December 07, 2018
Government Announces to Form a New National Tax Agency
Minister of State for Revenue Hammad Azhar announcCONTINUE READING
Rupee has strengthened in relation to Dollars, from Friday’s closing of Rs. 126 - 126.05 to 123.16 on Thursday. Right after the report of China agreeing to lend $2 Billion to Pakistan, it also resulted in rupee's value gaining strength in relation to the US dollar.
This led to some major exploitation in the open market as dollars were bought for around Rs. 115-116 but were sold for much more, around Rs.120-122, which is an extremely large margin of profit. Although, this was more of bad news for overseas Pakistanis as a lot of people (including some living in Pakistan) store their savings in the form of dollars. Although, back in December 2017, it had dropped by 22% of its value because the central bank reportedly abstaining from intervening in response to pressure due to a widening current account deficit. market analysts speculate that the rise in value in the last week could have been because of Pakistan getting political balance due to the elections.
This means that Pakistan’s economy shows signs of growth and can be improved as projects in Pakistan are being worked on and slowly growing, the GDP is expected to rise along with employment rates and the overall economy of Pakistan. Since the universal currency for comparison is dollars, Pakistan’s value increasing in comparison with dollars means Pakistan’s currency is growing more valuable in the global market. Topline Securities Chief Economist Saad Hashemy said, “Gains of the rupee in curb market is a good sign. However, sustainability of these gains will be determined by the interbank market which is much bigger.”