Current Final

Tag: State Bank of Pakistan

  • SBP-held forex reserves rise by $12 million to $8.05 billion, sufficient to cover over two months’ worth of imports

    SBP-held forex reserves rise by $12 million to $8.05 billion, sufficient to cover over two months’ worth of imports

    The State Bank of Pakistan (SBP) announced a rise of $12 million in its foreign exchange reserves, reaching $8.05 billion, as detailed in a statement released on Thursday. The nation’s overall liquid foreign reserves, encompassing both SBP and commercial banks, amounted to $13.379 billion as of August 11. Among these, commercial banks held net reserves totaling $5.3237 billion, as reported by the SBP.

    While the central bank did not provide specifics on the cause behind the augmentation of foreign exchange reserves, the situation presents an upbeat stance. Nevertheless, it’s worth noting that the existing reserves would barely cover imports for a span slightly exceeding two months.

    Notably, the previous month saw a notable escalation in SBP reserves due to inflows from the United Arab Emirates, Saudi Arabia, and the International Monetary Fund (IMF), following the formalisation of a $3 billion Stand-by Arrangement (SBA) with the global financial institution.

    According to Geo, in a departure from market predictions, the SBP opted to maintain the key policy rate at 22 per cent during the preceding month. This stance diverged from expectations, particularly those guided by IMF recommendations. SBP Governor Jameel Ahmed conveyed this decision following a Monetary Policy Committee (MPC) meeting. Explaining the rationale, he stated that given the decline in inflation, there was no inclination to increase the interest rate.

    During a press conference, Governor Ahmed also shared insights into the nation’s economic trajectory. He projected a growth rate ranging from 2 per cent to 3 per cent for the upcoming year. Highlighting the government’s actions, he mentioned the complete removal of import restrictions. This move, coupled with financial inflows from the IMF and other supportive nations, led to a $4.2 billion upswing in Pakistan’s foreign exchange reserves in July.

  • Chery Pakistan increases Tiggo 4 Price to Rs7 million

    In the face of mounting economic uncertainty, import restrictions, and complications surrounding Letter of Credit (LC) transactions, Chery Pakistan has been forced to implement a significant price hike on one of its popular crossover SUVs.

    According to Pakwheels, the Chery Tiggo 4, a favoured choice among Pakistani car enthusiasts, will now come with a heftier price tag, soaring from Rs6,399,000 to Rs6,999,000, reflecting an increase of Rs600,000. This move comes as Chery Pakistan grapples with the multifaceted challenges posed by a volatile economic landscape and supply chain disruptions, as the company revealed in an official statement.

    The surge in pricing has been attributed to the prevailing precarious economic conditions and the stifling supply constraints that have been a constant thorn in the side of numerous industries, including the automotive sector. Nevertheless, Chery Pakistan aims to mitigate the impact on its customers by extending a price lock guarantee to all new bookings for the Chery Tiggo 4, providing a semblance of stability amidst the tumultuous market fluctuations.

    The price escalation, while not entirely unexpected, underscores the current tribulations faced by Pakistan’s local auto industry. As a sector heavily reliant on imported components, particularly critical vehicle parts, the domestic car manufacturing industry is inherently susceptible to the ripple effects of foreign exchange rate fluctuations.

    Compounding the challenges are the import restrictions introduced by governmental authorities, leading to a cascade of delays and, in some instances, complete production standstills for various car manufacturers.

    The predicament has been further exacerbated by the non-issuance of LCs by the State Bank of Pakistan (SBP), casting a darker shadow over an already beleaguered landscape. Industry experts predict that the situation is poised to persist for the foreseeable future, with a grim timeline of at least 2–3 years for the auto sector to regain its footing.

    The intertwining of persistent economic woes with a backdrop of political instability paints a disheartening picture, further clouding the prospects of a swift recovery.

  • Pakistan Stock Exchange surpasses 49,000 points, reaches new high since 2017

    Pakistan Stock Exchange surpasses 49,000 points, reaches new high since 2017

    The Pakistan Stock Exchange (PSX) witnessed a remarkable surge on Thursday as it extended its bullish momentum, crossing the 49,000 level and reaching its highest point in six years. This impressive rally was fueled by positive economic data and a series of favourable factors contributing to investor confidence.

    During the intraday trade, the PSX’s benchmark KSE 100-share Index experienced a significant gain of 560.20 points, amounting to a 1.15 per cent increase, ultimately settling at an impressive 49,324.50 points. This milestone represents the index’s highest level since June 9, 2017, marking a notable achievement for Pakistan’s financial markets.

    The impressive growth of the benchmark index has been sustained since Pakistan signed a staff-level agreement with the International Monetary Fund (IMF) for a substantial $3 billion Standby Agreement. Since the agreement’s signing, the market has witnessed an extraordinary upswing, with the benchmark index having gained an impressive 7,871 points.

    Market analysts and experts have identified multiple reasons behind the consistent surge in the market. Among these factors is the State Bank of Pakistan’s (SBP) decision to maintain the policy rate, effectively keeping the status quo. The SBP’s prudent approach to monetary policy has contributed to stability and encouraged investors to take bullish positions in the market.

    Furthermore, the positive economic data, both from domestic and international sources, has also played a pivotal role in bolstering investor confidence. With indicators pointing towards a strengthening economy, investors have been encouraged to increase their stakes in the market, resulting in the record-breaking performance of the Pakistan Stock Exchange.

    As the market continues to show resilience and upward momentum, financial experts and policymakers are cautiously optimistic about the future outlook. They emphasise the importance of sustaining a positive economic trajectory through sound policy measures and a vigilant approach to market dynamics.

    Market participants and investors are closely monitoring the developments and will likely adjust their strategies in response to any shifts in economic indicators and policy decisions. The surge in the Pakistan Stock Exchange serves as a testament to the country’s economic potential and its ability to attract local and foreign investors to participate in its thriving financial markets.

  • Gold price drops by Rs2,000 per tola as Pakistani rupee gains ground against US dollar

    Gold price drops by Rs2,000 per tola as Pakistani rupee gains ground against US dollar

    The gold price in Pakistan experienced a significant decline of more than Rs2,000 per tola following the appreciation of the local currency against the US dollar in the interbank market.

    According to the data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) on Wednesday, the price of 24-carat gold witnessed a decrease of Rs2,400 per tola and Rs2,058 per 10 grammes, settling at Rs222,100 and Rs190,415, respectively.

    Conversely, the international market recorded a $12 increase in the price of gold, bringing it to $1,972.

    The fluctuating gold rate in Pakistan can be attributed to ongoing political and economic uncertainties and high inflation, prompting individuals to seek gold as a safe investment and hedge during such times.

    As per the data provided by the association, the price of silver remained constant at Rs2,750 per tola and Rs2,357.68 per 10 grammes.

    In parallel, the local currency demonstrated a positive trend against the US dollar in the interbank market today, appreciating by Rs1.48 or 0.52 per cent. The State Bank of Pakistan (SBP) reported that the rupee closed at Rs287.04 against the dollar.

  • PKR to USD: Pakistani rupee drops to Rs288.52 against US dollar

    PKR to USD: Pakistani rupee drops to Rs288.52 against US dollar

    The Pakistani rupee continued its downward trend for the eighth consecutive session, experiencing a depreciation of 0.21 per cent against the US dollar on Tuesday. According to the State Bank of Pakistan (SBP), the rupee closed at Rs288.52, marking a decrease of Re0.6.

    Over the past eight trading sessions, the currency has lost nearly 4.2 per cent or Rs12.02 against the US dollar. On the previous day, Monday, the rupee also suffered losses against the US dollar for the seventh successive session, depreciating 0.39 per cent and settling at 287.92 in the inter-bank market.

    In a significant development, the National Electric Power Regulatory Authority (NEPRA) approved an increase in the basic electricity tariff by Rs7.5 per unit from July 1, 2023, across the country. The chairman’s remarks indicated that this decision was influenced by the election year, and political choices were being made to alleviate the burden on 68 per cent protected consumers.

    On the international front, the US dollar gained strength ahead of three major central bank meetings scheduled for the week. Meanwhile, the euro faced challenges, hitting a two-week low on Tuesday due to a deteriorating economic situation in the eurozone, which complicated the bloc’s interest rate outlook despite the European Central Bank’s (ECB) hawkish stance.

  • US dollar surges against Pakistani rupee for eighth consecutive day in interbank market

    US dollar surges against Pakistani rupee for eighth consecutive day in interbank market

    The US dollar has been steadily appreciating against the Pakistani rupee for eight consecutive days, showing a continued upward trend in its value. On Tuesday, the currency further strengthened in the interbank market.

    At the start of the daily trading session in the interbank market, the American currency gained Rs1.8, reaching a value of Rs289 against the local currency. Over the course of the last eight days, the US dollar has gained Rs12.50 against the rupee in the interbank market.

    Interestingly, on Monday, despite receiving financial support from the International Monetary Fund (IMF) and other friendly countries, the Pakistani rupee depreciated even further against the US dollar.

    According to the State Bank of Pakistan (SBP), the dollar’s rate increased by Rs1.1 on Monday, with a closing rate of Rs287.92. In comparison, it had closed at Rs286.81 on Friday, showing a 0.39 per cent decline in the value of the rupee against the US dollar.

  • Pakistan’s current account surplus soars to $334 million in June

    Pakistan’s current account surplus soars to $334 million in June

    The State Bank of Pakistan (SBP) has reported that Pakistan’s current account has achieved a surplus for the fourth consecutive month, reaching $334 million in June 2023.

    This marks a significant improvement compared to the previous year when the current account recorded a deficit of $2.32 billion during the same period. The sustained monthly surplus trend began in March 2023.

    The primary factors contributing to this surplus, as highlighted by Arif Habib Limited (AHL), a reputable brokerage house, are a notable 55 per cent year-on-year decline in total imports and a 29 per cent year-on-year decrease in exports. Furthermore, remittances experienced a 22 per cent year-on-year decrease.

    Data from the central bank reveals that Pakistan’s exports in June 2023 increased to $2.698 billion, in contrast to the total goods and services export value of $3.794 billion in June 2022.

    Conversely, total imports amounted to $3.847 billion in June 2023, down from $8.533 billion in the corresponding period of the previous year.

  • Gold price increases by Rs6,200 to Rs221,000 per tola

    Gold price increases by Rs6,200 to Rs221,000 per tola

    On Tuesday, the gold price in Pakistan experienced a significant increase, aligning with the international market trends and the depreciation of the Pakistani rupee.

    The All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) reported that the price of 24-carat gold rose by Rs6,200 per tola and Rs5,316 per 10 grammes, reaching Rs221,000 and Rs189,472 respectively.

    Simultaneously, the global market witnessed a $10 rise in the price of gold, settling at $1,967 per ounce.

    In contrast, the prices of silver per tola and 10 grammes remained unchanged at Rs2,650 and Rs2,271.94 respectively. The gold rate in Pakistan has shown volatility in recent times due to ongoing political and economic uncertainty, coupled with high inflation.

    Read more: Pakistan’s current account surplus soars to $334 million in June

    Furthermore, the Pakistani rupee displayed weakness against the dollar in the interbank market on Tuesday, depreciating by Rs3.78, as per data from the State Bank of Pakistan.

  • Pakistan’s foreign exchange reserves rise to $8.4 billion

    Pakistan’s foreign exchange reserves rise to $8.4 billion

    Foreign exchange reserves held by the State Bank of Pakistan (SBP) have surged by over $4 billion following a deposit of $1.2 billion from the International Monetary Fund (IMF).

    As per data shared by the central bank, Pakistan has also received $1 billion from the UAE and $2 billion from Saudi Arabia, resulting in a significant increase in the SBP’s foreign exchange reserves, which now stand at $8.4 billion.

    During a televised address earlier today, Finance Minister Ishaq Dar stated that Pakistan’s foreign exchange reserves are projected to reach approximately $13-$14 billion by July 14.

    He emphasised that Pakistan is experiencing a resurgence in development and prosperity. Minister Dar acknowledged the instrumental role played by Prime Minister Shehbaz Sharif in reaching an agreement with the IMF, highlighting the unwavering support provided by the economic team throughout the intricate process.

    It is noteworthy that the International Monetary Fund granted approval for a $3 billion loan to Pakistan, subsequent to the signing of a staff-level agreement last month.

  • Pakistan receives $1.2 billion deposit from IMF

    Pakistan receives $1.2 billion deposit from IMF

    The State Bank of Pakistan (SBP) has received a substantial deposit of $1.2 billion from the International Monetary Fund (IMF), offering a glimmer of hope to the economically strained nation that has been on the verge of default for an extended period.

    This deposit follows the approval by the IMF’s executive board, during a late-night session, of a nine-month programme under a $3 billion Stand-By Agreement (SBA). The agreement, reached after arduous negotiations over fiscal discipline lasting eight months, marks a significant milestone for Pakistan.

    Last month, Pakistan successfully reached a staff-level agreement with the IMF, securing a short-term pact that exceeded expectations in terms of funding for the country, which is home to 230 million people. This achievement is of particular importance given the acute balance of payments crisis that Pakistan faced, with its central bank reserves barely sufficient to cover a month’s worth of controlled imports.

    During a televised address from Islamabad, Finance Minister Ishaq Dar expressed that Pakistan will receive the remaining balance of the agreed amount following two reviews. The first review is scheduled for November, while the second review will take place in February.

    These reviews are crucial milestones that need to be met to ensure the disbursement of the funds by the IMF, thus supporting Pakistan’s pursuit of economic stability.