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  • Gold price in Pakistan dips by Rs1,200 per tola

    Gold price in Pakistan dips by Rs1,200 per tola

    Gold prices in Pakistan witnessed a decline on Monday, mirroring the downward trend in the international market.

    According to data provided by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the local market saw a decrease in the price of gold per tola by Rs1,200, settling at Rs242,300 after a single-day fall.

    Similarly, the price of 10 grammes of gold dropped to Rs207,733, marking a decrease of Rs943, as reported by APGJSA.

    The international gold rate, as per APGJSA figures, was set at $2,349 per ounce, with a $20 premium, experiencing a $10 decrease during the day.

    In contrast, silver prices remained steady at Rs2,650 per tola.

    The recent decline comes after gold reached a record high of Rs252,200 per tola in the local market last month. Notably, on Saturday, gold prices in Pakistan had decreased by Rs300 per tola.

    The fluctuation in gold prices reflects the ongoing dynamics in both domestic and global markets, impacting investors and consumers alike.

  • IMF bailout talks with Pakistan set to commence this week

    IMF bailout talks with Pakistan set to commence this week

    The International Monetary Fund (IMF) is poised to initiate crucial discussions with Pakistan this week.

    Esther Perez Ruiz, the IMF representative, confirmed that a delegation, led by Nathan Porter, will embark on talks with Pakistani authorities to delve into the prospects of a new loan programme.

    The primary agenda of these discussions will revolve around forging a robust governance framework aimed at fostering enduring economic stability.

    Ruiz said that the focus will be on fostering sustainable and inclusive economic growth that extends its benefits to all segments of the Pakistani populace.

    Technical experts from the IMF arrived in Pakistan on May 10, geared up for deliberations on both a fresh loan programmeme and budgetary preparations.

    However, Pakistan finds itself grappling with significant economic hurdles, notably the setback of a tax amnesty scheme proposed by the IMF.

    The government’s pledge to incorporate 3.1 million traders into the tax net under this scheme has fallen short of expectations, casting a shadow over the Federal Board of Revenue (FBR), particularly amid recent changes in senior officials.

    These discussions come hot on the heels of Pakistan receiving the long-awaited $1.1 billion final tranche from the IMF under the $3 billion standby arrangement.

    The State Bank of Pakistan (SBP) confirmed the receipt of Special Drawing Rights (SDR) 828 million, equivalent to $1.1 billion, following the successful completion of the second review by the IMF Executive Board under the Stand By Arrangement (SBA).

    With an eye towards the future, Pakistan is aiming for a new, more substantial IMF loan over an extended period.

    Finance Minister Muhammad Aurangzeb has hinted at the possibility of securing a staff-level agreement on the new programme by early July.

    The proposed loan is anticipated to span at least three years, with the objective of bolstering macroeconomic stability and implementing overdue but necessary structural reforms.

    The specifics of the programme remain undisclosed, but if realised, it would mark Pakistan’s 24th IMF bailout.

  • IMF urges gas sector reforms to curb circular debt

    IMF urges gas sector reforms to curb circular debt

    The International Monetary Fund (IMF) highlighted the significance of prompt gas tariff determinations and notifications, crucial in curbing the escalating gas circular debt, while safeguarding vulnerable households.

    Stressing the necessity of adhering to the mandated 40-day window, the IMF underscored the urgency to initiate these measures commencing with the June 2024 semiannual adjustment.

    In its latest report, the IMF conducted its second and final review within the stand-by arrangement framework, released on Friday.

    It noted a slight decrease in natural gas circular debt to Rs2,083 billion (equivalent to 2.0 per cent of GDP) as of January 2024, attributing this decline to the resumption of gas tariff adjustments, albeit with some delay, aligned with cost recovery objectives.

    The Fund recommended a continued trajectory towards eliminating captive power usage, advocating for the prioritization of cheaper natural gas for the most efficient power plants.

    Additionally, it proposed efforts to standardize gas prices for all fertilizer companies, aligning with plans to implement a weighted average cost of gas (WACOG) across Pakistan, ensuring uniformity while facilitating cost recovery.

    Acknowledging Pakistan’s recent 24 per cent gas tariff increase on February 15, the report highlighted its progressive rate structure protecting residential consumers, while enhancing and equalizing prices for fertilizer companies.

    Furthermore, it recognized Pakistan’s adherence to the Structural Benchmarks (SBs) concerning the notification of the semiannual gas tariff adjustment.

    The report also shed light on the increasing prominence of Regasified Liquefied Natural Gas (RLNG) within Pakistan’s gas mix, driven by dwindling natural gas supplies exacerbated by years of under-pricing.

    Consequently, RLNG has been diverted to domestic users at subsidized rates, underscoring the complexity of the gas sector dynamics.

  • PIA to resume direct flights to Paris in June

    PIA to resume direct flights to Paris in June

    Pakistan International Airlines (PIA) is set to resume its flight operations to Paris in June, marking a significant step forward for the national carrier.

    In an address to a delegation from the Council of Economic and Energy Journalists in Islamabad, PIA Chairman Abdullah Hafiz unveiled the anticipated receipt of safety approval from the International Aviation Safety Assessment (IASA) in the imminent future.

    “With the imminent clearance from IASA, we are poised to launch flights to Paris by June, followed by the reinstatement of direct flights from Pakistan to Britain’s Heathrow Airport on August 14,” stated Hafiz with assurance.

    In anticipation of these pivotal routes, PIA has intensified its efforts in the maintenance and overhaul of its Boeing 777 aircraft fleet.

    Presently, seven Boeing 777 aircraft are operational, with an additional two expected to join the fleet within the next two months.

    This expansion will equip PIA with a total of nine Boeing 777 planes, facilitating efficient flight operations to both Europe and Britain.

    Highlighting Pakistan’s global aviation connectivity, Chairman Hafiz underscored that the country boasts air service agreements with 97 nations worldwide.

    The European Union Aviation Safety Agency (EASA) had imposed a flight ban on PIA following a tragic plane crash in Karachi in May 2020, which claimed 97 lives.

    Subsequent investigations uncovered discrepancies in the licensing procedures for commercial pilots.

    It is noteworthy that in November 2023, a delegation from EASA conducted a comprehensive evaluation of Pakistan’s Civil Aviation Authority (CAA) and PIA, assessing various aspects such as licensing, flight safety, flight standards, and airworthiness.

  • Gold price in Pakistan falls to Rs243,500 per tola reflecting global decline

    Gold price in Pakistan falls to Rs243,500 per tola reflecting global decline

    Gold prices in Pakistan saw a decline on Saturday, mirroring the downward trend observed in the global market.

    According to data provided by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the local market recorded a drop of Rs300 per tola, bringing the price to Rs243,500.

    For 10 grammes of gold, the price fell by Rs257, reaching Rs208,762, based on the rates shared by APGJSA.

    Internationally, the price of gold also experienced a decline on Saturday. APGJSA reported that the rate settled at $2,359 per ounce, with an additional premium of $20, marking a decrease of $7 throughout the day.

    In contrast, silver rates remained unchanged at Rs2,650 per tola.

    This decrease comes after a significant increase on Friday, where gold prices in Pakistan surged by Rs4,600 per tola.

    It’s noteworthy that just last month, gold reached an unprecedented high of Rs252,200 per tola in the Pakistani gold market, highlighting the volatility of precious metal prices in recent times.

  • Weekly inflation drops 1.39% as onion and chicken prices ease

    Weekly inflation drops 1.39% as onion and chicken prices ease

    The latest report from the Pakistan Bureau of Statistics (PBS) reveals that the Weekly Sensitive Price Indicator (SPI) for the Combined Group dropped by 1.39 per cent week-on-week for the period ending May 09, 2024.

    However, when compared to the same period last year, the SPI has risen by 22.32 per cent.

    The Combined Index, which measures price changes for essential items, stood at 312.56 at the end of the week, down from 316.95 the previous week. A year ago, the index was at 255.53.

    Among the 51 items tracked by the SPI, 12 (23.53 per cent) showed price increases, 13 (25.49 per cent) saw price decreases, and 26 (50.98 per cent) remained stable.

    Notable price decreases during the week included onions, which dropped by 19.22 per cent, chicken by 18.83 per cent, wheat flour by 4.00 per cent, LPG by 3.67 per cent, and wheat by 3.49 per cent.

    In contrast, the most significant price increases were recorded for tomatoes, which rose by 19.24 per cent, eggs by 4.73 per cent, potatoes by 4.38 per cent, pulse gram by 0.91 per cent, and cooking oil (5-litre packs) by 0.89 per cent.

    The SPI’s weekly percentage change by income groups indicates that all income brackets experienced a decline in the SPI, ranging from -0.99 per cent to -1.53 per cent.

    The lowest income group saw a drop of 0.99 per cent, while the highest income group experienced a more significant decrease of 1.53 per cent.

    However, over the year, the SPI has increased across all income groups, with the percentage change varying between 15.95 per cent and 25.88 per cent.

    The lowest income group recorded a 15.95 per cent increase, while the highest income group saw a rise of 19.99 per cent.

    In other market trends, the average price for a 50 kg bag of Sona urea stood at Rs4,836, which is 1.80 per cent lower than the previous week but 57.36 per cent higher than a year earlier.

    Meanwhile, the average price for a 50 kg bag of cement was Rs1,204, showing a slight decrease of 0.95 per cent from the previous week, but still 7.58 per cent higher than the corresponding period last year.

  • Gold price surges by Rs4,600 to Rs243,800 per tola

    Gold price surges by Rs4,600 to Rs243,800 per tola

    Gold prices in Pakistan experienced a substantial rise on Friday, reflecting a similar surge in the international market. The price of 24-karat gold increased by Rs4,600, bringing the cost to Rs243,800 per tola.

    Despite the sharp increase, the Karachi Sarafa Association has kept the price Rs3,000 below its actual cost.

    According to the association, this decision was made to accommodate the reduced purchasing power among consumers.

    “In view of the significant reduction in purchasing power, the price of gold today has been kept under cost by Rs3,000,” stated a spokesperson for the association.

    In recent weeks, the price of 24-karat gold has shown considerable fluctuations. Last week, it dropped by Rs6,400 per tola, leading to a cumulative loss of Rs14,200 per tola or 5.63 per cent over the past two weeks.

    Alongside the increase in 24-karat gold prices, other precious metals also experienced a boost.

    The Karachi Sarafa Association reported the price of 24-karat gold at Rs209,019 per 10-gramme, marking a gain of Rs3,944. Similarly, the price of 22-karat gold rose to Rs191,601 per 10-gramme.

    Silver prices followed the upward trend, with 24-karat silver priced at Rs2,650 per tola, up by Rs30. The price for 10-gramme 24-karat silver also rose, reaching Rs2,271.94, a gain of Rs25.72.

  • PSX surges to record high as KSE-100 closes above 73,000 points

    PSX surges to record high as KSE-100 closes above 73,000 points

    After a series of subdued sessions, the Pakistan Stock Exchange (PSX) saw a resurgence of buying on Friday, propelling its benchmark KSE-100 index above the 73,000 mark for the first time in history.

    The positive momentum reflected renewed investor confidence amid signs of economic stability.

    The KSE-100 index opened on a bullish note, reaching an intra-day high of 73,449.37 before settling at 73,085.50, a gain of 427.45 points or 0.59 per cent by the close of trading.

    Despite some sporadic selling during the day, the bulls largely controlled the market, resulting in a robust session.

    Industries driving the surge

    Key sectors that drove the surge included cement, chemical, oil and gas exploration companies, and oil marketing companies (OMCs). Index-heavy stocks such as Lucky Cement (LUCK), Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), Pakistan State Oil (PSO), Sui Northern Gas Pipelines Limited (SNGPL), and Sui Southern Gas Company (SSGC) closed in the green, contributing significantly to the overall upward trend.

    Market experts attribute the surge to a combination of improved economic indicators and investor expectations.

    Pakistan’s foreign exchange reserves and remittances have shown positive growth, suggesting a stabilising economy.

    Additionally, there is anticipation of a potential policy rate cut in the upcoming Monetary Policy Committee (MPC) meeting on June 10, following a recent decline in the inflation rate.

    On Thursday, the KSE-100 index had a marginal increase in a largely range-bound session, closing at 72,658.05, a gain of 56.24 points, or 0.08 per cent.

    The strong close on Friday underscores a more optimistic outlook for the market as investors continue to monitor key economic developments and policy changes.

  • Sazgar reports 3x increase in auto rickshaw sales

    Sazgar reports 3x increase in auto rickshaw sales

    Sazgar Engineering Works Limited, a prominent manufacturer of CNG 4-Stroke Auto Rickshaws and Automotive Wheel Rims, reported a significant increase in sales of its auto rickshaws for April 2024.

    According to a company filing with the Pakistan Stock Exchange (PSX), Sazgar sold 1,212 auto rickshaws in April 2024, almost three times the sales of the same month last year, when it sold 406 units.

    On the production front, Sazgar’s output of auto rickshaws also saw a substantial surge.

    The company produced 1,140 units in April 2024, a remarkable increase from the 244 units manufactured in April 2023. This 4.67-fold year-on-year increase showcases the company’s strong production capacity.

    However, a month-on-month comparison shows a slight decline in sales and production. Auto rickshaw sales fell by 9.62 per cent from March 2024, when the company sold 1,341 units. Similarly, production dropped by 26.5 per cent compared to the 1,551 units produced in March 2024.

    Despite this monthly fluctuation, the company’s four-wheel vehicle segment performed well in April 2024.

    Sazgar sold 551 four-wheel off-road and passenger vehicles, which is 9.11 per cent higher than the 505 units sold in March 2024. Production for four-wheel vehicles also increased, with 574 units produced in April, compared to 531 units in March.

    Overall, Sazgar Engineering Works Limited’s robust year-on-year growth in auto rickshaw sales and production demonstrates the company’s resilience and capacity for expansion, despite some month-to-month variability.

  • Punjab govt announces balloting date for e-bike scheme

    Punjab govt announces balloting date for e-bike scheme

    The Punjab government has set May 10 as the balloting date for the Punjab e-bike Scheme, a project designed to provide 20,000 motorcycles to deserving students.

    The announcement was made during a meeting chaired by Punjab Minister for Transport Bilal Akbar Khan, which focused on evaluating the scheme’s progress.

    The project, launched by Chief Minister (CM) Maryam Nawaz on April 12 under the Chief Minister Youth Initiative, has garnered significant interest from students.

    The number of applications has exceeded 100,000, indicating a high level of enthusiasm for the scheme. The balloting process will select 20,000 recipients from this pool.

    The Punjab e-bike Scheme offers students the opportunity to acquire motorcycles and e-bikes through a manageable monthly installment plan.

    Male students will be able to purchase bikes with payments of Rs11,676 per month, while female students can do so for Rs7,325 per month.

    The scheme also has a quota system to ensure fair distribution. In urban areas, the quota is evenly split, with 50 per cent reserved for male students and 50 per cent for female students.

    In rural areas, the allocation is different, with 70 per cent of the quota set aside for male students and 30 per cent for female students.

    To promote equitable distribution in Lahore, motorcycles will be allotted based on the population density of each district.