The dollar can now be bought for Rs157.95 in the open market as the greenback rate has dropped to a one-year low. The last time dollar was traded below Rs158 was on March 10 last year. “The State Bank took several initiatives such as Roshan Digital Accounts last year during the pandemic,” said Zafar Paracha, the secretary of the Exchange Companies Association of Pakistan. “The dropping rate shows those initiatives have been bearing fruits.” He added that the inward remittances, the foreign exchange overseas Pakistanis send back to the country, have been strong. The remittances in the first seven months of the fiscal year 2021 (July to January) stood at $16.5 bill.
Govt awards 15 new blocks to local firms
Aims to reduce country’s heavy reliance on import of energy
PHOTO: REUTERS
The government has provisionally awarded 15 new blocks to four local oil and gas exploration companies to find new hydrocarbon deposits nationwide and reduce Pakistan’s heavy reliance on import of energy.
The state-owned Oil and Gas Development Company Limited (OGDC) won 10 blocks out of the 15 awarded through competitive bidding by the government, Mari Petroleum Company Limited (MPCL) and OKTL E&P acquired two blocks each while Pakistan Oilfield Limited (POL) secured one block, an official of the Ministry of Energy (Petroleum Division) told The Express Tribune on Wednesday.
Experts are divided whether a significant growth of 25% in Pakistan’s imports in a single month is sustainable as imports are expected to remain high and heighten payment pressure ahead of the reopening of export markets.
Attracting investors to stock, debt markets a challenge
Low-interest rates, rupee depreciation likely to discourage foreign investors
PHOTO: REUTERS
KARACHI:
Pakistan’s economy is gradually moving towards stabilisation. The country’s foreign currency reserves hit a three-year high above $13 billion and the rupee consolidated at around Rs160 against the dollar.
However, attracting foreign investment into the stock and debt markets remains a huge challenge. Foreign investors have continued to divest from Asia’s best performing stock market for the past four years.
Similarly, they have aggressively pulled out investment from government debt securities since March 2020 after the central bank made a big cut in the benchmark interest rate to cope with the Covid-19 pandemic.
Current account makes new record
Remains in surplus for fifth successive month at $447 million
Despite the wide current account gap, the SBP s foreign currency reserves increased to $16.4 billion in May 2017 compared to $16.1 billion in April 2017 mainly due to a surge in fresh short and long-term loans. PHOTO: REUTERS
Pakistan’s economy has continued to make and break historic records during the Covid-19 pandemic. Its current account balance stayed in surplus - meaning government’s foreign income exceeds its expenditures - for the fifth successive month in November at $447 million.
The development partially helped the country’s foreign currency reserves stay near a three-year high above $13 billion.