Pakistan Rupee hits a three-month low, cascading foreign currency reserves attribute to downturn

Daily Briefs

Photo : Dawn

04January 2023, Wednesday I Vol 4, No.003

Pakistan Rupee hits a three-month low, cascading foreign currency reserves attribute to downturn

ECC okays export of 150,000 tonnes of sugar to avoid default risk, PKR hits a three-month low, cascading foreign currency reserves attribute to downturn and US extending â€˜supportâ€™ to Pakistanâ€™s â€˜rightâ€™ to guard itself against terrorism

PR Daily Brief | PR Team

In Brief
PROVINCES
Sindh: PTI defiant of Karachi and Hyderabad administrators

On 3 January, the Sindh High Court (SHC) sent out notices to the Election Commission of Pakistan, the chief secretary and the local government secretary for petitions to be read on a petition filed by the PTI for 4 January which challenged the appointment of administrators in six districts preceding the second phase of the local government polls. The PTI challenged the “transfer” of the officers and said that their posting in Karachi and Hyderabad divisions was “in violation” of the Election Act and that the transfer was “malicious, arbitrary and discriminatory,” and that the transfer was approved without a “prior written approval” from the ECP. The PTI asked the court to “declare” the positions “without lawful authority” and requested them to “restrain” the authorities from appointing any transfers until the second phase of the local government polls. (Naeem Sahoutara, “PTI challenges appointment of Karachi, Hyderabad administrators,” Dawn, 4 January 2023)

Punjab: Economic Coordination Committee okays export of 150,000 tonnes of sugar to avoid default risk
On 3 January, the Economic Coordination Committee (ECC) permitted the export of nearly 150,000 tonnes of sugar on the basis of “factually incorrect” production figures to “save” the Pakistan State Oil (PSO) from defaulting and to “temporarily” avoid a budget expense of PKR 130 million. This comes as the ECC pushed the export of sugar to formalise the role of the Pakistan Sugar Mills Association (PSMA) in export and additionally also approved the export of 250,000 tonnes of sugar to include a “first-come, first-served basis” rollout of the exports. The Ministry of Finance remarked that the total export would be distributed among provinces based on “crushing capacity” as determined by the PSMA. The ECC was also informed that the government was “hasty” in its decision to allow the exports to be rolled out and that the sugar consumption and stock figures had fallacies and inconsistencies in data provided by the Federal Board of Revenue (FBR). (Shahbaz Rana, “ECC allows export of more sugar,” Dawn, 4 January 2023)

Sindh: Pakistan Rupee hits a three-month low, cascading foreign currency reserves attribute to downturn
On 3 January, the National Disaster Management Authority (NDMA) said that 95 per cent of the floodwater in Sindh has been “drained out” from the flood-affected areas on the left and right sides of the Indus river and that the target of sowing mustard and sunflower seeds was “achieved.” The NDMA discussed the flood recovery path of the region with the Chairman of the National Emergencies Operations Centre (NEOC) Gen Inam Haider Malik. Malik said that he was “satisfied” with the progress of recovery and rehabilitation in the flood-devastated areas in the country. (“Sindh’s flood recovery on track,” Dawn, 4 January 2023)

ECONOMY
Pakistan Rupee hits a three-month low, cascading foreign currency reserves attribute to downturn
On 04 January, The Express Tribune reported that the Pakistani rupee fell by 0.22 per cent against the US dollar on 03 January. Financial experts in the country said that the PKR has “continued to fluctuate” over the last three months after recovering nearly four per cent in early October. They said that the rupee is seeing a downturn because of the large decline in foreign exchange reserves and also the rising demand for imports and debt repayments in the country. The experts said that the market closed at PKR 226.94 for one USD and that it has maintained its downfall since October 2022. Analysts also said that the rupee will continue to decline, keeping in mind the IMF’s condition of maintaining a market-based exchange rate to resume its funding of the USD 6.5 billion loan programme. This comes as Pakistan’s foreign exchange reserves have decreased to a nine-year low and the government has to repay nearly USD 73 billion for three years till 2025. (“Rupee kicks off new year by hitting 3-month low,” The Express Tribune, 4 January 2023)

EXTERNAL
United States extends ‘support’ to Pakistan’s ‘right’ to guard itself against terrorism
On 3 January, US State Department Spokesperson Ned Price in a weekly press briefing said that Pakistan has “suffered tremendously” from the recent terror attacks in the country and that the country has the “right” to defend itself from terrorism. Responding to Pakistan’s National Security Committee’s (NSC) claims that the country “might resort” to targeting the terrorist outfits across the border if Afghanistan “did not take the appropriate action,” Price said that the US would sustain its efforts to “call out the Taliban” to maintain its commitments to curb the spread of terrorism in the region. This comes after the NSC sent an “unequivocal” message to the Taliban and said that it disallowed Afghanistan “to provide sanctuaries and facilitate terrorists.” (“US supports Pakistan's right to defend itself from terrorism,” The Express Tribune, 4 January 2023)

Afghanistan asks Pakistan to ‘refrain’ from making indicative statements
On 3 January, the Afghan Taliban spokesman Zabihullah Mujahid said that Afghanistan is seeking “good diplomatic relations” with Pakistan and other neighbours and that Pakistan should resist making statements that could “hurt the feelings, stability and trust” between the two sides. Mujahid said that Pakistan’s assertive remarks over Afghanistan were “undesirable” and stressed that Afghanistan would not be “used” to spread militancy and “disability” against a neighbouring country like Pakistan. He also said that Afghanistan is “trying” to sustain its own law and order issues in the country and that they carry a “similar positive approach” towards its neighbours. (“Kabul urges Islamabad to 'avoid provocative statements',” The Express Tribune, 4 January 2023)

INTERNAL
Blanket ban on official foreign trips halts investigation of Arshad Sharif
On 4 December, Dawn reported that the investigation into the murder of journalist Arshad Sharif may halt after the interior ministry and Kenyan Embassy turned down the investigators’ requests for facilitation. The interior ministry confirmed that a summary regarding the visit by JIT members to Kenya was received and forwarded to the finance ministry with a recommendation to release funds by relaxing the rules. The Kenyan embassy also turned down the request stating that the officers related to the case are on New Year’s holidays and likely to return to duty after 15 January. (Munawer Azeem, “Ministry ‘denies’ funds to special JIT on Arshad’s killing,” Dawn, 4 January 2023)

Bilawal is confident about overcoming differences with MQM

On 3 January, PPP Chairman Bilawal Bhutto-Zardari while talking to media in Zafarabad, mentioned that his party would continue to work with the Muttahida Qaumi Movement-Pakistan (MQM-P) despite differences, an assurance that did little to placate PPP’s ally in the Centre, as the MQM later in the day announced a protest for 9 January if local government polls were held without fresh delimitation. He emphasized the need to work together on the provincial local bodies’ law to make it stronger, adding that the PPP was ready to talk to the MQM to resolve all issues and all its reservations would be addressed. On the issue of flood-related losses and rehabilitation, he said “We will ensure that we get support from around the world and help the people affected by climate change to stand on their feet.” (Qurban Ali Khushik, “PPP says ready to work with MQM despite differences,” Dawn, 4 January 2023)

Islamabad suicide bomber discovered, investigations presume for the facilitators
On 4 January, Dawn reported that investigators identified the suicide bomber responsible for the Islamabad bombings on 23 December. The bomber is identified to be a 22-year-old man Saqibuddin who is a native of Kurram district. Saqibuddin executed his plans with the help of two others who are yet to be identified. Investigations revealed that on 23 December, while traveling from Karak to Mardan, he met the first facilitator along with whom he traveled to Rawalpindi. At the bus terminal in Rawalpindi, he allegedly met the second facilitator who gave him the suicide jacket. The person involved in giving threats of terrorist attacks over social media has been arrested by the investigators with the help of intelligence agencies. He is suspected to be a member of Tehreek-i-Taliban Pakistan (TTP), an outlawed group in Pakistan. (Munawer Azeem, “Suicide bomber identified; hunt on for two facilitators”, Dawn, 4 January 2022)

Pakistan on Twitter

"2022 was yet another tough year for Pakistan. The worst flooding in history aggravated our economic challenges. My resolve for the New Year is to use my energy & time to get people out of difficulties, rehabilitate flood victims & put Pakistan on the path to growth & stability."
-Shehbaz Sharif

“Year 2022: "it was the best of times, it was the worst of times". A govt with one of the best econ performances was removed through a conspiracy triggered by supreme self-interest; & Pak was handed over to a bunch of criminals. They ran economy to the ground, gave themselves NRO2."
-Imran Khan

"Ayaz Sadiq criticized General Bajwa today, I was waiting when my friend Ahmad Malik will hold a press conference and condemn Ayaz Sadiq, but it seems Imran Khan's criticism of Bajwa is forbidden. There is legitimate criticism."
-Fawad Hussain

Daily Briefs

Pakistan Rupee hits a three-month low, cascading foreign currency reserves attribute to downturn

ECC okays export of 150,000 tonnes of sugar to avoid default risk, PKR hits a three-month low, cascading foreign currency reserves attribute to downturn and US extending â€˜supportâ€™ to Pakistanâ€™s â€˜rightâ€™ to guard itself against terrorism

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