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Rupee depreciation pushing Pakistan's oil industry to brink of collapse, warns OCAC

Web Desk 11:39 PM | 3 Feb, 2023
Rupee depreciation pushing Pakistan's oil industry to brink of collapse, warns OCAC
Source: File Photo

KARACHI – The Oil Companies Advisory Council (OCAC), which represents the downstream oil industry in Pakistan, on Friday cautioned the government that ongoing deprecation of the Pakistani rupee against the US dollar has pushed the oil industry to the brink of collapse.

In a letter sent to the Secretary Ministry of Energy- Petroleum Division, and chairman Oil & Gas Regulatory Authority (OGRA), the body has urged the officials for an urgent meeting to discuss the situation.

“As you are aware, the sudden depreciation of the rupee has caused a loss of billions of rupees to the industry, whose Letters of Credits (LCs) are expected to be settled on the new rates whereas the related product has already been sold,” the letter said.

It highlighted that oil industry suffered severe losses due to the fluctuation of the exchange rate, besides expressing fear that the losses could exceed the entire year's profit for the sector.

“It is requested that immediate steps to compensate the industry should be devised,” said OCAC.

It said that although compensation for foreign exchange losses is allowed for LCs up to 60 days using PSO as a benchmark as per Economic Coordination Committee (ECC) approval of 1 April 2020, its member companies are unable to recover their entire losses due to import profile differences with PSO.

“It is requested to urgently revise this mechanism and ensure that exchange losses of the sector are fully reimbursed if the viability of the industry and supplies to retail outlets are to be ensured,” said OCAC.

“As a result of the recent devaluation alone, the LC limits have overnight shrunk by 15-20%. In order to ensure import of adequate product into the country, it is important to increase the trade finance / LC limits of the industry in line with the current oil prices, exchange rate and the volumes being handled by each company.

“It is requested that the banking sector be immediately requested through the State Bank of Pakistan to enhance the limits of our member companies,” it added.

“The industry is on the brink of collapse if immediate steps are not taken in respect of the above,” it said.

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Daily Pakistan Global Web Desk

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Today's currency exchange rates in Pakistan - Dollar, Euro, Pound, Riyal rates on June 1, 2023

KARACHI - Following are the foreign currency exchange rates for US Dollar, Saudi Riyal, UK Pound Sterling, U.A.E. Dirham, European Euro, and other foreign currencies in Pakistan open market on June 1, 2023 (Thursday).

Source: Forex Association of Pakistan. (last update 09:00 AM)

Currency Symbol Buying Selling
US Dollar ‎USD 310.9 314.15
Euro EUR 330 333.3
UK Pound Sterling GBP 382.5 386.3
U.A.E Dirham AED 84.8 85.6
Saudi Riyal SAR 82.2 83
Australian Dollar AUD 201 203
Bahrain Dinar BHD 758.25 766.25
Canadian Dollar CAD 227 229.2
China Yuan CNY 40.26 40.66
Danish Krone DKK 41.04 41.44
Hong Kong Dollar HKD 36.39 36.74
Indian Rupee INR 3.45 3.56
Japanese Yen JPY 2.25 2.45
Kuwaiti Dinar KWD 927.17 936.17
Malaysian Ringgit MYR 61.94 62.54
New Zealand Dollar NZD 172.79 174.79
Norwegians Krone NOK 25.67 25.97
Omani Riyal OMR 740.96 748.96
Qatari Riyal ‎QAR 78.37 79.07
Singapore Dollar SGD 220 222
Swedish Korona SEK 26.36 26.66
Swiss Franc CHF 315.04 317.54
Thai Bhat THB 8.21 8.36

Today's gold rates in Pakistan – June 1, 2023

KARACHI – The price of a single tola of 24-karat gold in Pakistan is Rs 230,500 on Thursday. The price of 10 grams of 24k gold was recorded at Rs197,620.   

Likewise, 10 grams of 22k gold were being traded for Rs181,150 while a single tola of 22-karat gold was being sold at Rs 211,290.

Note: The gold rate in Pakistan is fluctuating according to the international market so the price is never been fixed. The below rates are provided by local gold markets and Sarafa Markets of different cities.

City Gold Silver
Lahore PKR 230,500  PKR 2125
Karachi PKR 230,500  PKR 2125
Islamabad PKR 230,500  PKR 2125
Peshawar PKR 230,500  PKR 2125
Quetta PKR 230,500  PKR 2125
Sialkot PKR 230,500  PKR 2125
Attock PKR 230,500  PKR 2125
Gujranwala PKR 230,500  PKR 2125
Jehlum PKR 230,500  PKR 2125
Multan PKR 230,500  PKR 2125
Bahawalpur PKR 230,500  PKR 2125
Gujrat PKR 230,500  PKR 2125
Nawabshah PKR 230,500  PKR 2125
Chakwal PKR 230,500  PKR 2125
Hyderabad PKR 230,500  PKR 2125
Nowshehra PKR 230,500  PKR 2125
Sargodha PKR 230,500  PKR 2125
Faisalabad PKR 230,500  PKR 2125
Mirpur PKR 230,500  PKR 2125

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