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  • 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.

  • New petroleum prices in Pakistan from June 16, 2022

    New petroleum prices in Pakistan from June 16, 2022

    ISLAMABAD: Pakistan on Wednesday announced yet another hike in petroleum prices effective from June 16, 2022.

    Finance Minister Miftah Ismail at a press conference announced the increase in prices of petroleum products.

    It is third consecutive increase in petroleum products. The government massively increased the prices of petroleum products.

    READ MORE: New petroleum prices in Pakistan from June 03, 2022

    The finance minister announced an increase of Rs24 per liter in price of petrol.

    The price of petrol increased by Rs84 to Rs233.89 from Rs149.89 as of May 26, 2022.

    Similarly, the government announced to increase the price of diesel to Rs263.31 per liter effective from June 16, 2022. The rate of high speed diesel has been increased by Rs59 per liter. The rate of this product was Rs144.16 as of May 26, 2022. A cumulative increase of Rs119 during past 20 days.

    New prices of petroleum products with effect from June 16, 2022 will be as follows;

    i. MS ( Petrol) Rs. 233.89/Liter

    ii. High Speed Diesel(HSD) Rs. 263.31/Liter

    iii. Kerosene (SKO) Rs. 211.43/Liter

    iv. Light Diesel Oil (LDO) Rs. 207.47/Liter.

    READ MORE: Petroleum prices in Pakistan from June 01, 2022

    Previously, the petrol prices have been increased up to Rs60 per liter during May 27 to June 02.

    The Finance Minister Miftah Ismail announced the increase in prices of petroleum products twice to persuade the International Monetary Fund (IMF) to release the next tranche of around $1 billion.

    The PTI government during its tenure maintained the petrol prices by granting huge subsidized rates to facilitate the citizens. As though the new government still kept the same subsidy on petrol till May 26, 2021.

    READ MORE: Petroleum levy to generate Rs750 billion

    However, on account of pressure by IMF and the high price of oil in the international market has left no option for the government to minimize the prices.

    According to the sources, the government may further increase the petroleum prices tonight to meet the IMF demand.

    It may be mention here that the government has very few choices in not revising the prices of petroleum products because of high international oil prices and sharp decline in rupee value.

    READ MORE: Share of domestic electricity consumption declines

  • Punjab presents Rs3.226 trillion budget 2022/2023

    Punjab presents Rs3.226 trillion budget 2022/2023

    LAHORE: Punjab government on Wednesday presented its budget 2022/2023 with an outlay of Rs3.226 trillion. Presenting the budget, Finance Minister, Sardar Owais Ahmad Khan Leghari said the total volume of the budget is 22 percent more than current fiscal year, out of which Rs1.712 billion have been allocated for Current Expenditures.

    He said that total estimated Revenue for next fiscal year is 2521.29 billion rupees, while the province will get over 2020 billion rupees from the Federal Divisible Pool.

    The Minister said Rs435.87 billion have been allocated for salaries, Rs312 billion for pensions while Rs528 billion for Local Governments.

    The Finance Minister said no new tax has been levied in next fiscal year on account of Sales Tax on Services. He said Stamp Duty ratio has been proposed to enhance from current one percent to 2 percent to raise provincial revenue.

    Owais Leghari said 35 percent of the Annual Development Program amounting to 240 billion rupees has been allocated for South Punjab, which will be spent on development projects.

  • 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.

  • What are new petroleum prices in Pakistan?

    What are new petroleum prices in Pakistan?

    KARACHI: The government is likely to revise the prices of petroleum products today June 15, 2022 for next fortnight. Recently, the petrol prices have been increased up to Rs60 per liter during May 27 to June 02.

    READ MORE: New petroleum prices in Pakistan from June 03, 2022

    The Finance Minister Miftah Ismail announced the increase in prices of petroleum products twice to persuade the International Monetary Fund (IMF) to release the next tranche of around $1 billion.

    After the increase, the prices effective from June 03, 2022 to till date are:

    READ MORE: Petroleum prices in Pakistan from June 01, 2022

    Petrol at Rs209.86 per; High Speed Diesel at Rs204.15 per liter; kerosene oil at Rs181.94 per liter; and light diesel oil at Rs178.31 per liter.

    The PTI government during its tenure maintained the petrol prices by granting huge subsidized rates to facilitate the citizens. As though the new government still kept the same subsidy on petrol till May 26, 2021.

    READ MORE: Petroleum levy to generate Rs750 billion

    However, on account of pressure by IMF and the high price of oil in the international market has left no option for the government to minimize the prices.

    According to the sources, the government may further increase the petroleum prices tonight to meet the IMF demand.

    READ MORE: Share of domestic electricity consumption declines

    It may be mention here that the government has very few choices in not revising the prices of petroleum products because of high international oil prices and sharp decline in rupee value.

  • Indonesia resumes palm oil shipment to Pakistan

    Indonesia resumes palm oil shipment to Pakistan

    ISLAMABAD: Indonesia has started palm oil shipment to Pakistan after promulgation of new export regulation, a statement said on Tuesday.

    On the request of Pakistan, Indonesian minister assured that after completing the necessary formalities, the first shipment of palm oil to Pakistan was expected to sail within 24 hours.

    The minister further stated that he would ensure that the first shipment leaves the Indonesian port by the next day. The minister also assured that Pakistan would be the first country to which the commodity will be exported, after the promulgation of new export regulations.

    READ MORE: Tarin orders release refunds to edible oil importers

    Upon the special instruction of Prime Minister Muhammad Shehbaz Sharif, Federal Minister for Industries and Production Makhdoom Syed Murtaza Mahmud led a delegation to Jakarta from 12- 14 June 2022.

    The objective of the visit was to minimize the impact of the recent decision of the Government of Indonesia to ban the export of Palm oil on Pakistan’s economy and ensure the steady flow of the commodity in the Pakistani market, Pakistan is the third-largest importer of Indonesian Palm Oil.

    In 2021, Pakistan had imported 2.78 million tonnes of Palm oil from Indonesia. During the visit, Minister Syed Murtaza Mahmud met with the Indonesian Minister of Trade Muhammad Lutfi, Minister of Industry Agus Gumiwang Kartasasmita Coordinating Minister of Maritime and Investment Affairs, Luhut Binsar Panjaitan, and Minister of Industries, Agus Gumiwang Kartasasmita.

    Representatives of the largest Palm oil exporters to Pakistan and the Chairman of the Indonesian Palm Oil Association also called on the Minister.

    In his interaction with the Indonesian Minister of Trade, while highlighting the strong historical and brotherly relations between Pakistan and Indonesia, Minister Mahmud underscored that Pakistan, being the third – largest market for Indonesian palm oil, was heavily dependent on Indonesian palm oil.

    He sensitized the Indonesian minister of the situation of edible oil in Pakistan and mentioned that Indonesia’s decision to ban palm oil export for a month had adversely affected the stocks of edible oil in Pakistan. Even after the ban had been lifted on 23 May 2022, the exporters are still facing regulatory and logistical bottlenecks.

    He urged his Indonesian interlocutor to facilitate the earliest possible resumption of palm oil shipments to Pakistan by removing the bottlenecks.

    In response, the Indonesian Minister assured that Indonesia attached great importance to its relations with Pakistan and was ready to ensure an uninterrupted flow of Indonesian Palm Oil to Pakistan.

    He further stated that after completing the necessary formalities, the first shipment of palm oil to Pakistan was expected to sail within 24 hours.

    The Minister further stated that he would ensure that the first shipment leaves the Indonesian port by the next day.

    The Minister also assured that Pakistan would be the first country to which the commodity will be exported, after the promulgation of new export regulations.

    Both the ministers discussed bilateral economic and trade relations. Minister Mahmud underscored the urgency of bridging the huge trade imbalance between the two countries.

    The two Ministers identified SMEs, agriculture, tourism, industrial joint ventures, and other non – traditional sectors as possible areas of collaboration.

    Minister Lutfi agreed to visit Pakistan to discuss these issues with his Pakistani counterpart. During his meeting with Coordination Minister Luhut Binsar Panjaitan who has been assigned by President Jokowi to coordinate local distribution and export of Palm oil, Minister Mahmad underscored the need to ensure uninterrupted delivery of the commodity to Pakistan.

    Minister Luhut promised to make sure that the delivery of Palm Oil to Pakistan in resumed at the earliest. He further stated that he has directed to ensure steady flow to the commodity in the future.

    Minister Mahmud and his Indonesian counterpart, Agus Chumiwang Kartasasmita exchanged views on bilateral cooperation in the industrial sectors, particularly in the production of e-vehicles, cell phones, electronics, and agro – based Industries.

    The Minister highlighted the potential of investment in Pakistan in various sectors, and opportunities emerging from SEZa and invited the Indonesian businessmen and entrepreneurs to invest in Pakistan.

    The Minister also invited his Indonesian counterpart to visit Pakistan, which was accepted.

    The visit of Minister Mahmud was timely to secure the resumption of the export of Indonesian Palm Oil to Pakistan and avoid a shortage of the commodity in the market.

    Due to the Minister’s personal intervention, two shipments of Palm Oil carrying 30,000 and 27,000 would leave for Pakistan today.

    Another 8 shipments are expected to reach Karachi before the end of June 2022 14 June 2022, says a press released received here today from Jakarta on 14 June 2022.

  • 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.

  • Dollar hits new high at Rs205.40 in midday interbank trading

    Dollar hits new high at Rs205.40 in midday interbank trading

    KARACHI: The US dollar reached another historic high of Rs205.40 during midday interbank trading on Tuesday.

    The rupee witnessed a decline of R1.54 from last day’s closing of Rs203.86, which was the record low of the local unit to the dollar in interbank foreign exchange market.

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

    The currency experts said that the sharp decline in foreign exchange reserves also put pressure on exchange rate.

    The rupee hit all-time low at 202.83 against the dollar at interbank closing 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.

    READ MORE: Dollar hits new peak at Rs204 during midday trading

    The currency experts said that the rupee was under immense pressure due to import payment demand and falling foreign exchange reserves.

    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.

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

    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.

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

    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.