Business

Rupee snaps 13-day winning streak against dollar

Published

2 years ago

Farwa

Rupee closes at Rs217.88 against US dollar.
Drop in inflows changed sentiment in interbank makret.
Analyst says next direction could be news driven — good or bad.

KARACHI: Pakistan’s currency depreciated 0.04 % (or Rs0.10) to Rs217.88 against the US dollar in the interbank market on Wednesday, ending its appreciation streak that continued for 13 consecutive working days.

The local currency had closed near a one-and-a-half-month high at Rs217.79 on Tuesday, according to the central bank.

It regained a cumulative 10.01% (or Rs21.92) in the past 13 successive working days till Tuesday, dropping close to the all-time low of Rs239.94 last month.

The currency on Wednesday recorded its first depreciation in the past two weeks after worker remittances slowed down 12.3% year-on-year to $2.4 billion and export earnings in September.

The drop in inflows changed sentiment in the interbank market and encouraged importers to buy dollars at the prevailing rate before it became expensive.

Earlier, the rupee emerged as the best-performing currency in the world last week after it notched up one of the largest gains of 3.9% in the week ended October 7 compared to all other currencies on the Bloomberg terminal.

The excessive supply of dollars in the market helped the rupee to stage a 13-day-long rally. However, the supply of foreign currency decelerated after the sluggish data on worker remittances.

Economic analyst Ali Khizar noted that the appreciation trend of the local unit is “arrested” as it closed within a range of 217.8-218 in the last three working days.

PKR/USD appreciation trend is arrested- it closed at 217.8-218.0 in the last three working days

In this week, the inflows in the form of exporters selling in forward and incremental remittances have declined significantly.

Next direction could be news driven – good or bad. pic.twitter.com/lkVlMm8K8m
— Ali khizar (@AliKhizar) October 12, 2022

“In this week, the inflows in the form of exporters selling in forward and incremental remittances have declined significantly,” he wrote on Twitter, adding that the next direction could be news driven — good or bad.

Business

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

Published

2 days ago

Farwa

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.

Business

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

Published

2 days ago

Farwa

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.

Business

Discos report losses of Rs239 billion.

Published

2 days ago

Farwa

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.