RECORDER REVIEW
KARACHI: Rupee depreciated against the US dollar during the previous week as it lost Re0.31 or 0.11% in the inter-bank market.
The local unit closed at 281.97, against 281.66 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP). A rise in import demand has put pressure on the local currency, according to analysts. Pakistan posted a gross domestic product (GDP) growth of 2.4% in the third quarter (January-March) of fiscal year 2024-25, estimates released by the Pakistan Bureau of Statistics (PBS) during the previous week showed. That came despite the contraction in industry (-1.14%) during the said period, read a press release issued by the PBS after the National Accounts Committee (NAC) 113th meeting.
Meanwhile, the Ministry of Finance unveiled a comprehensive strategy to regulate digital assets and accelerate the growth of Pakistan’s virtual asset economy.
As part of the initiative, the government endorsed the establishment of a dedicated body — the Pakistan Digital Assets Authority (PDAA) — to regulate blockchain-based financial infrastructure.
The government also announced the allocation of 2,000 megawatts (MW) of electricity to fuel Bitcoin mining and AI data centres—marking the first phase of a transformative national strategy to monetise surplus energy, attract foreign investment, and propel the country into the forefront of the digital revolution, the Finance ministry said. Foreign exchange reserves held by the SBP increased by $1.04 billion on a weekly basis, clocking in at $11.45 billion as of May 16.
Total liquid foreign reserves held by the country stood at $16.65 billion. Net foreign reserves held by commercial banks stood at $5.20 billion.
Open-market rates
In the open market, the PKR lost 25 paise for buying and 40 paise for selling against USD, closing at 282.90 and 284.15, respectively. Against Euro, the PKR lost 4.56 rupees for buying and 4.30 rupees for selling, closing at 320.52 and 322.86, respectively. Against UAE Dirham, the PKR lost 15 paise for buying and 10 paise for selling, closing at 77.14 and 77.55, respectively.
Against Saudi Riyal, the PKR lost 22 paise for buying and 15 paise for selling, closing at 75.48 and 77.85, respectively.
