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Traders expect Pakistan’s Rupee to lose ground in coming week

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(Last Updated On: January 8, 2023)

Traders expect the Pakistani rupee to weaken further in the coming week owing to a sharp decline in foreign exchange reserves brought on by fresh repayments of external debt.

Traders say this is causing concern for investors who are worried about how the country’s economic situation will develop.

“We expect the rupee to depreciate much further during the course of the upcoming week due to declining foreign reserves and repayment of foreign loans. Any developments on the IMF (International Monetary Fund) front are being eagerly watched by the market,” a forex trader said.

The local currency closed at 226.94 against the US dollar on Monday while it ended the week at 227.14 against the dollar on Friday.

Pakistan paid back $600 million to the Emirates NBD Bank and $420 million to the Dubai Islamic Bank, causing the State Bank of Pakistan’s (SBP) reserves to fall to a critically low level of $4.5 billion.

The coming week is turning out to be significant for Pakistan’s economy as a donors’ conference is set to begin on Monday, January 9, which will be led by the US in partnership with Pakistan to garner support for post-flood aid, according to Geo TV.

Currently, Pakistan’s chief of army staff is visiting Saudi Arabia and the United Arab Emirates. Experts have said “no one is second guessing what this trip is about.”

Meanwhile, the delay in IMF funding of $1.1 billion has made Pakistan struggle to allay default fears.

Islamabad and the IMF differ over a review of policy and reforms the Fund is requiring in the country. The IMF’s programe review was supposed to be finished in November, Geo TV reported.

The IMF programe is connected to another essential foreign financing, making it difficult for the country to meet its external funding requirements. Up until June, they amounted to more than $30 billion and included imports, especially energy, and debt repayments.

The decline in the forex reserves put pressure on the rupee owing to the government’s slow progress in rolling over and securing foreign inflows from international lenders.

Given that elections are slated to take place this year, the government keeps delaying the IMF’s requirements out of concern for further political capital loss.

The local currency has lost 28.3% of its value against the dollar in 2022.

Finance Minister Ishaq Dar has assured that the government would complete the IMF programe.

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Customs duties on essential food items drops by up to 70%

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(Last Updated On: March 20, 2023)

The Ministry of Finance said that based on the decision of the leadership of the Islamic Emirate of Afghanistan, customs duties on basic food items have dropped by between 50 and 70 percent in the last solar year.

As a result of this decision customs duties have been reduced to the value of 6.7 million afghanis this year, the ministry said.

The decision to decrease customs duties on the food items that include flour, wheat, cooking oil, rice, and sugar, was to keep the prices down on local markets.

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Kunduz commerce department’s revenues rise by 48%

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(Last Updated On: March 19, 2023)

Kunduz Directorate of Industry and Commerce officials say their revenues have increased by 48 percent this solar year.

According to officials, the institution has collected more than 12 million Afghanis from the extension and distribution of licenses to manufacturing companies.

Mohammad Rahim Sirat, head of Kunduz Directorate of Industry and Commerce, said they distributed licenses to 112 people and renewed the licenses for 303 people.

Meanwhile, Kunduz Municipality officials also announced that they have collected 120 million Afghanis in 11 months of the current solar year, which shows a 40 percent increase compared to the same period last year.

Tajuddin Sohak, the spokesman for Kunduz Municipality, said they collected 120 million Afghanis this year, which shows a 40 percent increase from 86 million afghanis last year.

But shopkeepers and owners of manufacturing companies in Kunduz complain about the lack of a market for their products. They say that in the past their goods used to be exported abroad, but now exports have declined.

“In the past, we used to export to Iran, Pakistan, and Iraq, but our exports have decreased compared to the past. We ask the government to cooperate with us to provide the basis for export,” Wasim Akram, an entrepreneur, said.

Local officials in Kunduz say they have always tried to facilitate trade. They express hope that in the new year their efforts for foreign marketing of manufacturing companies will produce good results.

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IEA leader met customs officials, asked them to provide facilities for merchants

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(Last Updated On: March 17, 2023)

The leader of the Islamic Emirate of Afghanistan, Mawlavi Hibatullah Akhundzadah, met with ministry of finance customs officials on Wednesday and shared necessary guidance and recommendations.

According to the ministry statement, Deputy Minister of Finance for Revenue and Customs, Mullah Muhammad Nasser Akhund, General Director of Customs, Mufti Abdul Matin Saeed, and all the officials of the country’s customs were present in the meeting.

At the meeting, Deputy Minister of Finance for Revenue and Customs and the General Director of Customs of the Ministry presented a detailed report related to their performance since the takeover of the country by the Islamic Emirate and also shared their recommendations for improving related matters with Mawlavi Hibatullah Akhundzadah, the ministry said.

The leader of the Islamic Emirate of Afghanistan pointed out to the officials their assigned responsibilities and gave them the necessary guidance.

“The leader also gave them recommendations in order to provide better services for the Islamic ruling system, treat people well, provide facilities for merchants and other related sectors,” read the statement.

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