KARACHI: Pakistan’s foreign exchange reserves experienced a significant decline of $173 million, settling at $13.59 billion for the week ending September 30, 2022, according to data released by the State Bank of Pakistan (SBP) on Thursday.
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Dollar weakens by PKR 17.77 in 10 sessions amid tight monitoring on transactions
KARACHI: The US dollar weakened against the Pakistani Rupee (PKR) for the 10th consecutive sessions on Thursday amid tight monitoring of foreign currency transactions.
The exchange rate witnessed an appreciation of 17.77 in rupee value against the dollar during the last 10 straight sessions.
READ MORE: PKR recovers against dollar for ninth consecutive session
On Thursday the local currency gained PKR 2 to end at PKR 221.94 against the dollar from previous day’s closing of PKR 223.94 in the interbank foreign exchange market.
The exchange rate reached to near record low of PKR 239.71 on September 22, 2022 to the dollar but ended at PKR 221.94 on October 06, 2022.
Currency experts said that tight monitoring of the State Bank of Pakistan (SBP) on foreign currency transactions helped the rupee to make gain.
READ MORE: PKR maintains winning streak against dollar on 8th straight session
Recently, the SBP had amended foreign exchange regulations with an objective to promote documentation and transparency in the foreign exchange transactions between exchange companies.
In terms of revised regulations, it has been made mandatory for Exchange Companies, Franchises of Exchange Companies and Exchange Companies of ‘B’ Category to settle Pakistan Rupee consideration of all foreign currency purchase/ sale transactions conducted among themselves through their bank accounts.
Besides, stress has been laid on ensuring that CCTV Systems of Exchange Companies and Exchange Companies of ‘B’ Category should be functional at all times (i.e. 24 hours a day and 7 days a week) as required under existing regulations.
READ MORE: PKR continues upward journey for seventh consecutive session against dollar
However, in order to ensure transparency, it has been advised that Exchange Companies and Exchange Companies of ‘B’ Category shall not carry out any business activity during the period in which CCTV system is non-functional at any of their outlet for any reason, including technical faults, until the functionality of the CCTV system is restored.
Moreover, minimum preservation period of video recording through CCTV system has been enhanced from two to six months or until the inspection of the company by SBP, whichever is earlier.
READ MORE: Rupee gains for sixth straight session against dollar; recovers PKR 11.26
This would ensure availability of CCTV recording for audit/inspection purposes, according to the SBP.
Besides, currency experts said that the rupee was appreciating against the dollar due to positive sentiments following assumption of Ishaq Dar as the finance minister. Dar recently claimed that the actual value of the dollar is below PKR 200 and he vowed to bring it down.
Meanwhile, the international oil prices also softened which helped the rupee to make gains.
The local currency witnessed the historic low at PKR 239.94 to the dollar on July 28, 2022.
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FBR unveils plan to achieve Rs7.47 trillion revenue collection target
ISLAMABAD: Federal Board of Revenue (FBR) has unveiled strategy to achieve revenue collection target of Rs7.47 trillion during the ongoing fiscal year 2022-2023.
Officials in the FBR on Thursday said that revenue target for 2022-2023 has been fixed at Rs7.47 trillion which demands growth of 21.5 per cent over the collection of Rs6.148 trillion made during the last fiscal year.
READ MORE: Customs officer awarded major penalty of rank demotion
In absolute terms, around Rs1.32 trillion additional revenues are to be collected by the FBR in the current fiscal year to meet the target.
The target for 2022-2023 is challenging given the fact that government is focusing on controlling the current account deficit and rising inflation which would result in import contraction and slowdown in the overall GDP growth.
READ MORE: FBR surpasses first quarter collection target by Rs27 billion
Nonetheless, FBR is confident that its team has the ability and the resolve to accomplish this gigantic task as an upward revised target has already been achieved for the financial year ended on June 30, 2022.
“To achieve the target several efforts are being made at policy as well as operational levels. There is focus on enhanced use of technology and a policy shift towards taxing the high-income groups through direct taxation such as the imposition of Super Tax, Poverty Alleviation Tax, revision of individual tax slabs including salaried class, increase in Federal Excise Duty (FED) on international air travel, increased tax on luxury motor vehicles etc,” according to the officials.
READ MORE: FBR extends return filing date up to October 31, 2022
Keeping in view the past performance of FBR and the revenue measures taken during the current budget there are high hopes of achieving the tax target for fiscal year 2022-2023.
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PKR recovers against dollar for ninth consecutive session
KARACHI: Pakistani Rupee (PKR) on Wednesday continued recovery against the dollar for 9th straight session in the interbank foreign exchange market.
The rupee gained 1.70 to end at PKR 223.94 to the dollar from previous day’s closing of PKR 225.64 in the interbank foreign exchange market.
READ MORE: PKR maintains winning streak against dollar on 8th straight session
The local currency gained PKR 15.77 against the dollar during the last nine sessions. The exchange rate reached to near record low of PKR 239.71 on September 22, 2022 to the dollar but ended at PKR 223.94 on October 05, 2022.
Currency experts said that the rupee was appreciating against the dollar due to positive sentiments following assumption of Ishaq Dar as the finance minister. Dar recently claimed that the actual value of the dollar is below PKR 200 and he vowed to bring it down.
Meanwhile, the international oil prices also crashed which helped the rupee to make gains.
READ MORE: PKR continues upward journey for seventh consecutive session against dollar
It is worth mentioning that the rupee on last Friday recovered against the dollar after witnessing a consecutive 15-session fall.
During this period the local currency depreciated by PKR 21.10 against the dollar from the interbank closing on September 01, 2022 at PKR 218.60.
The local currency witnessed the historic low at PKR 239.94 to the dollar on July 28, 2022.
Currency experts said that the rupee recovered because of the contraction in the current account deficit. Pakistan current account deficit recorded a contraction of 19 per cent during the first two months (July – August) of the current fiscal year 2022/2023.
READ MORE: Rupee gains for sixth straight session against dollar; recovers PKR 11.26
Further, the experts said that the recent measures taken by the SBP also helped the rupee to gain value.
However, the rupee failed to get support from the latest announcement of the State Bank of Pakistan (SBP) about the funds of Saudi Arabia.
The rupee has witnessed a continuous depreciation against the greenback even after the inflows received from the International Monetary Fund (IMF).
The local currency recorded some recovery against the greenback after the IMF fund was transferred to the State Bank of Pakistan (SBP). However, the removal of sanction on import of luxury and non-essential items the rupee again started free fall.
READ MORE: PKR makes recovery against dollar for fourth straight session
The currency experts said that although the IMF inflows would help the further inflows under bilateral and multilateral sources. However, the devastation of floods has changed the economic environment scenario.
The torrential rains and flash floods have inflicted a loss of over $10 billion to Pakistan’s economy. The devastation will prompt the country to make imports in the coming days, especially for agriculture products.
The rupee also fell due to continuous depletion in foreign exchange reserves of the country.
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Dollar crashes to PKR 223.50 in midday interbank trading
KARACHI: The US dollar has crashed against the Pakistani Rupee (PKR) and lost around PKR 16.21 since September 22, 2022 and is being trading at PKR 223.50.
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PKR maintains winning streak against dollar on 8th straight session
KARACHI: Pakistani Rupee (PKR) on Tuesday maintained winning streak against the US Dollar for eighth consecutive session.
The rupee gained 1.65 to end at PKR 225.64 to the dollar from previous day’s closing of PKR 227.29 in the interbank foreign exchange market.
READ MORE: PKR continues upward journey for seventh consecutive session against dollar
The local currency gained PKR 14.07 against the dollar during the last eight sessions. The exchange rate reached a record low of PKR 239.71 on September 22, 2022 to the dollar but ended at PKR 225.64 on October 04, 2022.
Currency experts said that latest appreciation in rupee value was due to a statement of Finance Minister Ishaq Dar, who a day earlier said the PKR was undervalued and actual value of the dollar was less than PKR 200.
READ MORE: Rupee gains for sixth straight session against dollar; recovers PKR 11.26
Meanwhile, the international oil prices also crashed which helped the rupee to make gains.
It is worth mentioning that the rupee on last Friday recovered against the dollar after witnessing a consecutive 15-session fall.
During this period the local currency depreciated by PKR 21.10 against the dollar from the interbank closing on September 01, 2022 at PKR 218.60.
The local currency witnessed the historic low at PKR 239.94 to the dollar on July 28, 2022.
Currency experts said that the rupee recovered because of the contraction in the current account deficit. Pakistan current account deficit recorded a contraction of 19 per cent during the first two months (July – August) of the current fiscal year 2022/2023.
READ MORE: PKR makes recovery against dollar for fourth straight session
Further, the experts said that the recent measures taken by the SBP also helped the rupee to gain value.
However, the rupee failed to get support from the latest announcement of the State Bank of Pakistan (SBP) about the funds of Saudi Arabia.
The rupee has witnessed a continuous depreciation against the greenback even after the inflows received from the International Monetary Fund (IMF).
The local currency recorded some recovery against the greenback after the IMF fund was transferred to the State Bank of Pakistan (SBP). However, the removal of sanction on import of luxury and non-essential items the rupee again started free fall.
READ MORE: PKR strengthens sharply to dollar during last three sessions
The currency experts said that although the IMF inflows would help the further inflows under bilateral and multilateral sources. However, the devastation of floods has changed the economic environment scenario.
The torrential rains and flash floods have inflicted a loss of over $10 billion to Pakistan’s economy. The devastation will prompt the country to make imports in the coming days, especially for agriculture products.
The rupee also fell due to continuous depletion in foreign exchange reserves of the country.
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Pakistan import bill falls by 12.72% in 1QFY23
ISLAMABAD: The total import bill of Pakistan has declined by 12.72 per cent in the first quarter (July – September) of the fiscal year 2022/2023, according to data released by Pakistan Bureau of Statistics (PBS).
The import bill of the country was $16.33 billion in the first quarter of the current fiscal year as compared with $18.72 billion in the corresponding period of the last fiscal year.
READ MORE: Pakistan trade deficit narrows by 17% in 2MFY23
Exports of the country, however, exhibited a nominal 2 per cent growth to $7.12 billion during the quarter under review as compared with $7 billion in the same quarter of the last fiscal year.
The fall in import bill resulted in trade deficit contraction of 21.42 per cent. The trade deficit of the country fell to $9.21 billion during July – September 2022 as compared with the deficit of $11.72 in the same quarter of the last fiscal year.
READ MORE: Pakistan’s trade deficit narrows by 18% in July 2022
In September 2022 the trade deficit contracted by 30.62 per cent on Year on Year (YoY) basis.
The trade deficit has been recorded at $2.88 billion in September 2022 when compared with $4.15 billion in the same month of the last year.
READ MORE: Pakistan’s import bill records over $80 bn in 2021/2022
The import bill for the month under review recorded a decline of 20 per cent to $5.27 billion in September 2022 when compared with $6.56 billion in the same month of the last year.
Whereas, the exports of the country also recorded a decline of one per cent to $2.39 billion in September 2022 when compared with $2.41 billion in the same month of the last year.
READ MORE: Pakistan’s trade deficit balloons $43.33 bn in 11 months
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Dollar slips to PKR 225.50 in early interbank trading
KARACHI: US dollar slipped against Pakistani Rupee (PKR) by 1.79 to PKR 225.50 in early trading at interbank foreign exchange market on Tuesday.
The dollar is being traded at PKR 225.50 as compared with the last day’s closing of PKR 227.29 in interbank foreign exchange market.
Experts said that latest statement of Finance Minister Ishaq Dar helped the rupee to make gain.
The finance minister a day earlier said that the local unit is undervalued and actual value of dollar is below PKR 200. Furthermore, he vowed to bring down the value of the greenback in coming days.
READ MORE: PKR continues upward journey for seventh consecutive session against dollar
It is worth mentioning that the rupee is constantly gaining value against the dollar since the nomination and assumption the charge of finance ministry by Ishaq Dar.
The PKR a day earlier continued its upward journey against the greenback and strengthened for seventh consecutive session.
The rupee made a gain of PKR 1.16 to end at PKR 227.29 against the dollar as compared with last Friday’s closing of PKR 228.45 in the interbank foreign exchange market.
The local unit gained PKR 12.42 against the dollar during the last five sessions. The exchange rate reached a record low of PKR 239.71 on September 22, 2022 to the dollar but ended at PKR 227.29 on October 01, 2022.
READ MORE: Rupee gains for sixth straight session against dollar; recovers PKR 11.26
It is worth mentioning that the local unit recorded the all-time low level of PKR 239.94 to the dollar on July 28, 2022. Although after the IMF deal the rupee appreciated against the dollar but following the disbursement of funds under Extended Fund Facility (EFF) the rupee again witnessed a steep decline to reach near to the record low at PKR 239.71 to the dollar on September 22, 2022.
READ MORE: PKR makes recovery against dollar for fourth straight session
Khurram Schehzad, a senior analyst, said the finance minister should not talk about setting currency parity, or at least not that openly, as its purely the prerogative of State Bank of Pakistan (SBP) and we have committed this in writing with the IMF that no one, at least from the ministry of finance will intervene in any way into the central bank matters.
“We should rather hold SBP accountable for achieving realistic currency parity (in line with fundamentals) as well as taming inflation (demand side), while managing the supply-side disruptions by a thorough strategy (farm to market management with necessary imports in time),” he added.
READ MORE: PKR strengthens sharply to dollar during last three sessions
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Dollar’s actual value less than PKR 200: Ishaq Dar
ISLAMABAD: Finance Minister Ishaq Dar on Monday said that the actual value of the US dollar is less than Pakistani Rupee (PKR) 200 and he vowed to bring down the exchange rate.
Talking to a private news channel, the finance minister the local currency is undervalued.
READ MORE: PKR continues upward journey for seventh consecutive session against dollar
It is worth mentioning that the rupee is constantly gaining value against the dollar since the nomination and assumption the charge of finance ministry by Ishaq Dar.
The PKR on Monday continued its upward journey against the greenback and strengthened for seventh consecutive session.
The rupee made a gain of PKR 1.16 to end at PKR 227.29 against the dollar as compared with last Friday’s closing of PKR 228.45 in the interbank foreign exchange market.
The local unit gained PKR 12.42 against the dollar during the last five sessions. The exchange rate reached a record low of PKR 239.71 on September 22, 2022 to the dollar but ended at PKR 227.29 on October 01, 2022.
READ MORE: Rupee gains for sixth straight session against dollar; recovers PKR 11.26
It is worth mentioning that the local unit recorded the all-time low level of PKR 239.94 to the dollar on July 28, 2022. Although after the IMF deal the rupee appreciated against the dollar but following the disbursement of funds under Extended Fund Facility (EFF) the rupee again witnessed a steep decline to reach near to the record low at PKR 239.71 to the dollar on September 22, 2022.
READ MORE: PKR makes recovery against dollar for fourth straight session
Khurram Schehzad, a senior analyst, said the finance minister should not talk about setting currency parity, or at least not that openly, as its purely the prerogative of State Bank of Pakistan (SBP) and we have committed this in writing with the IMF that no one, at least from the ministry of finance will intervene in any way into the central bank matters.
“We should rather hold SBP accountable for achieving realistic currency parity (in line with fundamentals) as well as taming inflation (demand side), while managing the supply-side disruptions by a thorough strategy (farm to market management with necessary imports in time),” he added.
READ MORE: PKR strengthens sharply to dollar during last three sessions
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Pakistan petroleum sales plunge by 23% in 1QFY23
KARACHI: Pakistan sales of petroleum products have plunged by 23 per cent in first quarter (July – September) of the current fiscal year 2022/2023, official data revealed on Monday.
The petroleum sales fell to 4.49 million tons during the first quarter of the fiscal year 2022/2023 as compared with 5.86 million tons in the same quarter of the last year, according to Oil Companies Advisor Council (OCAC).
READ MORE: Pakistan high petroleum prices massively cut oil sales in July
The sales of HSD recorded 30 per cent decline to 1.46 million tons in the first quarter of the current fiscal year when compared with 2.1 million in the same quarter of the last fiscal year.
Furnace oil sales slipped by 23 to 0.98 million tons during the quarter under review as compared with 1.27 million in the same period of the last fiscal year.
Similarly, the sales of petrol fell by 21 per cent to 1.86 million tons during July – September 2022/2023 when compared with 2.35 million tons in the same period of the last fiscal year.
READ MORE: Pakistan sharply reduces petroleum prices from October 01, 2022
Whereas, the domestic sales of petroleum products plunged by 22 per cent Year on Year (YoY) basis in the month of September 2022.
The sales of petroleum products fell to 1.52 million tons in September 2022 when compared with 1.96 million tons in the corresponding month of the last year.
Analysts at Ismail Iqbal Securities attributed the sharp decline in petroleum sales to ongoing demand destruction following higher prices and overall economic slowdown.
The steep decline has been witnessed in sales of high speed diesel (HSD), which fell by 26 per cent during the period under review. The sales of HSD dropped to 0.52 million tons in September 2022 as compared with 0.71 million tons in the same month of last year.
READ MORE: New petroleum prices in Pakistan effective from September 21, 2022
Sales of furnace oil plummeted by 24 per cent to 0.31 million tons in the month under review as compared with 0.4 million tons in the same month of the last year.
Likewise, the sales of petrol fell by 22 per cent to 0.63 million tons in September 2022 as compared with 0.8 million tons in September last year.
READ MORE: New petroleum prices in Pakistan from September 01, 2022
According to Pakistan Bureau of Statistics (PBS) the petroleum products recorded massive jump in prices during the period.
The official data showed the prices of HSD, petrol and furnace oil recorded increase of 120.67 per cent, 96 per cent and 51.63 per cent, respectively YoY in September 2022.