Day: February 7, 2022

The Ambassador of Japan to Pakistan, H.E. Mitsuhiro Wada, said that Japan is now providing grant-in-aid assistance for the improvement of the water and sewerage system in Multan and cultural grant assistance for the improvement of equipment for exhibition and conservation in the Taxila Museum.

The Ambassador of Japan to Pakistan, H.E. Mitsuhiro Wada, called on the Federal Minister for Economic Affairs, Omar Ayub Khan, in his office today.

The Minister warmly welcomed the new Japanese Ambassador and assured him of the Government of Pakistan’s full support to further strengthen the bilateral relations. This year, Japan and Pakistan are celebrating the 70th anniversary of establishing diplomatic relations and the 68th anniversary of the beginning of Japanese economic assistance to Pakistan.

During the meeting, issues related to bilateral economic relations were discussed. The Japanese Ambassador briefed the Minister about the ongoing and completed projects funded by the Government of Japan in Pakistan. The Ambassador informed that Japan is the 2nd largest donor to Pakistan.

Since 1954, the Government of Japan has provided JPY 1.35 Trillion to Pakistan through concessional loans, grants, and technical assistance for Polio Eradication, Maternal and Child Health, COVID-19, Education, Vocational Training, Water and Sanitation, Climate Change and Disaster Risk Management, Energy Sector, Road and Transport, and Governance. The Ambassador also apprised that the Government of Japan is now providing grant-in-aid assistance for the improvement of the water and sewerage system in Multan and cultural grant assistance for the improvement of equipment for exhibition and conservation in the Taxila Museum.

It was also apprised that a project for Gravity Flow Water Supply Scheme in Haripur City is under process under JICA’s assistance. This project will help to improve the depletion of underground water levels and water scarcity of drinking water through efficient, sustainable, and cost-effective gravity-based water supply arrangements for the residents of Haripur City.

It was agreed to expedite the approval process and implement the Gravity Flow Water Supply Scheme in Haripur City on a fast-track basis.

The Minister for Economic Affairs appreciated the Japanese Government for providing continued economic and technical assistance to Pakistan. The Minister also highlighted the importance of regional integration and connectivity with Central Asia, which would help to unleash economic opportunities in the region through enhanced trade, investment, and tourism.

The Minister expressed that Pakistan has huge potential for investment in various sectors and reiterated full support of the Government of Pakistan to the potential Japanese investors in various sectors. The Minister also expressed his best wishes for the Ambassador on his new assignments in Pakistan. Both sides reiterated a strong commitment towards further expanding bilateral economic cooperation.

Source: Pro Pakistani

The Pakistani Rupee (PKR) is persisting against the US Dollar (USD) and posted gains in the interbank market today. Although redundant, it gained one paisa against the greenback after hitting an intra-day high of Rs. 174.34 against the USD during today’s open market session.

It appreciated by 0.01 percent against the USD and closed at Rs. 174.47 today after gaining Rs. 1.03 and closing at 174.48 in the interbank market on Friday, 4 February.

The rupee closed in the green against the dollar for the eighth consecutive day after the State Bank of Pakistan (SBP) confirmed in the late hours of Friday that it had received $1.053 billion from the International Monetary Fund (IMF).

However, the ongoing global oil situation is posing a different risk altogether. Bloomberg reported that Saudi Arabia recently raised oil prices for its customers in Asia, the US, and Europe after crude climbed to almost $95 a barrel. State firm Saudi Aramco increased all grades for its main market of Asia in March 2021 and then raised its key Arab Light oil for the region by 60 cents in February 2022 to $2.80 per barrel above its typical benchmark price range.

Saudi Aramco is the world’s biggest oil merchant, and more than 60 percent of its cargo goes to Asia, with China, Japan, South Korea, and India being its biggest customers. Its price shifts often set the tone for other producers in the region and put pressure on struggling economies, with devastating effects.

Discussing the rupee’s near-term outlook earlier in the day, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, acknowledged on Twitter that even though the local unit is stable, volatile oil prices still pose a big threat to it. He added, “With thin Fiscal Space, high inflation & effort to keep I/Rate unchanged, it is a very tough ask to execute & perform & to get remaining $ 3bn IMF loan due to commitment. IMF contract will expire in SEPT/22”.

The PKR continued its good run against the other major currencies and reported gains in the interbank currency market today. It gained 36 paisas against the Canadian Dollar (CAD), 39 paisas against the Australian Dollar (AUD), 51 paisas against the Euro (EUR), and 81 paisas against the Pound Sterling (GBP).

Moreover, it held out against both the Saudi Riyal (SAR) and the UAE Dirham (AED) in today’s interbank currency market.

Source: Pro Pakistani