Pakistan's Forex Reserves Ease to $18.11 Billion

Pakistan's foreign exchange reserves eased to $18.11 billion in the week ending July 10, from a record $18.25 billion the previous week, a senior central bank official said on Thursday. Reserves held by the State Bank of Pakistan (SBP) fell to $14.64 billion from $14.79 billion a week ago, while those held by commercial banks edged to $3.47 billion up from $3.46 billion, said SBP chief spokesman Syed Wasimuddin.

"The decline in reserves during the week is due to scheduled debt repayments," said Wasimuddin. Pakistan's foreign exchange reserves were boosted in June by inflows of $411 million, including a loan of $191.9 million from the World Bank, and another loan of $196.8 million from the Asian Development Bank.

Higher export proceeds and a record inflow of remittances have helped Pakistan's forex reserves grow steadily. According to official data, remittances rose to a record $11.2 billion in 2010/11 fiscal year, an increase of 25.77 percent compared with the same period last year. In May 2010, Pakistan received $1.13 billion in the fifth tranche of an $11 billion International Monetary Fund (IMF) bailout programme. The two sides are due to meet this month to discuss the possible release of the sixth tranche, though no official date has been decided.

Forex and General Upadtes - 28-01-2011

Forex Market Updates

Pakistan’s total liquid foreign exchange reserves increased to an all-time high $17.3 billion level on the constant inflows of remittance, State Bank of Pakistan (SBP) latest statistic said on Thursday. On January 22, the foreign reserves held by central bank amounted to $ 3.7391 billion whereas net reserves deposited by banks other than SBP stood at $ 3.561 billion. Last week, the total foreign exchange reserves stood at $17.2816 billion.

General Updates

UBL is Pakistan’s second largest private bank. In 2002, a consortium consisting of Bestway Group and Abu Dhabi Group acquired 51 percent of UBL shares together with management rights and control of bank through Government of Pakistan’s privatization process. Consortium currently owns 61.37 percent of bank with Bestway Group at 31.07 percent and Abu Dhabi Group at 30.30 percent. After this investment, management rights and control of bank will continue to remain within the same consortium. No changes are

being made in senior management or in board of directors.

Qubee, a 100 percent shareholder subsidiary of Augere, has planned to expand its advanced Internet technology to reach millions of customers in several new cities with the handsome investment of $150 million by end 2011. 

Refineries have increased prices of lube base oil by 15 percent in the past four months. The new increase would result into Rs 8-10 per litre price hike of all lubricants. He said since December, this is third time that base oil prices have been increased without any justification or taking lubricants manufacturers into  confidence. It is said that the Refineries have created artificial shortage of base oil in the local market, which is causing price increase.

Money Market Updates

The spread of the banking sector has slightly declined by one basis point (bps) to 7.46 percent in the outgoing calendar year 2010 as compared to 7.47 percent in 2009. The average lending rate for the year 2010 stood at 13.39 percent as against 13.98 percent in 2009; while average deposit rate stood at 5.93 percent as compared with 6.51 percent in 2009. In December, spread on outstanding loans averaged 7.61 percent year-on-year, up 26 bps from last year. The lending rate was up 3 bps on yearly basis, while deposits rate was

down 23 bps to 5.91 percent. On a monthly basis, spread rose seven bps from 7.54 percent in November 2010. Up-tick in spread, especially in the later part of the year, is likely to aid Net Interest Margins (NIM) of banks

Forex Market and General Updates 22-06-2010

FOREX MARKET

Inter bank opened at 85.46 & 85.49.Market topped at 85.46 while later on rupee strengthened against green back to 85.40.Rupee gained six basis points at bid and eight at offer to close at 85.40 & 85.41.

GENERAL NEWS

• Pakistan seems to have missed trade deficit target for FY-10 which is $10.70 billion. Country’s over all deficit in ten months stood at $13.884 billion and since monthly deficit is staying easily over $1.50 billion therefore target doesn’t look viable and achievable. Trade deficit for FY- 09 was $15.316 billion and significant improvement has been seen in trade figures but numbers are still well below targeted level.

• Oil imports reached 1.40 million tons in May, highest ever level, against average imports of 1.0 million tons due to fall in domestic oil production by local refineries. Total oil imports in eleven months stood at 11.20 million tons reflecting an increase of over 26 percent from last year’s 8.90 million tons.

• Baluchistan presented annual budget worth Rs 152 billion for coming fiscal year having deficit of Rs 7.10 billion.

• Agricultural Credit by commercial and specialized banks rose to Rs 215 billion in July-May period as compared to last year’s Rs 202 billion last year. Big five commercial banks disbursed Rs 107 billion against last year’s disbursement of Rs 98 billion while ZTBL as usual topped with total disbursement of Rs 67 billion against last year’s Rs 63 billion. Agri credit target is set to be Rs 260 billion which doesn’t look reachable.