Pakistani rupee slightly depreciates against US dollar

Exchange rates for other countries also announced

Web Desk

16 Oct, 2024

Business & Economy

The Pakistani rupee has seen a slight depreciation against major foreign currencies. Currently, the US dollar (USD) is trading at Rs278.15 for selling and Rs277.65 for buying.

The Euro (EUR) is priced at Rs303.02 for selling and Rs302.47 for buying. For the British pound (GBP), the rates are Rs363.60 for selling and Rs362.94 for buying. The Canadian dollar (CAD) is available at Rs201.92 for selling and Rs201.56 for buying, while the Australian dollar (AUD) stands at Rs186.23 for selling and Rs185.89 for buying.

In the Gulf region, the UAE dirham (AED) is selling for Rs75.73 and buying for Rs75.60, while the Saudi riyal (SAR) is priced at Rs74.09 for selling and Rs73.96 for buying.

The Qatari riyal (QAR) has a selling rate of Rs76.31 and a buying rate of Rs76.17. Additionally, the Swiss franc (CHF) is trading at Rs322.75 for selling and Rs322.17 for buying. The Kuwaiti dinar (KWD), noted for its high value, is priced at Rs906.97 for selling and Rs905.34 for buying, making it one of the highest valued currencies globally.

A tax advisory firm, Tola Associates, predicts that banks could incur an additional Rs197 billion in taxes in 2025 due to their advance-to-deposit ratio (ADR). This extra tax, introduced in 2022, aims to encourage banks to focus on lending to industries rather than the government. However, many banks are seeking exemptions, as the tax rates for government lending range from 49% to 55% based on their ADR.

In 2024, banks paid Rs612 billion in taxes, benefiting from certain exemptions. The potential Rs197 billion liability could arise if banks fail to meet the ADR threshold, although they can mitigate this by increasing private-sector lending before the year’s end. There have been accusations against banks for “round-tripping” to manipulate their lending figures, a practice criticized by former state minister Ashfaq Tola. Despite lobbying efforts for tax relief, the government, constrained by an IMF loan agreement, is unable to grant such exemptions.

Read more