Current Final

Category: Business

  • 24-karat gold price remains unchanged at Rs239,200 per tola in local market

    24-karat gold price remains unchanged at Rs239,200 per tola in local market

    Gold prices in Pakistan held steady on Thursday, following two consecutive days of decline. The price for 24-karat gold was set at Rs239,200 per tola, unchanged from the previous session.

    In the last week, the price of 24-karat gold fell by Rs6,400 per tola, contributing to a cumulative loss of Rs14,200 per tola, or 5.63 per cent, over the past two weeks.

    According to the Karachi Sarafa Association, the price for 10 grammes of 24-karat gold remained at Rs205,075, while the price for 10 grammes of 22-karat gold stood at Rs187,986.

    Silver prices also remained steady in the domestic market, with 24-karat silver priced at Rs2,620 per tola and Rs2,254.8 per 10 grammes.

    Globally, the spot price of gold inched slightly downward. International spot gold was trading near $2,308.14 an ounce, down by 0.03 per cent compared to the previous trading session.

  • NEPRA approves power tariff increase of Rs2.8372 per unit

    NEPRA approves power tariff increase of Rs2.8372 per unit

    In a recent announcement, the National Electric Power Regulatory Authority (NEPRA) has approved a tariff increase of Rs2.8372 per kilowatt-hour (kWh) for all ex-Wapda distribution companies (XWDISCOs).

    This adjustment, reflected in a notification issued by NEPRA, is a result of fluctuations in fuel charges observed during March 2024.

    The tariff adjustment will be applied to consumer bills based on the units billed in March 2024. This increase will be listed separately in consumer billing statements to reflect the additional cost due to fuel charge variations.

    However, NEPRA clarified that this adjustment will not apply to certain categories of consumers, including Electric Vehicle Charging Stations (EVCS) and lifeline consumers, who benefit from lower electricity rates.

    This development follows a request made last month by the Central Power Purchasing Agency (CPPA), a subsidiary of the Power Division, which proposed an additional fuel charge of Rs2.94 per unit to cover the higher costs experienced in March 2024.

    The CPPA reported that the actual fuel cost for the month stood at Rs9.3819/kWh, significantly higher than the reference fuel cost component of Rs6.4417/kWh, leading to the proposed increase.

    After reviewing the CPPA’s request and the associated fuel cost variations, NEPRA concluded that an increase of Rs2.8372/kWh in the national average uniform tariff was justified.

    This adjustment is intended to balance the higher fuel costs incurred in March and ensure that the tariff structure remains aligned with the cost of energy production.

    Consumers are advised to review their electricity bills for March 2024 to understand how this adjustment will impact their total energy costs.

  • Pakistan’s debt climbs by Rs276.55 billion to Rs4.78 trillion

    Pakistan’s debt climbs by Rs276.55 billion to Rs4.78 trillion

    Pakistan’s government incurred an additional debt of Rs276.55 billion during the week ending April 26, 2024, according to the State Bank of Pakistan’s weekly report.

    This brings the total net borrowing for the current fiscal year to a staggering Rs4.78 trillion, underscoring a trend of elevated borrowings compared to previous years.

    The government sector’s borrowings are categorised into three main segments: budgetary support, commodity operations, and others.

    During the latest week, the bulk of the borrowing went towards budgetary support, which accounted for Rs230.84 billion.

    Meanwhile, commodity operations contributed Rs45.76 billion to the debt increase, while the “others” category saw a retirement of Rs54.82 million.

    Looking at the cumulative figures for the ongoing fiscal year, budgetary support borrowings have now reached Rs5.07 trillion, with commodity operations showing a net retirement of Rs283.57 billion, and others indicating a net retirement of Rs2.64 billion.

    The government’s financing primarily comes from two sources: the State Bank of Pakistan (SBP) and scheduled banks.

    This fiscal year, the government has paid off a net sum of Rs735.22 billion to the SBP, with the Federal Government contributing Rs425.15 billion to the total.

    Provincial governments collectively retired Rs294.54 billion, while the governments of Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (GB) retired Rs17.89 billion and borrowed Rs2.36 billion, respectively.

    In contrast, scheduled banks have lent out a net total of Rs5.8 trillion. Of this amount, the federal government borrowed Rs5.96 trillion, while the provincial governments retired Rs159.99 billion.

    These figures point to the government’s continued reliance on borrowing to manage fiscal operations.

    Analysts are concerned about the sustainability of this trend, suggesting that it could pose risks to the country’s economic stability if not carefully managed.

  • Gold price drops by Rs800 to Rs239,200 per tola

    Gold price drops by Rs800 to Rs239,200 per tola

    Gold prices in Pakistan continued their downward trend on Wednesday, with 24-karat gold losing Rs800 per tola and settling at Rs239,200.

    This drop follows a significant decline over the past two weeks, during which the price of 24-karat gold fell by Rs6,400 last week, bringing the total decrease to Rs14,200 per tola, a cumulative reduction of 5.63 per cent.

    According to the Karachi Sarafa Association, the price of 24-karat gold for 10 grammes dropped to Rs205,075, a decrease of Rs686 from the previous day. The price of 22-karat gold also decreased, with the 10-gramme rate quoted at Rs187,986.

    In contrast, silver prices remained steady in the domestic market. The price of 24-karat silver was unchanged at Rs2,620 per tola and Rs2,254.8 per 10-gramme.

    In the global market, spot gold continued to show weakness. It was trading near $2,311.76 an ounce, a decrease of 0.10 per cent compared to the previous close. This international dip contributed to the downward pressure on domestic gold prices.

    The recent declines in gold prices in Pakistan reflect broader trends in the international market, influenced by factors such as currency fluctuations, changes in demand, and global economic uncertainty.

    As a result, investors and consumers are keeping a close eye on these trends, watching for signs of further volatility or stability in the precious metals market.

  • Govt plans to increase retirement age to reduce pension spending

    Govt plans to increase retirement age to reduce pension spending

    Finance Minister Muhammad Aurangzeb has announced that the government is set to introduce pension reforms as part of a broader strategy to implement structural changes ahead of signing a new agreement with the International Monetary Fund (IMF).

    The proposed reforms aim to bring pension expenses under control and extend the retirement age, reflecting a shift in societal perceptions about aging.

    Speaking at a joint press conference alongside Federal Law Minister Azam Nazir Tarar and Information Minister Atta Tarar, Aurangzeb highlighted the need to manage growing pension costs.

    He suggested that raising the retirement age is a key component of the reforms.

    “Age is now just a number. 60 is the new 40,” Aurangzeb remarked, pointing out that many individuals remain productive well into their 60s.

    He cited his previous role as CEO of Habib Bank Limited (HBL), where the retirement age was increased from 60 to 65, illustrating the benefits of extended career longevity.

    To address the rising pension expenditures, Aurangzeb stated that changes to the civil service structure are needed.

    In the fiscal year 2023-24, Pakistan allocated Rs801 billion for superannuation allowances and pensions, representing a 31 per cent increase from the previous fiscal year’s allocation of Rs609 billion.

    Federal Law Minister Azam Nazir Tarar noted that implementing pension reforms would require legislation, as it impacts a wide range of sectors, including civil servants, armed forces, judicial organs, and executive branches.

    Tarar added that a committee has been established under the chairmanship of the finance minister to propose recommendations for pension reforms. “The recommendations, when finalised, will be shared with the public,” he assured.

    In other news, Aurangzeb discussed the recent visit by a Saudi delegation to Pakistan, which he described as a “confidence booster.”

    The discussions with the Saudi delegation were positive, reinforcing the country’s commitment to moving in the right direction.

    Looking ahead, Aurangzeb announced that the IMF mission would arrive in Pakistan this month for key talks on structural reforms.

    These discussions will focus on several crucial areas, including increasing the tax-to-GDP ratio from the current 9 per cent to a more sustainable 13-14 per cent, reforming the energy sector, and privatising State-Owned Enterprises (SOEs).

    The finance minister also highlighted the need to reduce non-development expenditure and commended the Sindh government’s Public-Private-Partnership model as a successful strategy that could be replicated at the federal level.

  • Gold prices drop again in Pakistan, 24-karat gold loses Rs500 per tola

    Gold prices drop again in Pakistan, 24-karat gold loses Rs500 per tola

    Gold prices in Pakistan continued their downward trend on Tuesday, with the value of 24-karat gold dropping by Rs500 per tola, settling at Rs240,000.

    This decrease follows a substantial decline last week, when the price of 24-karat gold fell by Rs6,400 per tola. This marks a cumulative loss of Rs14,200 per tola, or approximately 5.63 per cent, over the past two weeks.

    The Karachi Sarafa Association reported that the price of 24-karat gold for 10 grammes also dropped by Rs429, reaching Rs205,761.

    The price of 22-karat gold was quoted at Rs188,615 per 10-gramme, reflecting the broader trend of falling gold prices in the domestic market.

    Silver prices, however, remained steady, with 24-karat silver maintaining a consistent rate of Rs2,620 per tola and Rs2,254.8 per 10-gramme, providing some stability in the otherwise volatile precious metals market.

    On the global front, international spot gold experienced a slight decline, trading near $2,314.5 per ounce, a 0.41 per cent drop compared to the previous session.

  • Gold price surges above Rs240,000 per tola

    Gold price surges above Rs240,000 per tola

    Gold prices in Pakistan experienced a rebound on Monday, following a steady decline over the past six trading sessions.

    This resurgence came as the international gold market saw a rise in prices. In the local market, the price of gold per tola surged by Rs2,500, reaching Rs240,500.

    Similarly, the price for 10 grammes of gold rose by Rs2,143, settling at Rs206,190, according to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA).

    The international gold market also recorded gains on Monday. According to APGJSA, the international gold price stood at $2,322 per ounce, with a premium of $20, after an increase of $21 during the day.

    This marked a turnaround from the downward trend that had been observed in recent days.

    In contrast, silver prices remained stable, with the rate for silver per tola steady at Rs2,620.

    Saturday saw a dip in local gold prices, with a decrease of Rs1,600 per tola.

    The recent rebound offers some relief to investors and jewellery buyers following a week-long decline, which saw gold prices drop by a total of Rs7,000 per tola over six consecutive sessions.

    It’s worth noting that just last month, gold prices in Pakistan reached a record high, with the cost per tola hitting Rs252,200.

    The recent fluctuations in gold prices underscore the volatility of the precious metals market and highlight the impact of international trends on local rates.

  • IMF team set to visit Pakistan to discuss new programme before budget finalisation

    IMF team set to visit Pakistan to discuss new programme before budget finalisation

    An International Monetary Fund (IMF) mission is set to visit Pakistan in May to discuss a potential new financial programme, the IMF announced on Sunday.

    This visit comes as the Pakistani government begins crafting its annual budget for the next financial year with the aim of stabilising the economy and implementing necessary reforms.

    The announcement follows the completion of a short-term $3 billion programme last month, which helped Pakistan avoid a sovereign default.

    Prime Minister Shehbaz Sharif’s government is now seeking a more comprehensive and longer-term agreement with the IMF to ensure sustained economic recovery and growth.

    “A mission is expected to visit Pakistan in May to discuss the FY25 budget, policies, and reforms under a potential new programme for the welfare of all Pakistanis,” the IMF stated in an email response to Reuters.

    However, the exact dates of the visit and the specifics of the programme were not disclosed.

    Pakistan’s fiscal year runs from July to June, and the budget for fiscal year 2025 must be presented before June 30.

    The IMF emphasised the importance of accelerating reforms, stating that the size and duration of the new programme would be determined by the reform package and the country’s balance of payments needs.

    Pakistan’s economy, which is valued at around $350 billion, has shown signs of stabilisation following the last IMF programme, with inflation decreasing from a record high of 38 per cent in May 2023 to about 17 per cent in April 2024.

    However, the country still faces significant fiscal challenges and a high deficit, and growth has stagnated due to strict import controls.

    The current growth rate is expected to be around 2 per cent this year, a slight improvement from the negative growth rate experienced last year.

    In a recent interview with Reuters, Finance Minister Muhammad Aurangzeb expressed optimism about reaching an agreement on a new IMF programme in May. Pakistan is expected to seek at least $6 billion in additional financing from the IMF, including funding under the Resilience and Sustainability Trust.

    The forthcoming IMF visit is crucial for Pakistan as it prepares its budget and seeks to implement reforms to strengthen the economy.

    The discussions are likely to focus on fiscal discipline, economic growth, and the welfare of all Pakistanis, with an emphasis on achieving long-term stability and sustainability.

  • CDWP gives go-ahead to 10 development projects valued at Rs115 billion

    CDWP gives go-ahead to 10 development projects valued at Rs115 billion

    In a key meeting held on Friday, the Central Development Working Party (CDWP) approved a total of 10 development projects, with an overall cost of Rs115.458 billion.

    Out of these, eight projects totaling Rs17.297 billion were given the green light by the CDWP forum, while two projects, valued at Rs98.161 billion, were recommended to the Executive Committee of the National Economic Council (ECNEC) for final approval.

    Deputy Chairman Planning Commission Mohammad Jehanzeb Khan chaired the meeting, attended by Secretary Planning Awais Manzur, Planning Commission members, Additional Secretary Planning, and representatives from federal ministries and provincial governments.

    The meeting’s agenda covered a range of sectors, including agriculture and food, energy, governance, health, higher education, physical planning and housing, science and technology, transport and communication, and water resources.

    A notable project from the agriculture and food sector, the “Sindh Livestock and Aquaculture Development Project,” valued at Rs38.36 billion, was recommended to ECNEC for final approval.

    This World Bank-assisted project aims to improve competitiveness, inclusivity, climate resilience, and sustainability in Sindh’s livestock and aquaculture sectors.

    Another significant project from the energy sector, the “765/500/220/132kV Islamabad West Substation,” worth Rs59.801 billion, was also referred to ECNEC for final approval.

    This World Bank-backed initiative is part of the National Transmission and Modernization Project Phase-I and aims to address increasing power demands in the Islamabad region through a new substation and related transmission lines.

    The governance sector saw approval for the “Modernization and Upgradation of Pakistan Mint Phase-II” project, costing Rs2.48 billion, as well as the “Federal Project Management Unit (FPMU) Post-Flood 2022 Reconstruction Program” project, valued at Rs2.38 billion.

    In the physical planning and housing sector, five projects were discussed, including the “Smart Environmental Sanitation System and Landfill Project” in Gwadar, worth Rs3.277 billion, and the “Construction of Audit House, Lahore,” valued at Rs1,528.931 million. Both projects received approval from the CDWP forum.

    A project related to science and technology, the “Establishment of Regional Nuclear Safety Inspectorate at Lahore,” costing Rs515 million, was also approved by the CDWP. This project aims to enhance nuclear safety and oversight in the region.

    The approval of these projects underscores the government’s commitment to advancing critical infrastructure, promoting sustainable development, and addressing energy needs, among other priorities. The recommendations to ECNEC signal the importance of these projects for the country’s growth and development.

  • Competition Commission approves Scheme of Arrangement for PIA’s privatisation

    Competition Commission approves Scheme of Arrangement for PIA’s privatisation

    The Competition Commission of Pakistan (CCP) has approved the Scheme of Arrangement (SoA) for the privatisation process of Pakistan International Airlines Corporation Limited (PIACL).

    This marks a crucial step towards restructuring the national airline and facilitating a smoother transition during the privatisation process.

    The approval paves the way for the Securities and Exchange Commission of Pakistan (SECP) to give its final nod, leading to the formalisation of the transfer of PIACL’s non-core assets and liabilities to a newly established entity, PIA Holding Company Limited.

    This separation is designed to create a debt-light PIACL, allowing for greater focus on core airline operations and enhancing its appeal to investors.

    The privatisation of PIACL has attracted considerable interest from both domestic and international investors, with major airlines and business conglomerates submitting their expressions of interest.

    The Privatisation Commission (PC) has extended the deadline for submitting the Statement of Qualification (SOQ) until May 17, 2024, accommodating requests from potential bidders.

    The Privatisation Commission’s extension aims to ensure a competitive and transparent bidding process, fostering a fair environment for all parties. This development is seen as a significant step towards achieving a successful outcome in the privatisation of PIACL, with the ultimate goal of revitalising the national airline and improving its financial health.

    Stakeholders and industry experts are closely monitoring the process, with hopes that the privatisation will bring much-needed efficiency and innovation to Pakistan’s aviation sector. They

    he finalisation of the Scheme of Arrangement and the subsequent privatisation process will be critical in determining the future trajectory of Pakistan International Airlines.