KARACHI: The exchange rate of Bitcoin (BTC) in Pak Rupee (PKR) is Rs5,232,590.22 on July 22, 2022 at 11:35 AM Pakistan Standard Time (PST), in the open exchange market.
(more…)Author: Faisal Shahnawaz
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Ripple to Pak Rupee on July 22, 2022
KARACHI: The exchange rate of Ripple (XRP) in Pak Rupee (PKR) is Rs82.58 on July 22, 2022 at 11:35 AM Pakistan Standard Time (PST), in the open exchange market.
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Dogecoin to Pak Rupee on July 22, 2022
KARACHI: The exchange rate of Dogecoin (DOGE) in Pak Rupee (PKR) is Rs15.80 on July 22, 2022 at 11:35 AM Pakistan Standard Time (PST), in the open exchange market.
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NEPRA to conduct public hearing on KE’s petition on July 28
KARACHI: National Electric Power Regulatory Authority (NEPRA) has announced to conduct a public hearing on July 28 over the petition submitted by K-Electric on Fuel Charges Adjustments (FCA) for June 2022.
The utility has sought an increase of Rs11.38/KWh in its FCA petition for June 2022. As per applicable tariff across the country, fuel adjustment is reviewed every month and is applicable on consumer bills for only one particular month.
READ MORE: Revised power tariff, taxes on electricity bills in Pakistan
The major impact on the monthly Fuel cost adjustment of June 2022 is due to an increase in the fuel price increase of Furnace Oil and power purchased from CPPA-G.
The price of RLNG in June 2022 has increased by 50 per cent from March 2022. The price of RLNG as at June 2022 is Rs4,627 / MMBTU as compared to the price of Rs3,083 / MMBTU in March 2022.
The price of electricity from CPPA-G in June 2022 has increased by 74 per cent from March 2022. The price of power purchased from CPPA-G as at June 2022 is Rs15.844/KWh as compared to the price of Rs9.098/ KWh in March 2022.
READ MORE: K-Electric, Siemens sign deal for KKI Grid construction
Fuel Charge Adjustment (FCA) is incurred by utilities due to global variation in fuel prices used to generate electricity and change in the generation mix. These costs are passed through to the consumers following NEPRA’s scrutiny and approval and are one-time charges. Consumers also receive a benefit when the cost of fuel decreases.
After the public hearing and scrutiny, the regulator will make a decision on the request and issue instructions on the period during which these costs can be applied to consumer bills.
READ MORE: Rupee devaluation severely affects KE’s profitability
K-Electric (KE) is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005 KE is the only vertically integrated utility in Pakistan supplying electricity within a 6500 square Kilometre territory including Karachi and its adjoining areas.
The majority shares (66.4 per cent) of the company are listed in the PSX owned by KES Power, a consortium of investors including Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan is also a minority shareholder (24.36 per cent) in the company.
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Pakistan’s forex reserves decline to $15.24 billion
KARACHI: Pakistan’s foreign exchange reserves have declined by $368 million to $15.242 billion by week ended July 15, 2022, State Bank of Pakistan (SBP) said on Thursday.
The foreign exchange reserves of the country were $15.61 billion a week ago i.e. July 07, 2022.
READ MORE: Pakistan’s forex reserves drop to $15.61 billion
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.
READ MORE: Pakistan’s forex reserves deplete to $15.74 billion
The SBP attributed the decline in foreign exchange reserves to external debt repayments.
It is pertinent to mention that the SBP received about $2.3 billion from Chinese banks for buildup of foreign exchange reserves. However, despite receiving the amount the external debt payment kept the pressure on the reserves.
READ MORE: State Bank’s reserves dip to 32-month low at $8.238 billion
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.
The commercial banks held foreign exchange increased to $5.913 billion by week ended July 15, 2022 when compared with $5.893 billion a week ago, showing a rise of $20 million.
READ MORE: Pakistan’s central bank reserves shrink to one month import cover
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SBP issues KIBOR rates – July 21, 2022
KARACHI: State Bank of Pakistan (SBP) on Thursday issued the Karachi Interbank Offered Rates (KIBOR) as on July 21, 2022.
Following are the latest KIBOR rates:
Tenor BID OFFER 1 – Week 14.29 14.79 2 – Week 14.39 14.89 1 – Month 14.53 15.03 3 – Month 14.96 15.21 6 – Month 15.43 15.68 9 – Month 15.49 15.99 1 – Year 15.55 16.05 -
Rupee depreciation disaster for industry: SITE Association
KARACHI: SITE Association of Industry on Thursday said that the continuous decline in rupee value against the dollar has brought the industry at verge of collapse.
Abdul Rasheed, President, SITE Association of Industry, in a press statement, expressed serious concerns over the silence of State Bank of Pakistan in controlling rupee devaluation.
READ MORE: SITE Association demands reversing policy rate at 7%
He demanded the central bank of taking steps to control rupee-dollar parity.
On Thursday, the dollar touched the highest ever level of Rs228 which is having adverse impact on the business activities in the country and the industries in particular, are now at the verge of collapse due to constantly increasing cost of production.
SITE President said that despite the demand of the business community to control rupee devaluation, no effective steps were taken by the State Bank of Pakistan.
READ MORE: SITE Association signs MoU for tax return filing
Instead the State Bank of Pakistan stated that the economic situation of the country is better. This statement of the SBP is contrary to ground realities as business and industries are suffering the most due to increasing dollar value.
Raw material is imported to meet the requirements of local industries. Due to costlier dollar value, the imports have also become costlier, thereby increasing production cost and making it difficult to run industries.
READ MORE:SITE Association hails FBR chairman’s no bank account freezing decision
Abdul Rasheed added that the government is focusing only on getting a loan from the IMF without considering how to refund the IMF loan when there will be no industry and no tax collection. In the absence of adequate tax collections, the economy will collapse.
Drawing attention of the federal government towards the gravity of the matter, Abdul Rasheed demanded to control of rupee devaluation and flight of dollar to avert its negative impact on industries and economy as a whole.
READ MORE: Key policy rate goes up to 9.75%; SBP raises 250bps in less than month
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Pakistan may increase petrol prices from August 1, 2022
KARACHI: Pakistan may review prices of petroleum products for the next fortnight on July 31, 2022, which also consider the massive depreciation of rupee value.
Previously the present government had started increasing the petroleum prices on May 26, 2022 when the benchmark Brent Oil was at $112 per barrel and now as of today July 21, 2022, the international prices of Brent Oil have fallen to $103 per barrel.
Considering the latest price slump of international oil, the government had reduced the prices of petroleum products from July 15, 2022. However experts believed it was political decision as the government had to increase petroleum levy and apply sales tax.
Furthermore the Pakistani Rupee (PKR) has sharply fell against the dollar leaving no room for the government but to increase the prices of petroleum products.
READ MORE: New petroleum prices in Pakistan from July 15, 2022
The local currency depreciated by around 11 per cent during the month of July to close at 226.81 to the US Dollar on July 21, 2022.
Pakistan is net importer of petroleum products and spends huge foreign exchange for the purchase.
The country imported petroleum products worth $23.32 billion during fiscal year 2021-2022 as compared with $11.35 billion in the preceding year, showing a growth 105 per cent.
In the previous announcement on July 14, 2022, the government announced the following prices of petroleum products.
The new prices of petrol have been decreased by Rs18.50 per liter to Rs230.24 from Rs248.74.
The rate of high speed diesel has been decreased by Rs40.54 per liter to Rs235.95 from Rs276.54.
The rate of kerosene oil has been decreased by Rs33.81 per liter to Rs196.45 from Rs230.26.
Similarly, the rate of light speed diesel has been decreased by Rs34.71 per liter to Rs191.44 from Rs226.15.
READ MORE: New prices of petroleum products in Pakistan from July 01, 2022
The Prime Minister on July 12, 2022 directed the authorities to pass on the full benefit of falling oil prices in the international markets to the masses.
The previous government of PTI had kept both the petroleum levy and sales tax at zero in order to provide relief to the masses. The PTI government also provided a huge subsidy on prices of petroleum products in order to lower the rates and provide relief to the masses.
However, former Prime Minister Imran Khan was removed through a vote of no-confidence motion on April 10, 2022.
Since then the new coalition government led by PML-N increased the prices of petroleum products sharply on three different occasions.
READ MORE: New petroleum prices in Pakistan from June 16, 2022
The new government of Prime Minister Shehbaz Sharif increased the prices of petroleum products on May 26, 2022, June 02, 2022 and June 15, 2022. Cumulatively, the government increased the price of petrol by 84 per liter in these price hikes.
The present government in the budget estimated to collect Rs750 billion as petroleum levy during the fiscal year 2022/2023. As this fiscal year is starting from July 01, 2022, it is likely that the government will opt to impose the levy from this date.
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Rupee ends to new low at Rs226.81 against dollar in interbank
KARACHI: The Pakistan Rupee (PKR) fell to a new historic low at Rs226.81 to the US dollar on Thursday due to scarcity of the greenback and further rise in political instability.
The exchange rate recorded a decline of Rs1.89 in rupee value to end at Rs226.81 to the dollar from previous day’s closing of Rs224.92 in the interbank foreign exchange market.
Currency dealers said that the importers were running pillars to post for dollars to make payments to their foreign suppliers.
READ MORE: PKR plunges Rs227 to dollar at interbank midday trading
They further said that the market remained uncertain due to political instability. The dealers said that the fall in foreign exchange reserves also fueled the uncertainty in the market.
The foreign exchange reserves of Pakistan have depleted by $454 million to $15.742 billion by the week ended June 30, 2022. The foreign exchange reserves of the country were at $16.196 billion a week ago i.e. June 24, 2022.
The country’s foreign exchange reserves hit an all-time high of $27.228 billion on August 27, 2021. Since then the foreign exchange reserves have declined by $11.486 billion.
READ MORE: Rupee hits fresh low Rs224.92 to dollar at interbank closing
The official reserves of the State Bank also recorded a decline of $493 million to $9.816 billion by the week ended June 30, 2022 as compared with $10.309 billion a week ago.
The central bank attributed the decline in foreign exchange reserves to external debt repayments.
It is pertinent to mention that the SBP received about $2.3 billion from Chinese banks for buildup of foreign exchange reserves. However, despite receiving the amount the external debt payment kept the pressure on the reserves.
The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by the week ended August 27, 2021. Since then the official reserves of the SBP declined by $10.33 billion.
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READ MORE: Pakistani Rupee crashes to Rs222 against Dollar at closing on July 19, 2022
The SBP on July 07, 2022 announced a hike of 125 basis points in policy rate to bring it to 15 per cent. The purpose of increasing the interest rate was to curb the demand and support the rupee value. However, the effort of the SBP failed to support the rupee value.
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SBP’s customer forex rates – July 21, 2022
On Thursday, July 21, 2022, the State Bank of Pakistan (SBP) released the foreign exchange rates for customers, revealing the buying and selling prices of various currencies against the Pakistani Rupee (PKR).
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