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Pakistan Rupees-performance watch

The rupee continued to gain for the ninth consecutive session on Friday, jumping by Rs3.28 in the interbank market.

According to the Forex Association of Pakistan (FAP), the PKR was being traded at Rs215.6 by 12:30pm, having appreciated 1.49 per cent from yesterday’s close.

Mettis Global Director Saad bin Naseer said he believed the rupee’s rise was because exporters, who were earlier holding their dollar earnings abroad, have now started to bring their proceeds into the country amid the local currency’s appreciation.

On the other hand, demand for the dollar has been subdued due to the government’s intervention to keep imports in check, he said.
 
The rupee, which recovered by four per cent last week, continued to appreciate on Monday.

By 9:39am, the local currency had gained Rs3.49, or 1.61pc, to reach Rs212 per dollar compared to the previous close, data shared by the Forex Association of Pakistan (FAP) showed.

FAP Chairperson Malik Bostan attributed the rupee’s rise to the International Monetary Fund’s (IMF) letter of intent and reports of assistance from friendly countries, especially Saudi Arabia.

He said the market expected that payment from the IMF would be received soon which would increase the country’s foreign reserves.
 
The rupee, which had been consistently recovering since July 29, reversed the trend on Wednesday, declining by 98 paise against the dollar.

Data shared by the State Bank of Pakistan (SBP) showed that the rupee closed at 214.88 per dollar, having depreciated 0.46 per cent.
 
Foreign currency shortage hits open market

KARACHI: After a long time, the open market is running short of US dollars, which increased the price compared to the interbank rate of the greenback.

The Forex Association of Pakistan reported the dollar traded at a price of Rs218 in the open market on Saturday, while the inter-bank dollar rate was Rs214.65 on Friday. Banking markets are closed on Saturday.

Currency dealers said that the latest development has created a shortage of foreign currency, particularly the UAE dirham, and ultimately exportable currencies declined.

“Each Pakistani needs to declare 5,000 dirhams at the UAE airport at the time of landing this week, which suddenly created a shortage,” said Malik Bostan, president of the forex association, adding that 21 flights from Pakistan land in Dubai each day, carrying a total of 4,200 Pakistanis per day.

Recently, Dubai authorities have asked Pakistanis to have 5,000 dirhams when landing at Dubai airport. The calculations show that 4,200 Pakistanis require about 21 million dirhams each day to land in Dubai.

“The dirham is not available in the open market while the price has also gone up,” he said, adding that those available foreign currencies are exported to Dubai to bring back an equal amount of US dollars. Higher dirham demand, in fact, created a shortage of dollars.

At the same time, the government’s new move asks people to declare their cash and other valuables at the time of departure and arrival.

Currency dealers said the declaration of cash and valuables at the time of arrival in their own country does not make sense; in fact, it has created a fear that declared cash and valuables could put them in trouble.

“Many people from the Middle East arrive with cash in riyals and dirhams. They also bring cash from their colleagues to directly handover the cash to their families in Pakistan. Now no Pakistani can take this risk,” said Mr Bostan.

The arrival of foreign currencies in the open market has dropped to the range of $1-2 million per day, while it was around $4m per day.

Currency dealers said the open market could see more shortages in the coming days since exportable foreign currencies have declined.

DAWN
 
The rupee began the week under pressure on Monday, losing Rs1.60 against the US dollar in the interbank market.

According to the Forex Association of Pakistan (FAP), the local currency was changing hands at Rs216.25 per dollar at 1:36pm, compared to Friday’s closing rate of Rs214.65.

FAP Chairman Malik Bostan said today’s fall in the value of the rupee came on the back of the recent decision to lift the ban on imports of luxury items coupled with pressure from exporters urging the government to keep the dollar rate around Rs216.

“Commercial banks are also buying dollars at high rates, which is causing the greenback’s value to rise. The central bank must control commercial banks in this regard to halt the rise in the dollar’s value,” Bostan added.
 
The rupee extended its losses for the second consecutive session on Tuesday, falling to Rs217.66 against the dollar in the interbank market.

According to the State Bank of Pakistan (SBP), the local currency closed down Re1, having depreciated 0.46 per cent.
 
KARACHI: The US dollar on Wednesday continued its winning streak for the third consecutive session against the Pakistani rupee and rose by Rs7 to Rs229 in the open market ahead of the International Monetary Fund's (IMF) executive board meeting — scheduled for August 29 in Washington.

In the interbank market, the local unit, however, closed at 218.38 after losing 0.72 against the dollar, up from yesterday's close of 217.66, according to the State Bank of Pakistan.
 
KARACHI: The rupee’s slide against US dollar continued in the interbank on Wednesday with the greenback trading at Rs218, ARY NEWS reported.

According to forex dealers, the greenback saw an Rs0.10 hike in interbank and traded at Rs218.48 while the banks are selling it at Rs219. In open market, the US dollar traded between Rs225 and Rs227.

On Wednesday, the State Bank of Pakistan said the greenback traded at Rs218.38 in interbank after a hike in value by Rs0.72 while the banks sold it at Rs219.
 
The PKR showed a strong recovery against the dollar in the interbank market on Tuesday, gaining Rs2.92 by 9:54am.

According to the Forex Association of Pakistan (FAP), the local currency was being traded at Rs219 per dollar around that time after appreciating 1.31 per cent.

The rupee’s recovery comes after the International Monetary Fund’s (IMF) Executive Board completed the combined 7th and 8th revi*ews of a loan facility for Pak*is*tan, allowing immediate disbursement of $1.1 billion to the country, said an official IMF announcement.

Head of Research at Tresmark, Komal Mansoor, termed the rupee’s recovery a “minor correction” since the release of the loan tranche had “largely been factored in after the staff-level agreement”.
 
The PKR continued to recover for the second consecutive session on Wednesday, gaining Rs1.62 against the dollar in the interbank market.

By 9:45am, the local currency was being traded at Rs218.5 per dollar after appreciating 0.73 per cent, data shared by the Forex Association of Pakistan showed.

Exchange Companies Association of Pakistan (Ecap) General Secretary Zafar Paracha said demand for the greenback fell and investor confidence was restored after the International Monetary Fund (IMF) approved the release of a crucial $1.1 billion loan tranche.

He added that the big difference between the dollar rates in the interbank and open markets was reduced and expected to dip further.
 
The PKR continued to recover on Thursday, appreciating by Rs1.5 against the dollar during early trade in the interbank market, with analysts attributing the gains to the State Bank of Pakistan (SBP) receiving a much-needed $1.16 billion deposit from the International Monetary Fund (IMF).

The local currency was being traded at Rs217.25 per dollar after appreciating 0.68 per cent by 9:49am, according to data shared by the Forex Association of Pakistan (FAP).

FAP Chairman Malik Bostan said the market sentiment would become more favourable after the IMF’s deposit and the rupee would gain sharply against the dollar.

He said the difference in rates between the interbank and open markets had not only ended but the dollar was being sold at lower rates in the latter. “Those who were holding on to dollars are constantly selling them in the open market now following the rupee’s gains, due to which the rates in it are lower,” he elaborated.
 
The Pakistani rupee lost over Rs1.08 against the US dollar during morning trading in the interbank market on Wednesday as the greenback continues to strengthen globally with the dollar index — which measures the greenback against six major peers — witnessing a fresh 20-year high.

The rupee was being traded at Rs222.50 per dollar at 11:58am in the interbank market, according to the Forex Association of Pakistan (FAP).

Saad bin Naseer, director of Mettis Global, a financial data and analytics portal, said the dollar had been strengthing globally for weeks and its impact was being seen in Pakistan’s currency market as well.

He said the UAE government’s regulation mandating travellers from Pakistan to carry 5,000 dirhams in cash had also increased the greenback’s demand, estimating that this measure alone had pushed up demand in the open market by $5 million per day.
 
Forex disclosure by inbound travellers brings rupee under stress

ISLAMABAD: Amid the declining rupee value, the Ministry of Finance and the Federal Board of Revenue (FBR) expressed their ignorance about the declaration of foreign currency by international passengers on arrival in Pakistan on the orders of the Civil Aviation Authority (CAA) that further brought local currency under stress.

At a meeting on Wednesday, the Senate Standing Committee on Finance was told that the CAA issued the orders on Aug 16 for the requirement of the Financial Monitoring Unit (FMU) ahead of an onsite visit of a delegation of the Financial Action Task Force (FATF) and Asia Pacific Group (APG) on Money Laundering. The delegation completed its visit on Sept 2.

The CAA order required all incoming international flights to ensure that all passengers disclose their foreign currency possessions through a pro forma and that airlines submit all these declarations to the CAA. Testifying before the committee, State Bank of Pakistan Deputy Governor Dr Inayat Hussain said this was one of the reasons for recent pressure on the rupee.

The SBP deputy governor said the foreign exchange companies had complained about the CAA requirement under which inbound passengers were hesitant to bring foreign currency.

Separately, Finance Minister Miftah Ismail at a news conference said he had expected an appreciation of the rupee against the dollar in the wake of IMF inflows but subsequent floods destroyed a large part of the cotton crop which would result in $1-2bn worth of cotton imports to meet textile export needs. Also, a 20pc loss of onions and tomatoes would need some imports and the market was reacting to such future expectations.

FBR Chairman Asim Ahmad said his agency did not have the powers to impose restrictions on the inward movement of foreign currency under the Customs Act and therefore was not part of such a decision about the mandatory declaration of the foreign currency. Minister of State for Finance Dr Aisha Pasha said she was also unaware of the CAA decision.

At this, the SBP deputy governor said “our understanding was that the CAA issued the circular with the consent of Pakistan Customs”.

When asked by the committee, an additional secretary of the finance ministry contacted the director general of the national FATF cell and got back to the meeting to confirm that arrangement was put in place to comply with the Paris-based watchdog’s requirements.

The SBP deputy governor also told the committee that about $7m had been exported by foreign exchange companies since the central bank permitted the export of dollars on Aug 15.

He said the exchange companies had sought permission to export dollars or SBP should purchase US currency due to lower demand in the local market after the dollar value dropped to Rs214 from almost Rs240.

He said the SBP on Tuesday again linked the export of dollars to prior approval after the rupee again came under pressure. He said the supply of cash dollars with the exchange companies had increased due to the devaluation of the greenback.

Senator Saleem Mandviwalla, who presided over the meeting, said the declaration of foreign currency by inbound passengers on arrival should be withdrawn but did not press on the request of SBP representatives. He, however, insisted that the central bank should not have allowed the export of dollars when it was a scarce commodity in Pakistan. Federal Minister for State and Frontier Regions Senator Talha Mehmood also seconded that the decision to export the US currency put additional pressure on the value of the rupee.

During the last fiscal year, the exchange companies exported $3.1bn equivalent of foreign currencies and then the US dollars were sold to the commercial banks through their Nostro Accounts, the SBP deputy governor said, adding that the exchange companies had purchased $4.4bn from the local clients and $2.2bn were sold in the interbank in the last fiscal year.

DAWN
 
The Pakistani rupee maintained its downward trend for the eighth consecutive working day, as it fell by Rs1.18 against the US dollar in the interbank market, ARY News reported on Tuesday.

According to the Forex Association of Pakistan (FAP), the Pakistani rupee dropped to Rs231, after losing Rs1.18 during intraday trading in the interbank market.

Meanwhile, the currency dealers at the open market continued to sell the domestic currency at Rs236 to Rs238 for one dollar, the forex association added.
 
The Pakistani rupee continued to lose ground against the dollar for the ninth consecutive session on Wednesday, with the PKR sliding by Rs2.08 during morning trade in the interbank market.

The local currency was being traded at Rs234 per dollar at 12pm, depreciating 0.89 per cent from yesterday’s close, according to the Forex Association of Pakistan (FAP).

In the open market, the PKR was changing hands at Rs238 per dollar at the same time.

Saad bin Naseer, director of financial data and analytics portal Mettis Global, said the rupee “tumbled on the back of high inflation reading from the United States which bolstered the dollar in the international currency markets”.
 
The rupee, which has been declining for over a week, fell by Rs1.12 against the dollar during early trade in the interbank market on Friday.

The PKR was being traded at Rs237 per dollar at 12:33pm, according to the Forex Association of Pakistan (FAP). This equates to a 0.47 per cent depreciation from yesterday’s close of Rs235.88.

FAP Chairman Malik Bostan said the rupee’s value was declining due to the rising import bill. He called on the government to impose a ban on the import of non-essential and luxury items.

“If the Ministry of Finance does not intervene, the PKR could fall to 250 against the dollar,” he cautioned. Bostan said the government should appeal to friendly countries for immediate help so the pressure on the rupee could ease.
 
Banks sending dollars out via credit cards

KARACHI: Amid the daily dollar rate appreciation, banks have doubled their buying of the US currency and are sending it abroad via credit cards while the government grapples to control greenback outflows.

The State Bank of Pakistan (SBP) on Friday reported the closing price of the dollar at Rs236.84, an increase of 96 paise compared to the previous day’s rate of Rs235.88.

The dollar has a strong grip over the exchange rate and the clutch is getting stronger each day amid falling foreign exchange reserves and higher imports.

The open market reported the dollar price at Rs241 on Friday, which was almost the same as on Thursday. Currency dealers said finding dollars and other currencies is difficult since demand is very high.

Speaking to Dawn, currency market experts said the SBP and the government have tight control over dollar buying from the open market, but the banks are providing a way out through credit cards.

“The average banks’ buying per week was around two to four million dollars, which has now gone up to $12m on an average,” said Malik Bostan, the chairman of the Exchange Companies Association of Pakistan (ECAP).

It is extremely difficult to buy more than $500 for a common man from the open market but the official way out has been found. Travellers could take up to $10,000 per person from the country, and now credit cards are in high demand.

The currency dealers said the banks’ dollar buying has sucked away greenbacks from the open market.

“We have asked the government to half the limit for travellers to $5,000,” said Mr Bostan. He also suggested that there should be a spending limit of $2,000 per month on credit cards.

Currency dealers said the government is trying to boost country’s foreign exchange reserves by restricting spending and borrowing from global lenders, but the outflows from banks’ via credit cards could undermine the efforts.

Though the SBP insists there is no curbs, the importers said that opening LCs (letters of credit) for raw materials is not easy. “This is being done as the SBP wants to minimise the import bill,” an importer said.

Banks are also buying dollars from the grey market at much higher rates, claims a currency dealer.

However, the outflow through credit cards has added to the vulnerability of the exchange rate, which further strengthens the US dollar in Pakistan.

Dawn
 
The Pakistani rupee on Wednesday plunged to an all-time low of Rs240 against the US dollar in the inter-bank market as the currency remained under pressure due to a bullish US Federal Reserve among high oil prices.

This is the 14th consecutive working day of the rupee's freefall. The local currency had closed at Rs238.91 on Tuesday.
 
SBP says ‘banks complicit in currency manipulation’
Banks representatives did not deny they quoted higher dollar rates to importers

ISLAMABAD:
As the Pakistani currency tested a new all-time low of Rs240 against the dollar in early trading on Wednesday, country’s top policymakers described the current economic situation as “worrisome” and “stressful”, as a parliamentary hearing confirmed reports that commercial banks quoted high dollar rates that caused more volatility in the exchange market.

In a hearing by the Senate Standing Committee on Finance, the representatives of eight commercial banks that were issued show-caused notices did not deny that they quoted higher dollar rates against the rupee. But each one gave his own justification, essentially throwing blame on dollar shortage in the market.

Dr Aisha Pasha, the minister of state for finance, described the current situation as “worrisome and not the best time to manage the economy”.

Dr Inayat Hussain, the deputy governor of the State Bank of Pakistan, said that the situation was “stressful”.

The committee, headed by Senator Saleem Mandviwalla, had summoned the representatives of eight commercial banks that were issued show-cause notices by the central bank on suspicion of currency manipulation.

The representatives of the National Bank of Pakistan, Allied Bank Limited, Bank Al Habib, Standard Chartered Bank, Meezan Bank, Habib Bank Limited, HabibMetro Bank and the United Bank Limited appeared before the standing committee.

The central bank deputy governor said that these banks had been served show-cause notices as they quoted higher dollar rates to importers on some of the transactions and made substantial profits.

The eight banks had been picked for inspection based on their trade volumes and “substantial profits” that they made till the end of June, the deputy governor said.
“The banks quoted very high rates on some of the transactions, which created more volatility and uncertainty,” Dr Hussain said.

The hearing took place the day Pakistan’s rupee touched its lowest ebb of Rs240 to a dollar, partly due to the roles played by these banks, according to an analyst.
But towards the end of the day the currency recovered partially and closed at Rs239.65.

The deputy governor said that it was a very stressful situation for both the central bank and the commercial banks. “We are forced to impose trade restrictions on 15-20% of the total imports due to the gap between foreign inflows and outflows,” he said.

“Till the time the outflows balance with the inflows, these restrictions will remain in place,” he added, indicating that the tight conditions would continue for a while.
The senators raised questions about the delay in opening of the letter of credits (LCs) – an instrument of international trade – and timely payments of the maturing import payments.

“We have been receiving requests for the opening of the LCs but are discouraging only those LCs where the nature of payments is in advance or the imports are not of essential nature,” the deputy governor said.
He noted that so far permission for about 8,000 LCs had been granted since the imposition of these restrictions.

“The LCs are timely cleared and where possible, the banks in consultation with their clients, are availing the grace period of three to five days from the date of maturity of the LC,” Dr Hussain said.

But the deputy governor maintained that banks were running substantially negative open position and were selling more dollars than they held. “Due to high volatility, the banks have increased their spreads to cover up their losses,” he added.

“Economy is in a tailspin and the dollar is out of control,” Senator Mohsin Aziz of the PTI said.

“It is a slippery slope that the banks buy from the exporters,” Shaukat Tarin, the former finance minister, observed.

“The rupee did not make drastic improvement after the revival of the IMF programme because the markets had already adjusted the value in an anticipation of its revival,” Dr Aisha said. “Pakistan is passing through a worrisome period and it is not the best of time to manage the economy.”

Banks views

The representatives of the commercial banks presented their own justification but none could deny that they quoted higher dollar rates to the importers on some transactions.

“There is a strong feeling that the banks are exploiting the situation,” Senator Aziz observed. Now, because of a huge gap between the interbank and the open market rates, the exports and remittances proceeds may also fall that could push the country towards default, he added.

“The banks are made punching bags but the problem is the rise in the current account deficit,” Shahzad Dada, the president of UBL, said. “We do not have clarity whether the current account deficit will come down or not.”

He tried to justify the higher profits by saying that the banks margins were the same but the profits increased due to high volume of trades.

“Yes, we had a couple of good months but also a couple of bad months now,” the UBL president said. “Due to high volatility, the banks are squaring up their positions.”

He claimed that the UBL had sustained $7-$8 million exchange rate losses in September alone. “The dollar will continue to strengthen due to high current account deficit.”

The HBL representative said that the banks were unable to buy dollars from the market due to the shortage and there was a need to further clamp down the imports to restore the confidence.

The ABL representative argued that the banks built up profits to absorb losses due to high volatility. He said that the ABL sustained Rs700 million exchange rate losses in September.

“Reading the market is very difficult in this situation and we make and lose money,” the ABL representative said.

The Bank Al Habib official maintained that since June, the bank sustained exchange rate losses due to high volatility.

“Over-charging was not systemic but an error of judgment,” the Standard Chartered Bank representative said.

The Meezan Bank representative said, “We may have priced to a certain level to cover ourselves.”

Similarly, the HabibMetro Bank representative also said that the risk premium was charged because of high volatility.

“Pakistan is in a perfect storm but the situation may improve once about $2.7 billion inflows from foreign creditors materialise, including $1.5 billion from the ADB,” Dr Aisha said.

Former information minister Shibli Faraz noted that the banks were delaying clearance of the $1 billion LC that had matured but were not paid.
The central bank and the representatives of the commercial banks denied the claim.

Express Tribune
 
The dollar surged to a near 20-year peak against the euro on Wednesday as the Federal Reserve enacted another aggressive interest rate hike in response to runaway inflation.

The euro to dollar ratio hit 0.9814 for the first time since October 2002, just months after the currency became the sole legal tender of 12 European Union states. Wall Street stocks, which had been in positive territory prior to the 1800 GMT Fed statement, tumbled into the red after the announcement. All three major indices were in negative territory, with the broad-based S&P 500 down 0.6 percent at 3,834.10.

The latest Fed statement included interest rate projections for the end of 2023 and 2024 that are higher than the previous forecasts, signaling the US central bank now sees the need for a more prolonged monetary tightening cycle in light of inflation trends.

“Overall, the message from the (Fed) remains hawkish, with the Fed committing to further rates hikes to combat inflation and keep inflation expectations anchored,” said a note from the High Frequency Economics.

TheNews
 
PKR surges by Rs4.15 against dollar in interbank

The Pakistani rupee recovered strongly against the dollar in the interbank market on Monday, surging by Rs4.15 during morning trade.

The PKR was being traded at Rs235.5 per dollar at 10am, according to data from the Forex Association of Pakistan (FAP). This equates to an appreciation of 1.73 per cent from Friday’s close of Rs239.65.

FAP Chairman Malik Bostan said the primary reason for the PKR’s gains was a decline in international crude oil prices which had led to expectations of a dip in the import bill, and consequently, the trade deficit.

He said the news of PML-N leader Ishaq Dar taking over as finance minister also helped the rupee recover. “Dar kept the dollar’s rate fixed at Rs90 for a long time in the past … I expect speculation in the interbank market will be stopped [once Dar becomes the minister] which will improve the rupee’s value.”

He noted that the FAP had worked alongside Dar to improve the rupee’s value against the dollar in the past, adding that the association could collaborate with him to form a policy to “rapidly bring down the dollar rates”.

Bostan said he also expected Dar to accept the association’s demands regarding the currency declaration regime for travellers which would increase the greenback’s supply in the market.

“International financial institutions are helping Pakistan to deal with the floods. The International Monetary Fund has also indicated that it will ease conditions [of the programme]. This will have positive effects on the rupee.”

Prime Minister Shehbaz Sha*rif will return to Pakistan today, accompani*ed by Dar who is set to take charge as finance minister.

On Sunday, senior party leaders met Miftah Ismail, who handed in his resignation. A statement released after the meeting confirmed that Nawaz Sharif and PM Shehbaz had nominated Dar as the finance minister.

Ismail’s departure comes after months of speculation that Nawaz Sharif and Dar had been unhappy with some of his key decisions, specifically with regard to the fuel price hike.

The rupee had managed to stage a modest recovery — gaining six paise —against the US dollar on Friday after suffering losses in the previous 15 consecutive sessions.

DAWN
 
The US dollar extended its losses against the Pakistani rupee, as the greenback depreciated by Rs4.15 in the interbank on Monday, ARY News reported.

According to the forex dealers, the local currency gained Rs4.15 against the US dollar in the interbank market. Currently, the dollar is being sold at Rs236 by the banks, while the same is being sold at Rs238 to 240 in the open market.

It may be noted that yesterday, Miftah Ismail resigned as finance minister and the PML-N huddle held in London with Nawaz Sharif in the chair nominated Ishaq Dar as the next finance minister of the coalition government.
 
The rupee gained Rs2.92 against the dollar during morning trade in the interbank market on Thursday.

The PKR was being traded at Rs229.2 per dollar at 1pm after appreciating 1.26 per cent from yesterday’s close of Rs232.12, data shared by the Forex Association of Pakistan (FAP) showed.

Today is the fifth consecutive session that the rupee has recovered after falling close to an all-time low of Rs239.94 on Sept 22. It has been on an uptrend since Friday, with its value improving by Rs7.59 or 3.2pc over the last four sessions.

Exchange Companies Association of Pakistan (Ecap) General Secretary Zafar Paracha said sentiments had changed mainly because of Ishaq Dar’s return as finance minister due to which the rupee was on an uptrend.
 
Federal Finance Minister Ishaq Dar has predicted that the rupee is going to further strengthen in coming days.

“Appreciation of the US dollar against Pak rupee is the mother of all evils. Its appreciation against the rupee is artificial and I am telling you that the actual value of the rupee has been manipulated,” the minister said during a presser here on Saturday.

He said since he had taken over the charge of the finance ministry the rupee had appreciated and would further go upward against the US dollar. “I warn those involved in artificial appreciation of dollar against rupee, as strict action will be taken against them,” he added.

Currency dealers said the dollar lost another Rs2.49 in the inter-bank market on Thursday last to close at Rs229.63.
 
The Pakistani rupee continued its upward momentum on Monday, rising by Rs1.25 against the dollar during morning trade in the interbank market.

The PKR was being traded at Rs227.2 per dollar at 12:10pm, an appreciation of 0.55 per cent from Friday’s close of Rs228.45, data shared by the Forex Association of Pakistan (FAP) showed.

Head of Research at Tresmark, Komal Mansoor, said the rupee was appreciating on the back of a “flood of positives” since Ishaq Dar took over as finance minister.

Fuel and electricity prices had been reduced while inflation in September was measured at 23.18pc compared to expectations of 27pc, she noted. Flood relief to the tune of $2-3 billion was expected to flow in the short to medium term and the parity was being managed by verbal intervention, she added.
 
The Pakistani rupee continued to rally against the US dollar for the ninth consecutive day in the interbank market on Wednesday.

As the market opened, the local currency gained Rs1.74 and was trading at Rs223.90 per dollar.
 
The Pakistani rupee recovered by another Rs2.19 against the dollar during morning trade in the interbank market on Thursday.

The local currency was changing hands at Rs221.75 per dollar at 9:46am, an appreciation of 0.98 per cent from yesterday’s close of Rs223.94, according to the Forex Association of Pakistan (FAP).

The rupee, which had fallen close to an all-time low of Rs239.71 on Sept 22, has been recovering since then. It has gained Rs15.77 or 6.58pc in the last nine sessions.
 
Rs2 trillion wiped off public debt
Rupee appreciation helps reduce country’s external debt to Rs17.4tr

ISLAMABAD:
Nearly 9% appreciation of the local currency against the greenback in August has reduced Pakistan’s external public debt by about Rs2 trillion, reported the State Bank of Pakistan (SBP) in a debt bulletin on Friday, which will strengthen the hands of proponents of the stronger rupee.

The central government’s external debt was recorded at Rs17.4 trillion by the end of August, a reduction of Rs1.96 trillion compared to the preceding month, reported the central bank. The primary reason behind the reduction of external debt was the rupee appreciation. The debt summary showed that the value of the rupee was Rs218.7 to a dollar on the last day of August, up from Rs239.7 a month ago. The appreciation of Rs21, or 8.8%, helped reduce the external debt by Rs2 trillion, though new loans were taken during the month.

However, after improving to Rs214, the rupee again shed its value and dipped to Rs240 by September 26. The positive impact of the stronger rupee will strengthen the hands of new Finance Minister Ishaq Dar, who is a proponent of stronger currency aimed at containing inflation and reducing the debt servicing cost. In the past 11 trading days, the rupee has again recovered Rs20, or 8.4%, and closed below Rs220 on Friday. The strengthening of the rupee also helped lower the overall public debt by Rs991 billion in August, despite the government booking a budget deficit of Rs584 billion in the first two months (JulAug) of current fiscal year.

The SBP stated that the total public debt shrank to Rs49.5 trillion by the end of August. The public debt is still too high that is eating up half of the government’s revenues. Moody’s credit rating agency on Thursday lowered Pakistan’s credit rating to Caa1, declaring the government’s debt highly risky. After the revival of International Monetary Fund’s (IMF) loan programme, Pakistan is on the path of acquiring $40 billion in foreign loans in the current fiscal year. The devastation caused by floods will add much more to the already bloated public debt.

The federal government’s total domestic debt increased to Rs32 trillion, as Rs964 billion was added in August alone, according to the SBP. The size of long-term domestic debt increased by Rs796 billion to Rs24.6 trillion. In comparison, the size of short-term domestic debt rose from Rs7.3 trillion to Rs7.5 trillion. The World Bank has estimated that Pakistan’s budget deficit may remain around 7% of gross domestic product (GDP), which means the government will add a minimum of Rs5.3 trillion to the public debt in the current fiscal year. If Ishaq Dar manages to bring the rupee-dollar parity below Rs204 by June next year, then there will be exchange rate benefit. Otherwise, the public debt will further pile up.

The Ministry of Finance last week released the annual public debt report that showed deterioration in the indicators pertaining to debt maturity, currency risks, refinancing risks and interest rate risks. High levels of external debt could pose severe challenges in times of high current account deficit, low foreign exchange reserves and a fragile exchange rate, admitted the ministry in the report. It added that large external payments in the wake of low foreign exchange reserves could create liquidity problems and even destabilise the exchange rate which, in turn, could increase the burden of external loans measured in local currency.

According to the finance ministry, the average time-to-maturity (ATM) of the external debt dropped from six years and eight months in 2020-21 to just six years and two months in 2021-22. It also stood below the target of seven years. In the external public debt, the share of short-term debt increased from $14.3 billion to $21.4 billion in a year, one of the key reasons for the high external financing requirement of $40 billion for the current fiscal year.

Similarly, bilateral deposits by foreign countries jumped from $4 billion to $7 billion. Early data compiled by the Ministry of Finance showed that during the first two months of current fiscal year, current expenditures amounted to Rs1.09 trillion, which were equal to 12.5% of the annual allocation. A major chunk of around Rs580 billion was spent on debt servicing of previous loans.

Express Tribune
 
The rupee continued to show recovery in the interbank market on Monday, extending its gains against the dollar by more than Re1 in the early morning session.

According to the Forex Association of Pakistan (FAP), the dollar was being traded at Rs218.45 around 9:50am, with the rupee appreciating Rs1.47, or 0.67pc, against the last session’s close of Rs219.92.
 
DOLLAR RATE TO RETURN TO ORIGINAL VALUE SOON: ISHAQ DAR

LONDON: Finance Minister Ishaq Dar claimed on Tuesday that the dollar rate will be returned to its original value soon, ARY News reported.

Ishaq Dar, while talking to journalists in Britain, said that talks with the International Monetary Fund (IMF) remained successful and he held 58 meetings with IMF officials during his four-day visit to Washington.

He said that the US dollar rate was increased by a few paisas which will be returned to its original value soon.

Answering to question, Dar said that he held discussions with Nawaz Sharif on various topics but not all of them will be disclosed before the public.

Fifth successive loss: Rupee vs US dollar
The Pakistani rupee continued to depreciate against the US dollar in the interbank market for the fifth consecutive session.

According to the State Bank of Pakistan (SBP), the greenback appreciated by 0.82 paisa against the local currency in the interbank to close at 219.71.


In the open market, the United States Dollar is sold between Rs223 to Rs226, said forex dealers.

The local unit had finished Rs218.89 against the US dollar yesterday.

ARY
 
EXCHANGE COMPANIES DECIDE TO CAP CURRENCY RATES

KARACHI: The money exchange companies have decided to cap currency rates in a bid to stabilise Pakistani rupee against foreign currencies, ARY News reported on Thursday.

According to details, the money exchange companies have decided to cap currency rates to devaluate other currencies, including the US dollar.

In a statement, Exchange Companies Association of Pakistan (ECAP) General Secretary Zafar Paracha said that the association has taken measures to devalue other currencies, including the dollar.

“Finance Minister Ishaq Dar was repeatedly saying that the real price of US dollar is below Rs200,” Zafar Pracha said, adding that the US dollar loses Rs2.50 in open market, falling from Rs227.50 to Rs225.40.

Meanwhile, European Union’s (EU) Euro falls to Rs220.45 after losing Rs4.05 in the open market. Moreover, UK Pound drops to Rs252.90 after losing Rs5.60 and UAE Darham reaches Rs60 after losing Rs3.

Earlier in the day, the Pakistani rupee continued its downward slide against the US dollar in the interbank market for the seventh successive working day.

According to the Forex Association of Pakistan (FAP), the rupee lost Rs1.12 by 11.30am against the greenback during intraday trading. Consequently, the rupee was trading at 221 against the greenback.

ARY
 
US dollars disappear from market
Traders question mechanism used by SBP to ensure availability of greenback

KARACHI:
The foreign exchange market is facing a severe shortage of US dollars despite the rupee remaining largely stable in the interbank market, leaving traders questioning the credibility of the mechanism in place being used to ensure availability of the greenback. “The declining trend of the dollar has proved to be meaningless as a majority of exchange companies and dealers have no dollars, and this shortage has persisted for almost a week,” said Mian Anjum Nisar, the former president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).

He asked the central bank to become more vigilant and take stringent action to ensure the presence of US dollars in the open market. Employers Federation of Pakistan (EFP) President Ismail Suttar commented, “Despite the rupee gaining strength, there is a widespread shortage of US dollar available to money exchangers and dealers in Pakistan. The situation has frustrated importers as they are unable to purchase the greenback against better exchange rates. Attributing the shortage to alternative channels of payments being used by importers, he said, “The government has heavily discouraged imports of late, informally asking the banks of Pakistan to avoid opening any Letters of Credit (LCs) and discouraging them from accepting any forward bookings on the US dollar,” he remarked.

“As a result, importers have been using alternative channels to make sure payments are made to their foreign partners,” said Suttar. He illustrated this giving the example of how importers were buying dollars from the Afghan Transit, and other informal channels, to make payments as these dollar outflows do not show in the current account deficit (CAD). The former president of FPCCI stressed the need for bold steps, especially given the volatile nature of the rupee’s stability against the greenback. He pointed out that, “Currently, limited transactions are being held against the daily regular transactions of up to $60 million dollars in the open market, as it is feared that the dollars are being smuggled to Afghanistan.

Despite the central bank’s measures, smuggling remains rampant indicating that not all the government institutions are on the same page,” he said, urging the government to revisit its trade and immigration policies with Afghanistan and Iran. The rupee’s depreciation was driven primarily by dwindling foreign reserves and uncertainty regarding inflow commitments despite Finance Minister Ishaq Dar’s constant assurances that the rupee was undervalued and would soon recover to its real value of Rs200 per dollar. Nisar further highlighted the decline observed in the CAD for the third month in a row this September.

“It fell to $0.3 billion, less than half the level in August; in Q1FY23, CAD fell to $2.2 billion from $3.5 billion seen in Q1FY22, mainly due to a decline in imports. This decline is a good sign for the South Asian economy already facing dwindling foreign exchange reserves,” he added. The Chief Operating Officer (CEO) of Arif Habib Commodities, Ahsan Mehanti observed that “The unavailability of dollars is a major issue for importers; both essential items and non-essential items are at risk in case of no respite.” “The International Monetary Fund (IMF) program has also bound the State Bank of Pakistan (SBP) to purchasing dollars from the open market for imports, causing the shortage.

Banks have been supportive by avoiding speculations; however, the formal channels should support the informal channels as well for stability, he said. Nisar maintained that having a clear policy to curb volatility in the exchange market is a must and that “The central bank should be fully geared to act and monitor the movements more vigilantly, being ahead of the curve as they have more information than an average market player.” Further, the government needs to relax rules for exchange companies, as the stringent procedural requirements were making customers reluctant to approach the open-market. Amid declining foreign exchange reserves, Pakistan has faced an exchange rate crisis multiple times this year with authorities vowing a crackdown on speculators.

The promised action comes in tandem with wild swings seen by the rupee that hit record-lows in the interbank market, and witnessed its worst monthly performance in July in over 50 years. “The sentiment and dollar supply are expected to improve going forward with the expected inflows from the World Bank and other lenders,” said Tahir Abbas, Head of Research at Arif Habib Limited (AHL), adding that “the IMF review is also scheduled next month which will unlock a $1 billion tranche”. “Moreover, speculations are rife about Prime Minister Shehbaz Sharif’s visit to China next month, with hopes that it will bring respite to Pakistan in terms of external financing,” said Abbas.

The former FPCCI president added that “Ishaq Dar’s return as finance minister did trigger a bullish trend in the currency market, with the rupee appreciating nearly 10% in less than three weeks, but it also led authorities suspecting manipulation by banks and exchange companies.” Meanwhile, the SBP said that its investigation into the alleged manipulation, by commercial banks, of foreign exchange operations in the country would be completed in early October.

Express Tribune
 
After falling against the dollar for three consecutive sessions, the PKR reversed the trend on Monday.

The local currency closed at Rs220.89 per dollar, up Rs1.58 or 0.72 per cent from Friday’s close of Rs222.47, according to the State Bank of Pakistan.
 
The PKR gained 24 paise against the dollar in the interbank market on Tuesday.

The local currency closed at Rs220.65, an appreciation of 0.11 per cent from yesterday’s close of Rs220.89, according to the State Bank of Pakistan.
 
Incoming inflows yet to trigger rupee turnaround

KARACHI: The dollar remained unchanged at Rs227.75 on Saturday in the open market, unmoved by Finance Minister Ishaq Dar’s guarantee a day ago that the country had secured about $13 billion in additional financial support from two friendly countries, on top of assurances for about $20bn investments.

However, dealers in the open market hoped the rupee would gain strength once the inflows began to land in Pakistan.

“Though the dollar was steady, the market sentiment did change on Saturday,” said Malik Bostan, chairman of the Exchange Companies Association of Pakistan (ECAP). “Buyers disappeared from the open market anticipating a fall in dollar’s rate in the coming days.”

On Friday, Mr Dar told journalists that during Prime Minister Shehbaz Sharif’s recent visit to Beijing, the Chinese leadership promised to roll over $4bn in sovereign loans, refinance $3.3bn commercial bank loans and increase currency swap by about $1.45bn — from 30bn yuan to 40bn yuan. The total worked out at $8.75bn.

Dollar steady in open market as news of $13bn coming in from China, S. Arabia fails to make immediate impact

Besides, Saudi Arabia had also “given a positive response” to Pakistan’s request for increasing its financing by another $3bn to $6bn and doubling its deferred oil facility of $1.2bn, he said. The two heads worked out at $4.2bn and the finance minister said there was no delay except a month or so of processing time.

Meanwhile, the State Bank has promised to consider ECAP’s request to let exchange firms use up to 20 per cent of remittances to sate the open market’s appetite for dollars.

Currency dealers in the interbank market are also closely watching the situation, and an impact will be visible when trading resumes tomorrow.

Currency experts are still unsure when the dollar’s grip will be over. Several experts and bankers believe that the exchange rate would not support the rupee unless economic fundamentals improve, particularly until foreign exchange reserves rise to a considerable level and the current account deficit narrows.

“We must stop the flow of dollars to Kabul, either through trading or smuggling, Mr Bostan said. “Kabul is eating up our hard-earned dollars and the government has yet not taken action.” He suggested that trade with Afghanistan should only be made in rupees.

Other currency experts also want the trade deficit to narrow, as the country’s imports are still double its exports, which also impacts the current account.

Another issue is a fall in the inflow of remittances, which dropped in September by $280 million on monthly and by $340m on annual bases. If this persists, “the current account deficit will surely rise and the exchange rate will remain in the dollar’s grip,” an expert said.

DAWN
 
DOLLAR MAINTAINS UPWARD TREND AGAINST PAKISTANI RUPEE

KARACHI: The US dollar continued its upward trend against the Pakistani rupee for the fourth consecutive session in the interbank market on Thursday, ARY News reported.

According to the Forex Association of Pakistan, the dollar surged by 30 paisas against the local currency in the intraday trade in the interbank. The greenback is trading at 222.21.

In the open market, the US dollar is being sold between Rs 226 to 228, said forex dealers.

The Pakistani rupee finished at 221.91 the other day.

ARY
 
Pakistan, Turkiye, others ‘at high risk of currency crisis’

LONDON: Nomura has warned that seven countries — Egypt, Romania, Sri Lanka, Turkiye, Czech Republic, Pakistan and Hungary —are now at a high risk of currency crises.

The Japanese bank said that 22 of the 32 countries covered by its in-house “Damocles” warning system have seen their risk rise since its last update since May, with the largest increases in the Czech Republic and Brazil.

It meant the sum of the scores generated on all 32 by the model had increased sharply to 2,234 from 1,744 since May.

“This is the highest total score since July 1999 and not too far from the peak of 2,692 during the height of the Asian crisis,” Nomura economists said, calling it “an ominous warning sign of the growing broad-based risk in EM currencies”.

The model crunches 8 key indicators on a country’s FX reserves, exchange rate, financial health and interest rates to give an overall score.

Based on data from 61 different EM currency crises since 1996, Nomura estimates that a score above 100 indicates a 64 per cent chance of a currency crisis in the following 12 months.

Egypt, which has already devalued its currency heavily twice this year and sought an International Monetary Fund (IMF) programme, now generates the worst score at 165.

Romania is next on 145 having been propping up its currency with interventions. Default-stricken Sri Lanka and currency crisis-regular Turkey both generate scores of 138, while the Czech Republic, Pakistan and Hungary notch 126, 120 and 100 respectively.

DAWN
 
Crackdown on smuggling planned
Finance minister had asked SAPM Tariq Pasha to find out how much dollar, wheat and urea being smuggled to Afghanistan

The government has decided to launch a crackdown on those who are playing any role in facilitating multi-billion dollar smuggling from Pakistan into Afghanistan in the shape of illegal currency, wheat and urea, and all those items on which the Regulatory Duty is imposed by the government of Pakistan.

The government has firmed up its numbers of currency smuggling from Pakistan into Afghanistan and now intelligence agencies, including the ISI, the FIA and the Customs Intelligence, have been directed to come up with a roadmap next week for launching stern action against the smugglers. Minister for Finance Ishaq Dar had assigned Special Assistant to PM on Revenues Tariq Pasha to ascertain figures of dollar, wheat and urea smuggling into Afghanistan through Peshawar and bordering areas.

Now Pasha has come up with a whopping figure worth billions of dollars (at least in the range of over $1billion to $2 billion) on the basis of different scenarios as this kind of haemorrhage needs to be curtailed. Pasha disguised himself and visited currency markets in Peshawar to ascertain methods for firming up figures on smuggling from Pakistan. Although government officials are tight-lipped, one told this scribe that the whole figure ran into multi-billion dollars and added in the same breath that the government did not share any figure during official meetings. It’s ironic that the government utilized hard-earned dollars on the import of wheat and gave subsidy on urea, but they were being smuggled into Afghanistan.

During the meetings, it was highlighted that the misuse of Afghan Transit Trade (ATT) continued as all those items on which Islamabad slapped Regulatory Duty were being brought in the guise of ATT. Pakistani has been giving proposals to Afghanistan for the collection of duty and taxes at the Karachi port, but the Afghan side was not agreeing to any such proposals. All other proposals failed to deliver because most of these products were smuggled back into Pakistan in abundance. The meetings also discussed possibilities for strengthening laws to penalize smugglers causing heavy losses to the national exchequer.

According to an official press statement issued by the Ministry of Finance, Dar chaired an inter-ministerial meeting on the economic situation of the country at the Finance Division on Friday. Minister for Law and Justice Azam Nazeer Tarar, Tariq Bajwa, Tariq Pasha, Governor SBP, Secretary Finance, Secretary Interior, Chairman FBR, DG FIA, DG I&I Customs and senior officers from the Finance Division and intelligence agencies attended the meeting which reviewed the economic situation, current mechanism for foreign currency and wheat and urea smuggling. Various measures were discussed to strengthen anti- smuggling regime.

The Finance minister stressed the need for coordination among all necessary platforms for this purpose. He asked the relevant authorities to devise a robust and proactive roadmap to curb cross-border smuggling to bring financial stability in the country. The participants appreciated Dar for taking measures for tackling the current economic situation and assured support for ensuring a smooth and sustainable economic growth, the statement concluded.

The News PK
 
As the bells for another new year are tolling, the country’s crippled economy will be hobbling into 2023 with a humiliating record of the downward spiral of rupees vis-à-vis the US dollar.

With the government struggling with high import payments, depleting foreign exchange reserves and political uncertainty, the overall value of the Pakistani rupee depreciated by Rs48.38 against the greenback in 2022.

The currency suffered repeated historic lows despite the government trying to keep a steady hand on the wheel of the economy and even went so far as to replace its economic czar — changing its horses in the midstream to arrest the looming crisis of default.

Moreover, at one point, the currency of war-ravaged Afghanistan appeared to be doing reasonably well given the strong headwinds that buffeted its economy. Meanwhile, the Pakistani rupee ranked among the worst-performing currencies in the global market.

Here’s a quick look:

On December 1, the Pakistani rupee, after seeing a day’s nominal improvement, reverted to its failing destiny against the US dollar during early trading in the interbank market.

After being stable for a week with a marginal recovery, the spot rate of the rupee settled at a low of Rs224, losing 31 paisas.

In sharp contrast, at the outset of the year, in January, the value of the rupee against the US dollar was Rs176.75 in the interbank market.

The rupee witnessed lacklustre trading during the session, showing an intraday high bid of 176.75 and a low offer of 176.65. Within the open market, the rupee was being traded at 177.50/178.50 per dollar.

In February, the value of the dollar stood at Rs176.42 and on March 1, it jumped to Rs177.41.

In April, the rupee further lost its value as the dollar gained ground standing at Rs184.9.

The perpetual decline continued into May when the Pakistani rupee further plummeted, settling at Rs186.62.

In June, the dollar surged by Rs11 to settle at Rs196.86 — setting new records with each high.

In July, the rupee tumbled to an all-time low in the open market, trading as high as 250 against the dollar, according to data shared by the Forex Association of Pakistan (FAP).

However, the local currency made small gains in the interbank after nearly two weeks of consistent decline in consecutive sessions.

According to the State Bank of Pakistan, the rupee closed at 239.37 in the interbank, up Rs0.57, or 0.24 per cent.

A key measure of US dollar strength is the US dollar index against a basket of global currencies. Over the last several months, the index has risen 18% while the rupee has lost 37% against the US dollar, a 21% higher depreciation.

On August 1, the rupee had lost 42% in one year while US dollar index was up 14%, a 28% differential.

Express Tribune
 
ISLAMABAD: Saudi Arabia and China were set to beef up Pakistan’s foreign exchange reserves much before the close of this month, Finance Minister Ishaq Dar said on Wednesday and announced that the government would be shortly imposing flood levy on the affluent and a significant gain tax on banks’ foreign exchange earnings to ramp up revenue.

“Our foreign exchange reserves by end-June would be much better than you can think,” Mr Dar said while speaking at a joint news conference with five other PML-N ministers.

He said the International Mo*netary Fund (IMF) progra*mme would be completed at all costs, China and Saudi Arabi would enhance their support, government-to-government (G2G) disinvestments would be completed, and the current acc*ount deficit would be about $3 billion less than earlier projections.#

DAWN
 
90pc greenback being hoarded in country: FBR member

Member Federal Board of Revenue (FBR) Mukarram Jah Ansari says the government is making efforts for signing the Electronic Data Integration (EDI) agreements with different Central Asian Republics (CARs), Russia and the United Arab Emirates (UAE) in order to curtail mis-invoicing and under-invoicing.

“The customs department has increased vigilance on the entry and exit points of the country — including airports — in order to curb currency smuggling, but it’s our assessment that the currency smuggling has just 10 percent share, while 90 percent is going on in the shape of hoarding of greenback,” Ansari said in an exclusive interview with The News in his office last week.

“It’s the responsibility of other regulators and law-enforcement agencies to take action against those involved in speculation and hoarding of the greenback. We have found that the US dollar is cheaper in the neighboring country; however, we have increased our vigilance in the bordering areas to curb terror financing,” he said.

...
https://www.thenews.com.pk/print/1028699-90pc-greenback-being-hoarded-in-country-fbr-member
 
Dar rubbishes rumours govt seizing banks’ dollars
Ishaq Dar said that national foreign exchange reserves always include forex held with the State Bank of Pakistan (SBP) and commercial banks

The Federal Finance Minister, on the issue of foreign exchange reserves, stated on Wednesday that national foreign exchange reserves always include forex held with the State Bank of Pakistan (SBP) and commercial banks.

He said in a statement: “Recently I quoted the forex reserves figure based on this principle. Some vested elements who ruined this country’s economy in the past gave it a deliberate twist and started a campaign as if the government was considering access to foreign exchange held with commercial banks, which indeed is the property of the citizens. “It is categorically denied and clarified that there is no such move under consideration of the government. Therefore, the said misconstrued, misinterpreted and mala fide propaganda should be ignored. Pakistan is moving towards an improvement in its forex reserves position in the near future, InshaAllah!” he added.

The News PK
 
Dollar crunch, shortages likely: report
Businesses outcry dollar constraint as LSMs, exporters suffer a shortage of raw material

Despite the government’s announcements claiming it has made enough arrangements for foreign exchange, the fear of a shortage of essential items looms over the country as export issues continue to aggregate.

“A dire dollar crunch is likely, which may also hurt the import of essential items in the coming months and lead to a shortage of several food items, healthcare supplies and even petroleum oil and lubricants (POL) products,” according to a research report released by Taurus Securities

A shortage of raw material, and other supplies, is affecting large-scale industrial activities, resulting in non-production days as well as a substantial hike in product prices. This includes major industries like automobile, steel and textile.

...
https://tribune.com.pk/story/2395977/dollar-crunch-shortages-likely-report
 
The Exchange Companies Association of Pakistan (ECAP) announced on Tuesday that it would remove the cap on the US dollar from January 25 (tomorrow).

The exchange rate has been primarily hit hard by a steep decline in the central bank’s foreign exchange reserves, which have shrunk to $4.6 billion. Currency experts say the rupee has been falling “despite being managed” by the State Bank of Pakistan (SBP).

Amid a shortage of dollars, the gap between its rates in the interbank and open markets has significantly widened, drastically hurting the economy and diverting remittances from the legal banking channel to the grey market.
 
USD trades at Rs243 in open market after exchange rate cap removed

The rupee depreciated against the dollar on Wednesday after the Exchange Companies Association of Pakistan (Ecap) removed an unofficial cap on the exchange rate.

According to a notice issued by Ecap Chairman Malik Bostan’s office, the USD was being traded at Rs243 in the open market at 11am, falling 0.93 percent from yesterday’s close of 240.75. It was being traded at Rs231.5 in the interbank market at the same time.

Separately, Ecap General Secretary Zafar Paracha said a committee of exchange companies would decide the USD-PKR rate in the open market in a meeting later today.

He said talks between State Bank of Pakistan (SBP) Deputy Governor Inayat Hussain and Ecap representatives were successful. “The State Bank accepted all our demands including removing the cap.”

Paracha said the SBP further directed commercial banks to supply dollars to exchange companies. He vowed to bring the USD-PKR exchange rate in the open market to the ‘actual’ rate so the grey market could be abolished.

...
https://www.dawn.com/news/1733533/usd-trades-at-rs243-in-open-market-after-exchange-rate-cap-removed
 
The difference between the USD-PKR exchange rate in the interbank and open markets narrowed on Thursday as the local currency depreciated sharply after the Exchange Companies Association of Pakistan (Ecap) removed an unofficial price cap.

The difference in rates between the markets, which had widened to Rs15 in recent months, now stands at Rs5.

The PKR was being traded at Rs255 per dollar — a record low — in the open market around 11:40am, according to data from the Forex Association of Pakistan. This equates to a depreciation of Rs12 or 4.94 per cent compared to yesterday’s rate of Rs243.

In the interbank market, the local currency was trading at Rs250 per dollar, down Rs19.11, or 8.28pc, from yesterday’s close of Rs230.89.

DAWN
 
PKR plunges by Rs11.17 in interbank

The rupee continued to depreciate steeply in the interbank market on Friday, trading at Rs266.6 per dollar at 10:32am, down Rs11.17 or 4.58 per cent from yesterday’s close, according to data shared by the Exchange Companies Association of Pakistan (Ecap).

The local currency’s value declined Rs24.54 to a record low of Rs255.43 in the interbank yesterday, the largest single-day depreciation in both absolute and percentage terms since the new exchange rate system was introduced in 1999.

Separately, the PKR was changing hands at Rs265 per dollar in the open market at the same time. This equates to a depreciation of Rs3, or 1.15pc, over yesterday’s rate of Rs262.

...
DAWN
 
Disaster this - how is this Govt even sitting? They should resign and let someone competent take over.
 
320-330 PKR to 1 GBP, what is going on? Absolute disaster.
 
It was predicted that US$ will reach 300 PKR. Darr tried to fool everyone with that fake cap and held it to a low number. All the paid media and journalists were singing his praise. Now IMF has shown him his place and $ is where it should be.
 
Devaluation was never good but weren’t some posters arguing how devaluation is a good thing when it was happening under Ik as to how it helps the overseas remittances? What changed?
 
Rupee down in the dumps as dollar continues to flex muscles
Rupee is changing hands with dollar at 270 in interbank market

The rupee continued its downward slide for the third consecutive day on Monday, losing Rs6.5 to a dollar or 2.32% to trade at a new all-time low of Rs270 against the greenback in the interbank market as of 11:59am.

The rupee’s free-fall came after the coalition government ended its control on its price in order to woo the International Monetary Fund (IMF) officials to revive the $7 billion loan programme.

On Friday, the local unit closed the day at an all-time low of 262.6 against the greenback after a decline of Rs7.17.

With the latest drop, the domestic currency has cumulatively slumped by nearly 14% or Rs36 in the three days, compared to Wednesday’s close of Rs230.89 to a dollar, according to the State Bank of Pakistan (SBP) data.

In over two hours of today's trading session, the currency hit an intra-day low of Rs270 during the day, according to the Exchange Companies Association of Pakistan (ECAP).

Meanwhile, the association reported that the currency was changing hand with dollar at 272 in the open market.

The ECAP in its briefing mentioned that most analysts are of the view that the rupee will weaken to 275, and then consolidate towards the 270 level as IMF approves the programme.

...
The News PK
 
daytrader said:
Rupee down in the dumps as dollar continues to flex muscles
Rupee is changing hands with dollar at 270 in interbank market

The rupee continued its downward slide for the third consecutive day on Monday, losing Rs6.5 to a dollar or 2.32% to trade at a new all-time low of Rs270 against the greenback in the interbank market as of 11:59am.

The rupee’s free-fall came after the coalition government ended its control on its price in order to woo the International Monetary Fund (IMF) officials to revive the $7 billion loan programme.

On Friday, the local unit closed the day at an all-time low of 262.6 against the greenback after a decline of Rs7.17.

With the latest drop, the domestic currency has cumulatively slumped by nearly 14% or Rs36 in the three days, compared to Wednesday’s close of Rs230.89 to a dollar, according to the State Bank of Pakistan (SBP) data.

In over two hours of today's trading session, the currency hit an intra-day low of Rs270 during the day, according to the Exchange Companies Association of Pakistan (ECAP).

Meanwhile, the association reported that the currency was changing hand with dollar at 272 in the open market.

The ECAP in its briefing mentioned that most analysts are of the view that the rupee will weaken to 275, and then consolidate towards the 270 level as IMF approves the programme.

...
The News PK
Click to expand...

The real is in the 280s. What a shambles from the crooked mafia
 
Rupee’s weakness ‘still has further to run’: Fitch Solutions
Fitch Solutions refrains from issuing new forecast until ‘dust settles’; warns of broader economic implication

Fitch Solutions on Tuesday predicted that the rupee’s weakness still has “further to run”, which will have broader economic implications for the country — already gripped by a major economic crisis, with the rupee plummeting, inflation soaring and energy in short supply.

The New York-based research agency, in its quick view, noted that the rupee’s devaluation was triggered by the decision among local foreign exchange companies to remove the self-imposed cap on the exchange rate on January 25.

The State Bank of Pakistan (SBP) initially intervened, but the significant depreciation in the rupee “is a clear sign the authorities have effectively loosened their grip on the currency.”

Fitch Solutions mentioned that their current forecast for the rupee to reach Rs248 per dollar by year-end “is therefore now looking out of date”.

Following massive depreciation of 14.36% (or Rs38.74) in the last three days (Thursday-Monday), compared to Wednesday’s close at Rs230.89, the rupee’s steep fall hit brakes as it was changing hands with the greenback at Rs268.20 in the interbank market (as of 11:04am).

“We believe that the rupee’s weakness still has further to run particularly with Pakistan’s balance of payments positions likely to remain weak for several more months,” it noted.

The agency said that there remains a “considerate amount of uncertainty at this juncture” therefore it is difficult to gauge the extent to which the latest devaluation has caused investor sentiment to soar further.

“We will therefore firm up our rupee forecasts over the coming weeks, once the dust settles,” the quick view mentioned.

In its analysis, Fitch warned that a continued weakening in the rupee will have broader economic implications too in the near term, “it could exacerbate imported inflationary pressure and may eventually result in steeper policy rate hikes from the SBP.”

The report added that Fitch expects Pakistan’s economy to contract by 0.3% in the fiscal year 2022-23.

The News PK
 
The rupee, which recently hit a record low, appreciated by Rs1.74 against the US dollar in the interbank market on Tuesday.

The local currency closed at Rs267.89, up 0.65 per cent from yesterday’s close of Rs269.63.
 
Rs952b to be added to circular debt
Govt prepares plan on unrealistic rupee-dollar exchange rate of Rs232 per dollar and 16.84% KIBOR

A revised Circular Debt Management Plan (CDMP) has revealed that a staggering Rs952 billion more will be added to the country’s circular debt in a ‘business as usual’ move – a hole that the government now wishes to plug by increasing the price of electricity and - Rs675 billion in additional subsidies.

The government has proposed the imposition of three separate quarterly tariff adjustments, ranging from 69 paisas per unit to Rs3.21 per unit from February to May this year to reduce a gap of Rs73 billion, showed details.

In addition to that, in order to meet two more conditions agreed with the International Monetary Fund (IMF) in the past, the government has also decided to slap a Rs2.93 per unit debt surcharge apart from giving effect to the pending fuel cost adjustments (FCA).

The plan, however, appears to be unrealistic, as it has been made on the assumption that the rupee-dollar exchange rate is Rs232 per dollar and 16.84% Karachi Interbank Offered (KIBOR) rate. The current exchange rate stands at Rs268 and KIBOR is close to 18%.

...
https://tribune.com.pk/story/2398685/rs952b-to-be-added-to-circular-debt
 
Amid uncertainty surrounding the outcome of the ongoing talks between Pakistan and the International Monetary Fund (IMF), the Pakistani currency hit a new historic low as the US dollar closed at Rs276.58 in the interbank market on Friday.

The domestic currency fell by almost 1.89% (or Rs5.22) to a new record low of Rs276.58 against the greenback, as compared to Thursday’s close of Rs271.36, according to the State Bank of Pakistan (SBP).

Meanwhile, the US dollar closed at Rs283.2 in the open market, rising Rs12.45 since yesterday's close.

The rupee had lost 0.93% in the interbank market and dropped 0.18% in the open market during trading the previous day.
 
Amid Crisis, Pak PM Invites Imran Khan To All-Party Meet: Report

Amid a severe threat of terrorism and distressing economic and political situations, with no signs of respite soon, Pakistan Prime Minister Shehbaz Sharif has invited Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan to an all-party conference (APC) set to take place in Islamabad on February 7, reported Geo News.

The APC is aimed at finding solutions to surmount the daunting economic and political crises in Pakistan.

The prime minister seeks to bring heads of all political parties on the table so they can figure out ways to address "important national challenges", Information Minister Marriyum Aurangzeb said in a statement.

The prime minister, according to the statement, has also invited two representatives from the PTI to participate in the Apex committee meeting -- scheduled for today (Friday) in Peshawar, reported The News International.

In this regard, she said, Federal Minister Ayaz Sadiq has begun contacting top PTI leaders -- including former National Assembly speaker Asad Qaiser and ex-defence minister Pervez Khattak -- and asked them to participate in the upcoming meetingt.

During the committee's meeting, all stakeholders -- police, Rangers, officials from intelligence agencies, and others -- will participate, according to the minister.

The invitation is a major development as the Pakistan Democratic Movement (PDM)-led government and the PTI have always been at loggerheads over almost all national issues, since Khan's ouster from the PM Office, reported Geo News.

The meeting will discuss Monday's Peshawar suicide bombing, ways to root out terrorism, and the upgradation of the police and counter-terrorism department (CTD).

On January 30, a suicide bombing at a mosque in the Peshawar Police Lines area claimed the lives of at least 101 people, mostly police officials.

The meeting holds importance as the government faces an uphill task when it comes to terrorism. The terror attacks have witnessed a spike after the outlawed Tehreek-e-Taliban Pakistan (TTP) ended its ceasefire with Islamabad in November last year.

Meanwhile, a breakthrough on the political front would bring much-needed stability to the country, as investors need assurance that the nation of 220 million people is a viable place despite all the challenges, reported Geo News.

At the same time, the country is also facing trouble on the economic front. Foreign exchange reserves have gone down to USD 3.09 billion, which analysts say covers less than three weeks of imports, reported Dawn.

Moreover, the State Bank of Pakistan (SBP)-held foreign exchange reserves have also plunged to precarious levels as the cash-strapped nation desperately seeks to revive the stalled bailout programme of the International Monetary Fund (IMF).

The country is locked in negotiations with the IMF to release much-needed money under a stalled bailout programme.

Due to foreign debt payments, the central bank said its reserves fell USD 592 million to USD 3,086.2 million during the week ended on January 27, their lowest since February 2014, and are barely enough to provide import cover for 18.5 days (0.61 months).

NDTV
 
Rupee slides by nearly Rs15 against dollar in interbank over IMF delays

The Pakistani rupee sank sharply by Rs14.89 against the dollar in the interbank market on Thursday, with the local currency trading at Rs281 at 11.10am, according to data shared by the Exchange Companies Association of Pakistan (Ecap).

On Thursday, the PKR closed Rs266.11 per dollar, according to SBP data.

The currency has been sliding in recent days after delays in a deal between Pakistan and the International Monetary Fund, which parties have been negotiating since early last month.

Pakistan is in the midst of a severe economic crisis, with its reserves depleting to just over $3 billion, enough to cover only three weeks of imports. In such a situation, the country urgently needs to sign a deal with the IMF that would not only release $1.2bn but also unlock funding from friendly countries and other multilateral lenders.

...
https://www.dawn.com/news/1739938/r...5-against-dollar-in-interbank-over-imf-delays
 
It's raining dollars in Gujranwala -

<iframe width="560" height="315" src="https://www.youtube.com/embed/ZbaDN8oyYak" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>
 
The Pakistani rupee hit a new all-time low at Rs288 against the US dollar on Tuesday in the interbank market amid delays in the revival of the International Monetary Fund (IMF) loan programme and the looming high risk of default on foreign debt repayment.

The currency slumped 1% (or Rs2.86) to Rs287.90 against the greenback at around 10:23 am today. A day earlier, the rupee had closed at Rs285.04 per US dollar.

Last month, the rupee had hit a record low, closing at Rs285.09 per US dollar on February 3, 2023.

Express Tribune
 
Two legal tenders struggle to gain currency

‘Which coin is this?’ The person manning the counter at a popular convenience store in a Defence Housing Authority Phase-II commercial area asked as he examined the pale golden coin just handed to him by a customer in exchange for the bill.

“Looks fake!” he said before returning it to the customer. “Do you have a 10 rupees note?”

He had been handed a Rs10 coin, which he had not seen before, and which he was not willing to accept.

Issued by the State Bank of Pakistan (SBP) on October 24, 2016, the Rs10 coin remains quite unknown to most people, although it is still very much in circulation.

“I accept all these coins but then no one takes them from me when I’m returning change,” said the ever-smiling polite elderly gentleman at one of the cash counters of a busy supermarket in Clifton. The mention of the Rs10 coin made him frown, something new for the otherwise quite pleasant fellow.

“Now I have collected a little sack full of these Rs10 coins. No one wants them,” he said.

Then remembering something, he opened his cash register to bring out several Rs75 currency notes, which the SBP had issued just last year. The green-coloured banknote was issued to commemorate the 75th independence day of Pakistan.

The note has portraits of four founders Quaid-i-Azam Mohammad Ali Jinnah, Dr Allama Mohammad Iqbal, Mohtarma Fatima Jinnah and Sir Syed Ahmed Khan on its front.

It carries the signature of SBP Governor Jameel Ahmad, and yet it is not accepted in the market.

“Similarly, this note is also not accepted. I have so many 75 rupees notes because, again, I have been taking it from customers but no one wants it from me,” he shrugged.

“Some people have even told me strange stories that the note has been rejected by the public and thus recalled by the SBP,” he laughed.

“They say that the image of the Markhor on the reverse side of the note is the problem. They say that it is not a halal animal, which is utter rubbish, although it may be endangered. It is also the Inter-Services Intelligence logo. Oh please, it is just a goat,” he laughed.

...
https://www.dawn.com/news/1748914/two-legal-tenders-struggle-to-gain-currency
 
‘Risks to public debt remain high’
Ministry warns that more shocks will keep debt above 70% until 2026

The risks to Pakistan’s public debt remain high and any further exchange rate shock would persistently keep the debt above the sustainable level of 70% of the nation’s economy in the next three years, a Finance Ministry report revealed on Wednesday.

The Debt Sustainability Analysis report indicates that Pakistan’s Debt-to-GDP ratio and Gross Financing Needs to GDP ratio are currently exceeding sustainable levels. This assessment highlights the presence of significant risks associated with default.

The report prepared by the Economic Advisor wing of the finance ministry determined that the sustainable Debt-to-GDP ratio for countries like Pakistan is set at 70%. Additionally, if the gross financing needs surpass 15% of GDP, it would become unsustainable. Pakistan is in breach of these two limits and the report suggests that due to any adverse shocks it may remain above the sustainable levels until at least 2026, according to the report.

“The heatmap depicts a high risk since the Debt and the Gross Financing Needs-to-GDP ratios exceed the market access countries DSA thresholds in FY 2023, both in baseline and shock scenarios.”

It is worth noting that since January 2018, the Pakistani rupee’s value has struggled to stabilise, except for a brief period when Dr Reza Baqir led the central bank and made efforts to maintain rupee stability in exchange for significant foreign inflows. Furthermore, the finance ministry emphasised that when considering combined macro fiscal and standardised contingent liability shocks, the debt-to-GDP ratio continues to exceed the 70% threshold. “Gross financing needs remain high, posing several liquidity risks mainly due to high interest rates and pressures on external account,” it added.

...
https://tribune.com.pk/story/2413868/risks-to-public-debt-remain-high
 
RS5,000 BANKNOTES TO BE DISCONTINUED AMID ECONOMIC CRISIS?

Speculations are circulating about the government mulling over recommendations regarding the discontinuation of Rs5,000 banknotes amid the severe economic crisis and skyrocketing inflation.

The speculations were increased after the discontinuation of Rs1,000 and Rs500 currency notes in India and different sections recommended to adopt the same practice of discontinuing bigger banknotes in Pakistan to curb the black money.

Economic experts said that the government should prioritise tax reforms for curbing illegal trade. They added that all governments had promised to bring tax reforms but they failed to implement the laws.

While talking to the ARY News programme Bakhabar Savera, Pakistan Tehreek-e-Insaf (PTI) leader and economic expert Muzammil Aslam termed the recommendations of discontinuing big currency notes ‘impractical’.

“In 2021, I had opposed then government’s move to stop the sale of Rs7,500 and Rs15,000 prize bonds. Instead of witnessing a decrease, bribery was increased after the closure of sale of prize bonds worth Rs40,000 and Rs254,000.”

“Some people are asking to discontinue Rs5,000 banknotes to curb the bribery but they are on a mistake.” He gave examples of currencies and gold coins of different countries and said that their value is much more than the actual value of transactions.”

Muzammil Aslam urged to strengthen the institution of the Federal Board of Revenue (FBR) if the government is serious to eliminate corruption.

ARY
 
The rupee weakened 1.3 per cent to a new record low of Rs288.5 against the US dollar in the interbank market on Wednesday, a day after former prime minister Imran Khan was arrested by the National Accountability Bureau in Islamabad.

Following the arrest, clashes erupted between Imran’s supporters and police, leaving at least one protester dead. The interior ministry has suspended mobile broadband services in the country.

Pakistan’s international bonds nudged lower with the 2024 issue down 0.4 cents on the dollar, according to Tradeweb data.

The bonds trade at deeply distressed levels with shorter-dated maturities priced at 49 cents on the dollar while longer-dated ones changed hands at around 33 cents.
 
Once again the dollar breached the Rs300-barrier in the open market on Wednesday, widening the exchange rate differential to over Rs14 compared to the interbank market.

Currency dealers said the shortage of dollars was the main reason for the price hike, however, other factors also influenced the exchange rate in the open market.

The dollar was traded as high as Rs301 in the open market while the Exchange Companies Association of Pakistan (ECAP) reported the closing price as Rs299.70. This rate was Rs14.30 higher than the interbank rate of Rs285.40 against the dollar on Wednesday.

On Tuesday, the rupee remained stable against the dollar and closed at 284.96 in the interbank market.
 
Pakistani currency made a remarkable recovery of almost 5.5%, or Rs16, in a single day to a one-week high at Rs295 against the US dollar in the open market at around midday on Thursday.

The currency had closed at Rs311 against the greenback on Wednesday, according to the Exchange Companies Association of Pakistan (ECAP).

Accordingly, the gap in the rupee-dollar exchange rate between interbank and open markets narrowed down to about Rs10 compared to around Rs27 a day ago.

In the interbank market, the currency has continued to stabilise around Rs285/$ for the past couple of weeks.

The widening spread in the value of the rupee between the two markets had led International Monetary Fund (IMF) to recommend the government "focus on restoration of proper foreign exchange market functioning."
 
Ideally, if the currency becomes devalued, exports become cheaper thereby providing a demand of them which in-turn should put an upward pressure on the falling currency.

But due to structural issues, increasing exports is difficult now for Pakistan, be it due to caps on lending agreements for manufacturers, raw material price inflation etc which are essentially structural/ policy issues.

Apparently textiles and rice are the top exports.

Exports The top exports of Pakistan are House Linens ($4.63B), Rice ($2.26B), Non-Knit Men's Suits ($2.03B), Knit Sweaters ($1.5B), and Non-Knit Women's Suits ($1.37B), exporting mostly to United States ($5.51B), China ($3.25B), Germany ($2.53B), United Kingdom ($2.21B), and United Arab Emirates ($1.28B).

Are there no initiatives in Pakistan to support textile industry?

I dont think, its possible to have a new export category near-future (PPers have to correct me if I am wrong and government is supporting new industries). The currency depreciation is quite alarming and I don't know how the government is going to bring it up in the next 5 years also. They seem nonchalant about it.
 
The rupee fell 1.6 per cent against the US dollar in the open market on Monday, changing course after appreciating sharply towards the end of last week.

According to the Forex Association of Pakistan, the greenback was changing hands at Rs305 in the open market around noon, an increase of Rs5 from Friday’s close.

Analysts said there was a shortage of dollars in the open market, attributing it to “hoarders” holding onto the foreign currency in anticipation of further depreciation of the rupee.

“People who have bought the currency at up to Rs310 are not selling, they are going for the wait-and-see strategy,” said Zafar Paracha, general secretary of the Exchange Companies Association of Pakistan.

DAWN
 
Pakistani currency depreciated by an unprecedented 28 per cent in the outgoing fiscal year, suggesting the strategy adopted by the State Bank of Pakistan (SBP) to manage the exchange rate proved fruitless amid a persistent political and economic crisis.

The drying up of inflows and dwindling foreign exchange reserves aided the US dollar’s upsurge against the rupee.

The greenback was available at Rs204.85 on June 30, 2022 since then it started rising sharply destroying the confidence of PKR.

On 27 June, the last working day of FY23, the dollar was priced at Rs285.99 in the interbank after hitting an all-time high at Rs298.93 on May 11.

DAWN
 
The US dollar hit 302 against the rupee in the open market on Saturday, going beyond the boundaries marked by the International Monetary Fund (IMF) to keep the difference in open and interbank exchange rates in the range of 1 per cent to 1.5 per cent.
 
WicketLord said:
The US dollar hit 302 against the rupee in the open market on Saturday, going beyond the boundaries marked by the International Monetary Fund (IMF) to keep the difference in open and interbank exchange rates in the range of 1 per cent to 1.5 per cent.
Click to expand...
We cannot prevent Pakistani rupees from depreciating unless we increase exports, but unfortunately, our leaders only seem to focus on how to send their opponents to jail instead of paying attention to the economy. Normally, in this manner, the local currency continues to weaken, and there is no limit to it.
 


This dude is amazing, no beating around the bush....
 
Last edited by a moderator:
The world has advanced a lot, but we still feel happy when we look at past successes. In order to improve Pakistan, we should focus more on future planning rather than dwelling on the past.
 
Exports Rose by a 1/3rd before the imported clowns took over, remittances rose sharply but they are dropping. We can't stop the decline until super economists from GHQ get back to barracks and PK gets stability and law and order
 
The rupee fell by Rs2.78 against the US dollar on Tuesday during interbank trade.

According to the Exchange Companies Association of Pakistan, the local currency was changing hands at Rs291.27 during the afternoon from the previous close of Rs288.49.

The dollar was trading for Rs300 in the open market.
 
The Pakistani rupee fell by Rs1.79 against the US dollar during interbank trade on Wednesday, extending its losses from the previous day.

The local currency was changing hands at Rs293.30 against the greenback at around 10:15am, according to data from the Exchange Companies Association of Pakistan (ECAP).

In the open market, the dollar was being traded for Rs302.
 
WicketLord said:
The Pakistani rupee fell by Rs1.79 against the US dollar during interbank trade on Wednesday, extending its losses from the previous day.

The local currency was changing hands at Rs293.30 against the greenback at around 10:15am, according to data from the Exchange Companies Association of Pakistan (ECAP).

In the open market, the dollar was being traded for Rs302.
Click to expand...
It will keep falling and falling. There’s no stopping unless a strong and stable government comes in and takes control of the mess.
 
The Pakistani rupee fell by Rs1.35 against the US dollar during interbank trade on Monday, extending its losses from the previous week.

The local currency closed at Rs297.13, rising by Rs1.35 from the last week’s close of Rs295.78, according to data shared by the Exchange Companies Association of Pakistan (ECAP).

In the open market, the dollar was changing hands for Rs307.
 
WicketLord said:
The Pakistani rupee fell by Rs1.35 against the US dollar during interbank trade on Monday, extending its losses from the previous week.

The local currency closed at Rs297.13, rising by Rs1.35 from the last week’s close of Rs295.78, according to data shared by the Exchange Companies Association of Pakistan (ECAP).

In the open market, the dollar was changing hands for Rs307.
Click to expand...
The clowns are now in a bind they created because the tried and tested method of the military coup had failed as the PK public saw through it. You can lock up IK, ban the PTI and let the mafia run amok like they have but it will never bring legitimacy when 80% of public know the truth. Who will invest in a country that has become a banana Republic.
 
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