Category: Business

Exchange rates for today: PKR gains 8.05 paisa against US dollar, Rs1.14 versus Swiss Franc

The Pakistani rupee (PKR) got stronger by 8.05 paisa, or 0.03 per cent, against the US dollar (USD) on Tuesday. The local unit finished the day at PKR 278.62 per USD, a little better than Monday’s closing rate of 278.7.

During the day, the highest rate for the rupee was 278.80, and the lowest was 278.65. In the open market, exchange companies were selling the dollar at 281.03 and buying it for 279.46.

Recently, the rupee has mostly stayed between 277 and 279 against the US dollar. Traders are paying attention to good news, including the International Monetary Fund (IMF) approving a new $7-billion Extended Fund Facility (EFF).

Worldwide, the US dollar stayed steady on Tuesday. The Japanese yen moved slightly down from a one-month high as investors waited for US inflation data and reconsidered the chances of a big interest rate cut by the Federal Reserve next week.

Comparing the rupee with other major currencies:

Currency	Monday’s rate	Tuesday’s rate	Value change
Swiss Franc (CHF)	329.37	328.23	1.14 PKR
British Pound (GBP)	365.22	364.75	46.77 Paisa
Saudi Riyal (SAR)	74.26	74.27	1.22 Paisa
UAE Dirham (AED)	75.86	75.88	2.19 Paisa
Japanese Yen (JPY)	1.9475	1.9395	0.8 Paisa
Euro (EUR)	308.21	307.51	70.2 Paisa
Chinese Yuan (CNY)	39.19	39.13	5.95 Paisa

Exchange rates for September 10, 2024

The Swiss franc dropped by 1.14 rupees, closing at 328.23, down from 329.37 the day before.

The British pound got cheaper by 46.77 paisa, ending at 364.75 compared to 365.22 the previous day.

The Saudi riyal closed at 74.27, gaining 1.22 paisa from 74.26.

The UAE dirham became slightly more expensive, increasing by 2.19 paisa to close at 75.88 from 75.86.

Against the Japanese yen, the PKR gained 0.8 paisa, closing at 1.9395 versus 1.9475 the day before.

The PKR improved by 70.2 paisa against the euro, finishing at 307.51, compared to 308.21 previously.

The Chinese yuan lost 5.95 paisa, closing at 39.13 compared to 39.19.

Since the start of this financial year, the rupee has weakened by 27.83 paisa, or 0.1 per cent, against the dollar. However, it has strengthened by 3.24 rupees, or 1.16 per cent, so far this calendar year.

September 10, 2024

Exchange rates for today: PKR closes over 13 paisa lower against US dollar

The Pakistani rupee (PKR) dropped by 13.38 paisa, or 0.05 per cent, against the US dollar in the interbank market on Monday, ending the day at PKR 278.70, according to the State Bank of Pakistan (SBP).

During the session, the highest bid for Pakistani currency was 278.90, while the lowest ask was 278.70.

In the open market, exchange companies quoted the greenback at 279.10 for buying and 280.94 for selling.

Since the start of the financial year, the PKR has depreciated by 35.88 paisa or 0.13 per cent against the US dollar, while in the current calendar year, it has appreciated by 3.16 rupees, or 1.13 per cent.

Currency	Previous rate	Today’s rate	Change
US Dollar	PKR 278.57	PKR 278.70	13.38 paisa
British Pound	PKR 367.19	PKR 365.22	1.97 PKR
Euro	PKR 309.58	PKR 308.21	1.37 PKR
Chinese Yuan	PKR 39.32	PKR 39.19	12.96 Paisa
Saudi Riyal	PKR 74.21	PKR 74.26	4.75 Paisa
Swiss Franc	PKR 330.82	PKR 329.37	1.44 PKR
UAE Dirham	PKR 75.88	PKR 75.84	3.64 Paisa
Japanese Yen	PKR 1.9549	PKR 1.9475	0.74 Paisa

Exchange rates

The British Pound on Monday became cheaper, falling by 1.97 rupees to close at 365.22, down from 367.19 the previous day. The PKR strengthened by 1.37 rupees against the Euro, ending at 308.21 compared to the earlier value of 309.58.

The Chinese Yuan lost 12.96 paisa, closing at 39.19 compared to 39.32 from the last session. The Saudi Riyal gained 4.75 paisa, finishing at 74.26, up from 74.21 the day before.

The Swiss Franc declined by 1.44 rupees, closing at 329.37, down from 330.82. The UAE Dirham increased by 3.64 paisa, rising to 75.84 from 75.88.

Against the Japanese Yen, the PKR gained 0.74 paisa, closing at 1.9475 compared to 1.9549 the previous day.

September 9, 2024

Pakistan identifies major oil and gas deposits in waters, exploration plans underway

Pakistan has made a major petroleum and gas discovery within its territorial waters. This finding is expected to improve the country’s economic future.

A senior security official with direct knowledge of the discovery confirmed that a survey had verified the presence of oil and gas reserves.

According to Dawn, the survey has determined the location of the deposits, and the relevant departments have been notified.

The discovery is now being seen as a crucial part of Pakistan’s efforts to build its ‘blue water economy’. Proposals for further exploration and bidding are reportedly under review, with high hopes that exploration may begin soon.

Still, the official has warned that extracting oil may require years of work due to the technical challenges involved. Beyond oil and gas, the potential for mining other valuable minerals from the ocean could also provide additional economic opportunities.

Some experts project that these reserves might be the fourth-largest in the world. While the discovery is promising, former Oil and Gas Regulatory Authority (Ogra) member Muhammad Arif urged caution.

He noted that the true potential of the reserves will be revealed after drilling work begins. If gas reserves are found in large quantities, they might replace costly LNG imports, while oil could reduce the country’s dependence on imported fuel, further easing the import burden.

According to details, an initial investment of around $5 billion is required for exploration to begin. If the reserves are sufficient, more funds will be needed to build wells. Full-scale production may take up to five years to materialise.

September 7, 2024
NEPRA approves Rs1.75 per unit tariff hike to recover Rs40 billion

The National Electric Power Regulatory Authority (NEPRA) has approved an increase of Rs1.75 per unit in the electricity tariffs for distribution companies (Discos) and K-Electric (KE).

This increase, aimed at recovering an additional Rs40 billion, will apply to the fourth quarter of FY2023-24 (April-June) under the Quarterly Tariff Adjustment (QTA) mechanism.

The additional charges will be reflected in consumers’ electricity bills for September, October, and November 2024.

However, due to the termination of a previous Rs0.93 per unit adjustment for the third quarter (January-March 2023-24), the net increase in bills during this period will effectively be Rs0.82 per unit.

For KE customers, the federal government will cover the QTA increase through subsidies allocated for FY2024-25, meaning KE consumers will not directly bear this cost.

In addition, NEPRA has approved a negative adjustment of Rs0.37 per unit under the Fuel Cost Adjustment (FCA) for Discos for the month of July 2024. This reduction will appear in September 2024 bills, except for domestic consumers using up to 300 units per month.

According to Business Recorder, since an existing FCA charge of Rs2.56 per unit, applied in August 2024 bills, is set to expire, a combined relief of Rs2.93 per unit will be passed on to consumers in their September 2024 bills.

According to NEPRA, when both adjustments are taken into account, consumers will experience a total relief of Rs2.11 per unit in their September bills.

September 7, 2024

Interbank closing: Pakistani rupee gains 11 paisa against US dollar

On Friday, the Pakistani rupee saw a slight improvement against the US dollar, appreciating by 0.04 per cent in the inter-bank market.

The local currency closed at 278.57, a gain of Re0.11 from the previous day’s rate of 278.68, as reported by the State Bank of Pakistan (SBP).

In recent months, the rupee has generally fluctuated between 277 and 279, with traders closely monitoring developments regarding the International Monetary Fund’s (IMF) Executive Board discussions on a new $7 billion Extended Fund Facility (EFF).

Against major currencies, the performance of the Pakistani rupee on the last trading day of the week was as follows:

Currency	Previous rate	Closing rate	Change
British Pound	366.39	367.19	80.4
Euro	308.95	309.58	63.15
Saudi Riyal	74.24	74.21	2.9
UAE Dirham	75.84	75.87	3.17
Japanese Yen	1.9402	1.9549	1.47
Swiss Franc	329.15	330.82	1.67
Chinese Yuan	39.25	39.32	6.91

Exchange rates for today

– The British Pound increased by 80.4 paisa, ending at 367.19 from 366.39 the previous day.

– The rupee fell by 63.15 paisa against the Euro, closing at 309.58 compared to the previous rate of 308.95.

– The Saudi Riyal declined by 2.9 paisa, ending at 74.21 from 74.24.

– The UAE Dirham decreased by 3.17 paisa, closing at 75.87 compared to 75.84.

– Against the Japanese Yen, the rupee depreciated by 1.47 paisa, closing at 1.9549 compared to 1.9402 the previous day.

– The Swiss Franc gained 1.67 rupees, closing at 330.82 compared to 329.15 the day before.

– The Chinese Yuan saw an increase of 6.91 paisa, closing at 39.32 from 39.25.

September 6, 2024

BYD says half of total vehicles sold in Pakistan will be electric by 2030

Up to half of all vehicles sold in Pakistan by 2030 could be electric, according to BYD Pakistan, a joint venture between China’s BYD and Pakistan’s Mega Motors. This target aligns with global goals for reducing emissions.

BYD, a Chinese electric vehicle (EV) giant backed by Warren Buffett, recently announced its entry into Pakistan, which has a population of around 250 million.

In a partnership with Mega Motors, the company plans to build an assembly plant by early 2026. However, they will begin selling cars later this year, following the launch of three models in August.

According to Reuters, Kamran Kamal, BYD Pakistan’s spokesperson, mentioned in an interview that the company expects up to 50 per cent of all vehicles in the country to be powered by new energy sources, such as electric or hybrid technology, by 2030.

Kamal, who also leads Hub Power, the parent company of Mega Motors, acknowledged this is a bold target given Pakistan’s auto market, which has traditionally been dominated by Japanese brands like Toyota, Honda, and Suzuki. In fact, vehicle sales recently hit a multi-year low as of June 2024.

While some new players, such as South Korea’s KIA and China’s Changan and MG, have entered the market offering hybrid vehicles, BYD is the first major company focused entirely on new energy vehicles in Pakistan. Hybrid vehicle sales in the country have already doubled in the past year.

However, experts like Muhammad Abrar Polani, an auto analyst at Arif Habib Limited, believe that while a 30 per cent adoption rate for electric vehicles is achievable by 2030, reaching 50 per cent may be more difficult due to challenges with charging infrastructure.

Kamal confirmed that the Pakistani government plans to support the development of this infrastructure by offering incentives, and standards for EV charging stations have already been drafted. The government is also considering providing these stations with cheaper electricity.

BYD Pakistan is working with two oil marketing companies to build a network of charging stations, aiming to set up 20 to 30 stations during the initial rollout of its vehicles. Initially, the company will sell fully assembled cars, which are subject to high import taxes, but Kamal stressed that their primary goal is to start assembling vehicles locally as soon as possible.

The size of the new assembly plant is still being decided, with more details about the investment and collaboration with power company HUBCO expected later.

September 6, 2024
Analysts expect further 150 basis points cut in interest rate by SBP next week

Analysts predict that the State Bank of Pakistan (SBP) is likely to maintain its dovish stance, potentially implementing a third consecutive reduction in its key policy rate, supported by slowing inflation and improved macroeconomic indicators.

The SBP is set to announce its key policy rate on Thursday, September 12. In its previous two meetings, the central bank has cumulatively reduced the rate by 250 basis points.

Brokerage firm Arif Habib Limited (AHL) anticipates a 150 basis point cut, which would lower the policy rate to 18 per cent, a level last observed in February 2023 when the rate fell to 17 per cent.

According to Business Recorder, AHL’s report, based on a recent poll, reveals that 93 per cent of respondents expect a rate reduction, while 7 per cent foresee no change.

In July, the central bank’s Monetary Policy Committee (MPC) had already cut the key policy rate by 100 basis points to 19.5 per cent. At that time, SBP Governor Jameel Ahmad noted a downward trend in inflation.

August 2024 saw Pakistan’s headline inflation decrease to 9.6 per cent year-on-year, down from 11.1 per cent in July, according to data from the Pakistan Bureau of Statistics (PBS).

This return to single-digit inflation for the first time in three years has resulted in a real interest rate of approximately 1,000 basis points, providing further room for a rate cut, AHL suggests.

JS Global echoes this sentiment, predicting that the easing inflation supports the MPC’s case for another reduction in September, with a projected cut of 150 basis points, bringing the policy rate to 18 per cent.

Topline Securities’ CEO, Mohammed Sohail, expects a rate cut between 100 and 200 basis points, while Abdullah Farhan, Head of Research at IGI Securities, foresees a reduction of 150 to 200 basis points, driven by the recent decline in inflation.

Farhan also projects that inflation could rise to 13-14 per cent by year-end due to base effects, with the policy rate potentially declining to 16 per cent by December.

Ismail Iqbal Securities also supports the view that real rates remain significantly positive, indicating potential for a further rate cut. The firm anticipates a 100 basis point reduction in the upcoming MPC meeting.

Alongside the downward inflation trend, analysts note improvements in external indicators. The trade deficit narrowed slightly to $3.6 billion in the first two months of FY25. The current account deficit has significantly decreased to $162 million in July, largely due to a 48 per cent year-on-year increase in remittances, which has helped stabilise the Pakistani rupee against the US dollar.

September 5, 2024
Gold price climbs Rs2,000 to Rs262,100 per tola after two consecutive declines

Gold prices in Pakistan saw a significant rise on Thursday, with the rate of 24-karat gold increasing by Rs2,000, reaching Rs262,100 per tola, according to the Karachi Sarafa Association.

The price for 10 grammes of 24-karat gold also climbed, standing at Rs224,708, an increase of Rs1,714.

Meanwhile, 22-karat gold was priced higher at Rs205,983 per 10 grammes, reflecting the overall upward trend in the market.

In contrast, silver prices remained stable, with 24-karat silver holding steady at Rs2,900 per tola and Rs2,486 per 10 grammes.

On the international market, spot gold traded at $2,504 per ounce, marking an increase of $8.9, or 0.36 per cent, from the previous session.

September 5, 2024

PKR strengthens 9 paisa against US dollar, weakens 71 paisa versus British Pound

The Pakistani rupee (PKR) saw a marginal gain against the US dollar (USD) in the inter-bank market on Thursday, appreciating by 0.03 per cent.

By the close of the trading day, the rupee settled at 278.68, marking an increase of Re0.09 compared to Wednesday’s closing value of 278.77, according to data from the State Bank of Pakistan (SBP).

Here is a comparison of the last two closing rates, detailing PKR’s performance against various currencies aside from the US dollar. Below are the closing rates for Thursday and Wednesday, highlighting the changes in value:

Currency	Thursday’s closing	Difference	Wednesday’s closing
Saudi Riyal	74.24	-0.03	74.27
UAE Dirham	75.90	+0.03	75.87
Euro	308.95	+0.87	308.08
British Pound	366.39	+0.72	365.67
Swiss Franc	329.15	+0.74	328.41
Japanese Yen	1.9402	+0.02	1.9209
Chinese Yuan	39.25	+0.06	39.19

Exchange rates comparison

In terms of other currencies, the Saudi Riyal experienced a slight decline, closing at 74.24 after losing 3.63 paisa from its previous value of 74.27. Similarly, the UAE Dirham depreciated by 2.5 paisa, ending the day at 75.90 compared to 75.87 on Wednesday.

Meanwhile, the rupee weakened against the Euro, losing 87.39 paisa to close at 308.95, compared to 308.08 in the previous session. The British Pound also saw a rise, becoming 71.57 paisa more expensive, closing at 366.39 from the previous day’s 365.67.

The Swiss Franc appreciated by 74.5 paisa, closing at 329.15, up from 328.41. In contrast, the Japanese Yen saw the rupee weaken by 1.93 paisa, ending the day at 1.9402 compared to 1.9209.

The Chinese Yuan strengthened against the PKR, gaining 5.58 paisa and closing at 39.25, up from 39.19.

In recent months, the Pakistani rupee has fluctuated between 277 and 279, with traders closely monitoring developments related to the International Monetary Fund’s (IMF) Executive Board decision on the $7-billion Extended Fund Facility (EFF).

For the current financial year, the rupee has depreciated by 33.38 paisa or 0.12 per cent against the dollar. However, in the calendar year so far, it has appreciated by Rs3.19, or 1.14 per cent

September 5, 2024

Exchange rates: Pakistani rupee falls 5.69 paisa against US dollar, 37 paisa against Pound

The Pakistani rupee (PKR) edged down by 5.69 paisa, or 0.02 per cent, against the US dollar (USD) in Tuesday’s interbank market, closing the day at PKR 278.70 per USD, slightly lower than the previous close of 278.64.

Throughout the day, the currency exhibited minimal movement, with an intraday high of 278.90 and a low of 278.65.

In the open market, exchange companies quoted the dollar at PKR 278.97 for buying and PKR 279.75 for selling, according to forex dealers.

The PKR’s performance against other major currencies was mixed on Tuesday:

Currency	Previous Rate	Today’s Rate	Change
Chinese Yuan	39.20	39.16	3.91 paisa
British Pound	366.10	365.72	37.11 paisa
Euro	308.44	308.19	25.75 paisa
Saudi Riyal	74.25	74.27	1.32 paisa
Swiss Franc	328.10	326.67	1.43 rupees
Japanese Yen	1.9019	1.9091	0.72 paisa
UAE Dirham	75.88	75.86	1.55 paisa

Exchange rates for Tuesday

– The Chinese Yuan fell by 3.91 paisa, closing at 39.16 from the previous session’s 39.20.

– The British Pound declined by 37.11 paisa, ending at 365.72 compared to 366.10 the day before.

– The PKR gained 25.75 paisa against the Euro, closing at 308.19 from 308.44.

– The Saudi Riyal strengthened by 1.32 paisa, closing at 74.27 from 74.25.

– The Swiss Franc dropped by 1.43 rupees, closing at 326.67 compared to 328.10 previously.

– Against the Japanese Yen, the PKR slipped by 0.72 paisa, ending at 1.9091 versus 1.9019.

– The U.A.E Dirham saw a slight increase of 1.55 paisa, closing at 75.86 from 75.88.

So far this financial year, the PKR has depreciated against the dollar by 35.88 paisa, or 0.13 per cent. However, on a calendar-year basis, the rupee has appreciated by 3.16 rupees, or 1.13 per cent.

September 3, 2024