Rupee trades at new record low vs dollar

KARACHI: The Pakistani rupee traded at a record low of 90.42 on Thursday for the second consecutive trading session amid increased import payments, especially of oil, and because of a negative outlook on the country’s economy, dealers said.

“There are some oil import payments but there are few inflows of dollars and generally there is rising concern about the direction of Pakistan’s economy,” said a bank dealer.

The rupee traded at its previous record low of 90.35 to the dollar on Wednesday and dealers said it traded at 90.48 in the TOM (one-day forward) market.

The rupee ended at 90.40/45 to the dollar, compared with Wednesday’s close of 90.27/31.

There are concerns on the economic front as the country’s current account deficit stood at $2.104 billion in July-Nov compared with $589 million in the same period a year earlier.

The deficit is likely to widen further in the coming months because of debt repayments and a lack of external aid.

Islamabad has to start paying back an $8 billion International Monetary Fund loan in early 2012. Without additional sources of revenue, analysts said, its foreign exchange reserves may come under pressure.

More than $1.1 billion is due in the second half of the 2011/12 fiscal year.

Foreign exchange reserves were at $16.77 billion in the week ending Dec 23, compared with a record $18.31 billion as of July 30.

The rupee weakened 4.82 per cent in 2011, after losing 1.53 per cent in 2010.

There are also concerns about rising international oil prices as it was trading around $113.40 a barrel but the risk remained to the upside given geopolitical tensions around Iran and Syria, and calls for strikes in Africa’s biggest producer Nigeria.

Pakistan stocks fell on foreign selling. The Karachi Stock Exchange’s (KSE) benchmark 100-share index ended 1.53 per cent, or 174.09 points, lower at 11,187.88 on turnover of just 29.64 million shares.

In the money market, overnight rates ended at their lowest level of 9.10 per cent, unchanged from Wednesday’s close amid increased liquidity in the interbank market.

Dealers said there were scheduled outflows of 174 billion Pakistani rupees ($1.93 billion) due on Friday.

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Sindh, Balochistan CNG stations to reopen 11pm Thursday

KARACHI: CNG stations in Sindh and Balochistan are to reopen at 11pm on Thursday, FTNews reported.

Earlier on Wednesday, the Sui Southern Gas Company (SSGC) had issued a statement announcing closure of CNG stations for 36 hours after suspected militants blew up a main pipeline near Jafarabad in Balochistan.

The incident had disrupted the fortnightly gas load management schedule of the SSGC. The damaged 18-inch diameter pipeline was supplying 114 million cubic feet per day (MMCFD) of natural gas to the Sui Southern Gas Company.

However, a spokesperson for the company told FTNews Thursday that repair-work on the pipeline had been completed and gas supply restored to the two provinces. Therefore, CNG stations in Sindh and Balochistan would reopen at 11pm on Thursday.

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Protest against PR downsizing plan

KARACHI: Workers associated with Pakistan Railways took out a procession at the Karachi city railway station on Wednesday against the proposed downsizing and privatisation of the service.

Leaders of the Rail Mazdoor Ittehad (Karachi division), including Raja Abdul Manaf, Mir Azam Khan Boneiri, Mohammad Khan, Mohammad Mukarram Hakim, Fazalur Rehman (Munna Bhai), Nooruddin and Malik Shabbir Ahmed, spoke to the participants in the procession organised by the Pakistan Railways Employees Union.

They demanded that a realistic approach be adopted for the revival of the department with the focus on elimination of corruption and maladministration instead of following alleged anti-workers and anti-public policies.

The speakers demanded that salaries of employees up to grade four be paid through the PR accounts department instead of banks.—APP

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