As the global economy graduates towards digital payments and digital currency platforms, Pakistan is moving in the opposite direction with rising demand for cash. State Bank of Pakistan (SBP) data indicates that the Cash in Circulation (CinC) has increased to Rs9.2 trillion ($32 billion) at the end of June 2023, which is equivalent to 30 per cent of the total money supply (M2), or around 11pc o
IF you have ever had the pleasure to speak at length with members of Pakistan’s top elites, or one of those who volunteer to be mouthpieces for the interests of the elites, you will notice how they are always able to offer good reasons for why bad policies need to continue. There are good reasons for why exchange rate interventions need to take place to prevent a devaluation. There are also goo
IN June of this year, the Pakistani government had issued two tenders to buy LNG on the international market but didn’t receive any bids. Pakistan’s devaluing currency and lack of foreign exchange, coupled with the political turmoil plaguing the country, has apparently made it a bad risk. This means what it always means, which is that there is likely to be an even worse-than-usual shortage of g
As its bullish spell entered the 20th session in a row, the rupee on Wednesday dragged the dollar below the psychological barrier of Rs285 in the interbank market. The currency experts were of the view that the local currency could hardly recover up to this level due to dwindling foreign exchange reserves amid low inflows and weak economic fundamentals. The State Bank of Pakistan reported th
Exports of services rose for the second month in a row reaching $600.03 million in August, up 2.34 per cent from $586.29m in the same month last year. The performance of the services sector was quite impressive given the continuous decline in exports of merchandise during the first three months of the current fiscal year after witnessing a contraction in FY23 as well, according to data compiled