Tag: finance

  • PKR suffers losses against USD for 5th consecutive day

    PKR suffers losses against USD for 5th consecutive day

    The State Bank of Pakistan and the government were unable to stabilise the exchange rate as the Pakistani rupee lost value for the fifth straight day on Monday after falling 46 paisas against the US dollar in the interbank market.

    State Bank of Pakistan reports that the local unit decreased by 0.37 per cent to close at Rs219.71.

    The closing price in the interbank market, according to the Exchange Companies Association of Pakistan (ECAP), was Rs220 as opposed to Rs219.50 in the previous trading session.

    US dollar dropped 30 paise in the open market, closing at Rs225.70 as opposed to Rs226 the previous session. Its price on October 11 was Rs219

    The optimistic market sentiments that appeared following the nomination of Ishaq Dar as finance minister in anticipation of his potential to secure dollar inflows appeared to have disappeared.

    In FY23, Pakistan would need around $32 billion to pay for its foreign debt, mostly to service it, as well as to close its current account deficit. In a recent interview with a foreign news outlet, the finance minister stated that he will seek to reschedule approximately $27 billion in non-Paris Club debt, the majority of which is owed to China.

  • 4th consecutive decline: PKR drops by 46 paisas to Rs218.89

    4th consecutive decline: PKR drops by 46 paisas to Rs218.89

    The Pakistani Rupee (PKR) lost ground against the US Dollar (USD) today, reversing last week’s gains.

    The local unit fell 0.21 per cent against the US dollar today, closing at Rs218.89 after losing 46 paisas in the interbank market. During today’s open market session, the rupee hit an intraday low of Rs219.500 against the US dollar.

    When trade resumed against the greenback, the local unit was all red and opened trade at Rs219.00 in the open market. By midday, the dollar had risen to Rs219.25 against the rupee. After 2 pm, the local currency remained in the red and remained at Rs218 against the top foreign currency before the interbank close.

    Today was the fourth consecutive day that the rupee fell against the US dollar. Money changers are sceptical of a PKR recovery unless the government enacts stringent policies to combat the forex slowdown.

    According to one regular trader, the market is also reacting to Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) winning six National Assembly seats in a by-election on Sunday, which was viewed as a direct contest between the former ruling party and the current ruling coalition.

    While the market watches for any changes in monetary policy, the local unit is expected to fall further against the dollar. The State Bank of Pakistan (SBP) has begun clearing importers’ letters of credit (LCs), but money changers say the process could be put on hold if another shortage hits the dollar aisle in the coming days.

  • Ishaq Dar leaves for US to attend annual IMF, World Bank meetings

    Ishaq Dar leaves for US to attend annual IMF, World Bank meetings

    The Federal Minister of Finance and Revenue Ishaq Dar would ask the World Bank (WB) for an early release of cash and the International Monetary Fund (IMF) to relax the program’s rules.

    Alongside the annual meeting, Ishaq Dar will meet representatives from the IMF and WB. He will also meet representatives of the global rating agency Moody’s and the IMF to examine the state of the economy and the loan programme.

    According to Dawn, the discussions will also include participation from the Finance Secretary and the Governor of the State Bank of Pakistan (SBP).

    At a press conference on Saturday, the minister firmly denied rumours that he will visit the Paris Club to reschedule loans from multilateral lenders and donor organisations.

    The minister added that they had complied with the report of the most recent Moody’s credit rating in a hurry and that the ministry had provided its response in a press release.

    The Prime Minister met with representatives from the World Bank and the International Monetary Fund last month on the UN sidelines to review the current flood situation and request relief in the programme terms, which they pledged to take favourably.

  • Pakistani rupee continues to rise for 13th consecutive session

    Pakistani rupee continues to rise for 13th consecutive session

    The Pakistani rupee is strengthening versus the US dollar in the interbank market and increased by more than 0.4 per cent on Tuesday morning.

    During intra-day trading, the rupee was quoted at Rs216.97 at around 10:40 am, up Rs1 or 0.46 per cent against the US dollar.

    On Monday, the rupee continued its upward trend against the US dollar for the 12th straight session and appreciated Rs1.95 or 0.89 per cent to settle at Rs217.97.

    The Monetary Policy Committee (MPC) of the central bank maintained its benchmark policy rate at 15 per cent on Monday, which was a significant development.

    However, market observers attribute the rupee’s recent increase to the central bank and other authorities’ efforts to curb market speculation.

    According to Brecorder, the United Nations Development Programme issued a grim warning on Tuesday, stating that there was a debt problem that was rapidly worsening in a number of developing countries, including Pakistan.

    Without prompt assistance, the poverty rate in at least 54 countries would increase, according to UNDP, and “critical investments in climate adaptation and mitigation will not happen.”

    Sri Lanka, Pakistan, Tunisia, Chad, and Zambia are the nations most at risk right now, according to UNDP head economist George Gray Molina.

    In other countries, the dollar loomed big over precarious financial markets on Tuesday, worrying investors with concerns about rising interest rates, global growth, and geopolitical tensions.

    The 20-year high of Rs114.78 that it reached late last month was not far away; the US dollar index was up 0.053 per cent at Rs113.12 at the time.

    An increase in COVID-19 cases in China and a stronger US dollar contributed to Tuesday’s decline in oil prices, a major measure of currency parity, as they sparked worries about a faltering global economy.

  • Approaching Paris Club for funds would be my last resort: Ishaq Dar

    Approaching Paris Club for funds would be my last resort: Ishaq Dar

    The Federal Minister of Finance and Revenue, Ishaq Dar, said on Friday that approaching the bilateral Paris Club creditors for debt relief would be his final option since rating agencies lower the ratings of countries who approach the Paris Club.

    The country was not looking for or in need of any rescue from commercial banks or Eurobond creditors, according to Dar’s predecessor Miftah Ismail. “Given the climate-induced disaster in Pakistan, we are seeking debt relief from bilateral Paris Club creditors,” Miftah said.

    “We plan on doing business and investors hesitate when countries seek relief from bilateral Paris Club creditors,” Dar said during an interview.

    Dar responded to Moody’s decision to lower the Government of Pakistan’s senior unsecured debt rating from B3 to Caa1 by saying that the rating agency had taken a discriminating approach against Pakistan from a professional standpoint.

    “Our team spoke to the officials of the rating agency and even I spoke to them personally,” he continued, saying that he had advised them to stay patient for a few days.

    He bemoaned the way Moody’s had presented Pakistan as, God forbid, being in default.

    Dar stated that efforts will be made to fulfil the conditions set forth by his predecessors in reference to his meeting with IMF employees later this month.

    “I have solutions to present in front of the fund members in order to convince them of my decision regarding the petroleum prices,” he said.

    According to Geo, the government lowered the price of petrol by Rs12.63 a litre last week, which brought much-needed relief to the nation’s inflation-stricken citizens and raised concerns over the current IMF programme.

    The finance minister explained the rupee-dollar parity by expressing optimism that the value of the rupee will go below the 200-point mark against the US dollar in the upcoming days.

  • Pakistani rupee gains Rs3 against dollar in early interbank trading

    Pakistani rupee gains Rs3 against dollar in early interbank trading

    The Pakistani rupee maintained its stability on Wednesday, the second working day of the week, after regaining ground versus the US dollar on Tuesday in the interbank market.

    Details indicate that the value of the local currency relative to the US dollar increased by Rs3.32 and that it was trading at about Rs234. Data from Pakistan’s central bank show that the rupee ended the day at Rs237.02 on Monday.

    The rupee has recovered a total of Rs5.65 over the last two working days thanks to the most recent intraday increase.

    Despite disastrous floods wrecking Pakistan’s economy, the rupee came close to hitting a record low of Rs240 versus the dollar but was unable to do so following many encouraging signs.

    According to Zafar Paracha, General Secretary of the Exchange Companies Association of Pakistan (ECAP), the market appears to be reacting to the arrival of PML-N leader Ishaq Dar and the announcement that he will succeed Miftah Ismail as finance minister.

  • Intraday trade: PKR resumes downward spiral against US dollar, falls to Rs223

    Intraday trade: PKR resumes downward spiral against US dollar, falls to Rs223

    The Pakistani rupee was trading between Rs222-223 on Wednesday as losses against the US dollar persisted in the early hours of trading.

    During intra-day trading, the rupee was quoted at Rs222.49 at roughly 10:30 am, depreciating by Rs1.07 or 0.48 per cent against the US dollar.

    The local unit lost for the third session in a row on Tuesday, falling down Rs1.56 or 0.7 per cent against the dollar to close at Rs221.42.

    According to analysts, the government’s decision to let the duty-free import of edible commodities to promote food security after floods severely damaged the nation’s agriculture sector has led to a spike in demand for dollars on the local market.

    However, the dollar is also strengthening globally. On Wednesday, after U.S. economic data supported the notion that the Federal Reserve will continue with policy tightening, it reached fresh highs against the yen and the Australian and New Zealand dollars.

    The US dollar index, which compares the value of the dollar to six important rival currencies, increased 0.08 per cent to Rs110.43, remaining close to the 20-year high set on Tuesday of Rs110.57.

    On Wednesday, oil prices, a major factor in determining currency parity, fell more than $1 to their lowest level since before Russia invaded Ukraine as COVID-19 restrictions in the world’s top crude importer China and anticipation of further interest rate increases stoked concerns about a global economic slowdown and a decline in fuel demand.

  • Pakistani rupee continues to recover, PSX witnesses bullish trend

    Pakistani rupee continues to recover, PSX witnesses bullish trend

    The dollar was trading at Rs223 on Thursday, as the Pakistani rupee (PKR) increased by Rs5.79 in interbank trade to extend its winning streak versus the dollar to five days.

    The Pakistani rupee increased against the US dollar for the fifth day in a row, rising Rs2.65 to close at Rs226.15.

    US dollar to Pakistani rupee rate – 4 August 2022

    As the market opened on a good note and remained optimistic with heavy volumes in nearly all sectors for a while, the benchmark KSE-100 likewise rose up to 500 points before 12:00 pm. However, as of 1:40 pm, the market fell by 290 points.

    On Wednesday, the rupee gained the most against foreign currencies in a single day, ending the day at Rs228.80. The dollar’s decline versus the rupee reached its biggest level since November 2, 1998, when it dropped by Rs5.10.

    The local currency is strengthening as a result of increased export inflows and reduced import expenditures, with optimism that the cash-strapped nation was getting closer to winning an IMF bailout bolstering confidence.

    A board meeting is provisionally scheduled for late August after sufficient finance assurances are secured, according to a statement released on Tuesday by Esther Perez Ruiz, the IMF’s Resident Representative for Pakistan.

    Read more: Pakistan rupee appreciates Rs9.58 against US dollar, closes at Rs228.8

    The dollar may devalue between Rs180 and Rs190 against the Pakistani rupee if the IMF releases the $1.2 billion tranche in August, according to Malik Bostan, chairman of the Exchange Companies Association of Pakistan (ECAP).

  • State Bank of Pakistan fines major banks for violating regulations

    State Bank of Pakistan fines major banks for violating regulations

    Banks operating in Pakistan have been slapped with hefty fines from the State Bank of Pakistan (SBP) totaling Rs131.4 million as a result of enforcement action against infractions of its established policies.

    According to the specifics, SBP fined JS Bank Limited Rs85.148 million, the highest sanction of the three banks, for breaking regulator guidelines regarding CDD/KYC, Asset Quality, FX, and General Banking Operations. Additionally, the central bank has recommended JS Bank Limited to improve its processes and controls in the areas that have been highlighted.

    In addition, Habib Bank Limited was fined Rs29.035 million for disobeying regulatory directives regarding CDD/KYC. The bank has been urged to tighten its controls and procedures in the highlighted areas in addition to the punitive action.

    Last but not least, the Bank of Punjab was additionally penalised Rs17.243 million for breaking regulatory guidelines relating to Asset Quality & CDD/KYC. Along with taking legal action, the bank has been urged to tighten its procedures and controls in the highlighted areas.

    The SBP has previously imposed fines totaling more than Rs100 million on four banks for regulatory violations.

    Read more: Rupee gains ground against dollar for second day, closes at Rs238

    Earlier, due to a breach of asset quality regulations, the National Bank of Pakistan (NBP) was fined Rs19.26 million. Additionally, U Microfinance Bank Limited which is owned by Ufone was fined Rs10.26 million and given the go-ahead to launch an internal investigation into any violations of regulatory directives as well as to discipline any indiscreet employees.

    According to SBP, these actions are based on shortcomings in the observance of regulatory directives and do not reflect poorly on the businesses’ financial soundness.