KARACHI: Pakistan's rupee hit a record low on Monday of 173.20 in intra-day trading against the U.S. dollar before closing at 172.78, below the previous close of 171.18, after reports of a failure of talks with the International Monetary Fund, traders said.
The government's finance ministry on Monday dismissed reports by local media over the weekend that talks from October 4 to 15 for the release of a $1 billion loan tranche were inconclusive.
"Negotiations between Pakistan and IMF are moving forward positively. No timeframe was set at any stage for the conclusion of the talks," a statement issued by finance ministry said.
In June, a similar round of talks between the two sides failed to bring agreement on conditions for the tranche.
"The uncertainty regarding the IMF program after news reports emerged that Pakistan and IMF have failed to agree on certain conditions has resulted in today’s depreciation of rupee," Atif Zafar, chief economist and director at Topline Securities told Reuters.
Last month, Fitch Ratings revised down its forecasts for the Pakistani rupee for both this year and next due to a variety of factors including an increased flow of U.S. dollars into neighbouring Afghanistan.
Fitch’s forecast for the rupee’s average rate this year is now 164 to the U.S. dollar compared with 158 previously. For 2022, Fitch expects an average rate of 180 versus a previous forecast of 165.
The State Bank of Pakistan earlier indicated that the dollar could appreciate during the current financial year due to an expected higher current account deficit.
Pakistan's rupee drops to record low on reports IMF tranche talks failed
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Pakistan's rupee drops to record low on reports IMF tranche talks failed
- Pakistan dismisses reports talks from October 4 to 15 for release of $1 billion loan tranche were inconclusive
- In June, a similar round of talks between the two sides failed to bring agreement on conditions for the tranche
Customs seize narcotics, smuggled goods, vehicles worth $4.9 million in southwest Pakistan
- Customs seize 22.14 kg narcotics, consignments of smuggled betel nuts, Hino trucks, auto parts, says FBR
- Smuggled goods enter Pakistan’s Balochistan province from neighboring countries Iran and Afghanistan
ISLAMABAD: Pakistan Customs seized narcotics, smuggled goods and vehicles worth a total of Rs1.38 billion [$4.92 million] in the southwestern Balochistan province on Tuesday, the Federal Board of Revenue (FBR) said in a statement.
Customs Enforcement Quetta seized and recovered 22.14 kilograms of narcotics and consignments of smuggled goods comprising betel nuts, Indian medicines, Chinese salt, auto parts, a ROCO vehicle and three Hino trucks in two separate operations, the FBR said. All items cost an estimated Rs1.38 billion, it added.
Smuggled items make their way into Pakistan through southwestern Balochistan province, which borders Iran and Afghanistan.
“These operations are part of the collectorate’s intensified enforcement drive aimed at curbing smuggling and dismantling illegal trade networks,” the FBR said.
“All the seized narcotics, goods and vehicles have been taken into custody, and legal proceedings under the Customs Act 1969 have been formally initiated.”
In the first operation, customs officials intercepted three containers during routine checking at FEU Zariat Cross (ZC) area. The containers were being transported from Quetta to Pakistan’s Punjab and Khyber Pakhtunkhwa provinces, the FBR said.
The vehicles intercepted included three Hino trucks. Their detailed examination led to the recovery of the smuggled goods which were concealed in the containers.
In the second operation, the staff of the Collectorate of Enforcement Customs, Quetta, intercepted a ROCO vehicle at Zariat Cross area with the local police’s assistance.
The driver was interrogated while the vehicle was searched, the FBR said.
“During interrogation, it was disclosed that drugs were concealed inside the spare wheel at the bottom side of the vehicle,” it said.
“Upon thorough checking, suspected narcotics believed to be heroin was recovered which was packed in 41 packets, each weighing 0.54 kilograms.”
The narcotics weighed a total of 22.14 kilograms, with an estimated value of Rs1.23 billion in the international market, the FBR concluded.
“The Federal Board of Revenue has commended the Customs Enforcement Quetta team for their effective action and reiterated its firm resolve to combat smuggling, illicit trade and illegal economic activities across the country,” it said.
