Current Final

Category: Business

  • Local gold price rises by Rs2,500, reaching Rs245,000 per tola

    Local gold price rises by Rs2,500, reaching Rs245,000 per tola

    Gold prices in Pakistan increased on Friday, reflecting a similar upward trend in the international markets.

    The price per tola (approximately 11.66 grammes) of gold reached Rs245,000, marking a single-day increase of Rs2,500. This comes after a modest gain of Rs500 on Thursday.

    The rates for 10 grammes of gold also saw a significant uptick, reaching Rs210,048 following a rise of Rs2,143, as reported by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA).

    This surge in local prices corresponds with a jump in international gold prices, which rose by $21 per ounce to settle at $2,343 (including a premium of $20) on Friday.

    Despite these increases in gold prices, silver rates remained unchanged, with the price per tola staying steady at Rs2,650.

    The recent volatility in gold prices underscores the impact of international market trends on the local Pakistani market.

    Last week, the price of gold reached an all-time high in Pakistan, with a tola selling for Rs252,200.

    The fluctuations in precious metal prices are closely monitored by investors and consumers alike, as they reflect broader economic trends and market sentiments.

    For gold traders and investors in Pakistan, these price shifts suggest a continuing trend of fluctuation, likely influenced by global economic factors and investor demand.

    The APGJSA will continue to provide updates on market trends and price changes as they occur.

  • Study reveals foreign aid to Pakistan fails to drive economic growth

    Study reveals foreign aid to Pakistan fails to drive economic growth

    A report by the Pakistan Institute of Development Economics (PIDE) reveals that foreign aid to Pakistan, despite commitments exceeding $200 billion, has failed to deliver sustainable economic growth.

    The report, titled “Foreign Aid Donors and Consultants Analysing Pakistan’s Foreign Aid Inflows and Their Outcomes,” highlights that while about $155 billion has been disbursed from the committed amount, there’s little evidence that these funds have significantly improved Pakistan’s economy.

    PIDE finds that the aid has not met key criteria for effective foreign aid, as outlined in the influential Millikan-Rostow report.

    These criteria include the ability to transfer resources without creating future liabilities, avoiding source-tied aid, promoting sustainable economic development, increasing the marginal savings rate to drive capital formation, and supporting development programmes that enable productive use of additional capital.

    The PIDE report notes that Pakistan’s aid programmes fail to meet these benchmarks.

    According to Mettis Global, the research acknowledges some positive outcomes in specific sectors, such as the United Nations-led vaccination efforts, which have improved public health.

    However, it also points out that this success has led to greater dependency on external sources for vaccines, raising questions about the long-term sustainability of such programmes.

    Overall, the report suggests that despite the significant amount of foreign aid received, Pakistan’s economy has not experienced the desired transformation.

    Even when examining Official Development Assistance (ODA) by sector, the improvements are marginal and do not lead to substantial aggregate economic growth.

    This finding raises concerns about Pakistan’s reliance on foreign aid and underscores the need for more effective and sustainable economic policies.

  • Booming demand for Samsung Galaxy S24 leads to shortage in Pakistan

    Booming demand for Samsung Galaxy S24 leads to shortage in Pakistan

    Samsung Electronics Co. is experiencing a shortage of its Galaxy S24 smartphones in Pakistan due to overwhelming demand for the flagship device, according to Bloomberg.

    Since the device’s launch earlier this year, demand has surged, leading to limited availability across the country.

    The Galaxy S24 series, which is assembled in Pakistan, has garnered considerable interest, particularly for its premium models like the Galaxy S24 Ultra.

    This surge in demand suggests a growing market for high-end smartphones among Pakistan’s more affluent consumers.

    With 192 million mobile phone users, Pakistan is the world’s fifth-most populous nation, representing a significant market for smartphone manufacturers.

    Samsung Electronics acknowledged the shortage in an email statement, stating that the company is working to meet customer demand and expects sales to resume shortly.

    The Pakistani government has introduced financial incentives that have transformed the country’s smartphone industry.

    In 2017, Pakistan primarily imported smartphones, but the majority of handsets are now assembled domestically. This shift has contributed to a growing mobile phone manufacturing sector.

    According to the Pakistan Telecommunication Authority, mobile companies in Pakistan produced about 21 million units last year, with local and Chinese brands such as VGOTEL, Infinix, and Itel leading production. An additional 1.7 million units were imported.

    Despite the shortage, the Galaxy S24 models are crucial for Samsung’s position in the global smartphone market.

    The company lost its top ranking to Apple Inc. last year, marking the first time since 2010 that Samsung was not the world’s leading smartphone maker, according to industry tracker IDC.

  • Pakistan’s forex reserves fall by $73.5 million in one week

    Pakistan’s forex reserves fall by $73.5 million in one week

    The State Bank of Pakistan (SBP) reported a significant decline in its foreign exchange reserves for the week ending April 19, 2024, attributing the drop to external debt repayments.

    The central bank’s reserves fell by $73.5 million, a 0.91 per cent week-on-week reduction, bringing the total to $7.98 billion.

    This decrease reflects Pakistan’s ongoing struggles to maintain a stable foreign exchange reserve position amid mounting economic pressures.

    The SBP issued a statement explaining the decline, citing debt repayments as the primary reason for the dip. “During the week ended on April 19, 2024, SBP’s reserves decreased by $74 million to $7.98 billion due to external debt repayments,” the statement read.

    Concurrently, the total reserves of Pakistan, which include those held by commercial banks, also fell. The country’s total reserves dropped by $93.2 million, a 0.7 per cent week-on-week decrease, to $13.28 billion.

    Commercial banks’ reserves diminished by $19.7 million, or 0.37 per cent week-on-week, bringing their total to $5.3 billion.

    Last week, the SBP reported a slight increase in its reserves, up by $14.4 million despite a $1 billion Eurobond repayment. However, this week’s decline indicates continued pressure on the country’s foreign exchange reserves.

    In a recent development, the International Monetary Fund’s (IMF) executive board is set to meet on April 29 to discuss the approval of a $1.1 billion funding tranche for Pakistan.

    This funding represents the second and final installment of a $3 billion standby arrangement with the IMF, which was agreed upon last summer to avert a sovereign default.

    The current arrangement with the IMF is due to expire at the end of this month, prompting Pakistan to seek a new long-term and larger loan from the IMF.

    Finance Minister Muhammad Aurangzeb expressed optimism about the country’s foreign exchange reserves, stating that he expects the reserves held by the SBP to rise to around $9–10 billion by the end of the current fiscal year.

    Despite the recent decline, the total liquid foreign reserves have increased by $4.12 billion, or 44.98 per cent, since the beginning of the fiscal year.

    Additionally, the current calendar year has seen an increase of $0.61 billion, or 4.79 per cent.

    The fluctuations in Pakistan’s foreign exchange reserves underscore the country’s ongoing economic challenges and the critical importance of securing international funding to maintain financial stability.

  • Over 100,000 students register for interest-free motorcycle initiative

    Over 100,000 students register for interest-free motorcycle initiative

    The Punjab government has announced a significant initiative to offer interest-free motorcycles to students, with over 100,000 registrations received through the Punjab Information Technology Board (PITB) e-bike portal.

    This scheme aims to provide 20,000 motorcycles to students in Punjab, allowing them easier and more affordable transportation options.

    According to the PITB on Tuesday, the e-Bikes Portal has facilitated students across Punjab to register for the initiative, with more than 16,000 online applications already submitted.

    Out of these, over 13,500 students have applied for petrol bikes, while more than 3,800 have opted for e-bikes.

    The portal remains open for further applications, encouraging students to take advantage of this unique opportunity.

    The initiative offers a flexible down payment and monthly instalment plan, with the government covering the markup on both.

    This arrangement allows students to manage the cost of their motorcycles over time without the burden of interest, making it a more accessible option for those who rely on personal transportation for their education.

    Eligible applicants must be regular students of government or private graduate colleges or universities, aged 18 or older, and possess a valid driving license or learner permit.

    In the initial phase, the distribution of e-bikes will focus on the cities of Lahore, Multan, Faisalabad, Bahawalpur, and Rawalpindi. Petrol bikes will be distributed across other districts of Punjab.

    The deadline for applications is April 29, and interested students can register through the e-Bikes Portal [bikes.punjab.gov.pk].

    PITB Chairman Faisal Yousaf highlighted the transparency of the system, emphasizing that the initiative aligns with the broader goal of facilitating education across Punjab.

    He stated that the program’s aim is to make it easier for students to access motorcycles, enhancing their mobility and supporting their educational journey.

  • Profit plunge: Pakistan Refinery Limited records Rs1.24 billion loss

    Profit plunge: Pakistan Refinery Limited records Rs1.24 billion loss

    Pakistan Refinery Limited (PRL), a subsidiary of Pakistan State Oil Company Limited (PSO), faced a significant loss of Rs1.24 billion in the third quarter ending March 31, 2024, primarily due to reduced revenue and escalating costs.

    This marks a stark contrast to the same quarter in the previous fiscal year, when PRL posted a profit of Rs1.77 billion.

    The financial setback was announced through a notice to the Pakistan Stock Exchange (PSX) on Wednesday following a meeting of PRL’s board of directors on April 23. In light of the loss, the board recommended no dividend distribution.

    According to the report, the loss per share (LPS) for the quarter was Rs1.97, a notable decline from earnings per share (EPS) of Rs2.81 in the same period last year (SPLY).

    This financial downturn was driven by a 17 per cent drop in revenue from contracts, which fell to Rs49.45 billion in 3QFY24 from Rs59.55 billion in SPLY. As a result, PRL recorded a gross loss of Rs559.1 million, a significant shift from a gross profit of Rs4.46 billion in SPLY.

    The company’s ‘other income’ rose dramatically, up over 95 per cent to Rs1.12 billion in 3QFY24 compared to Rs574.32 million in SPLY.

    Despite this increase in other income, the company’s operating expenses soared by more than 240 per cent, reaching Rs1.69 billion in the third quarter, compared to Rs495.52 million in SPLY.

    Consequently, PRL reported an operating loss of Rs1.13 billion, a sharp reversal from an operating profit of Rs4.54 billion in the same period last year.

    The loss before tax (PBT) from refinery operations in 3QFY24 was Rs2.11 billion, a considerable drop from a profit of Rs2.65 billion in SPLY.

    However, despite the quarterly loss, PRL’s performance over the first nine months of the fiscal year remains positive, with a profit of Rs5.27 billion—more than double the Rs2.53 billion earned in the same period last year.

    Pakistan Refinery Limited was established in 1960 and has a current capacity of approximately 50,000 barrels of crude oil per day.

    It produces various petroleum products, including furnace oil, high-speed diesel, kerosene oil, jet fuel, and motor gasoline.

    Despite the recent downturn, the company’s operational capacity and product range remain robust.

  • Critical IMF meeting scheduled for April 29 to approve $1.1 billion for Pakistan

    Critical IMF meeting scheduled for April 29 to approve $1.1 billion for Pakistan

    The Executive Board of the International Monetary Fund (IMF) is scheduled to meet on April 29 to deliberate on the approval of a $1.1 billion funding tranche for Pakistan.

    This amount represents the final installment of a $3 billion stand-by arrangement (SBA) with the IMF that is due to expire this month.

    The anticipated funding comes at a critical time for Pakistan’s economy, which has been struggling with a chronic balance of payments crisis.

    The country has nearly $24 billion in debt and interest repayments due over the next fiscal year, which is approximately three times more than its central bank’s foreign currency reserves.

    Meanwhile, Pakistan’s Finance Minister, Muhammad Aurangzeb, has indicated that the government is seeking a new long-term, larger loan from the IMF. Discussions are underway, with a staff-level agreement expected by early July.

    Islamabad is reportedly aiming for a multi-year agreement to promote macroeconomic stability and implement long-overdue structural reforms. However, the finance minister has not disclosed the exact loan size Pakistan is seeking.

    If approved, this would mark the 24th IMF bailout for Pakistan. The ongoing negotiations reflect the country’s continued reliance on international financial assistance to navigate its economic challenges.

    Pakistan’s economy is projected to grow by 2.6 per cent in the current fiscal year ending in June, according to the finance ministry.

    Despite this modest growth, the country continues to face high inflation, which is expected to average around 24 per cent this fiscal year, down from a record high of 38 per cent in May 2023.

    As Pakistan navigates these economic hurdles, securing the final tranche of the IMF’s stand-by arrangement and potentially a new loan agreement could provide much-needed relief and lay the groundwork for longer-term stability.

  • FBR seizes counterfeit cigarettes worth Rs96 million in nationwide crackdown

    FBR seizes counterfeit cigarettes worth Rs96 million in nationwide crackdown

    In a sweeping enforcement effort spanning the nation, the Federal Board of Revenue (FBR) has confiscated 1,235 packs of counterfeit cigarettes, valued at approximately Rs96 million.

    Under the guidance of FBR Chairman, Malik Amjed Zubair Tiwana, and the direct supervision of Mir Badshah Khan Wazir, Member Inland Revenue (Operations), IR Field Formations of FBR executed a comprehensive crackdown on counterfeit and non-stamped cigarettes.

    During the operation, which targeted evasion practices, a total of 4,652 retail outlets were inspected nationwide. Out of these, 33 establishments were found engaged in illicit tobacco trade and subsequently sealed.

    The enforcement drive involved a significant deployment of resources, with a total of 204 teams comprising 1,047 personnel dedicated to the mission of curbing the circulation of illicit cigarettes.

    Chairman FBR, Malik Amjed Zubair Tiwana, and Member Inland Revenue (Operations) Mir Badshah Khan Wazir commended the diligent efforts of the IR field formations involved in the operation.

    Despite facing constraints in human resources and logistics, the Inland Revenue Enforcement Network persistently strives to eliminate the menace of illicit tobacco trade.

    The successful outcome of this operation underscores the FBR’s commitment to combating illegal activities and safeguarding public health and revenue integrity.

  • Pakistan’s forex reserves expected to reach $9-10 billion by year-end

    Pakistan’s forex reserves expected to reach $9-10 billion by year-end

    The Federal Minister for Finance and Revenue, Muhammad Aurangzeb, said on Tuesday that Pakistan’s foreign exchange reserves held by the State Bank of Pakistan (SBP) are expected to close the fiscal year at around $9-10 billion mark.

    This news comes amid growing optimism about the country’s financial stability and the potential for a new agreement with the International Monetary Fund (IMF).

    Speaking at the 7th Leaders In Islamabad Business Summit, themed “Collaborating for Growth,” Minister Aurangzeb outlined several positive developments in Pakistan’s economic landscape.

    The country’s central bank currently holds just over $8 billion in reserves, despite a recent $1-billion bond payment.

    Aurangzeb highlighted the dramatic increase from last year’s reserves of $3.4 billion, which covered just 15 days of imports, to over $8 billion.

    The finance minister indicated that once the IMF disburses its final tranche by the end of this week, the foreign exchange reserves would exceed $9 billion.

    He projected that by the end of June, the reserves could reach between $9-10 billion, offering about two months’ worth of import coverage.

    In his address, Minister Aurangzeb also addressed concerns about the IMF’s involvement in Pakistan’s economic recovery.

    He said that the current IMF programme is not solely driven by the international body, but is also a reflection of Pakistan’s own strategies for overcoming economic challenges.

    “This is our requirement as a country if we want to get out of the trap we are in,” he said, adding that the government had productive discussions with the IMF in Washington, D.C., to establish a broader and longer-term programme.

    The IMF mission is set to visit Pakistan in mid-May, with staff-level agreements expected by June or early July, contingent on progress with the country’s privatisation plans.

    Aurangzeb stressed that the IMF should be seen as a means to an end, rather than the end itself, emphasising that Pakistan’s long-term economic stability requires a commitment to market-driven reforms and sustainable growth opportunities.

    The summit’s inaugural session provided a platform for the finance minister to discuss the government’s efforts to stabilise the economy, promote growth, and attract international investment.

    The anticipated agreement with the IMF and a more robust foreign exchange reserve position signal a hopeful outlook for Pakistan’s economic recovery.

  • Gold prices plunge, falling by Rs7,800 per tola in a single day

    Gold prices plunge, falling by Rs7,800 per tola in a single day

    Gold prices in Pakistan witnessed a significant downturn on Tuesday, following the global trend of declining gold rates.

    In the local market, the price of gold per tola dropped to Rs240,900 after a sharp single-day reduction of Rs7,800, according to rates shared by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA).

    Simultaneously, the price for 10 grammes of gold experienced a similar decrease, settling at Rs206,533, a drop of Rs6,687 from the previous day’s trading. This marks a substantial reduction after Monday’s decline, when gold per tola fell by Rs3,500.

    The international market also saw a downward trend in gold prices, which further impacted local rates.

    According to APGJSA, the international rate for gold was set at $2,309 per ounce, with a premium of $20, following a significant decline of $72 during the day. This indicates a continuing bearish outlook for the precious metal.

    In addition to the falling gold prices, silver rates also experienced a reduction. The price per tola for silver decreased by Rs100, settling at Rs2,780.

    This reflects a broader downward trend in precious metals, driven by fluctuating global market dynamics and investor sentiment.

    The cumulative effect of these decreases over just two trading sessions has led to a total decline of Rs11,300 per tola in the local market, mirroring an over $100 per ounce drop in the international rate.

    This sharp decline in gold prices comes just days after the metal hit an all-time high of Rs252,200 per tola in Pakistan on Saturday.

    The record surge in gold prices had been attributed to geopolitical tensions in the Middle East, coupled with central banks increasing their gold reserves, factors that typically drive demand for safe-haven assets like gold.

    However, the recent downward trend indicates a shift in market sentiment, with possible impacts on local and international investment strategies.

    Traders and investors will be closely monitoring the fluctuations in the gold market, looking for signs of stabilisation or further volatility as international and local factors continue to evolve.