Pakistani rupee hits new all-time low against greenback

A Pakistani man talks on the phone in front of a poster displaying US dollars at the currency exchange place in Lahore, Pakistan, on May 16, 2019. (AFP/File)
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Updated 30 November 2021

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

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.” 


Government says central bank autonomy not without checks and balances

Updated 11 sec ago

Government says central bank autonomy not without checks and balances

  • The IMF wanted Pakistan to grant maximum independence to the central bank to end any possible political interference
  • A senior Pakistani minister says the oversight mechanism was built into the law after ‘hard negotiations’ with the lending agency

ISLAMABAD: A senior Pakistani minister on Tuesday criticized the opposition for making a legislation regarding the central bank’s autonomy controversial, saying the new law was not without checks and balances which were incorporated after “hard negotiations” with the International Monetary Fund.
The law was approved by the country’s national assembly last week and was enacted on the international financial institution’s insistence which had been demanding it to protect the State Bank of Pakistan (SBP) from any political interference.
The IMF executive board is scheduled to review Pakistan’s progress in terms of the implementation of structural reforms under a $6 billion loan program and may release another tranche of $1 billion later this month.
Pakistan’s energy minister Hammad Azhar told a news conference in Islamabad that central banks were always kept autonomous in the world since there was enough evidence that it allowed developed nations to bring down inflation and ensure economic growth.
“The federal government will appoint the central bank’s board of directors whose members can even remove the state bank governor,” he said, adding: “We managed to secure this concession of appointing the state bank board along with its governor and deputy governor from the IMF after hard negotiations.”
Azhar maintained previous administrations tried to influence central bank officials while dictating them how to manage the county’s monetary policy.
He added a similar bill was also suggested in 2015 by the opposition Pakistan Muslim League-Nawaz party wherein it was willing to surrender all its powers to the central bank board.
The minister noted the government had brought about a comprehensive reform in the area which was also “demanded by serious Pakistani economists for a substantially long period.”
Refuting the opposition’s criticism over the law, he said it was only going to strengthen the country’s economy and ensure sustained growth momentum.


Oman’s naval chief meets Pakistani general, discusses military cooperation

Updated 18 January 2022

Oman’s naval chief meets Pakistani general, discusses military cooperation

  • General Nadeem Raza says defense cooperation between the two countries will have a positive impact on regional peace and security
  • Pakistan and Oman signed a memorandum of understanding in October 2020 to enhance military cooperation

ISLAMABAD: Commander Royal Navy of Oman Rear Admiral Saif bin Nasser bin Mohsen Al-Rahbi on Tuesday met with Pakistan’s Chairman Joint Chiefs of Staff Committee General Nadeem Raza in Rawalpindi and discussed ways of improving bilateral military cooperation, the military’s media wing, ISPR, said in a statement.
A day earlier, the Omani official held a meeting with Pakistan’s Naval Chief Admiral Muhammad Amjad Khan Niazi in Islamabad to discuss bilateral defense ties.
Pakistan and Oman have always maintained a close relationship and the two countries signed a memorandum of understanding (MoU) to increase military cooperation in October 2020.
In his meeting with General Raza, Al-Rahbi discussed “security and regional issues and matters related to enhancing the level and scope of bilateral military engagements and cooperation in various fields between the two brotherly countries,” the ISPR read.
The statement noted that General Raza “emphasized the need to further enhance the existing defense and security cooperation and said that Pakistan-Oman cooperation will have a positive impact on peace and security in the region.”
“The visiting dignitary remained appreciative of the role of the Pakistan Armed Forces in building the capacity of Oman Armed Forces. He also acknowledged the sacrifices made by Pakistan in the war against terrorism,” it added.
Last week, Pakistani naval ships Rah Naward and Madadgar visited Oman’s Port Sultan Bin Qaboos along with Hamza submarine as part of overseas deployment.
“During the port stay, various bilateral activities including exchange visits onboard afloat units, orientation visits of military installations and coordination meetings were undertaken,” the Pakistan Navy said.


Pakistani policeman, two suspects killed in Islamabad ‘terrorism incident’ 

Updated 18 January 2022

Pakistani policeman, two suspects killed in Islamabad ‘terrorism incident’ 

  • Outlawed Tehreek-e-Taliban Pakistan has claimed responsibility for the ‘attack’ near the city’s famous G-9 market 
  • TTP is a separate group from the Afghan Taliban and has fought for years to overthrow the government in Islamabad 

ISLAMABAD: A policeman and two suspects were killed in a shootout in the Pakistani capital of Islamabad late Monday, in what the country’s interior minister described as a “terrorism incident.”
Two assailants opened fire at police officers standing guard near a market in G-9 sector, the police said, which triggered a shootout that killed an officer and both gunmen. Two policemen were injured in the attack, who were shifted to hospital.
Pakistani Interior Minister Sheikh Rashid Ahmed on Tuesday said the deceased suspects were “terrorists” and the shootout was actually an attack.
“Munawwar Shaheed, head constable, was on duty and the terrorists opened a burst on him. This wasn’t a burglary or robbery,” Ahmed said.

Pakistan's Interior Minister Sheikh Rashid Ahmed places a wrath on the coffin of a policeman who lost his life in a gun attack in Islamabad on January 18, 2022. (Islamabad Police)

“This is a kind of a signal we have got that terrorism incidents have begun in Islamabad. This is the first incident of this year and we need to be very alert.”

He said the authorities had located the "terrorist sleeper cell" in Misrial, a Rawalpindi neighborhood some 20 kilometers from Islamabad.

“This is purely a terrorism issue,” Ahmed added.

Policemen pay tribute beside the coffin of a police officer who was killed in an overnight gunmen attack during the funeral ceremony in Islamabad on January 18, 2022. (AFP)

Militants have often targeted security forces in Pakistan’s southern Balochistan and northwestern Khyber Pakhtunkhwa provinces, but attacks like this have been a rarity in Islamabad.
The Pakistani Taliban, or the Tehreek-e-Taliban Pakistan (TTP), claimed responsibility for the “attack” in a statement.
The TTP is a separate movement from the Afghan Taliban and has fought for years to overthrow the government in Islamabad and rule with its own brand of Islamic Shariah law.
Last month, the group declared an end to a month-long cease-fire arranged with the aid of the Afghan Taliban, accusing the Pakistan government of breaching terms including a prisoner release agreement and the formation of negotiating committees.


Pakistani PM's aide visits UAE embassy in display of solidarity after Houthi attack 

Updated 18 January 2022

Pakistani PM's aide visits UAE embassy in display of solidarity after Houthi attack 

  • Tahir Ashrafi says they consider security and stability of UAE as Pakistan's security and stability 
  • UAE ambassador offers condolences over the death of a Pakistani in Houthi attack on Abu Dhabi 

ISLAMABAD: Pakistani Prime Minister Imran Khan’s aide on the Middle East Tahir Mahmood Ashrafi on Tuesday visited the United Arab Emirates (UAE) embassy in Islamabad to express solidarity with the brotherly country a day after a drone attack on its capital, Abu Dhabi, by Yemen's Iran-aligned Houthi militia.

Houthi rebels on Monday attacked the Emirati capital with missiles and drones, setting off explosions in fuel trucks that killed three people, including a Pakistani national, and injured six others, and causing a fire close to the Abu Dhabi airport.

“The UAE is Pakistan's strongest friend and brother. [We] consider the security and stability of the UAE as Pakistan's security and stability,” Ashrafi told UAE Ambassador Hamad Obaid Al-Zaabi.

“No force can weaken Pakistan-UAE relations,” the Pakistani PM's aide said.

Ambassador Al-Zaabi conveyed condolences from the UAE leadership over the killing of the Pakistani national, who was working for the Emirati oil giant, ADNOC.

“The injured are being fully treated and the UAE foreign ministry is in touch with the Pakistani embassy,” the UAE ambassador was quoted as saying in a statement issued from the office of the Pakistani PM's aide.

Ambassador Al-Zaabi thanked Pakistan for its solidarity and cooperation with the UAE.

Besides being a brotherly country, the UAE is also Pakistan’s largest trading partner in the Middle East and a major source of investment in the South Asian country.

Around 1.6 million Pakistani expatriates in the UAE contributed remittances of more than $6 billion in the last financial year.


Authorities in Pakistan's Islamabad start closing schools amid rising virus cases

Updated 18 January 2022

Authorities in Pakistan's Islamabad start closing schools amid rising virus cases

  • Deputy commissioner says educational institutes being closed for a period of 10 days
  • The COVID-19 positivity rate has crossed 10 percent in Islamabad, Hamza Shafqaat adds

ISLAMABAD: Authorities in the Pakistani capital of Islamabad have started closing schools amid a surge in coronavirus cases, the Islamabad deputy commissioner said late Monday.
The development comes as the South Asian nation reports more than 5,000 new infections in the last 24 hours. The country is battling a fifth wave of COVID-19, fueled by the highly transmissible omicron strain.
"Due to covid rise Islamabad Administration has started sealing schools for a period of ten days so that contact tracing can be done and positive cases are prevented to interact with other kids," Islamabad Deputy Commissioner Hamza Shafqaat said on Twitter.
The per day COVID-19 positivity rate has crossed 10 percent in Islamabad, according to the official.
He said the city's administration had also launched a crackdown on those violating the government-prescribed standard operating procedures (SOPs) to prevent the spread of the virus.
"Please wear masks and get everyone around you vaccinated as soon as possible," the deputy commissioner urged.
Pakistan on Tuesday reported 10 deaths and 5,034 new cases of coronavirus, according to the National Command and Operation Centre, which oversees the country's pandemic response.
The overall virus positivity rate in the country stands at 9.45 percent.