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October 25, 2022 / By Zunair Tahir / Business News

In the interbank market on Tuesday, the Pakistani rupee (PKR) appreciated by 68 pesos in relation to the US dollar.

According to the State Bank of Pakistan, the local currency increased by 68 paisa or 0.31 percent from yesterday’s finish of Rs220.41 to conclude at Rs219.73 per $1.

UK Pound Drops To 37-Year Low

September 17, 2022 / By Zunair Tahir / Business News

The British pound hit new lows against the US dollar and the euro on Friday, marking the 30th anniversary of “Black Wednesday,” as weaker-than-expected retail overall sales fueled concerns about the country’s economy.

In terms of the dollar, the pound dropped more than 1% to $1.1351—its lowest level since 1985—and was most recently trading at $1.1404.

A further significant rate rise from the Federal Reserve next week has been priced in by markets as a result of this week’s hotter-than-expected U.S. inflation, which has made the dollar stronger than most other major currencies in recent months.

The euro, on the other hand, increased to 87.71 pence on Friday, its highest level since February 2021, while the pound has notably suffered. At 87.45 pence, it was recently up 0.39 percent.

A severe depreciation of the pound resulted from Britain’s exit from the Exchange Rate Mechanism, a mechanism created to lessen currency swings prior to the introduction of the euro, on September 16, 1992.

Sterling dropped 4.3% on that day, now known as Black Wednesday, and ended the day at $1.778, which is significantly more than it is presently.

The statistics that led to Friday’s decline indicated that retail sales volumes fell 1.6% in monthly terms in August, which was worse than all of the projections in a Reuters survey of experts, who had called for a 0.5% decline. This was the worst loss since December 2021.

The International Monetary Fund predicts that the British economy will see weaker economic growth and more persistent inflation than any other major country in 2019.

According to John Hardy, director of FX strategy at Saxobank, “the grinding backdrop of everything that’s going on is pushing on sterling, with the UK running these big external deficits and the concerns around the incoming prime minister’s plans contributing to that.”

To lessen the economic blow of the war in Ukraine, Britain’s new leader, Liz Truss, proposed last week a two-year ceiling on consumer energy prices. The measures are expected to cost the nation upwards of 100 billion pounds ($115 billion).

On September 23, British Finance Minister Kwasi Kwarteng is anticipated to present a fiscal statement outlining how this will be paid for as well as how he would carry out the tax cuts Truss pledged during her run for the Conservative Party leadership.

Additionally, markets are “risk-off” as a result of FedEx pulling their prediction and a decline in U.S. stocks below a crucial support level. Sterling is equivalent to a worse euro in a risk-off atmosphere, according to Foley.

On Thursday, FedEx Corp cancelled the financial projection it had made just three months prior, sending its shares tumbling and straining the market as a whole.

A jam-packed week of central bank meetings will include the Bank of England’s meeting the following week. Market pricing suggests that a 75-basis-point increase has a little higher probability than a 50-basis-point increase.

There is definitely a danger that a 50bp boost will spark further GBP selling, according to MUFG, given that the (European Central Bank) increased rates by 75bps, the Bank of Canada did the same, the Fed will follow suit, and potentially the (Swiss National Bank).

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Pakistan Is Expected To Increase The Price Of Electricity By PKR3.15 Per Unit

April 20, 2022 / By Zunair Tahir / Business News

ISLAMABAD, Pakistan – The National Electric Power Regulatory Authority (NEPRA) has received a petition demanding a Rs3.15 per unit rise in power prices in March 2022 due to changes in fuel prices.

The application was sent by the Central Power Purchasing Agency (CPPA), and it will be heard by Nepra on April 27. If the raise is accepted, the public would be saddled with a Rs30 billion charge.

According to the CPA’s appeal, a total of 10 billion units were produced in March at a cost of Rs94 billion.

On April 21, Pakistani Internet Users Will Experience Slow Speeds

In March, the CPPA notified the regulatory body that the per unit cost of power generated from thermal oil was Rs22.52, while the cost of energy generated from LNG was Rs14.36.

According to the electricity regulatory, the ruling will have no impact on K-Electric customers.

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(IMF) Has Expressed Concern Over Pakistan’s Growing Inflation and Expanding Current Account Deficit

April 20, 2022 / By Zunair Tahir / Business News

ISLAMABAD, Pakistan – Pakistan’s surging inflation and expanding current account deficit have alarmed the International Monetary Fund (IMF).

According to a recent assessment by the Washington-based banking organization, the South Asian country’s productivity is on the decline.

Inflation is expected to stay around 11.2 percent this year, with the current account deficit hovering at 3.5 percent of GDP.

According to the estimate, economic growth will be about 4% this year, while unemployment will be around 7% this year and 6.7 percent next year.

On April 21, Pakistani Internet Users Will Experience Slow Speeds

Meanwhile, in the aftermath of the crisis in Ukraine, the UN has cut its global growth estimates, warning that a Kremlin invasion may break the global economy into opposing blocs.

It noted that prospects had deteriorated in the previous three months, as it decreased its growth forecast for 2022 from 4.4 percent to 3.6 percent. The news comes as Islamabad has formally begun discussions with the IMF on the bailout package in Washington. According to sources, negotiations with the US-based financial institution will last until April 24, and the IMF will disburse a $1 billion tranche following successful talks.

Governor of the State Bank of Pakistan, Reza Baqar, is now in the United States for discussions with IMF officials. He will also be present at the World Bank’s steering committee meeting. Miftah Ismail, the Prime Minister’s Finance Adviser, will participate in the IMF negotiations electronically.

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$1.5 Billion ADB Loan Agreement, PKR Increases By 68 Paisa versus The Dollar

$1.5 Billion ADB Loan Agreement, PKR Increases By 68 Paisa versus The Dollar

READ MORE:The Rupee’s Comeback Is It Only Temporary?

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UK Pound Drops To 37-Year Low

UK Pound Drops To 37-Year Low

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Pakistan Is Expected To Increase The Price Of Electricity By PKR3.15 Per Unit

Pakistan Is Expected To Increase The Price Of Electricity By PKR3.15 Per Unit

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On April 21, Pakistani Internet Users Will Experience Slow Speeds

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(IMF) Has Expressed Concern Over Pakistan’s Growing Inflation and Expanding Current Account Deficit

(IMF) Has Expressed Concern Over Pakistan’s Growing Inflation and Expanding Current Account Deficit

READ MORE

On April 21, Pakistani Internet Users Will Experience Slow Speeds

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