Latest news with #PakistaniRupee
Business Recorder
6 days ago
- Business
- Business Recorder
PKR under pressure: Balancing act by SBP
The pressure from imports is gradually intensifying. The payment squeeze situation has persisted since January, becoming somewhat of a new normal. However, growing anxiety is now contributing to the depreciation of the Pakistani Rupee (PKR). "Dollars aren't short, just expensive," asserted a bullish treasury officer in defense of the State Bank of Pakistan (SBP). "There's no panic in the market." However, sentiments vary among banks. "For us, it's panic," lamented a senior executive from another bank experiencing significant strain. "We are settling oil L/Cs at PKR 287-288, as we have to offer better rates to attract remittances." He anticipates that the currency will inevitably slip further. These mixed sentiments among bank treasuries stem from implicit intervention by the SBP, a practice ongoing for over a year. The SBP buys surplus dollars from banks while restricting access for banks in need, forcing them to seek additional inflows to manage their outflows. "SBP is metaphorically holding a gun to our heads," expressed a frustrated executive from an affected bank. Conversely, the optimistic banker supports the central bank's stance: "SBP is calm and composed, so there's no need for panic. Soon, SBP reserves will reach $14 billion, positively impacting the PKR and halting further depreciation," he explained. Yet not everyone is convinced. "There's a limit to how long the SBP's strong-arm tactics will work. Natural market forces will eventually prevail," another banker cautioned. While extreme views exist, most treasury officials maintain a cautious outlook. The consensus is that interest rates have bottomed out, aligning with inflation trends. If further cuts occur, they will not exceed 100 basis points from current levels. No one anticipates single-digit interest rates, and a gradual depreciation of the currency seems inevitable. "Previously, SBP allowed depreciation at 5 paisas daily; now it's 15 paisas daily. This measured strategy prevents panic while managing currency depreciation effectively," remarked a third banker. This approach appears prudent, as there is currently no pressure in the open market, nor signs of a currency run. Importers remain steady, and exporters continue to exercise caution. "Remittances are crucial," noted another banker. "If the country maintains strong inflows, the market will function smoothly." However, the current budget lacks explicit support measures for remittances. Although absent from the budget document, the finance minister has reassured banks of continued support. The SBP Governor recently echoed this sentiment, confirming continuity in some form. The situation should soon clarify, but without robust support for remittances, currency pressures will likely accelerate. The Real Effective Exchange Rate (REER) stands between 97-98, indicating that the PKR is not overvalued. Crucially, SBP reserves are down to $9 billion, although the SBP Governor projects they will reach around $14 billion by the end of June. For now, optimism is cautious, and fingers remain crossed.
Business Recorder
21-06-2025
- Business
- Business Recorder
Potential fallout of Israel-Iran conflict: ICMAP for ensuring 90-day strategic oil reserves
KARACHI: To address the challenges arising from escalating regional tensions, the Institute of Cost and Management Accountants of Pakistan (ICMAP) has proposed a set of strategic policy recommendations. These include the establishment of 90-day strategic oil reserves, formation of an economic task force, and adoption of oil price hedging mechanisms to help shield Pakistan from the potential fallout of the Israel-Iran conflict. In response to escalating regional tensions, the ICMAP has issued a timely and policy-focused assessment of the potential economic fallout from the ongoing Israel-Iran conflict. Developed by ICMAP's Research and Publications Department, the report complements the government's recent decision to establish a high-level committee, headed by the Finance Minister, to evaluate emerging economic risks. ICMAP's assessment underscores that while the conflict remains geographically limited, its indirect economic consequences are already rippling across global markets, particularly affecting energy, trade, and financial systems. For Pakistan, the exposure is significant due to its dependence on imported fuel, critical maritime trade routes through the Gulf, and the livelihoods of over four million expatriate workers based in the Middle East. Central to the analysis is a warning that any disruption in the Strait of Hormuz, through which nearly 20% of global oil and LNG transit, could drive oil prices to between $100 and $130 per barrel. This would substantially increase Pakistan's energy import bill, elevate power generation costs, and accelerate inflation. Domestic diesel prices could rise by more than 30%, with wide-ranging effects on food production, transportation, and household expenditures. The report further highlights rising risks to financial stability. Depreciation of the Pakistani Rupee, increased external debt servicing costs, and fiscal pressure from potential fuel subsidies could erode macroeconomic resilience. Exporters are already facing sharp increases in shipping insurance premiums, reportedly climbing from $400 to $2,000 per container, thereby undermining export competitiveness. In addition, supply chain disruptions and elevated freight charges are expected to impact industrial production - particularly in key sectors such as textiles, chemicals, and edible oils. To address these challenges, ICMAP has outlined a set of strategic policy recommendations. At the forefront is the proposal to establish a Strategic Economic Task Force comprising the Ministry of Finance, Ministry of Commerce, Ministry of Energy (Petroleum Division), Ministry of Foreign Affairs, Ministry of Planning, Development and Special Initiatives, Ministry of Defence, and the State Bank of Pakistan. This high-level task force would be responsible for monitoring global developments and coordinating timely, cross-institutional policy responses to safeguard Pakistan's economic stability. The Institute also recommends expanding Pakistan's strategic petroleum reserves from the current 21 days to at least 90 days of national demand. This critical buffer could be financed through sovereign Sukuk, modelled after successful international practices, to enhance energy security and reduce vulnerability to global supply shocks. Additional recommendations include the adoption of Shariah-compliant oil price hedging instruments for up to 30% of imports to manage exposure to international price volatility. ICMAP also advocates diversifying oil procurement by pursuing local currency trade agreements with countries such as Russia, Iran, and China. Accelerating the modernization of local oil refineries is also advised, which could reduce reliance on imported refined fuels and potentially save up to $1 billion annually. ICMAP further recommends for reversing recent taxes on solar panel imports and fast-tracking the implementation of the 10,000 MW Solar Initiative to promote clean energy and enhance long-term energy resilience. On the external front, it emphasizes the need to safeguard overseas remittances by engaging Gulf countries, incentivizing formal remittance channels, and supporting returning workers to sustain household incomes and foreign exchange inflows. ICMAP further suggests applying for financing under the IMF's Resilience and Sustainability Trust (RST) and establishing an Energy Shock Stabilization Fund in collaboration with multilateral development partners to strengthen fiscal buffers. Copyright Business Recorder, 2025
Time Business News
05-06-2025
- Automotive
- Time Business News
Used Car Prices in Pakistan: Latest Market Trends & Updates
The automotive landscape in Pakistan continues to evolve, and as we step into 2025, the used car market is under the spotlight. The economic conditions, fluctuating exchange rates, changes in government policies, and increasing demand for personal transportation are reshaping the dynamics of used car prices in the country. Pakistani consumers are now more inclined towards pre-owned vehicles due to the significant rise in prices of brand-new cars. The affordability factor, availability of reliable options, and expanding online marketplaces have made used cars a more attractive and viable choice. When exploring the Used Car Prices in Pakistan, it becomes evident that buyers and sellers must stay informed with the latest updates to make sound financial decisions. This comprehensive guide will walk you through the latest pricing trends, influencing factors, popular models, and future outlook, while also offering insights into the trusted platform, Wise Wheels, for all your buying and selling needs. In recent years, the demand for used cars in Pakistan has surged significantly. Several contributing factors have influenced this shift. First, the persistent inflation and depreciating Pakistani Rupee have led to a steep increase in the prices of new cars. Many middle-class families now find brand-new vehicles unaffordable, pushing them towards the used car market. Additionally, imported vehicles have become pricier due to new tariffs and import restrictions. This has made locally used cars more appealing. The pandemic also played a role in increasing personal vehicle ownership as people opted for safer, private transport rather than using public means. Together, these elements have fueled the demand for used vehicles in both metropolitan and smaller cities across Pakistan. Several variables impact used car pricing in Pakistan. Understanding these elements helps buyers and sellers navigate the market more efficiently. The Pakistani economy plays a crucial role in shaping the auto market. High inflation, rising fuel prices, and currency devaluation have increased the cost of vehicle ownership. Consequently, this has driven more people toward the used car market. Moreover, the global chip shortage that began in 2020 continues to affect the production and import of new vehicles, leading to delayed deliveries and higher demand for available used models. Changes in government policies, such as higher withholding tax, registration fees, and increased customs duties on imported vehicles, have made new car purchases less attractive. In 2025, these regulatory changes will remain in effect, further enhancing the value proposition of the used car market. With better diagnostic tools, online vehicle history checks, and digital inspection services, buying a used car is now less risky than it was a few years ago. Platforms like Wise Wheels have leveraged these advancements to build consumer trust by ensuring vehicle transparency and quality assurance. The prices of used cars have gone through noticeable changes compared to previous years. Here's what defines the current state of the market: In the compact car segment, models like Suzuki Mehran, Suzuki Alto, and Daihatsu Mira continue to dominate. These vehicles are fuel-efficient, easy to maintain, and widely available in the secondhand market. In 2025, the Suzuki Alto 2020 model, for example, is priced between PKR 2.0 to 2.5 million, depending on mileage and condition. The Mehran, despite its discontinuation, is still found in the market with prices ranging from PKR 1.2 to 1.8 million. Sedans such as the Toyota Corolla, Honda City, and Honda Civic remain popular for their reliability and spacious interiors. Used Toyota Corolla models from 2017 to 2021 are being sold between PKR 3.0 to and 5.5 million. Honda City 2018 variants are priced around PKR 3.5 to 4.2 million, offering a budget-friendly option for those seeking a reliable family car. The SUV and crossover segment has witnessed substantial interest in 2025. With models like Kia Sportage, Hyundai Tucson, and Honda Vezel offering power, style, and comfort, these cars have become aspirational choices. A 2020 Kia Sportage in good condition ranges between PKR 6.0 to 7.5 million, while a used Honda Vezel hybrid 2018 model is typically available for PKR 5.0 to 6.5 million. Used car prices are not uniform across Pakistan. Cities like Karachi, Lahore, and Islamabad usually report higher vehicle prices due to better conditions, demand, and availability. In contrast, smaller towns often offer more affordable deals, albeit with limited variety. Transportation costs and local taxation policies also influence regional price differences. Digital transformation has significantly impacted how Pakistanis buy and sell used vehicles. Platforms like Wise Wheels have streamlined the process by offering verified listings, detailed vehicle histories, and professional inspection services. These platforms remove traditional middlemen, reduce fraud, and offer more transparency to users. Online portals allow customers to compare multiple options, negotiate prices, and even schedule test drives from the comfort of their homes. This shift is especially crucial in 2025 as people look for safe, efficient, and convenient car buying solutions. The Suzuki Alto continues to be one of the most sought-after models in the used car market due to its affordability and low maintenance costs. The 2020 model offers a compact design, decent fuel efficiency, and ease of driving, particularly suited for urban commutes. A household name in Pakistan, the Toyota Corolla remains a reliable option in the secondhand market. Its robust engine, comfortable ride, and excellent resale value make it a preferred choice. Used models from 2017 to 2021 are easily available with varying price points based on variant and condition. With its sleek design and performance capabilities, the Honda Civic is ideal for those looking for a mix of power and luxury. The 2018 Civic offers advanced features like touchscreen infotainment, climate control, and safety enhancements. Its used price in 2025 reflects both demand and durability. This Japanese-imported kei car is known for its compact size and fuel efficiency. It is ideal for first-time buyers and is widely available in urban centers. The 2017 Daihatsu Mira is priced reasonably and remains a favorite among budget-conscious consumers. In 2025, expect further segmentation of the market based on fuel type, features, and vehicle origin (local vs imported). Hybrid cars will see more traction due to their fuel-saving appeal, while budget models like Suzuki Alto, WagonR, and imported kei cars will remain hot sellers in the low-to-mid price range. Wise buyers will need to stay updated on macroeconomic changes, taxation policies, and evolving consumer preferences. The digital transformation of auto sales through platforms like Wise Wheels will play a critical role in shaping the way Pakistanis engage with the used car market. Whether you're on the hunt for your next vehicle or ready to sell your current one, Wise Wheels is your trusted online destination. The platform has earned a reputation for reliability, transparency, and customer-centric services. With verified listings, expert car evaluations, and secure payment options, Wise Wheels takes the guesswork out of used car transactions. Moreover, the user-friendly website and mobile app ensure that customers have access to thousands of listings anytime, anywhere. If you want to stay ahead in the used car market, make informed choices, and transact safely, Wise Wheels is the platform to rely on in 2025. Q: Why are used car prices increasing in Pakistan? A: Used car prices are rising due to high inflation, increased import duties, and the growing cost of new vehicles. Q: Which city has the lowest used car prices in Pakistan? A: Generally, smaller cities and rural areas offer lower prices than major urban centers like Karachi or Lahore, but options may be limited. Q: What documents should I check when buying a used car? A: Ensure the original registration book, valid tax token, transfer letter, and CNIC copies of the seller are available. Also, verify service records and any accident history. Q: Is it safe to buy a used car online in Pakistan? A: Yes, if you use reputable platforms like Wise Wheels that offer verified listings, secure payments, and professional inspections. Q: Are hybrid used cars a good option in 2025? A: Yes, they offer excellent fuel economy and are increasingly popular due to high fuel costs. However, ensure battery health and availability of spare parts. People can write informational articles on timebusinessnews. TIME BUSINESS NEWS
Khaleej Times
29-04-2025
- Business
- Khaleej Times
Gold & Forex Rates
UAE Draft Rates April 28, 2025 Updated 1 day ago currencies morning evening yesterday Indian Rupee (INR) 23.06 23.11 Pakistani Rupee (PKR) 76.48 76.48 Bangladesh Taka (BDT) 33.23 33.23 Sri Lankan Rupee (LKR) 81.42 81.42 Nepalese Rupee (NPR) 36.98 36.98 Egyptian Pound (EGP) 13.81 13.83 Philippines Peso (PHP) 15.33 15.33 Source Sponsored by
Express Tribune
14-04-2025
- Business
- Express Tribune
Remittances hit record $4.1b
Driven by the economic migration of approximately 2.4 million Pakistanis amid the worsening state of the domestic economy, workers' remittances to Pakistan surged past the $4 billion mark for the first time in March 2025. Workers' remittances have reached an unprecedented $4.1 billion, said the State Bank of Pakistan (SBP) in a press release. This reflects a strong year-on-year growth of 37.3% and a month-on-month increase of 29.8%. Cumulatively, remittances rose to $28.0 billion during the first nine months of FY25 (July-March), representing a 33.2% increase compared to the $21.0 billion received during the same period last year. The bulk of March inflows came from Saudi Arabia ($987.3 million), the United Arab Emirates ($842.1 million), the United Kingdom ($683.9 million), and the United States ($419.5 million), underscoring the critical role of the overseas Pakistani community in supporting the national economy "We believe, higher remittances are due to Ramazan/Eid effect," said Topline Securities. "Remittances have hit a record high, driven by growing confidence in the stability of the Pakistani Rupee due to a narrower gap between interbank and open market exchange rates," said Head of Research at JS Global, Waqas Ghani Kukaswadia. This stability is largely credited to stricter foreign exchange regulations. Additionally, a recent surge in immigration, particularly to Gulf countries, has boosted remittance inflows. With an increasing number of people attempting to get out of the country, Pakistan's monthly remittances have shown a strong upward trend over the past year. The remittance inflows had largely remained within the range of $2.8 to $3.2 billion, with notable peaks in May 2024 ($3.24 billion) and June 2024 ($3.16 billion). Inflows dipped slightly during the summer months but remained stable, with $3 billion in July, $2.94 billion in August, and $2.86 billion in September 2024. October saw a rebound to $3.05 billion, followed by $2.92 billion in November and $3.08 billion in December. The start of 2025 saw a steady climb, with $3.00 billion in January and $3.12 billion in February 2025, leading up to the sharp rise in March. This surge marks a significant jump from February 2024's low of $2.25 billion, indicating renewed momentum in overseas inflows. SBP Governor Jameel Ahmad, while attending the gong ceremony at the Pakistan Stock Exchange (PSX) on Monday, highlighted noticeable progress made by Pakistan on the macroeconomic front. Reflecting on the country's recent economic journey, Ahmad emphasised that Pakistan has successfully transitioned from a period marked by macroeconomic instabilitycharacterised by high inflation, low reserves, and fears of defaultto one of stable macroeconomic conditions, renewed confidence, and recovery in economic growth. He pointed to significant improvements across multiple economic indicators, signalling a much-needed revival of economic growth. He highlighted that inflation has come down substantially, external current account balance has turned into a surplus, FX buffers have been rebuilt, and public debt indicators have improved considerably during the past couple of years. He highlighted that workers' remittances reached an all-time high level of $4.1 billion in March 2025 – partly reflecting the result of government and SBP efforts to incentivise the channelling of inflows via formal channels, as well as the smooth functioning of the domestic FX market. He said that total remittances for FY25 are expected to be around $38 billion. The SBP governor noted that with a sound macroeconomic base and renewed investor confidence, we have the opportunity to set Pakistan on a trajectory of broad-based, inclusive prosperity. He emphasised that this macroeconomic stability has been achieved through difficult policy decisions. "Now, it is crucial to focus on sustainable growth." He pointed out that enhancing productivity and boosting exports must become central to Pakistan's growth model, as export activity directly contributes to greater productivity, innovation, and foreign investment. Ahmad urged stakeholders to come together and commit to long-term strategies that ensure sustainable and inclusive growth for Pakistan. While the country is on the path to recovery, he underscored the need for reforms to address structural issues to avoid boom-bust cycles and economic stagnation. He reaffirmed the SBP's commitment to creating a resilient and inclusive financial ecosystem, supported by an enabling regulatory environment, as the foundation for Pakistan's economic prosperity. The SBP governor also emphasised the need for financial literacy to achieve true financial inclusion. He highlighted that the SBP is holding the Pakistan Financial Literacy Week from April 14 to 18, where various activities are planned across the country to engage different segments of society in financial literacy efforts. Ahmad reaffirmed that enhancing financial inclusion remains a top strategic goal within the SBP's Strategic Vision 2028, alongside building an innovative and inclusive digital financial ecosystem. Ahmad shared key initiatives under the National Financial Inclusion Strategy (NFIS) 2024-28, including efforts to increase financial inclusion from 64% to 75% by 2028 while reducing the gender gap in financial services from 34% to 25% by 2028. The SBP governor also expressed his appreciation to the PSX management for their continued efforts to provide a vital platform for the country's capital market. Ahmad highlighted the importance of the PSX in enabling corporations to raise capital and offering investors the opportunity for substantial returns on their savings.
