Greenback continues to surge, touches new all-time high against Pakistani rupee

A Pakistani dealer counts US dollars at a currency exchange shop in Karachi, Pakistan, on November 30, 2018. (AFP/File)
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Updated 15 September 2021
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Greenback continues to surge, touches new all-time high against Pakistani rupee

  • The US dollar hit Rs169.12 on Wednesday amid reports of market intervention by the central bank
  • Experts say there is some indication central bank intervening in market to support rupee by selling US dollars

KARACHI: The US dollar continued to surge against the Pakistani rupee and hit another all-time high of Rs169.12 for the second consecutive day on Wednesday, according to the State Bank of Pakistan (SBP) data. 
Early on Wednesday, the rupee depreciated by 46 paisas against the greenback, according to an update on Mettis Global, a web-based financial data and analytics portal. 
The US dollar closed the trading session at Rs169.12 in the interbank market, beating Tuesday’s record high of Rs168.94. In the open market, it was trading at Rs169.30 for buying and Rs169.60 for selling (by currency dealers). 
“Despite encouraging economic indicators, the rupee is depreciating mainly because of the widening trade deficit and the flow of dollar to Afghanistan,” Zafar Paracha, general secretary of the Exchange Companies Association of Pakistan, told Arab News. 
“The demand for dollar in Afghanistan is rising after the withdrawal of NATO and US forces that were the main sources of dollar flows [in the war-torn country].” 
Speaking on the condition of anonymity, some currency traders told Arab News there was an indication the central bank was intervening in the market to support the rupee by selling US dollars. The SBP did not respond to a request for comments. 
It is scheduled to announce its monetary policy on September 20, with analysts expecting it to increase the policy rate by 25 basis points (bps). 
The stock market also reacted negatively to the rupee’s depreciation and the benchmark KSE-100 Index closed at 46,716 points, showing a decline of 175 points. 


Ramadan tests Pakistan’s daily wage workers but faith endures

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Ramadan tests Pakistan’s daily wage workers but faith endures

  • Reduced work hours during fasting month cut already fragile incomes
  • Charities, local businesses step in as laborers try to support families back home

ISLAMABAD: Abdul Waqif grips a worn-out shovel and digs into the earth beneath the harsh midday sun, his body bent with age but still moving steadily. Moments later, the 70-year-old hoists a heavy bag of cement onto his shoulders and carries it toward an under-construction house, all while fasting.

For Waqif and thousands of daily wage laborers across Pakistan, Ramadan is not just a month of spiritual devotion. It is also a month of shrinking incomes.

Waqif migrated from Mohmand tribal district in northwestern Pakistan to Islamabad two decades ago in search of work. Like many laborers from rural and former tribal areas, he left behind limited local opportunities to earn a living in larger cities such as Islamabad, Lahore and Karachi.

In Pakistan, daily wage workers, particularly in construction and manual labor, are among the most economically vulnerable. They are paid only for days worked, receive no job security or benefits, and often rely on informal arrangements. Any slowdown in economic activity directly affects their ability to feed their families.

Economic activity typically slows during Ramadan, when Muslims fast from dawn to sunset. Employers often reduce work hours or postpone physically demanding projects to ease the burden on fasting workers. While intended as a gesture of consideration, it means fewer working hours and fewer earnings.

For laborers such as Waqif, who earns between Rs1,000-1,200 [$3.59-4.31] per day, even a slight reduction in work can be devastating.

His suhoor, the pre-dawn meal before fasting begins, usually consists of a few chapatis from a nearby hotel. The hunger and thirst that follow him through the day are constant companions as he lifts bricks and mixes cement in the heat.

But so is his faith.

“Allah gives me courage. I am hungry and thirsty, but I keep working,” Waqif said while wiping the sweat off his brow.

Back in Mohmand district, his wife, four daughters and two sons depend on the money he sends home. Every rupee matters.

“I support them with this work,” Waqif said. “I eat three meals a day here and I also have to save money for my children and send it to them.”

The reduction in work during Ramadan weighs heavily on him.

“I don’t find much work in Ramadan, and I’m worried for my family,” Waqif said.

‘HONEST LIVING’

Finding food for suhoor is sometimes a challenge. On some mornings, someone offers him a piece of flatbread. Other times, he buys what little he can afford from a nearby eatery.

Muhammad Sajid, owner of Al-Hadi restaurant in Islamabad’s G-15 sector, says he tries to ease that burden by offering meals to laborers at half price.

“We don’t let anyone go hungry,” Sajid told Arab News. “We offer sehri and iftar as much as anyone can afford.”

The restaurant serves tea, yogurt, several types of curries and parathas.

Charity groups also expand operations during Ramadan, when community support traditionally increases. The Junaid Welfare Foundation runs a roadside dastarkhwan, or communal meal spread, serving hundreds daily.

Haq Rawan Shareefi, a manager at the foundation, said around 500 people are provided iftar meals each day. The cost of one person’s iftar is Rs200 [$0.72].

“That means, on iftar and sehri, our expenses range from Rs150,000 [$538.97] to Rs200,000 [$718.63],” Shareefi said.

For Waqif, breaking his fast at sunset brings temporary relief from the physical strain of the day. But the financial uncertainty remains.

“I ask Allah for this,” he said. “May Allah give me strength to earn honest living for my children.”