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Category: Money & Banking

Money and banking drive economic activity by facilitating transactions, savings, and investments. Banks manage financial resources, offer credit, and regulate money supply, ensuring stability and growth in Pakistan’s financial sector.

  • Dollar climbs up to Rs210 in midday interbank trading

    Dollar climbs up to Rs210 in midday interbank trading

    KARACHI: The US dollar climbed up to make a new historic high at Rs210 against the Pakistan Rupee (PKR) in midday trading at interbank foreign exchange market on Monday.

    The US dollar is being traded at Rs210 after gaining Rs1.25 from last Friday’s closing of Rs208.75 in the interbank foreign exchange market.

    Currency experts said that the foreign exchange reserves had declined to critically low, which created panic in the market. Besides, high oil prices and rise in commodity prices globally also pushed dollar demand for import payments.

    READ MORE: Rupee collapses to fresh low against dollar to Rs208.75

    According to data released by the State Bank of Pakistan (SBP) a day earlier, the official reserves of the central bank had declined to provide about one month import cover.

    The official foreign exchange reserves of the State Bank of Pakistan (SBP) fell by $241 million to $8.985 billion by week ended June 10, 2022 as compared with $9.226 billion a week ago i.e. June 03, 2022.

    The present level of the SBP’s reserves showed that the central bank has import cover for around only one months.

    Pakistan’s import bill for the month of May 2022 recorded at $6.777 billion, according to Pakistan Bureau of Statistics (PBS).

    The latest foreign exchange reserves of the SBP showed it fell around 2½ years low. Previously, the foreign exchange reserves held by the central bank were seen at $9.233 billion on December 6, 2019.

    The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021.

    READ MORE: Pakistan’s central bank reserves shrink to one month import cover

    Since touching the peak the central bank’s foreign exchange witnessed a continuous decline. The official reserves of the SBP fell around $11.16 billion by week ended June 10, 2022 from touching the peak on August 27, 2021.

    The country is facing serious balance of payment crisis during the past many months. The foreign exchange reserves of the central bank have seen a constant decline.

    The country was expecting inflows from various sources but so far those were not materialized so far. The country also making all efforts to resume IMF program to obtain about $ 1 billion next tranche under Extended Fund Facility (EFF).

    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. Another increase was seen on June 15, 2022.

    The government on May 26, 2022 decided 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.

    READ MORE: Free-fall in rupee continues, dollar touches new high at Rs206.46

    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.

    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. But all these measures appeared in failure as the exchange rate yet again deteriorated today massively.

    READ MORE: Rupee’s erosion continues as dollar closes at Rs205.16

  • Total bank accounts in Pakistan grow to 66.13 million

    Total bank accounts in Pakistan grow to 66.13 million

    KARACHI: The number of bank accounts in Pakistan increased to 66.13 million by end of March 2022, showing a jump of 6.66 per cent when compared with 62 million bank accounts by end of same month last year, according to data released by the State Bank of Pakistan (SBP).

    It is interesting to note that the statistics showed the population grew much faster than increase in bank accounts. The SBP showed estimated population of the country at 227 million by end of March 2022 as compared with 212 million in the same period of the last year, showing a growth of 7.07 per cent.

    READ MORE: Internet banking posts 20% growth in 3Q: State Bank

    During past one year the number of total banks in the country is same at 44. However, the number of bank branches grew to 16,788 by end of March 2022 as compared with 16,223 by end of same month last year.

    The SBP presented following key highlights of Payment System Review for quarter ended March 30, 2022.

    One EMI, M/s China Mobile Pakistan Electronic Commerce Company (CMPECC), was granted commercial license in Q3-FY22.

    Number of POS machines reached to 96,975 while the number of payment cards declined slightly to 47.2 million from 48.7 million from the last quarter.

    READ MORE: SBP renews status of credit rating agencies

    E-banking volume and value grew by 2.6 per cent and 6.5 per cent respectively on Quarter-on-Quarter (QoQ) basis.

    The number of internet banking users reached 7.6 million recording QoQ growth of 10.6 per cent. These users conducted 38.3 million transactions amounting to PKR 2,906.9 billion amounting to a quarterly growth of 13.5 per cent by volume and 19.9 per cent by value.

    During the same quarter, 38.3 million POS transactions amounting to PKR 189.7 billion were conducted showing quarterly growth of 21.9 per cent by volume and 6.5 per cent by value.

    A total of 9.1 million e-commerce transactions amounting to PKR 27.0 billion were conducted digitally showing quarterly growth in value by 1.3 per cent though volume decline by -32.7 per cent.

    READ MORE: High tax may erode banks’ earnings up to 20%

    Number of ATMs increased by 1.1 per cent as compared to previous quarter. Value of ATM transactions amounted to PKR 2,437.0 billion of which 90.5 per cent transactions were related to cash withdrawals and 5.1 per cent related to Inter Bank Funds Transfer (IBFT).

    The number of mobile banking users declined by -1.0 per cent reaching to 12.0 million. Over 101.5 million transactions valuing around PKR 3,085.8 billion were conducted via mobile banking channels during the quarter, showing a growth of 8.1 per cent by volume and 5.4 per cent by value.

    Branch network of Banks and MFBs has reached to 16,788 branches, which includes 16,643 Real-Time Online Branches (RTOB), 48 manual branches and 97 overseas branches.

    Value of total RTGS (PRISM) transactions during the quarter amounted PKR 155.7 trillion of which PKR 106.2 trillion were related to Government Securities.

    READ MORE: Pakistan slaps 45% corporate tax on banks

  • Rupee collapses to fresh low against dollar to Rs208.75

    Rupee collapses to fresh low against dollar to Rs208.75

    KARACHI: The Pakistan Rupee (PKR) collapsed to another record low against the US dollar to close at Rs208.75 at interbank foreign exchange market on Friday.

    The exchange rate recorded a fall of Rs1.08 in rupee value to end at Rs208.75 from last day’s closing of Rs207.67, the previous record low of rupee, in the interbank foreign exchange market.

    READ MORE: Dollar touches new peak of Rs207.67 at interbank closing

    Currency experts said that the foreign exchange reserves had declined to critically low, which created panic in the market. Besides, high oil prices and rise in commodity prices globally also pushed dollar demand for import payments.

    According to data released by the State Bank of Pakistan (SBP) a day earlier, the official reserves of the central bank had declined to provide about one month import cover.

    READ MORE: Pakistan’s central bank reserves shrink to one month import cover

    The official foreign exchange reserves of the State Bank of Pakistan (SBP) fell by $241 million to $8.985 billion by week ended June 10, 2022 as compared with $9.226 billion a week ago i.e. June 03, 2022.

    The present level of the SBP’s reserves showed that the central bank has import cover for around only one months.

    Pakistan’s import bill for the month of May 2022 recorded at $6.777 billion, according to Pakistan Bureau of Statistics (PBS).

    The latest foreign exchange reserves of the SBP showed it fell around 2½ years low. Previously, the foreign exchange reserves held by the central bank were seen at $9.233 billion on December 6, 2019.

    The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021.

    READ MORE: Free-fall in rupee continues, dollar touches new high at Rs206.46

    Since touching the peak the central bank’s foreign exchange witnessed a continuous decline. The official reserves of the SBP fell around $11.16 billion by week ended June 10, 2022 from touching the peak on August 27, 2021.

    The country is facing serious balance of payment crisis during the past many months. The foreign exchange reserves of the central bank have seen a constant decline.

    The country was expecting inflows from various sources but so far those were not materialized so far. The country also making all efforts to resume IMF program to obtain about $ 1 billion next tranche under Extended Fund Facility (EFF).

    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. Another increase was seen on June 15, 2022.

    READ MORE: Rupee’s erosion continues as dollar closes at Rs205.16

    The government on May 26, 2022 decided 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.

    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. But all these measures appeared in failure as the exchange rate yet again deteriorated today massively.

  • Internet banking posts 20% growth in 3Q: State Bank

    Internet banking posts 20% growth in 3Q: State Bank

    KARACHI: The State Bank of Pakistan (SBP) has said that the transactions of internet banking posted 20 per cent growth in the third quarter of the current fiscal year.

    According to the report the transaction volume of internet banking increased to Rs2.9 trillion by end of quarter January – March 2022 as compared with Rs2.42 trillion in the quarter October – December 2021.

    READ MORE: SBP renews status of credit rating agencies

    The SBP released its third quarterly report of Payment Systems for the Fiscal year 2021-22 on Thursday covering the period January to March 2022. The report presents an overall viewpoint of growing digital adoption in the country as SBP continues to promote robust and efficient payments ecosystem in the country.

    During the quarter under review (Q3-FY22), total e-banking transactions witnessed a growth of 2.6 per cent in volume and 6.5 per cent in value on QoQ basis while the overall growth was 32.7 per cent in volume and 57.5 per cent in value on YoY basis.

    READ MORE: High tax may erode banks’ earnings up to 20%

    Further bifurcation shows that a major portion of this growth was driven by continuing widening in internet banking and mobile banking transactions. Number of registered internet banking users reached 7.6 million showing a growth of 10.6 per cent resulting in a double digit-growth of 13.5 per cent and 19.9 per cent in volume and value of transactions respectively on QoQ basis.

    Through this channel a total 38.3 million transactions worth Rs. 2,906.9 billion were processed. Mobile banking transactions volume was 101.5 million with value of Rs. 3,085.8 billion which amounted to a growth of 8.1 per cent and 5.4 per cent respectively on QoQ basis.

    READ MORE: Pakistan slaps 45% corporate tax on banks

    Under retail sector, POS transactions continued to show an upward trend. During this period, number of POS terminals installed reached to 96,975 as compared to 92,153 in the previous quarter, showing an increase of 5.2 per cent.

    Through these POS terminals, a total of 38.3 million transactions were processed that amounted to Rs. 189.7 billion in value. This shows quarterly growth of 21.9 per cent in volume and 6.5 per cent in value of transactions.

    Number of ATMs reached 16,897 with transactions volume and value of 171.3 million and Rs. 2,437.0 billion respectively. Similarly, number of e-commerce merchants on boarded with banks also showed a double-digit growth of 12.0 per cent reaching to 4,445.

    READ MORE: Tax rates for business individuals, AOPs during TY2023

    A total of 9.1 million e-commerce transactions were conducted which amounted to Rs. 27 billion during the quarter. Both volume and value showed an impressive growth of 62.8 per cent and 77.1 per cent respectively, on YoY basis, in case of e-commerce transactions.

    Paper based transactions declined by -2.9 per cent in volume though its value remained almost at the same level posting only 0.6 per cent growth over the previous quarter. In case of RTGS (PRISM), the real-time gross settlement system of Pakistan, a total of 1.08 million transactions amounting to PKR 155.7 trillion were processed.

    READ MORE: Pakistan reintroduces advance tax on foreign payments

    A total of 47.2 million payment cards were in circulation at the quarter end of Q3-FY22. Those payment cards mostly comprised of debit cards (62.3 per cent), social welfare cards (23.3 per cent), ATM only cards (10.3 per cent), credit cards (3.7 per cent) and lastly Pre-paid cards (0.3 per cent).

  • Dollar touches new peak of Rs207.67 at interbank closing

    Dollar touches new peak of Rs207.67 at interbank closing

    KARACHI: Dollar touches another new peak at Rs207.67 against Pak Rupee (PKR) in the interbank foreign exchange market.

    The exchange rate witnessed a decline of Rs1.21 to end at Rs207.67 to the dollar from last day’s closing of Rs206.46, which was the previous record low of the rupee, in the interbank foreign exchange market.

    Analysts said that surge in international oil prices and massive decline in foreign exchange reserves had escalated the dollar demand.

    READ MORE: Dollar makes fresh high at Rs207.75 in interbank midday trading

    The official foreign exchange reserves of the State Bank of Pakistan (SBP) have fallen by $497 million to $9.226 billion by week ended June 03, 2022 as compared with $9.723 billion a week ago i.e. May 27, 2022.

    Previously, the foreign exchange reserves held by the central bank were seen at $9.233 billion on December 6, 2019.

    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 touching the peak the central bank’s foreign exchange witnessed a continuous decline. The official reserves of the SBP fell around $10.92 billion by the week ended June 03, 2022 from touching the peak.

    READ MORE: Free-fall in rupee continues, dollar touches new high at Rs206.46

    Overall the foreign exchange reserves of the country declined by $595 million to $15.176 billion by the week ended June 03, 2022 as compared with $15.771 billion a week ago.

    They said that usually import payments are high in the last month of a fiscal year, especially for 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 peaks at Rs206 in interbank midday trading

    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 government on May 26, 2022 decided 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: Rupee’s erosion continues as dollar closes at Rs205.16

    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.

  • Dollar makes fresh high at Rs207.75 in interbank midday trading

    Dollar makes fresh high at Rs207.75 in interbank midday trading

    KARACHI: The Pakistan Rupee (PKR) made a new historic low against US Dollar at Rs207.75 during midday trading at interbank foreign exchange market on Thursday.

    The exchange rate recorded a decline of Rs1.29 in rupee value to trade at Rs207.75 to the dollar during midday trading. The dollar ended at Rs206.46 on June 15, 2022, which is the latest record high of the foreign currency at interbank closing.

    READ MORE: Free-fall in rupee continues, dollar touches new high at Rs206.46

    Analysts said that surge in international oil prices and massive decline in foreign exchange reserves had escalated the dollar demand.

    The official foreign exchange reserves of the State Bank of Pakistan (SBP) have fallen by $497 million to $9.226 billion by week ended June 03, 2022 as compared with $9.723 billion a week ago i.e. May 27, 2022.

    Previously, the foreign exchange reserves held by the central bank were seen at $9.233 billion on December 6, 2019.

    READ MORE: Dollar peaks at Rs206 in interbank midday trading

    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 touching the peak the central bank’s foreign exchange witnessed a continuous decline. The official reserves of the SBP fell around $10.92 billion by the week ended June 03, 2022 from touching the peak.

    Overall the foreign exchange reserves of the country declined by $595 million to $15.176 billion by the week ended June 03, 2022 as compared with $15.771 billion a week ago.

    READ MORE: Rupee’s erosion continues as dollar closes at Rs205.16

    They said that usually import payments are high in the last month of a fiscal year, especially for 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: Pakistani rupee falls to historic low of Rs203.86 to dollar

    The government on May 26, 2022 decided 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: Rupee recovers to Rs201.52 to dollar in volatile trading

    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.

  • SBP renews status of credit rating agencies

    SBP renews status of credit rating agencies

    KARACHI: The State Bank of Pakistan (SBP) has renewed the status of credit rating agencies operating in the country.

    (more…)
  • Free-fall in rupee continues, dollar touches new high at Rs206.46

    Free-fall in rupee continues, dollar touches new high at Rs206.46

    KARACHI: Free-fall in Pakistan Rupee (PKR) continued on Wednesday as the US dollar hit another record high of Rs206.46 in the interbank foreign exchange market.

    The exchange rate witnessed a decline of Rs1.30 to end at Rs206.46 to the dollar from last day’s closing of Rs205.16, the previous record low of the rupee, in the interbank foreign exchange market.

    READ MORE: Dollar peaks at Rs206 in interbank midday trading

    Analysts said that surge in international oil prices and massive decline in foreign exchange reserves had escalated the dollar demand.

    The official foreign exchange reserves of the State Bank of Pakistan (SBP) have fallen by $497 million to $9.226 billion by week ended June 03, 2022 as compared with $9.723 billion a week ago i.e. May 27, 2022.

    Previously, the foreign exchange reserves held by the central bank were seen at $9.233 billion on December 6, 2019.

    READ MORE: Rupee’s erosion continues as dollar closes at Rs205.16

    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 touching the peak the central bank’s foreign exchange witnessed a continuous decline. The official reserves of the SBP fell around $10.92 billion by the week ended June 03, 2022 from touching the peak.

    Overall the foreign exchange reserves of the country declined by $595 million to $15.176 billion by the week ended June 03, 2022 as compared with $15.771 billion a week ago.

    READ MORE: Pakistani rupee falls to historic low of Rs203.86 to dollar

    They said that usually import payments are high in the last month of a fiscal year, especially for 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: Rupee recovers to Rs201.52 to dollar in volatile trading

    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 government on May 26, 2022 decided 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.

    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.

    READ MORE: Dollar hits record high at Rs202.83 in interbank

    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.

  • Dollar peaks at Rs206 in interbank midday trading

    Dollar peaks at Rs206 in interbank midday trading

    KARACHI: The US dollar made a new record high against the Pakistan Rupee (PKR) at Rs206 during midday trading at interbank foreign exchange market on Wednesday.

    The exchange rate recorded a decline of 84 paisas in rupee value to trade at Rs206 to the dollar during midday trading. The dollar ended at Rs205.16 on June 14, 2022, which is the latest record high of the foreign currency at interbank closing.

    READ MORE: Rupee’s erosion continues as dollar closes at Rs205.16

    Analysts said that surge in international oil prices and massive decline in foreign exchange reserves had escalated the dollar demand.

    The official foreign exchange reserves of the State Bank of Pakistan (SBP) have fallen by $497 million to $9.226 billion by week ended June 03, 2022 as compared with $9.723 billion a week ago i.e. May 27, 2022.

    Previously, the foreign exchange reserves held by the central bank were seen at $9.233 billion on December 6, 2019.

    READ MORE: Pakistani rupee falls to historic low of Rs203.86 to dollar

    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 touching the peak the central bank’s foreign exchange witnessed a continuous decline. The official reserves of the SBP fell around $10.92 billion by the week ended June 03, 2022 from touching the peak.

    Overall the foreign exchange reserves of the country declined by $595 million to $15.176 billion by the week ended June 03, 2022 as compared with $15.771 billion a week ago.

    READ MORE: Rupee recovers to Rs201.52 to dollar in volatile trading

    They said that usually import payments are high in the last month of a fiscal year, especially for 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.

    The government on May 26, 2022 decided 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.

    READ MORE: Dollar hits record high at Rs202.83 in interbank

    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.

    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.

  • Rupee’s erosion continues as dollar closes at Rs205.16

    Rupee’s erosion continues as dollar closes at Rs205.16

    KARACHI: The erosion in value of Pakistan Rupee (PKR) continued on Tuesday as dollar hit another high at Rs205.16 in interbank foreign exchange market.

    The exchange rate recorded a decline of Rs1.30 in rupee value to close at Rs205.16 against dollar from previous day’s closing of Rs203.86, which is the previous record low of the rupee, in interbank foreign exchange market.

    READ MORE: Pakistani rupee falls to historic low of Rs203.86 to dollar

    Currency experts said that foreign payments kept pressure on rupee value during the day. Besides, massive fall in foreign exchange reserves also deteriorated the value of the local currency.

    The official foreign exchange reserves of the State Bank of Pakistan (SBP) have fallen by $497 million to $9.226 billion by week ended June 03, 2022 as compared with $9.723 billion a week ago i.e. May 27, 2022.

    Previously, the foreign exchange reserves held by the central bank were seen at $9.233 billion on December 6, 2019.

    READ MORE: Rupee recovers to Rs201.52 to dollar in volatile trading

    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 touching the peak the central bank’s foreign exchange witnessed a continuous decline. The official reserves of the SBP fell around $10.92 billion by the week ended June 03, 2022 from touching the peak.

    Overall the foreign exchange reserves of the country declined by $595 million to $15.176 billion by the week ended June 03, 2022 as compared with $15.771 billion a week ago.

    They said that usually import payments are high in the last month of a fiscal year, especially for 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 record high at Rs202.83 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 government on May 26, 2022 decided 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.

    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.

    READ MORE: Dollar hits Rs200.06 as rupee falls sharply in interbank

    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.