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Rupee plunges to 294.93 against US dollar in interbank

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1 year ago

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

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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.

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Business

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

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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.

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Business

Discos report losses of Rs239 billion.

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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.

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