KARACHI: Pakistan’s national currency continued to lose its value against the US dollar and hit a new all-time low as the greenback closed at Rs176.20 on Monday.
The rupee has lost its value by 15.7 percent, or more than Rs24, since May this year, when the dollar was trading at around Rs152.
While analysts believe the rupee is weakening against the greenback due to a high demand for imports and an expectation of higher import bills for November 2021, currency dealers say the reasons for rupee’s depreciation were not clear, despite a decline in oil prices and the clearance of a Saudi financial package.
Pakistan and Saudi Arabia on Monday formally signed an agreement under which the Saudi Fund for Development (SFD) will deposit $3 billion in the State Bank of Pakistan (SBP).
In October, SFD announced a financial package of $4.2 billion to help the South Asian nation as it struggled with depleting foreign reserves. The package includes suppling $1.2 billion worth of oil to Pakistan on credit.
“The demand of dollar for imports is exerting pressure on Pakistani rupee besides it is expected that November import bill will be higher as well,” said Samiullah Tariq, research director at the Pakistan Kuwait Investment Company (PKIC).
Tariq said the flow of Saudi dollars into Pakistan would improve market sentiment despite an expected high demand for dollar for imports.
“The Saudi deposits will improve the sentiment of the market,” he said. “The deposit will increase the import coverage of the country for three months.”
But Zafar Paracha, general secretary of the Exchange Companies Association of Pakistan (ECAP), said analysts were unable to comprehend why the dollar was appreciating in the interbank market, despite the clearance of the Saudi deposit facility and around 10 percent decline in oil prices.
On Monday, the rupee appreciated in the open market and the US dollar traded at Rs177.80 for selling and Rs177.30 for buying. The greenback traded at Rs179 for selling and Rs178 for buying the previous day.
“There is more supply of dollar than the demand in the open market,” Paracha said, explaining the rupee’s appreciation.
Pakistan’s equity market jubilated over the clearance of the Saudi deposit facility, with the benchmark KSE 100 index gaining 1215.89 points on Monday.
“Stocks closed record higher after reports that federal cabinet approved terms of $4.2 billion Saudi package,” Ahsan Mehanti, chief executive of Arif Habib Corporation said. “Strong economic outlook ahead of release of IMF tranche and surging exports, remittances and global crude oil prices played a catalyst role in the bullish close.”
Pakistani rupee hits new all-time low against greenback
https://arab.news/rx39c
Pakistani rupee hits new all-time low against greenback
- US dollar closed at Rs176.20 on Monday despite clearance of Saudi deposits
- Pakistani currency has lost 15.7 percent of its value since May this year
Pakistan bank enables Shariah-compliant digital payment facility for passengers at Islamabad airport
Pakistan bank enables Shariah-compliant digital payment facility for passengers at Islamabad airport
- Pakistan is a cash-dominated market where a significant portion of transactions in the informal sector are made without any taxes, officials say
- The move comes amid Pakistan’s efforts to introduce a cashless model at airports under which only digital service providers can provide services
KARACHI: Aik, Pakistan’s first Islamic digital bank, has enabled fully digital payments at Islamabad International Airport to offer travelers and passengers secure, Shariah compliant digital transaction facility.
The development comes amid Pakistan’s efforts to introduce a cashless model at airports across the country, under which only digital service providers can provide services to customers.
Aik, a subsidiary of Bank Islami, said it has onboarded merchants across the Islamabad airport and integrated QR code deployments at key touchpoints to allow passengers and visitors to make secure, seamless, and Shariah-compliant digital transactions at all counters, retail outlets, and service points.
It said the implementation complies with the regulations and framework set by the State Bank of Pakistan (SBP) and is a working model for a large-scale adoption of cashless systems in public infrastructure.
“This deployment reflects our commitment to building practical digital infrastructure that improves everyday transactions,” Aik Chief Officer Ashfaque Ahmed said in a statement.
“By enabling a fully cashless environment at a major national gateway, we are supporting efficiency, transparency, and financial inclusion at scale. This is not only a project; it is a foundation for Pakistan’s cashless future.”
Pakistan is a cash-dominated market where a significant portion of transactions, particularly in the informal sector, are conducted in cash. Officials say many of these transactions are aimed at avoiding taxes.
In recent years, the SBP has taken steps to ensure a transition toward a more cashless economy so that transactions are more traceable, reducing chances of tax evasion and corruption.
By digitizing Islamabad airport, aik said it continues to invest in secure and accessible financial solutions that “expand digital participation and support national economic modernization.”
