KARACHI: State Bank of Pakistan (SBP) on Wednesday issued the Karachi Interbank Offered Rates (KIBOR) as on August 03, 2022.
Following are the latest KIBOR rates:
| Tenor | BID | OFFER |
| 1 – Week | 14.64 | 15.14 |
| 2 – Week | 14.74 | 15.24 |
| 1 – Month | 14.86 | 15.36 |
| 3 – Month | 15.54 | 15.79 |
| 6 – Month | 15.64 | 15.89 |
| 9 – Month | 15.69 | 16.19 |
| 1 – Year | 15.73 | 16.23 |
KARACHI: Pakistan stocks ended up by 877 points on Wednesday owing to positive sentiments after massive appreciation recorded in rupee value.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended 41,069 points from previous day’s closing of 40,192 points, showing an increase of 877 points.
READ MORE: Pakistan stocks end in green on rupee recovery
Analysts at Topline Securities said that Pakistan equities welcomed acknowledgement by the International Monetary Fund (IMF) regarding completion of all condition necessary to resume Extended Fund Facility (EFF) program.
Initially, the KSE 100 index opened on a positive note, stayed in the green zone whole day and eventually closed at 41,069 (+877 points; up 2.18 per cent).
The analysts further said that the news of the day was historic Pak Rupee (PkR) appreciation of 4.19 per cent against the Greenback in the interbank trading where PKR close the day at 228.80 by posting a gain of Rupee 9.58 from yesterday interbank closing of 238.38.
READ MORE: Pakistan stocks end down 74 points
During the session, UBL announced its second quarter of 2022 earnings where Earnings per Share (EPS) clocked in at Rupee 2.2 as compared with 6.0 same period last year along with the dividend of PKR 4.
The aforesaid result was in line with the expectation which supported the stock price to close +5.3 per cent from its yesterday close.
READ MORE: Weekly Review: market likely to stay positive
Banks, Cement and E&P sector stocks contributed positively to the index where UBL, LUCK, POL, MEBL & HBL added 250 points, cumulatively. On the flip side, PKGS, ARPL and GADT have witnessed some profit taking as they lost 5 points collectively, today.
Over 332 million shares traded today at the bourse while total value clocked in at Rs10 billion. WTL led the volumes chart today with trading of 32.5 million shares in it, today.
READ MORE: Pakistan stocks shed 127 points amid sluggish trading
KARACHI: The Pakistani Rupee made a historic single day recovery of Rs9.58 against the US dollar on Wednesday to close at Rs228.80 in the interbank foreign exchange market.
The exchange rate recorded a recovery of Rs9.58 in rupee value to end at Rs228.80 to the dollar from previous day’s closing of Rs238.38 in the interbank foreign exchange market.
READ MORE: Rupee makes recovery against dollar for 3rd straight day
The rupee made recovery for the fourth consecutive day after the Chief of the Army Staff (COAS) telephoned to the US for speeding up the release of IMF tranche.
The rupee recorded historic low of Rs239.94 against the dollar on July 28, 2022.
Analysts said that expected inflows from the IMF of $1.2 billion, there will be multilateral inflows unlocking, followed by bilateral/friendly countries, and coupled with global and local recession impacting/reducing Oil and food/commodity prices globally, there will be much lower imports (exports will also be hit), thereby lowering demand for dollar outflows. This should help improve PKR against the US$, at least for some time.
READ MORE: Dollar falls to Rs238.84 at interbank closing on August 01, 2022
Currency experts said that the fall in import bill during the month of July 2022 eased the pressure on the foreign currency demand. Further, the International Monetary Fund (IMF) likely to release the tranche by end of this month.
The free-fall in rupee continued for the past many months against the greenback due to political instability and weak economic indicators.
The experts said that the continuous decline in rupee value may also be attributed to the fall in foreign exchange reserves.
The foreign exchange reserves of the country have further declined.
READ MORE: Pakistan interbank rupee ends Rs239.37 to dollar on July 29, 2022
Pakistan’s foreign exchange reserves have declined by $368 million to $15.242 billion by week ended July 15, 2022. The foreign exchange reserves of the country were $15.61 billion a week ago i.e. July 07, 2022.
The country’s foreign exchange reserves hit all-time high of $27.228 billion on August 27, 2021. Since then the foreign exchange reserves have declined by $11.986 billion.
The official reserves of the State Bank also depleted by $388 billion to $9.329 billion by week ended July 15, 2022 as compared with $9.717 billion a week ago.
The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021. Since then the official reserves of the SBP declined by $10.817 billion.
READ MORE: Rupee plunges near Rs240 to dollar at interbank closing
On Wednesday, August 03, 2022, the State Bank of Pakistan (SBP) released the foreign exchange rates for customers, shedding light on the buying and selling prices of various currencies against the Pakistani Rupee (PKR).
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KARACHI: Engro Eximp FZE, a subsidiary of Engro Corporation, on Wednesday announced that it entered into a Memorandum of Understanding (MOU) with Excelerate Energy, Inc. (NYSE: EE) (Excelerate), a leading provider of flexible LNG infrastructure solutions around the world, related to the development of a private sector gas marketing business in Pakistan.
Under this MOU, both partners will jointly evaluate the possibility of establishing a regasified LNG (RLNG) marketing business with maximum participation from the country’s private sector.
READ MORE: Engro Polymer collaborates for industry-academia linkage program
This initiative has the potential to increase private company participation in Pakistan’s LNG sector and enhance Pakistan’s energy security by opening up new RLNG supply avenues for businesses and consumers. This endeavor comes at a point when the need for energy security has become a critical issue globally, and particularly for Pakistan, against the backdrop of current geopolitical dynamics.
Ghias Khan, President and CEO – Engro Corporation stated, “I am delighted that Engro’s collaboration with Excelerate Energy has been strengthened through this agreement, which will help Pakistan meet its energy needs. As a pioneer in Pakistan’s LNG sector, we understand the importance of enhancing energy security; an imperative for Pakistan to ensure economic growth while providing consumers access to adequate, reliable, and affordable supplies of energy.”
READ MORE: Engro, BOP make arrangements for agri financing
“We value our collaboration with Engro and take great pride in having partnered with them to build Pakistan’s first LNG import terminal in 2015,” said Mr. Steven Kobos, President & Chief Executive Officer of Excelerate. “This agreement builds on the momentum we have established by extending our reach downstream of our existing terminal to key regasified LNG markets in Pakistan. We remain committed to meeting Pakistan’s growing energy security needs and look forward to expanding our collaboration with Engro in this pivotal market.”
READ MORE: Engro Powergen approves revised IPPs-government MoU
Since 2015, Engro and Excelerate together have played a key role in strengthening energy security of Pakistan through continuous operations of Pakistan’s first LNG import terminal which utilizes a floating storage and regasification unit provided under a long-term charter by Excelerate. The terminal currently fulfills as much as 15 percent of Pakistan’s natural gas requirements and is recognized as the most utilized FSRU worldwide.
READ MORE: Engro Polymer plans to setup Circular Plastics Institute
KARACHI: The exchange rate of Bitcoin (BTC) in Pak Rupee (PKR) is Rs5,523,756.66 on August 03, 2022 at 12:18 PM Pakistan Standard Time (PST), in the open exchange market.
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KARACHI: The exchange rate of Ripple (XRP) in Pak Rupee (PKR) is Rs89.36 on August 03, 2022 at 12:18 PM Pakistan Standard Time (PST), in the open exchange market.
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KARACHI: The exchange rate of Dogecoin (DOGE) in Pak Rupee (PKR) is Rs16.01 on August 03, 2022 at 12:18 PM Pakistan Standard Time (PST), in the open exchange market.
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JAPAN: The Honda Racing Corporation (HRC), which is the subsidiary of Honda Motors Co. Ltd on Tuesday agreed to provide technical support for Red Bull Powertrains (RBPT), relating to Formula 1 power units from 2023 to the end of 2025.
The press release issued on August 02, 2022 stated that in 2022, HRC has been providing PU-related technical support in line with Red Bull’s request to Honda, with both Oracle Red Bull Racing and Scuderia AlphaTauri therefore using the PU from the support program.
READ MORE: Super tax to hammer auto business in Pakistan: Honda Atlas
The extension of the existing agreement for HRC to continue providing technical support from 2023 to 2025 has now been mutually agreed between Red Bull and Honda.
Honda officially ended its participation in Formula 1 at the end of 2021, with the resources allocated to PU development diverted to meet the company’s future carbon-neutral goals.
The ongoing agreement between the two parties does not involve PU development, therefore HRC will be able to provide this service from within its current resources.
READ MORE: Honda Cars declares 29% fall in quarterly profit
Dr. Helmut Marko, Motorsport Advisor, Oracle Red Bull Racing said, “We thank Honda for their positive response to working together. We are excited to continue our partnership in F1 until the end of 2025 with the PU supplied by Honda. We have had a successful relationship so far, winning the Drivers’ championship in 2021 and currently leading the Drivers’ and Teams’ classifications, with the aim of securing both 2022 titles.”
Christian Horner, Red Bull Powertrains CEO and Team Principal said, “Red Bull’s partnership with Honda has been an incredibly successful one and we are pleased that this will continue until the end of the current era of the FIA’s power unit regulations in 2025.”
READ MORE: Honda to slash production on supply constraints
Koji Watanabe, Head of Corporate Communications Supervisory Unit, Honda Motor Co., Ltd. and President of Honda Racing Corporation said, “We have agreed to continue supporting Red Bull Power Trains in Formula 1 through HRC, following Red Bull’s request to extend our current agreement, which HRC can meet within its existing resources. Once again, we aim to use our involvement in the pinnacle of motorsport for the development of technologies and of our workforce.”
KARACHI: A big jump in petroleum prices in Pakistan has reduced the domestic sales of oil for the month of July 2022.
According to details released on Tuesday Pakistan oil sales commenced the fiscal year 2022/2023 with a decline of 26 per cent MoM to clock in at 1.44 million tons in July 2022 (lowest since February 2021).
READ MORE: New petroleum prices in Pakistan from August 1, 2022
Analysts at Topline Securities attributed the sharp decline in domestic oil sales to significant decline in all 3 petroleum products: High Speed Diesel (HSD) sales reduced by 38 per cent MoM to 444, 000 tons, Motor Gasoline (MOGAS) sales declined by 15 per cent MoM to 594,000 tons and Furnace Oil (FO) sales dipped by 23 per cent MoM to 350,000 tons.
Major reasons behind the decline in oil sales are, (i) Eid holidays during the first half of July where inter provincial transportation activity subsided which led to low HSD sales, and (ii) monsoon season across the country resulted in lower traffic on the roads.
READ MORE: New petroleum prices in Pakistan from July 15, 2022
Furthermore, increase in MOGAS and HSD prices by 26 per cent and 41 per cent since Jun-22 resulted in reduced demand of petroleum products and increase in usage of public transport and car pooling.
As compared to last year, Pakistan oil sales recorded 26 per cent YoY decline in July 2022 which is owed to drop in MOGAS and HSD Sales by 27 per cent YoY and 38 per cent YoY, respectively. Excluding FO, oil sales were down 31 per cent YoY and 26 per cent MoM in July 2022 to 1.1 million tons.
READ MORE: New prices of petroleum products in Pakistan from July 01, 2022
Among the listed entities, Pakistan State Oil (PSO) sales posted 27 per cent MoM decline to 760k tons (lowest since Feb-22), mainly due to decline in HSD sales by 38 per cent MoM. In terms of market share, PSO market share clocked in at 53 per cent in Jul-22 vs. 52 per cent in July 2021.
Other companies such as Attock Petroleum (APL) and Shell Pakistan (SHEL) also recorded drop of 29 per cent MoM and 37 per cent MoM to 142k tons and 100k tons, respectively.
For FY23E, the analysts expect oil sales to drop by 15-20 per cent YoY in FY23E, mainly due to (i) low growth estimated in agriculture sector, (ii) likely decline in auto sales, and (iii) increase in petroleum prices.
READ MORE: New petroleum prices in Pakistan from June 16, 2022