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Rupee races past 300 shattering all records against dollar

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2 years ago

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  • Greenback closes at Rs300.22 in the interbank market.
  • Interbank market trying to catch up with kerb market: expert.
  • “Dropping exports, remittances causing dollar liquidity crunch”.

KARACHI: The Pakistani rupee breached the 300 mark against the US dollar in the interbank market during the intraday trade Thursday, data from the Exchange Companies Association of Pakistan (ECAP) showed.

The pressure has increased on the local unit — which closed at the historic low of 300.22 today — as demand grew for the greenback following the relaxation of import restrictions and rising risks associated with financing the country’s current account deficit.

According to ECAP, the USD is trading at Rs316 against the local currency in the open market taking the difference between the interbank and kerb rates to Rs15.75 — 5.25%.

On Wednesday, the currency fell to 299.64 against the USD, 0.21% lower from Tuesday’s close of 299.01.

Economic expert and former adviser to finance minister Dr Khaqan Najeeb told Geo.tv that pressure from the release of already parked containers and dropping exports and remittances are causing a dollar liquidity crunch in the economy.

The interbank market, he said, is also trying to catch up with the kerb market as Pakistan has agreed to a structural benchmark with the International Monetary Fund of keeping the two markets with a difference which can not be more the 1.25% on the average in five days.

“The open markets are also supply constrained but the demand stays high because the part of imports that are not fulfilled by the interbank market are also taken care of at the kerb market and because of the dollarisation because many people tend to feel that dollar is a storer value and best to hold.”

The expert also pointed out that the monetary policy has fallen behind in creating an impact on people wanting to hold the rupee as well.

He added that inflows have to increase at the interbank level which is the best way to ensure that the Pakistan rupee tends to stabilise

“Also the certainty on the economic plan and the future planned inflows will also help as the next tranche may not be due in the coming months,” he said.

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Business

Issues Affecting Pakistan’s Textile Mills Industry: The Government Is Determined To Address Textile Industry Concerns: FM

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3 days ago

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Muhammad Aurangzeb, minister of finance, has stated that the government is firmly committed to helping the textile industry in every way possible.
He made this pledge today in Islamabad during a meeting with the All Pakistan Textile Mills Association’s leadership.
In order to guarantee the long-term sustainability and future expansion of Pakistan’s industrial sector, the Minister also reaffirmed the government’s commitment to addressing important tax, energy, and funding challenges.
He welcomed the APTMA office-bearers and gave the delegation his word that the government is committed to resolving the issues facing the textile industry since it understands how important it is to Pakistan’s economy.
Muhammad Aurangzeb underlined that resolving the fundamental issues facing the sector is essential to establishing an atmosphere that is favorable for industrial expansion, promoting economic stability, and bolstering the country’s overall growth trajectory.

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As the MPC meeting draws closer, stocks rise.

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3 days ago

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On the final working day of trading, the Pakistan Stock Exchange (PSX) maintained its optimistic trend.

After rising more than 900 points, the benchmark KSE-100 index stabilized around 114,684 points.

The forthcoming Monetary Policy Committee (MPC) meeting on March 10 is allegedly connected to the bullish trend.

Recall that the KSE-100 index gained over 1,400 points on Thursday before closing at 113,713 points.

The greenback, on the other hand, dropped Rs0.07, from Rs279.82 to Rs279.75.

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

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4 days ago

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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.

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