The import cover was 3.3 months in August 2021, according to analysts at Topline Securities.
According to the data released by the SBP, its official reserves were declined by $244 million to $16.01 billion by the week ended November 26, 2021, as compared with $16.254 billion a week ago.
The foreign exchange reserves of the country reduced by $275 million to $22.499 billion by the week ended November 26, 2021, as compared with $22.774 billion by the week ended November 19, 2021.
The foreign exchange reserves held by commercial banks also declined by $31 million to $6.489 billion by the week ended November 26, 2021 as compared with $6.52 billion a week ago.
KARACHI: The Pakistan Stock Exchange (PSX) faced a severe downturn on Thursday, with the benchmark KSE-100 index plummeting by 2,135 points in response to unfavorable reports on the fiscal front.
The rupee lost 94 paisas against the dollar from the previous day’s closing of Rs175.48 in the interbank foreign exchange market.
Previously, the rupee recorded an all-time low of Rs176.20 on November 29, 2021.
Currency experts said that higher imports and widening of trade deficit were the major reasons behind rupee deterioration.
During the first five months of the current fiscal year, exports and imports reached $12.4 billion and $33.1 billion, respectively. The trade deficit jumped up by 117 per cent YoY during the first five months of the current fiscal year to $20.8 billion.
The market was anticipating a recovery in the local unit after tightening of monetary policy stance by the State Bank of Pakistan (SBP) and signing for a Saudi support package for Pakistan. However, all these positive outcomes have failed to support the local currency.
KARACHI: The domestic oil sales have surged by 18 per cent to 9.6 million tons during first five months (July – November) of fiscal year 2021-2022 – 5MFY22 as compared with 8.16 million tons in the corresponding months of the last fiscal year.
Analysts at Arif Habib Limited said that double digit growth was witnessed in all categories; motor spirit, high speed diesel and furnace oil with off take undergoing a jump to 3.81 million tons, 3.74 million tons and 1.78 million tons (amid higher requirement from furnace oil based power plants), up by 11 per cent, 20 per cent and 29 per cent year on year (YoY) against 3.44 million tons, 3.12 million tons and 1.38 million tons in the same period of the last fiscal year, respectively.
Total petroleum and lubricant sales clocked-in at 1.75 million tons in November 2021, depicting an increase of 2 per cent YoY while down 12 per cent Month on Month (MoM) on account of significant decline in furnace oil volumes which clocked in at 0.18 million tons, down by 46 per cent MoM compared to 0.33 million tons in October 2021.
The decline in sales volumes has been attributed to power requirement in winter season which is usually lower compared to summer resulting in slowdown in dispatches and increase in prices of motor spirit (petrol) and high speed diesel.
On yearly basis, sales volumes witnessed a meager growth of two per cent YoY which was mainly led by sales growth in furnace oil and high speed diesel by three per cent and one per cent YoY, respectively.
The Pakistani Rupee (PKR) strengthened against the US Dollar for the second consecutive day in the interbank foreign exchange market on Wednesday, closing at Rs175.48 per US Dollar, a recovery of 24 paisas from the previous day’s rate of Rs175.72.
Karachi, Pakistan – The State Bank of Pakistan (SBP) has published the exchange rates for December 01, 2021, providing a comprehensive overview based on the weighted average rates of commercial banks.
Samba Bank Limited shared a communication with the Pakistan Stock Exchange (PSX) that the SBP had granted approval to SNB and its advisor, due diligence team, to undertake the due diligence of Samba Bank Limited with applicable laws, rules and regulations.
Samba Bank previously on September 21, 2021 communicated to the PSX that SNB, as the immediate parent company of Samba Bank Limited had notified: “SNB is considering all its strategic options in relations to its shareholding in Samba Pakistan Limited, including potential mergers, acquisitions, divestment and/or restructuring (the strategic review).
“Any decision relating to the strategic review shall be subject to internal approvals and may be subject to regulatory approvals as well as execution of the definitive agreement.”
It may be mentioned that SNB is the successor entity of Samba Financial Group, pursuant to a merger process in the Kingdom of Saudi Arabia, and regulatory formalities for the formal recording of Saudi National Bank as the successor entity in Pakistan is under process.
Samba Bank through a letter on October 05, 2021 made further disclosure to the stock exchange that the board of directors of SNB had approved the following actions in respect of Samba Bank Limited:
— To commence and orderly well managed divestment of Samba Bank Limited – Pakistan.
— To appoint an advisor to assist with the process, which has been done by SNB;
— to advise Samba Bank Limited on engagement with the regulators in Pakistan for the process, as necessary;
— To revert to the Board of Directors of SNB, before commencing a process of due diligence based on the receipt of Non-Binding offers and feedback from the market in the evaluation of this option.
KARACHI, November 30, 2021 – The State Bank of Pakistan (SBP) has released the official exchange rates for November 30, 2021, providing customers and businesses with crucial information on currency values.
KARACHI: The Pak Rupee (PKR) recovers 48 against the dollar on Tuesday after positive sentiments prevailing in the market over the signing of the Saudi packages for Pakistan.
A day earlier, the State Bank of Pakistan (SBP) and Saudi Fund for Development (SFD) signed a deposit agreement. Under the deposit agreement, the SFD would place a deposit of $3 billion with the SBP. The deposit amount under the agreement would become part of SBP’s foreign exchange reserves.
The rupee hit an all-time low of Rs176.20 on November 29, 2021.
Currency experts said that the market had witnessed high dollar demand for import and corporate payments. However, the reports of the Saudi support package helped the rupee to make some recovery.
In order to support the local currency, the SBP on November 19, 2021, decided to tighten the monetary policy stance. The SBP enhanced the key policy rate by 150 basis points to 8.75 per cent.
Although, the rupee recovered some value following the policy decision but the dollar demand persist for external payment and rupee plunged to the historic low.
