Pakistani Rupee Rides the Ascending Wave: A Stabilization Story
The Pakistani rupee's gradual appreciation against the US dollar continued in the inter-bank market for the 28th consecutive working day, marking a phase of stabilization. Although the daily gains against the dollar have lessened, the rupee has cumulatively appreciated by 11% in the past month, recovering from its record low.
Karobar
KARACHI 10/18/2023: The Pakistani currency is on a remarkable upswing, notching up gains for the 28th consecutive working day in the inter-bank market. What's even more exciting is that it has chalked up another victory against the US dollar, marking a step towards currency stabilization. This is fantastic news for the Pakistan Economy and Business in Pakistan.
Over the last four weeks, we've witnessed daily recoveries that often exceeded Rs1. According to data from the State Bank of Pakistan (SBP), the rupee has just appreciated by 0.29%, equivalent to Rs0.79, closing at Rs276.83 to a dollar.
Cumulatively, the rupee has soared by approximately 11%, or Rs30.27, in the past 28 working days compared to its record low of Rs307.10/$ on September 5, 2023. This remarkable turnaround deserves applause.
This latest recovery was spurred by a high-level meeting between Finance Minister Shamshad Akhtar and influential UAE officials, a significant step for Business in Pakistan. Their discussions aimed to secure additional financing and investments from the Gulf nation.
Adding to the momentum, international financial institutions like the World Bank and the Asian Infrastructure Investment Bank have pledged $600 million to Pakistan as part of the RISE-II economic stabilization program. This commitment is like a breath of fresh air for the Pakistan Economy.
Meanwhile, the Ministry of Finance has emphatically stated that the World Bank's $400 million for flood relief remains steadfast, putting to rest any withdrawal rumors. Such certainty is always welcome.
In the open market, the rupee stood strong at Rs277/$, as reported by the Exchange Companies Association of Pakistan (ECAP). Over the past month, the rupee has bounced back by a significant 18.41%, equivalent to Rs51. This kind of resilience is a testament to Pakistan's strength in the face of challenges.
Gold prices downwards by Rs1,900
The local gold pricing committee added to the good news by revising gold prices downwards by Rs1,900, setting it at Rs200,100 per tola (11.66 grams). A little extra sparkle for your Business in Pakistan.
The Pakistani rupee's upward journey against the US dollar paints a picture of stabilization and progress. Though the pace of daily gains has eased, the cumulative 11% appreciation over the past month is a testament to Pakistan's resilience. With international support and the promise of more investments, the future is looking bright. As the retail market also shows strength, it's clear that Pakistan's economic journey is on an exciting trajectory, making it a great place for Business in Pakistan.
