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‘Tea crisis’ looms over cash-strapped Pakistan

08:32 PM | 7 Feb, 2023
‘Tea crisis’ looms over cash-strapped Pakistan
Source: File Photo

KARACHI – Pakistan is currently facing hard times due to alarming slump in foreign exchange reserves and another crisis is looming that could affect the tea lovers in the country.

An official of the Pakistan Team Association (PTA) said around 300 containers carrying tea were struck at the Karachi for a month, warning that the commodity could be rare by next month if these were not released timely.

The South Asian country spends over $600 million to import team, making it the world’s largest team importer.

The ongoing decline in forex reserves has forced authorities to place restrictions on import of certain items while the commercial banks are not issuing letters of credit (LCs) to the importers who are upset over non-clearance of their shipments.

“Around 300 [tea] containers are stuck at the Karachi port and if they are not released immediately, tea will become a rare commodity by next month,” PTA top official Aman Paracha told Arab News.

He said the State Bank of Pakistan had asked PTA to submit a request for the release of their containers on a deferred payment basis.

“We wrote to the state bank but then a restriction was made that only Bill of Lading of up until January 18 will be considered,” he said, adding that the non-clearance of containers will not only brew a tea crisis but also caused losses to the importers.

Meanwhile, a spokesperson of the central bank said that the SBP had asked the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) to share the details of containers of each association as it was not possible to speak to every individual. He also assured that the issues of importers will be resolved on priority. 

Daily Pakistan Global Web Desk

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Pakistani rupee exchange rate to US dollar, Euro, Pound, Dirham, and Riyal - 26 Feb 2024

Pakistani currency remains stable against US dollar in the open market on February 26, 2024 (Monday).

US Dollar rate in Pakistan

In the open market, the US dollar was being quoted at 279.5 for buying and 282.55 for selling.

Euro currently stands at 302 for buying and 305 for selling while British Pound rate stands at 352.5 for buying, and 356 for selling.

UAE Dirham AED hovers at 76.1 whereas the Saudi Riyal saw slight increase, with new rates at 74.35.

Today’s currency exchange rates in Pakistan - 26 Feb 2024

Source: Forex Association of Pakistan. (last update 09:00 AM)
Currency Symbol Buying Selling
US Dollar USD 279.5 282.55
Euro EUR 302 305
UK Pound Sterling GBP 352.5 356
U.A.E Dirham AED 76.1 76.8
Saudi Riyal SAR 74.35 75.1
Australian Dollar AUD 181 183
Bahrain Dinar BHD 743.88 751.88
Canadian Dollar CAD 207 209
China Yuan CNY 38.89 39.29
Danish Krone DKK 40.38 40.78
Hong Kong Dollar HKD 35.76 36.11
Indian Rupee INR 3.37 3.48
Japanese Yen JPY 2.1 2.18
Kuwaiti Dinar KWD 908.79 917.79
Malaysian Ringgit MYR 58.6 59.2
New Zealand Dollar NZD 171.68 173.68
Norwegians Krone NOK 26.43 26.73
Omani Riyal OMR 726.53 734.53
Qatari Riyal QAR 76.76 77.46
Singapore Dollar SGD 207 209
Swedish Korona SEK 26.53 26.83
Swiss Franc CHF 317.87 320.37
Thai Bhat THB 7.79 7.94

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