Rupee Improves Against US Dollar, Stocks Jump to Almost 1600 Points
ISLAMABAD; Oct 23, 2018 (Updated): The US dollar showed downward trend by Rs1.92 against Pakistani rupee in interbank market on Wednesday.
Due to decline in US dollar rate, it is being traded at Rs132 — the buying price is Rs131, whereas it is being sold at Rs133.
The turn down in US dollar rate has eventually lowered down the national debt by approx Rs180 billion.
The Pakistan Stock Exchange gained tremendously on Wednesday, as its benchmark KSE-100 index jumped up by 1,556 points to reach 39,271 points by close of the day.
The index achieved 4.13% as the market closed on Wednesday afternoon just a day after Saudi Arabia agreed to provide $12 billion to Pakistan. Earlier, in the morning the index opened at 37,714,
The Saudi agreement translates to $3 billion each year for 3 years as balance of payment support for oil purchase on deferred payment plus $3 billion deposit as forex support for 1 year –Prime Minister Imran Khan is in Riyadh on a two-day visit to the Kingdom.
According to the statement, “It was decided that Saudi Arabia will provide a deposit of $3 Billion for a period of one year as balance of payment support.”
Furthermore, “It was also agreed that a one year deferred payment capacity for import of oil, up to $3 billion a year, will be provided by Saudi Arabia. This arrangement will be in place for three years, which will be reviewed thereafter.”
Saudi Arabia has also agreed to invest around $8 billion in a new oil refinery at Gwadar’s upcoming “Oil City”.
The Kingdom showed interest in development of mineral resources in the country also.
PM Khan attended the Future Investment Initiative (FII) conference in Saudi capital Riyadh. He also met with King Salman bin Abdul Aziz and Saudi Crown Prince Mohammad bin Salman and discussed matters of bilateral interest.
After returning from Saudi Arabia, PM is expected to hold high-level meetings with investors and industrialists for three days. After that, he will leave for Malaysia on October 28 and hold talks on economic cooperation. The PM will return on October 29 and hold consultation meetings with his economic team.
Khan is due to travel to China in the first week of November, where he is expected to seek further assistance.
However, Pakistan still plans to seek a bailout from the International Monetary Fund (IMF), Pakistan’s finance ministry said on Wednesday.
“Yes, we are going ahead into program negotiations with IMF in the first week of November,” Pakistan’s finance ministry spokesman Noor Ahmed told Reuters in a text message.
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