Pkrevenue.com

Author: Faisal Shahnawaz

  • Dollar hits record high of Rs178.04 at interbank closing

    Dollar hits record high of Rs178.04 at interbank closing

    KARACHI: The US dollar breached the level of Rs178 on Friday due to mounting demand for the foreign currency for import payments.

    The Pak Rupee (PKR) ended at Rs178.04 to the dollar from the previous day’s closing of Rs177.98 in the interbank foreign exchange market.

    Currency experts said that dollar demand for import and corporate payments remained high during the day. They said that dollar demand for import and corporate payments remained high due to the closing of the year.

    READ MORE: Dollar maintains record high level at Rs177.98

    They said that the measures taken by the State Bank through tightening of monetary policy has failed to support the rupee.

    The State Bank of Pakistan (SBP) on December 14, 2021 announced a monetary statement and increased the key policy rate by 100 basis points to 9.75 per cent. The SBP increased the policy rate by 250 basis points in less than a month to support the local currency by reducing the demand.

    READ MORE: Rupee falls to new record low despite policy rate hike

    The dealers said that there was no letup in import payment. The import bill of the country surged by 69.17 per cent to $33 billion during the first five months (July – November) 2021/2022 as compared with $19.47 billion in the corresponding months of the last fiscal year.

  • Pakistan’s foreign investment surges by 73% in 5 months

    Pakistan’s foreign investment surges by 73% in 5 months

    KARACHI: Pakistan’s total foreign investment surged by 73 per cent during the first five months of the current fiscal year, according to data released by the State Bank of Pakistan (SBP) on Friday.

    The total foreign investment increased to $455.5 million during July – November 2021/2022 as compared with $263.4 million in the same period of the last fiscal year.

    The total foreign private investment registered a growth of 1.8 per cent to $534 million during the first five months of the current fiscal year as compared with Rs525 million in the same period of the last fiscal year.

    Out of total foreign private investment, the Foreign Direct Investment (FDI) registered a growth of 12.3 per cent to $797.7 million during the first five months of the current fiscal year as compared with $710 million in the corresponding period of the last fiscal year.

    The other component of the foreign investment, the portfolio investment registered a decline of 42 per cent. The portfolio investment recorded an outflow of $263 million during the first five months of the current fiscal year as compared with the outflow of $185.5 million in the corresponding period of the last fiscal year.

    The foreign public investment recorded an increase of 70 per cent due to decline in outflow of investment against debt securities. The outflow in debt securities recorded $79 million during July – November of fiscal year 2021/2022 as compared with the outflow of $261 million in the same period of the last fiscal year.

    Total foreign investment surges by over 98pc in 10 months
  • Customers’ exchange rates on December 17, 2021

    Customers’ exchange rates on December 17, 2021

    Karachi, Pakistan – On Friday, the State Bank of Pakistan (SBP) unveiled the official exchange rates for December 17, 2021, providing customers with essential information based on the weighted average rates of commercial banks.

    (more…)
  • Employers criticize increase in key policy rate

    Employers criticize increase in key policy rate

    Karachi: Employers have strongly criticized the State Bank of Pakistan (SBP) for recent increase in policy rate amid rising inflation.

    (more…)
  • NKATI expresses concerns over gas disconnection

    NKATI expresses concerns over gas disconnection

    KARACHI: Faisal Moiz Khan, President, North Karachi Association of Trade & Industry (NKATI), while expressing deep concern over the gas disconnect of non-export, general industries, has demanded the government to continue gas supply with required pressure to industries.

    In a statement, Faisal Moiz Khan said that Karachi should not be punished for paying 54 per cent of the country’s exports and 70 per cent of its revenue. If SSGC disconnects the gas supply to non-export, general industries then factories will be locked and the SME sector will be destroyed.

    “Karachi has always played a vital role in the development of the country and is still playing a positive role in spite of all difficulties, be it for strengthening the national economy or promoting exports and providing vast employment opportunities”, he added.

    He raised the question of where is the wisdom to shut off the gas of ordinary industries? The SSGC has no authority to disconnect industrial gas. On the contrary, the government should help the industries to survive in the corona economy so that the country can get back on its feet economically.

    NKATI president further said that where is the justice for Sindh not getting gas? Sindh has the first right to the gas reserves of Sindh. Therefore, first of all, while fulfilling the gas needs of the people of the province, gas should be supplied to all industries with full pressure without any discrimination and then the remaining gas to be given other provinces.

    Faisal Moiz Khan stated that the industrial community would not tolerate this injustice under any circumstances. The government should stop discriminating against Karachi and the resources of the province should be utilized to meet the needs of the province.

    SITE industrialists condemn gas suspension
  • KSE-100 index falls by 636 points on profit taking

    KSE-100 index falls by 636 points on profit taking

    KARACHI: The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) fell by 636 points on Thursday owing to profit taking seen during the day.

    The index closed at 44,731 points as against previous closing of 44,367 points showing a decrease of 636 points.

    Analysts at Arif Habib Limited said that bears ruled over the bulls today as disappointment occurred from the auction of market treasury bills where cut-off yields remained flat across all tenors.

    Market opened on a bleak note as investors opted for profit booking but were unable to sell in the green zone.

    OGMCs sector remained under pressure as petrol price decreased by 3.4 per cent to PKR 140.82/liter, causing inventory loss to oil and gas marketing companies.

    Pharma sector stayed in the red zone as proposal on the cards of applicability of sales tax on the import of pharmaceutical active ingredients and local supply of medicines. Main board activity remained dull.

    On the flip-side, activity continued to remain side-ways as market witnessed hefty volumes in the 3rd tier stocks.

    Sectors contributing to the performance include Commercial Banks (-199 points), Cement (-116 points), Fertilizer (-65 points), E&P (-64 points) and OMC’s (-44 points).

    Volumes decreased from 398.1 million shares to 312.1 million shares (-21.6 per cent DoD). Traded value also decreased by 13.1 per cent to reach US$ 56.9 million as against US$ 65.5 million.

    Stocks that contributed significantly to the volumes include WTL, TELE, BYCO, TRG and UNITY.

    KSE-100 index gains 1,120 points on institutional buying
  • Pakistan’s forex reserves fall to $25.028 billion

    Pakistan’s forex reserves fall to $25.028 billion

    KARACHI: Pakistan’s foreign exchange reserves declined by $123 million to $25.028 billion by the week ended on December 10, 2021, the State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were $25.151 billion by the week ended December 03, 2021.

    The official reserves of the State Bank came down by $90 million to $18.568 billion by the week ended December 10, 2021 as compared with $18.658 billion a week ago.

    Similarly, the foreign exchange reserves held by commercial banks fell by $33 million to $6.46 billion by the week ended December 10, 2021 as compared with $6.493 billion a week ago.

    SBP’s forex reserves increase to $18.658 billion
  • SBP issues KIBOR rates on December 16, 2021

    SBP issues KIBOR rates on December 16, 2021

    KARACHI: State Bank of Pakistan (SBP) on Thursday issued the Karachi Interbank Offered Rates (KIBOR) as of December 16, 2021.

    Following are the latest KIBOR rates:

     TenorBIDOFFER
    1 – Week9.8510.35
    2 – Week9.8910.39
    1 – Month10.0010.50
    3 – Month10.5610.81
    6 – Month11.2811.53
    9 – Month11.2711.77
    1 – Year11.3111.81
    SBP issues KIBOR rates on December 15, 2021
  • SITE Association demands reversing policy rate at 7%

    SITE Association demands reversing policy rate at 7%

    KARACHI: Site Association of Industries (SAI) has demanded the State Bank of Pakistan (SBP) to immediately withdraw the increase in policy rate and bring it back at 7 per cent.

    In a statement issued on Thursday, SAI President Abdul Rasheed rejected further 100 basis points rise in interest rates calling for its immediate reversal especially when the industry is facing forced closures due to a severe gas shortage.

    READ MORE: Key policy rate goes up to 9.75%; SBP raises 250bps in less than month

    In a statement, SAI president said that free floating exchange rate works as a shock absorber which discourages imports in a timely manner thereby keeping current account in check.

    SBP in their monetary policy statement have stated that inflation is due to supply side issues further fuelled by higher commodity prices and up to 70 per cent of current account deficit is due to rising global commodity prices.

    READ MORE: SITE Association signs MoU for tax return filing

    Abdul Rasheed demanded reversing the rate to 7 per cent as industries are already facing severe losses due to gas closure industry, a crisis of the magnitude of COVID 19. “With industries facing huge challenges due to closure of gas, one sided minimum wage notification, an interest rate hike could well prove to be the last nail in the coffin for troubled industrialists.”

    Terming the interest rate hike detrimental for Pakistan’s economy especially for Government of Pakistan, he said, “An increase in interest rate of 275 basis points since September would result in higher fiscal deficit by increasing interest expense by Rs1 trillion on Rs26 trillion domestic debt while reducing direct taxes due to lower profitability of companies on account of higher interest expense”, he concluding that keeping raising interest rate at 7 per cent was the main reason that GOP avoided twin deficits having a better performance on the fiscal front despite deteriorating external position.

    READ MORE:SITE Association hails FBR chairman’s no bank account freezing decision

    SAI president discarded the idea of keeping real interest rates mildly positive as most of the countries are maintaining steep negative real interest rates including USA and UK. Terming the reversal of policy rate down to 7 per cent critical for both the private sector and GOP, Abdul Rashid Said, “it is imperative that SBP reverts its decision of raising the policy rates as it is detrimental to both the private sector as well the GOP without aiding at all in improving the current account position.”

  • Dollar maintains record high level at Rs177.98

    Dollar maintains record high level at Rs177.98

    KARACHI: The US dollar on Thursday maintained the record high level of Rs177.98 at closing of interbank foreign exchange market.

    The Pak Rupee ended unchanged against the dollar at previous day’s closing of Rs177.98, which was the lowest level of the rupee.

    READ MORE: Rupee falls to new record low despite policy rate hike

    Currency experts said that the market witnessed high dollar demand for import and corporate payments. However, sufficient inflows of the dollar helped the rupee to keep value at previous day’s level.

    The State Bank of Pakistan (SBP) on December 14, 2021 announced another 100 basis points increase in the key policy rate to 9.75 per cent. It was the third straight increase in the policy rate by the central bank since September 2021. However, the free-fall in rupee continued due to higher dollar demand for import payments.

    READ MORE: Dollar eases against PKR on expected policy rate rise

    According to the official data of Pakistan Bureau of Statistics (PBS), the import bill of the country surged by 69.17 per cent to $33 billion during the first five months (July – November) 2021/2022 as compared with $19.47 billion in the corresponding months of the last fiscal year.

    READ MORE: Dollar touches Rs178 intraday trading, retreats