KARACHI: On June 09, 2022, the State Bank of Pakistan (SBP) published the foreign exchange rates for customers based on the weighted average rates of commercial banks.
(more…)Author: Faisal Shahnawaz
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Rupee gains against dollar, ends at Rs200.77 in interbank
KARACHI: The Pakistani Rupee (PKR) recovered 75 paisas against the US dollar on Thursday to close at Rs200.77 in the interbank foreign exchange market.
The exchange rate ended with a recovery of 75 paisas in rupee value to Rs200.77 to the dollar from previous day’s closing of Rs201.52 in the interbank foreign exchange market.
READ MORE: Rupee recovers to Rs201.52 to dollar in volatile trading
The rupee hit all-time low at 202.83 against the dollar on June 7, 2022.
Currency experts said that the market remained volatile during the day. This is causing discomfort in the market. Shaking confidence of importers, exporter and foreign investor, according to the expert.
The currency experts said that the rupee was under immense pressure due to import payment demand and falling foreign exchange reserves.
READ MORE: Dollar hits record high at Rs202.83 in interbank
They said that usually import payment high in the last month of a fiscal year, especially for the oil imports.
It is pertinent to mention that the government had twice increased the prices of petroleum products since May 26, 2022 in order to satisfy the International Monetary Fund (IMF) for the release of next tranche of about $1 billion.
READ MORE: Dollar hits Rs200.06 as rupee falls sharply in interbank
Although the since announcement of raising petroleum prices the rupee witnessed a recovery. However, the falling foreign exchange reserves of the central bank once again put pressure on the local unit.
The foreign exchange reserves of the State Bank of Pakistan (SBP) fell two years low to $9.72 billion by week ended May 27, 2022. The SBP foreign exchange reserves were at $10.089 billion a week ago i.e. May 20, 2022. The central bank said that its reserves were decreased by $366 million to $ 9.723 billion due to external debt repayment. The SBP’s foreign exchange reserves were at $9.96 billion on June 19, 2020.
READ MORE: Dollar rebounds to Rs197.92; halts rupee’s gaining streak
The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021. Since touching the peak the central bank’s foreign exchange witnessed a continuous decline. The official reserves of the SBP fell around $10.423 billion by week ended May 27, 2022 from touching the peak on August 27, 2021. The official reserves of the SBP also reduced to payment for 1.46 months for import cover.
Overall the foreign exchange reserves of the country declined by $379 million to $15.771 billion by week ended May 27, 2022 as compared with $16.150 billion a week ago. 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 $11.547 billion.
READ MORE: Dollar weakens for 5th straight day; ends at Rs197.59
The dollar hit record high at Rs202.01 on May 26, 2022. However, with the decision of the government to partially withdraw the subsidy to get the next tranche of the IMF, the rupee sharply made gains against the dollar. The local unit made a recovery of Rs4.42 against the dollar during the past five sessions.
The rupee remained under pressure against the greenback during the current fiscal year. The State Bank of Pakistan (SBP) has taken various measures to support balance of payment and the local currency. However, the measures ended in a failure to help the rupee to recover losses.
READ MORE: SBP’s forex reserves fall two-year low to $9.72 billion
The SBP on May 23, 2022 announced a sharp increase in policy rate by 150 basis points to 13.75 per cent from 12.25 per cent.
Recently the government announced a complete ban on imports to support balance of payment and help the rupee to stabilize. However, these measures appeared in failure as the exchange rate yet again deteriorated today massively.
READ MORE: Dollar loses Rs4.14 in four sessions; falls to Rs197.87
Pakistan’s import bill massively increased to $72.18 billion during the first 11 months (July – May) 2021/2022 as compared with $50.03 billion in the same period of the last fiscal year, showing an increase of 44.28 per cent.
Pakistan is a net importer of petroleum products to meet its domestic demand. The country’s energy bill was $17.03 billion during the first nine 10 months (July – April) 2021/2022 as compared with $8.69 billion in the corresponding period of the last fiscal year, showing a massive growth of 96 per cent. The oil bill is around 25 per cent of the total import bill of the country.
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Bitcoin to Pak Rupee on June 09, 2022
KARACHI: The exchange rate of Bitcoin (BTC) in Pak Rupee (PKR) is Rs6,079,142.61 on June 09, 2022 at 11:35 AM Pakistan Standard Time (PST), in the open exchange market. The rate of Bitcoin has been calculated and compared with the rate Rs6,092,013.24 at closing on June 08, 2022.
The rate of Bitcoin in US Dollar (USD) is $30,336.39 on June 09, 2022 at 11:35 AM Pakistan Standard Time (PST) in the open exchange market. The rate of Bitcoin has been calculated and compared with the rate $30,264.75 at closing on June 08, 2022.
Disclaimer: All data and information is provided for informational purposes only. The data has not been provided for trading purposes or financial, investment, tax, legal, accounting, or other advice. In the case of trading, it is advised to consult your broker or financial representative to verify pricing before executing any trade. The exchange rate does not constitute investment advice. Further, it is not a recommendation to buy, sell or hold any security or financial product.
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Ripple to Pak Rupee on June 09, 2022
KARACHI: The exchange rate of Ripple (XRP) in Pak Rupee (PKR) is Rs80.68 on June 09, 2022 at 11:29 AM Pakistan Standard Time (PST), in the open exchange market. The rate of Ripple has been calculated and compared with the rate Rs80.45 at closing on June 08, 2022.
The rate of Ripple in US Dollar (USD) is $0.40 on June 09, 2022 at 11:29 AM Pakistan Standard Time (PST), in the open exchange market. The rate of Ripple has been calculated and compared with the rate of $0.40 at closing on June 08, 2022.
Disclaimer: All data and information are provided for informational purposes only. The data has not been provided for trading purposes or financial, investment, tax, legal, accounting, or other advice. In the case of trading, it is advised to consult your broker or financial representative to verify pricing before executing any trade. The exchange rate does not constitute investment advice. Further, it is not a recommendation to buy, sell or hold any security or financial product.
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Dogecoin to Pak Rupee on June 09, 2022
KARACHI: The exchange rate of Dogecoin (DOGE) in Pak Rupee (PKR) is Rs16.05 on June 09, 2022 at 11:20 AM Pakistan Standard Time (PST), in the open exchange market. The rate of Dogecoin has been calculated and compared with the rate Rs16.03 at closing on June 08, 2022.
The rate of Dogecoin in US Dollar (USD) is $0.08 on June 09, 2022 at 11:20 AM Pakistan Standard Time (PST), in the open exchange market. The rate of Dogecoin has been calculated and compared with the rate $0.08 at closing on June 08, 2022.
Disclaimer: All data and information are provided for informational purposes only. The data has not been provided for trading purposes or financial, investment, tax, legal, accounting, or other advice. In the case of trading, it is advised to consult your broker or financial representative to verify pricing before executing any trade. The exchange rate does not constitute investment advice. Further, it is not a recommendation to buy, sell or hold any security or financial product.
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New tax measures likely in budget 2022-2023
Pakistan is presenting the federal budget 2022-2023 on June 10, 2022. A bulk of new taxation measures likely to be announced in the budget to generate additional revenue.
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Pakistan Budget 2022-2023 – estimates
Pakistan government is going to announce federal budget for fiscal year 2022-2023 on June 10, 2022. The country is eyeing revival of an IMF program and it is likely that the upcoming budget will have measures that promotes fiscal austerity and stabilization.
According to Topline Securities the budget outlay for 2022-2023 is estimated at Rs9-9.5 trillion (11.5 per cent to 12 per cent of GDP) as against budget of Rs8.5 trillion (12.7 per cent of GDP) for the outgoing fiscal year.
READ MORE: Compliance cost much higher for corporatization: PSX
The government is likely to set tax revenue collection target of Rs7.25 trillion for the next fiscal year (9.2 per cent of GDP), which is up 19 per cent from the revised target of Rs6.1 trillion (9 per cent of GDP) for the outgoing fiscal year. It is likely to impose new taxation measures of Rs400-450 billion in the upcoming budget.
Current expenditure target is likely to be set at 12 per cent of GDP in FY23 or Rs8 trillion which is around 11 per cent YoY higher than what was budgeted in the outgoing fiscal year. Similarly, government is likely to set aside Rs3.5-Rs3.9 trillion (4.5 per cent-5.0 per cent of GDP) for markup payment for FY23 budget and Rs1.6 trillion is likely to be set aside for Defense expenditure which is 2.1 per cent of GDP.
For fiscal year 2022-2023, Federal Public Sector Development (PSDP) is budgeted at Rs800 billion vs. Rs466 billion disbursed in 10MFY22 and revised budgeted amount of Rs603 billion for the outgoing fiscal year.
READ MORE: FBR suggested reduction in tax rates for equity funds
Consolidated PSDP (Federal & Provincial) is anticipated to clock in at Rs1.4 trillion (1.8 per cent of GDP) in the next fiscal year, as against Rs1.2 trillion in the current fiscal year.
Few taxation measures that are under consideration includes: 1) increase in super tax for Banking sector and re-imposition of super tax on highly profitable companies, 2) increase in tax rate for individuals earning high salaries, 3) reduction in tax concessions and exemptions for various sectors, 4) increase in regulatory duties on luxury items, 5) luxury tax on immovable property & vehicles, and 6) increase in taxes for non-filers.
With economic slowdown, tax revenue target of Rs7.25 trillion will be challenging to achieve in FY23. However, it will depend on the amount of new taxes to be imposed in Budget FY23.
IMF has already demanded government to remove tax exemptions & subsidies and increase the rate of taxes on few sectors as per news reports.
READ MORE: PSX proposes tax exemption on property transactions
Non-tax revenue target for FY23 is estimated at Rs1.6 trillion (2.1 per cent of GDP) as against Rs2 trillion (3.1 per cent of GDP) budgeted for FY22. Lower target is due to expected decline in petroleum development levy (PDL) during the year.
With likely slowdown in economic activity, total revenue target (tax & non-tax) of Rs9 trillion will be difficult to achieve. However, it will depend on how much new taxes government imposes in Budget FY23.
Net revenue receipts after provincial share is budgeted at Rs4.7 trillion for FY23 as against Rs4.5 trillion for FY22 budgeted.
Current expenditure target is likely to be at 12 per cent of GDP in FY23 or Rs8 trillion which is around 11 per cent YoY higher than what was budgeted in FY22.
The government is likely to set aside Rs3.5-Rs3.9rn (4.5 per cent-5.0 per cent of GDP) for interest payment for FY23 budget. This is against Rs3 trillion (4.6 per cent of GDP) budgeted for FY22. Rising debt & high interest rates is responsible for this 20 per cent+ increase in interest payments.
For defense expenditures, government will likely set Rs1.6 trillion or 2.1 per cent of GDP for FY23. This compares to an allocation of Rs1.4 trillion or 2.1 per cent of GDP in FY22.
READ MORE: SMEs should be given tax credit to encourage listing
Annual Plan Coordination Committee finalized Federal Public Sector Development Program (PSDP) of Rs800 billion (1 per cent of GDP) for FY23. This compares to Rs466 billion of PSDP disbursed in 10MFY22 and revised budgeted amount of Rs603 billion for FY22. To recall, PSDP allocation even for FY22 budget was set much higher to the tune of Rs900 billion which was later revised down due to fiscal constraints.
Consolidated PSDP (Federal & Provincial) is anticipated to clock in at Rs1.4 trillion (1.8 per cent of GDP) in FY23, as against Rs1.2 trillion in FY22.
Low spending on development budget and no major reduction in current expenditure will affect overall economic activity in FY23, we believe.
The government will be setting fiscal deficit target of 6 per cent of GDP or Rs4 trillion for FY23 versus estimated fiscal deficit of Rs5.6 trillion or 8 per cent of GDP in FY22. We believe this fiscal discipline relative to last year may help in convincing IMF to resume the pending tranche.
READ MORE: FBR urged to eliminate minimum tax for listed companies
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SBP issues KIBOR rates – June 08, 2022
KARACHI: State Bank of Pakistan (SBP) on Wednesday issued the Karachi Interbank Offered Rates (KIBOR) as on June 8, 2022.
Following are the latest KIBOR rates:
Tenor BID OFFER 1 – Week 13.68 14.18 2 – Week 13.75 14.25 1 – Month 13.92 14.42 3 – Month 14.77 15.02 6 – Month 15.43 15.68 9 – Month 15.41 15.91 1 – Year 15.44 15.94 -
Stocks remain volatile on expected harsh measures
KARACHI: Pakistan stock remained volatile on Wednesday as investors are expecting harsh measures in the upcoming federal budget 2022/2023.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended at 41,553 points as compared with previous day’s closing of 41,568 points, showing a decline of 15 points.
READ MORE: Pakistan stocks end flat as investors eyeing budget
Analysts at Arif Habib Limited said that the PSX continued to remain under pressure throughout the day due to concerns regarding adverse upcoming budget and mounting inflation.
The federal budget is scheduled on June 10, 2022.
The benchmark KSE-100 index witnessed a volatile session as investors opted to remain sideways as lackluster volume was witnessed in the main board stocks whereas hefty volumes were observed in 3rd-tier stocks. Banking sector stayed in the red zone due to expectation of higher super tax and increase in other taxes in the upcoming budget.
READ MORE: Pakistan stocks gain 262 points in mixed trading
The Index closed at 41,553.16 points, down by 15.25 points (-0.04 per cent DoD). Sectors contributing to the performance include Banks (-62.9 points), Fertilizer (-18.2 points), Textile (-15.7 points), Automobile Assemblers (-14.2 points) and Insurance (-8.9 points).
READ MORE: Weekly Review: stocks to move with budget reports
Volumes decreased from 157.4 million shares to 151.1 million shares (-4.0 per cent DoD). Average traded value increased by 6.2 per cent to reach US$ 22.3 million as against US$ 21.0 million.
Stocks that contributed significantly to the volumes are UNITY, DGKC, OBOYR1, TPLP and PRL.
READ MORE: Pakistan stocks plunge by 923 points on fiscal weakness
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Rupee recovers to Rs201.52 to dollar in volatile trading
KARACHI: The Pakistani Rupee (PKR) recovered Rs1.31 against the US dollar on Wednesday after falling to the historic low a day earlier.
The exchange rate ended with a recovery of Rs1.31 in rupee value to Rs201.52 to the dollar from previous day’s closing of Rs202.83, the all-time low, in the interbank foreign exchange market.
READ MORE: Dollar hits record high at Rs202.83 in interbank
Currency experts said that the market was remained volatile during the day. The experts said that the market participants were shaky as the exchange rate opened at Rs201.50 to the dollar and fell to Rs200.50 and suddenly the dollar against appreciated to Rs201.20. “All these movements were recorded within 30 minutes in morning trade,” an expert said.
This is causing discomfort in the market. Shaking confidence of Importer and exporter and foreign investor, according to the expert.
READ MORE: Dollar hits Rs200.06 as rupee falls sharply in interbank
The currency experts said that the rupee was under immense pressure due to import payment demand and falling foreign exchange reserves.
They said that usually import payment high in the last month of a fiscal year, especially for the oil imports.
It is pertinent to mention that the government had twice increased the prices of petroleum products since May 26, 2022 in order to satisfy the International Monetary Fund (IMF) for the release of next tranche of about $1 billion.
Although the since announcement of raising petroleum prices the rupee witnessed a recovery. However, the falling foreign exchange reserves of the central bank once again put pressure on the local unit.
READ MORE: Dollar rebounds to Rs197.92; halts rupee’s gaining streak
The foreign exchange reserves of the State Bank of Pakistan (SBP) fell two years low to $9.72 billion by week ended May 27, 2022. The SBP foreign exchange reserves were at $10.089 billion a week ago i.e. May 20, 2022. The central bank said that its reserves were decreased by $366 million to $ 9.723 billion due to external debt repayment. The SBP’s foreign exchange reserves were at $9.96 billion on June 19, 2020.
The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021. Since touching the peak the central bank’s foreign exchange witnessed a continuous decline. The official reserves of the SBP fell around $10.423 billion by week ended May 27, 2022 from touching the peak on August 27, 2021. The official reserves of the SBP also reduced to payment for 1.46 months for import cover.
READ MORE: Dollar weakens for 5th straight day; ends at Rs197.59
Overall the foreign exchange reserves of the country declined by $379 million to $15.771 billion by week ended May 27, 2022 as compared with $16.150 billion a week ago. 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 $11.547 billion.
The dollar hit record high at Rs202.01 on May 26, 2022. However, with the decision of the government to partially withdraw the subsidy to get next tranche of the IMF, the rupee sharply made gains against the dollar. The local unit made a recovery of Rs4.42 against the dollar during past five sessions.
The rupee remained under pressure against the greenback during the current fiscal year. The State Bank of Pakistan (SBP) has taken various measures to support balance of payment and the local currency. However, the measures ended in a failure to help the rupee to recover losses.
READ MORE: SBP’s forex reserves fall two-year low to $9.72 billion
The SBP on May 23, 2022 announced a sharp increase in policy rate by 150 basis points to 13.75 per cent from 12.25 per cent.
Recently the government announced to impose a complete ban on imports to support balance of payment and help rupee to stable. However, these measures appeared in failure as the exchange rate yet again deteriorated today massively.
Pakistan’s import bill massively increased to $72.18 billion during first 11 months (July – May) 2021/2022 as compared with $50.03 billion in the same period of the last fiscal year, showing an increase of 44.28 per cent.
READ MORE: Dollar loses Rs4.14 in four sessions; falls to Rs197.87
Pakistan is a net importer of petroleum products to meet its domestic demand. The country’s energy bill was $17.03 billion during the first nine 10 months (July – April) 2021/2022 as compared with $8.69 billion in the corresponding period of the last fiscal year, showing a massive growth of 96 per cent. The oil bill is around 25 per cent of the total import bill of the country.