Business

Rupee expected to recover to 250 against dollar: top currency dealer

Published

1 year ago

Farwa

Exchange companies now getting $15 million per day: Bostan.
Crackdown exposes nexus between black marketeers, banking staff: ECAP chief.
Permanent check on illegal dollar trade will help boost reserves.

ISLAMABAD: Chairman Exchange Companies Association of Pakistan (ECAP) Malik Bostan hopes in the backdrop of government’s crackdown against hoarders, black marketeers and smugglers of dollars, the country’s remittances may increase by 10-20%.

Talking to The News, he said because of the crackdown the foreign exchange companies, which earlier used to get around $5 million per day, are now getting $15 million per day i.e., 200% increase. For the same reason, he said the interbank and open market dollar rate has considerably come down and now stands around Rs295. He assured if the crackdown continued, the dollar will come down to below Rs250.

Bostan disclosed the crackdown against hoarders, black marketeers and smugglers of dollars has also exposed a nexus between black marketeers and banking staff. Huge amount of dollars, he said, was stashed in lockers of different banks, and the bank staff in coordination with the black marketers, used these dollars for hawala/hundi. Keys of these lockers were with the corrupt bank staff members, Bostan said, adding upon receiving messages from black marketers concerned, they (bankers) used to do the illegal trading of US dollars.

The chairman of ECAP claimed several FIRs have been lodged against the bankers involved in this illegal activity.

Bostan said the illegal dollar business has also corrupted many importers and exporters. He explained there is a trend of over-invoicing among importers and under-invoicing among exporters only for the sake of dollars’ illegal trade. The importers through their over-invoicing send more dollars abroad, whereas the exporters through under-invoicing leave a considerable part of their dollars in foreign banks. This hurt Pakistan and its foreign exchange reserves, Bostan said.

He also pointed out how the dollars were smuggled to Afghanistan. He believed a permanent check on illegal dollar trade in all its shapes will help Pakistan boost its foreign exchange reserves.

Following the crackdown, which began on Sept 6 after a military leadership push, tens of millions of dollars have already been deposited into the country’s interbank and open markets. Pakistani rupee, which had plumbed record lows to Rs308 in interbank and beyond Rs330 in open market early this month, is in recovery mode and has come down to Rs295 in interbank and Rs296 in open market. This trend is expected to continue if the crackdown against illegal trade of US dollar continues.

According to Bostan, he had requested Army Chief General Asim Munir to take action against hoarders, black marketeers and smugglers of dollars. Before the crackdown, the vast majority of people were going to black market dealers.

Business

With its second-largest surge ever, PSX approaches 114,000 points.

Published

1 day ago

Farwa

Driven by renewed activity from both private and government financial institutions, the Pakistan Stock Exchange (PSX) saw its second-largest rally in history on Monday.

The market regained many important levels in a single trading session as it rose with previously unheard-of momentum.

Intraday trading saw a top increase of 4,676 points, and the PSX’s benchmark KSE-100 Index gained 4,411 points to settle at 113,924 points. This impressive rebound demonstrated significant investor confidence by reestablishing the 100,000, 111,000, 112,000, and 113,000-point levels.

The market also saw the 114,000-point limit reestablished during the trading session.

The positive tendency was reflected when the market’s heavyweight shares touched its upper circuits. Among the most busiest trading sessions in recent memory, an astounding 85.78 billion shares worth a total of Rs55 billion were exchanged.

Experts credited the spike to heightened institutional investor activity and hope for macroeconomic recovery. Considered a major market recovery, the rally demonstrated the market’s tenacity and development potential.

Business

In interbank trade, the Pakistani rupee beats the US dollar.

Published

1 week ago

Farwa

In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

Business

Phase II of CPEC: China-Pakistan Partnership Enters a New Era

Published

1 week ago

Farwa

The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.