Some relief for the battered currency is on the way, however, after the International Monetary Fund (IMF) agreed to a deal that will see Pakistan receive $1.7 billion in tranches in the coming weeks to shore up the country's finances. The figures released by the State Bank of Pakistan (SBP) showed the greenback closed at an all-time high of 236.02 rupees in the interbank market, up from 232.93 rupees a day earlier as it shed 1.31 per cent, the Dawn newspaper reported. It was at 170.50 to the dollar on Thursday, more than 10 weaker than its peak in May of 150.95. Zalakat Khan, who teaches at the Economic Department of Peshawar University, said the current situation with the rupee will spark another wave of inflation in Pakistan, with food and utility prices hitting workers hard. The Pakistani rupee has been sliding steadily since May. The ruling Pakistan Muslim League says the existing assembly will complete its constitutional term of five years before a vote is held on time in mid-2023. Khan's victory has breathed new life into his campaign to oust the current government, with the former cricket star once again repeating his demand for early elections after he was sacked in a no-confidence vote. The rupee's current downturn was sparked by domestic political instability, and the pace of its decline increased with the results of by-elections in Punjab Province, where the opposition Pakistan Tehrik-e Insaf party of former premier Imran Khan unexpectedly won 15 out of 20 seats, thus paving way for a change of government in the key province. currency on the interbank market during the day, after closing on July 18 at 215.2. Established in 1966, it is owned by 68 members-49 from the region.The Pakistani rupee slumped to record lows against the dollar on July 19 as domestic political and economic factors weigh on the currency. ADB has already issued local currency bonds in Indian rupees, Kazakhstan tenge, and Mongolian togrog in 2020.ĪDB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. It has also led issuances in developing Asian countries as part of its efforts to promote local currency bond markets as an alternative to bank lending. ADB is a regular borrower in the mainstream international bond markets. “ADB’s inaugural issue of Pakistan rupee-linked karakoram bonds will help deepen the capital markets of Pakistan while channeling funding to vital economic sectors,” he said.ĪDB appreciates the support provided by the State Bank of Pakistan to facilitate coordination with the government to successfully start this program. State Bank of Pakistan Governor Reza Baqir congratulated the ADB team and affirmed his appreciation of ADB’s support for Pakistan’s financial and economic development. I am confident it will have significant mutually beneficial outcomes for Pakistan and ADB,” said Adviser to Pakistan’s Prime Minister on Finance and Revenue Abdul Hafeez Shaikh. “The Pakistan rupee-linked karakoram bond floated by ADB is an excellent initiative. “Not only must we marry investor demand with market conditions to achieve optimal currency and interest rates, but we must also dedicate time and resources to a close dialogue with the government to achieve the best possible outcome.” “Engineering local currency solutions is both an art and a science,” said ADB Treasurer Pierre Van Peteghem. According to the State Bank of Pakistan (SBP), the. It is anticipated that ADB’s local currency loans will be a boost to private sector development in Pakistan. The rupee made a strong recovery in the interbank market on Wednesday, rising by Rs9.59 against the dollar its highest single-day gain ever. Previously, ADB had no local currency loans in Pakistan, but this option will be offered in future projects as an alternative to dollar borrowing. The net proceeds from the sale of the bond issue will be included in ADB’s ordinary capital resources. The bonds were arranged by Citigroup Global Markets and sold to European asset managers. The international bond issue pays a 7.50% semi-annual coupon and matures in August 2023. MANILA, PHILIPPINES (18 November 2020) - The Asian Development Bank (ADB) has raised 1.83 billion Pakistan rupees ($11.4 million) in a first issue of local currency karakoram bonds by a multilateral development bank of which Pakistan is a member.Ī karakoram bond is an offshore bond denominated in Pakistan rupees and settled in US dollars, listed on a major stock exchange and settled through an international central securities depositary.
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6/29/2023 03:28:08 am
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