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Rupee plunges to 294.93 against US dollar in interbank

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  • Rupee loses Rs3.42 against US dollar in interbank market.Currency dealers attribute depreciation to formation of interim govt.ECAP expects further devaluation amid pressure on foreign reserves.


The Pakistani currency extended losses against the US dollar on Wednesday as it plunged by more than Rs3 against the greenback in the interbank market.The rupee closed at Rs294.93 in the interbank market after it fell by Rs3.42 against the US dollar.

A day earlier, the rupee closed at Rs300 in the open market while it lost Rs3.02 in its value against the greenback to close at Rs291.51 in the interbank market.

Currency dealers attributed the depreciation of the local currency mainly to the formation of a caretaker setup at the Centre as the interim rulers are expected to vigorously implement the International Monetary Fund (IMF) conditions for the $3 billion Stand-By Arrangement (SBA).

The latest devaluation of the rupee came a day after caretaker government led by Prime Minister Anwaar-ul-Haq Kakar approved a massive hike in the petroleum prices, taking petrol and diesel to historic high of 290.45 and 293.40 per litre, respectively.

Exchange Companies Association of Pakistan (ECAP) General Secretary Zafar Paracha had earlier told Geo.tv that the fall in rupee value was expected after the caretaker government took charge.

He said the interim government is expected to take all measures in line with the conditions of the International Monetary Fund (IMF) that the elected regime avoided.

Moreover, he said the recent move to lift all restrictions on imports to meet IMF conditions was also one of the factors that led to the devaluation of the rupee as the move would put pressure on the country’s foreign exchange reserves.

Paracha added that the drop in remittances to Pakistan from its citizens working abroad to $2 billion in the first month of this fiscal year and falling exports were also the factors behind the rupee depreciation.

He said the rupee is expected to fall further against the US dollar to narrow the gap between open and interbank markets in line with the IMF condition.

The ECAP general secretary also blamed the presence of a grey market and the rise in terror incidents in the country for the rise in dollar value against the rupee.

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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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