Friday, April 19 2024

SBP reserves stay above $8bn despite $1bn bond payment
The State Bank’s foreign exchange reserves remained above $8 billion during the week ending April 12. “During the week, SBP has executed the repayment of $1bn maturing Pakistan’s International Bond (principal plus interest),” said the SBP press release issued on Thursday. It was encouraging for the financial market that despite the payment of $1bn, the SBP reserves remained intact at $8bn. So far, no foreign inflow has been noted in the central bank’s accounts after the payment of $1bn. The SBP reserves increased by $14.4m during the week. The country’s total reserves were $13.373bn including $5.319bn held by the commercial banks.
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Saudi moves closer to $1bn Reko Diq deal
SAUDI Arabia is moving closer to a potential deal to acquire a minority stake in the Reko Diq gold and copper mining project, Bloomberg reported on Thursday, citing people with knowledge of the matter. Manara Minerals Investment Company, backed by the Saudi sovereign wealth fund, plans to invest at least $1 billion in the Reko Diq project, controlled by the Canadian mining firm Barrick Gold Corporation. Manara “could announce that it’s reached a preliminary agreement on terms of a transaction as soon as the next few weeks, according to the people,” Bloomberg reported. The Saudi company may increase its investment over time in the mine, which is part-owned by the Pakistan government. Deliberations are ongoing, and talks could still fall apart or be delayed.
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Exports of textiles post meagre rise in March
The country’s textile and clothing exports suffered a slowdown last month, reversing the trend of double-digit growth observed over the previous three consecutive months and indicating a decline in orders from international buyers. The sector’s exports showed a paltry growth of 3.29 per cent to $1.299 billion in March over $1.257bn recorded in the same month last year, according to data released by the Pakistan Bureau of Statistics (PBS) on Thursday. On a month-on-month basis, the sector’s exports dipped 7.67pc. In 9MFY24, however, textile and clothing exports shra­nk 0.25pc to $12.444bn from $12.476bn in the same period last year. The decline in growth was attributed to rising production costs due to higher energy prices and a liquidity crunch. The textile industry has already warned the government that further decline is likely in case their grievances, including pending refunds, are not processed quickly.
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PM Shehbaz pushes for sell-off, outsourcing of Discos
Prime Minister Shehbaz Sharif on Thursday directed the authorities to expedite the pace of privatisation and outsourcing of the power distribution companies (Discos) during a high-level meeting regarding the power sector. Presiding over the meeting, the prime minister emphasised the need to seek assistance from private sector experts and globally accepted models to improve the management affairs of the Discos. He also instructed the preparation and presentation of a comprehensive plan in the next meeting to improve the power system in the country. He said that reforms in the power sector would contribute to reducing the country’s circular debt. He also pledged not to allow electricity theft and other activities to harm the country’s treasury.
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Thursday, April 18 2024

Rupee depreciates to four-week low
Pakistani currency on Wednesday hit a new four-week low at Rs278.40 against the US dollar in the inter-bank market, while gold surged to a fresh record high at Rs251,900 per tola (11.66 grams) in line with the global trend. According to State Bank of Pakistan’s (SBP) data, the rupee further dropped Rs0.11 on a day-on-day basis, reaching a 28-day low at the close of market. With this, the currency has cumulatively lost 0.49%, or Rs1.37, in the past three weeks compared to the five-and-a-half-month high close at Rs277.03/$ in late March 2024. The currency has maintained its downturn amid a seasonal drop in supply of the foreign currency against its demand. The inflow of foreign currency on account of workers’ remittances is believed to be slowing down post-Ramazan and Eid celebrations last week.
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