Tag: historic high

  • Pakistani rupee sinks to record low of Rs308 against US dollar in open market

    Pakistani rupee sinks to record low of Rs308 against US dollar in open market

    On Tuesday, the Pakistani currency experienced a significant decline, reaching a new record low of Rs308 against the US dollar in the open market. This marked a 1 per cent decrease, or Rs3, from the previous day’s closing rate, as reported by the Exchange Companies Association of Pakistan.

    Consequently, the disparity between the exchange rates in the open market and the inter-bank market widened considerably, reaching a historic high of Rs21 to a dollar. Just a couple of months ago, this difference was in the range of Rs1-3.

    In inter-bank transactions, the central bank stated that the rupee continued its downward trend for the fifth consecutive working day, dropping by 0.21 per cent, or Rs0.59, to a 12-day low at Rs287.15 against the US dollar.

    There has been speculation in the market that the rupee is facing mounting pressure due to the expanding gap between the demand and supply of the US dollar in the currency market.

    In the meantime, Pakistan’s foreign exchange reserves have been consistently depleting and have now reached a critically low level of $4.3 billion. This is concerning because the country requires a comparatively large amount of foreign currency to cover import expenses and repay foreign debt.

    By the end of June 2023, Pakistan has to repay $3.7 billion in foreign debt. Additionally, it needs another $3.7 billion each month to ensure smooth importation of essential goods.

    Currency dealers in the open market have revealed that commercial banks are purchasing dollars in the informal market (kerb market) to settle international payments made through their clients’ credit cards. Furthermore, individuals are acquiring Saudi riyals and US dollars to cover expenses during the Hajj and Umrah pilgrimages.

    Experts strongly emphasize that the government must persuade the International Monetary Fund (IMF) to resume its $6.7 billion loan programme. Additionally, they urge friendly countries to provide fresh financing, which will help mitigate the risk of defaulting on external debt obligations.

    The resumption of the IMF programme will not only assist Pakistan in averting an imminent default but will also enable the country to attract financing from other global lenders and friendly nations. This new financing will bolster the foreign exchange reserves and aid in the reopening of the partially closed economy.

  • Here’s how chicken prices surpassed beef prices for the first time in Pakistan

    Here’s how chicken prices surpassed beef prices for the first time in Pakistan

    Owing to a major shipment that has been stuck at Port Qasim in Karachi for several months, chicken prices have sharply increased and surpassed beef prices (with bones) for the first time in thirty years.

    A shipment of soybean seeds worth $100 million was halted in October 2022 at Port Qasim in Karachi. These oilseeds were designed to be crushed rather than planted. One of the main components of the edible oil used in Pakistan is the liquid that is produced when the seeds are pressed.

    Being one of the biggest importers of palm seeds, soybeans, and other oilseeds from nations like Malaysia, Pakistan is heavily dependent on these oilseeds to meet its demands for edible oil. But because they are also used as cattle feed, these oilseeds serve yet another crucial role in the food chain.

    The solid parts of the seeds are left behind when oilseeds like soybeans are pressed to produce edible oil. Then, “oil cakes” made from this fiber- and protein-rich material are fed to cattle and birds as food.

    The majority of these livestock’s “meals” up until 2015–16 were made from locally obtained cotton seeds. Since they are more nutritive than cotton seeds, soybean meals have gained popularity in recent years. Pakistan consumes 2 to 2.8 million tonnes of these meals each year.

    This indicated that when the soybean shipments were stopped at the port, the poultry business was also shocked in addition to the edible oil industry. Feed for chickens was suddenly unavailable, and prices began to soar.

    Since Pakistan is a signatory to the Cartagena Protocol for Biosafety, the environmental ministry was authorised to halt the exports of genetically modified soybean seeds at the port.

    Several issues arose with this. First of all, despite widespread scaremongering, GMOs have never been proven to be dangerous for human consumption. Second, these oilseeds weren’t intended to be planted solely for the purpose of extracting edible oil and as a component in the poultry industry.

    One of the worries was that since hens were being fed with these GMO oilseeds, the ‘harmful consequences’ from these GMOs would eventually move into the chickens and reach the populace, according to Food Security Minister Tariq Bashir Cheema.

    This argument has a flaw in that Pakistani poultry has been fed oilseed diets made from GMOs since at least 2005. Cottonseed meals, which are generated by genetic modification in Pakistan, are a significant component of the poultry diet.

    As things stand, a sizable portion of the population no longer has access to one of its main sources of protein because of the skyrocketing price of chicken. Mutton and beef prices have risen faster than the Consumer Price Index (CPI) during the last few decades.

    According to Profit, only chicken costs increased more slowly than the CPI during this entire period, making it the only protein source. With chicken now costing more than beef on the open market, the population’s nutritional impact might be affected in the long run.

  • 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).

  • Pakistani rupee crashes to historic low of Rs194 against US dollar

    Pakistani rupee crashes to historic low of Rs194 against US dollar

    During the trading session on Monday, the Pakistani rupee (PKR) maintained its declining trend, touching Rs194, its worst rate versus the US dollar. At the interbank, the greenback strengthened by Rs1.47 during the trading hours.

    The General Secretary of the Exchange Companies Association of Pakistan, Zafar Paracha said that the greenback climbed by Rs11.07 since the new government took government, while debt has increased by Rs1,400 billion due to the disparity.

    Pakistani currency lost 3.1 per cent of its value against the US dollar in the previous week in the interbank market, with Pakistan’s currency hitting new record lows to end the week at Rs192.53, its worst closing in history.

    Read more: Pakistani Rupee crashes to a record low against US dollar 

    The local currency fell in value across the board as concerns about the economy, declining foreign currency reserves, and worsening trade imbalance intensified. Concerns over the International Monetary Fund (IMF) programme have also caused fear and speculation in the market.