.79 and a cash dividend of Rs 10 per share. This announcement contributed to the favorable sentiment in the market.

Trading volume surpassed 400.2 million shares, resulting in a total turnover of Rs15.9 billion. Worldcall Telecom Limited (WTL) topped the volume chart, transacting more than 32.2 million shares.

The Large Scale Manufacturing Index (LSMI) demonstrated a year-on-year (YoY) gain of 2.4% in July 2024. This expansion was propelled by multiple critical areas.

Tobacco experienced a significant increase of 90.2%, establishing it as the foremost contributor to the LSMI growth. Conversely, the automotive sector witnessed a substantial increase of 72.0%, indicating robust demand and output.

The transport equipment category experienced an 11.7% increase, signifying robust growth in the manufacturing of transport-related machinery and equipment. The other manufacturing sector experienced a gain of 10.7%, positively impacting the overall LSMI.

Nevertheless, not all industries exhibited strong performance. The leading decliner was the fabricated metal sector, which experienced an 18.4% decrease, signifying a contraction in metal product manufacturing. The electrical equipment industry experienced a substantial decline of 19.4%, indicative of reduced output levels.

In July 2024, the LSMI decreased by 2.1% on a month-on-month (MoM) basis. This fall signifies a minor contraction in manufacturing operations relative to the preceding month, although the favorable year-on-year growth.

Business

As of August 2024, Pakistan’s current account is in surplus.

Published

1 day ago

Farwa

Pakistan’s current account deficit was $161 million as of August 2023, according to figures from the central bank.

The current account deficit for the months of July and August of this year was $171 million, compared to $939 million for the same time in the previous fiscal year.

According to experts, the 40% rise in remittances is the primary cause of the current account surplus.

August saw US$ 2.9 billion in offshore remittances to Pakistan, according to experts.

Comparing July of this year to July of last year, total exports increased by 11.3% YoY to $3.01 billion. In contrast to the $3.08 billion in exports the month before, it decreased by 2.2%.

Compared to the $4.99 billion in imports recorded in July of previous year, total imports increased 12.2% YoY to $5.6 billion. Imports decreased by 1.3% over the previous month.