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Category: Business

  • Customers express frustration over inability to pay for Netflix with Islamic Cards while being charged Sood for late payments

    Customers express frustration over inability to pay for Netflix with Islamic Cards while being charged Sood for late payments

    A Faysal Bank customer expressed his discontent with the bank on Facebook after his credit card was converted into a shariah-compliant card called “Noor Islamic Card”. The customer complained that he is unable to make transactions with Netflix or use the card for any “unislamic” purposes.

    He posted on Facebook, saying, “Just converted my Faysal Bank Credit into Noor Islamic Card. Now I can’t use the card on Netflix, bcoz they have become Islamic, and they cannot allow their customers to use their card on any unislamic things.”

    Other users also commented on the post, with one user pointing out that the bank still charges interest, which they refer to as Musawah payment, if a bill is not paid on time. Another user claimed that their conventional credit card was converted into a Noor Islamic Card without their consent and the bank’s response to their complaint was unsatisfactory.

    Many users expressed their frustration with the bank’s service, with some even stating that they would be closing their Faysal Islamic Card account due to the Netflix payment issue. One user also pointed out that Meezan Bank has the same policy regarding Netflix transactions.

    Another user shared their experience, stating that their Faysal Bank card did not work when they tried to buy movie tickets and food at the bank’s food court on the same day that their card was converted from a conventional card to an Islamic one. It was only then that they realized that their card had been converted.

    The conversion of conventional credit cards into shariah-compliant cards is a growing trend in Pakistan’s banking sector. While this is seen as a positive move by some customers, others are skeptical of the benefits and limitations of shariah compliant cards.

  • Pakistan receives $500m in first installment of $1.3 billion Chinese loan

    Pakistan receives $500m in first installment of $1.3 billion Chinese loan

    On Friday, Pakistan’s Finance Minister Ishaq Dar announced that the Industrial and Commercial Bank of China (ICBC) has approved a facility of $1.3 billion, of which the first installment of $500 million has been received by the State Bank of Pakistan. The facility is expected to be disbursed in three installments and will help increase Pakistan’s foreign exchange reserves.

    The country has been facing economic challenges due to high inflation, a widening current account deficit, depreciating currency, and sliding forex reserves. As of February 24, foreign exchange reserves were at $3.8 billion, which is just enough for less than a month of imports.

    The finance minister also announced that China has renewed a facility under which Pakistan expects an additional inflow of $500 million in the next few days. The government returned $6.5 billion of foreign debt during the current fiscal year, and formalities with ICBC were completed to renew the facility.

  • Weekly inflation in Pakistan jumps to 41.07% due to edible oil, sugar prices

    Weekly inflation in Pakistan jumps to 41.07% due to edible oil, sugar prices

    According to data provided by the Pakistan Bureau of Statistics (PBS) on Friday, edible oil, sugar, and vegetables helped drive the weekly inflation up to 41.07 percent on an annual basis.

    Sensitive Price Index (SPI) measurements of short-term inflation were still on the high side and would go up much more once customers start to feel the full effects of increased electricity tariffs.

    The cost of bananas, chicken, sugar, cooking oil, gas, and cigarettes increased for the week ending March 2, despite a 0.30 percent weekly decline in inflation.

    Of the 51 items, 32 saw price increases, nine saw price decreases, and 10 witnessed no change in price.

    The items whose prices rose the greatest during the reviewed week in comparison to the same week last year were: onions (311.17 per cent), cigarettes (165.86 per cent), gas charges for Q1 (108.38 per cent), diesel (93.82 per cent), petrol (77.89 per cent), eggs (77.83 per cent), rice irri-6/9 (76.96 per cent), rice basmati broken (75.55 per cent), pulse moong (73.30 per cent), bananas (72.66 per cent), chicken (64.70 per cent) and tea Lipton (64.53 per cent).

    Moreover, the highest year-on-year fall was recorded in the prices of tomatoes (56.29 per cent), chillies powdered (7.42 per cent).

    The prices of bananas (7.34 per cent), long cloth (3.44 per cent), energy saver (3.33 per cent), 1Kg vegetable ghee (2.48 per cent), gur (2.03 per cent), cooked daal (1.87 per cent), Lipton tea (1.79 per cent), match box (1.66 per cent), lawn printed (1.52 per cent), 5-litre cooking oil (1.45 per cent), and sugar (1.07 per cent) experienced the biggest week-on-week increase.

    On the other hand, the prices of onions (13.24 per cent), eggs (6.11 per cent), garlic (4.24 per cent), chicken (2.00 per cent), tomatoes (0.59 per cent), gram pulse (0.38 per cent), and potatoes (0.33 per cent) decreased compared to the previous week. However, LPG (1.84 per cent) and petrol (1.80 per cent) saw an increase in prices.

    The government, under the IMF’s conditions, has been implementing strict measures to cool the economy and curb inflation. The policy rate increase and the general sales tax increase from 17 per cent to 18 per cent are expected to further increase the retail price of consumer goods.

    To generate revenue and bridge the fiscal deficit, the government has already taken several measures, including adopting a market-based exchange rate, increasing fuel and power tariffs, withdrawing subsidies, and imposing more taxes.

    As a result of these measures, the government has revised its annual inflation rate projection from 26 per cent to 31 per cent.

  • Millions at risk of starvation in Pakistan due to economic crisis and floods: WFP

    Millions at risk of starvation in Pakistan due to economic crisis and floods: WFP

    Pakistan is currently facing an alarming economic crisis that poses a risk of defaulting on its debt. The country has also been hit hard by catastrophic floods in 2022 that have affected nearly a third of the country, causing a significant increase in food and fuel prices, which many people cannot afford.

    The situation is expected to worsen, with estimates from the World Food Programme indicating that over 5 million people will be at risk of famine-level hunger by the end of March, as per NPR’s official reports.

    Chris Kaye, the Pakistan country director, describes the situation as frightening, especially when compared to what’s happening next door in Afghanistan. According to NPR’s Diaa Hadid, the humanitarian crisis in Afghanistan has escalated out of control since the Taliban took over, with over 6 million people on the brink of famine.

    Kaye believes that the food crisis in Pakistan is not far off from what is happening in Afghanistan in terms of the absolute number of people affected. The hunger crisis has even reached prosperous areas where the poor have typically sought work.

    The situation demands immediate action to prevent a large-scale famine in the region, and the international community must come together to support Pakistan and alleviate the suffering of millions of people facing hunger and malnutrition.

  • Ishaq Dar denies reports of financial emergency amidst economic turmoil

    Ishaq Dar denies reports of financial emergency amidst economic turmoil

    On Friday, Federal Minister for Finance and Revenue Ishaq Dar denied reports suggesting Pakistan should impose a financial emergency, amidst constant criticism over the current economic turmoil. He berated Imran Khan-led Pakistan Tehreek-e-Insaf (PTI) for spreading “fake news” about Pakistan heading towards default. Dar blamed the previous PTI government for pushing the nation of 220 million people on the brink of default, claiming that it was the coalition government that saved the country by prioritising the state over politics.

    Dar recalled that when the Pakistan Democratic Movement (PDM) ousted Khan through a no-confidence motion, the leaders of the coalition government had decided to keep aside all political interests in the wider interest of the state. He stated that the PTI leaders have been calling him out since the rupee plunged to a historic low of Rs285.09 a day earlier while February’s inflation hit nearly a 50-year high of 31.5 per cent.

    Expressing his surprise and concerns over Khan’s continuous criticism of the coalition government, he said: “I am unable to understate whether he (Khan) has a problem in his leg or brain.” Instead of protecting the national interest, PTI’s leadership tried to sabotage the International Monetary Fund (IMF) deal, Dar said. “Khan’s attitude is selfish.”

    According to Geo, Dar reiterated that Pakistan has neither defaulted in the past nor will it default in the future. Referring to Khan’s remarks about default, the finance minister said that the PTI chairman’s statements adversely affect the country’s financial markets. He, however, admitted that the State Bank of Pakistan’s (SBP) reserves fell below $3 billion. It should be noted that the liquid foreign reserves held by the country stand at around $9 billion as of February 24 while the net reserves held by commercial banks stand at around $5.5 billion.

    The finance minister revealed that China has renewed a facility under which Pakistan expected an additional inflow of $500 million in the “next few days”. He highlighted the PDM-led government’s economic achievements, stating that the foreign exchange reserves held by the SBP climbed to $3.8 billion from $2.8 billion recorded last month. He maintained that the government returned $6.5 billion of foreign debt during the current fiscal year.

    Dar drew a comparison between the economic performance of nearly four years of PTI and almost 11 months of PDM-led government. He shared numeric data to prove that Khan and Co. did everything to “destroy the country,” but the numbers show who is sincere with the country. Dar argued that the opposition — the PTI — has not really improved Pakistan’s standing. However, Pakistan will escape the economic quagmire, he said, adding that the country is making repayments to bilateral and multilateral lenders and has made payments beyond its capacity.

  • Atlas Honda announces second price hike within 20 days due to depreciation of Pakistani rupee

    Atlas Honda announces second price hike within 20 days due to depreciation of Pakistani rupee

    Atlas Honda has announced its second price increase in the last 20 days, attributing it to the substantial depreciation of the Pakistani rupee against the US dollar, which had also led to their earlier bike price hike on February 15, 2023.

    According to the company’s notification, Honda bike prices will be as follows:

    Honda CD70

    The Honda CD70 will now cost Rs144,900, an increase of Rs7,000 from the previous price of Rs137,900.

    Honda CD 70 Dream

    The Honda CD 70 Dream will now cost Rs155,500, an increase of Rs8,600 from the previous price of Rs147,500.

    Honda Pridor

    The new price of the Honda Pridor is Rs190,500, an increase of Rs9,000 from the previous price of Rs181,500.

    Honda CG 125

    The Honda CG 125 will now cost Rs214,900, an increase of Rs9,000 from the previous price of Rs205,900.

    Honda CG 125 SE

    The Honda CG 125 SE will now cost Rs255,900, an increase of Rs12,000 from the previous price of Rs243,900.

    Honda CB 125F

    The Honda CB 125F will now cost Rs350,900, an increase of Rs20,000 from the previous price of Rs330,900.

    Honda CB 150F

    The Honda CB 150F will now cost Rs443,900, an increase of Rs25,000 from the previous price of Rs418,900.

    Honda CB 150F SE

    The Honda CB 150F SE will now cost Rs447,900, an increase of Rs25,000 from the previous price of Rs422,900.

    This is the second price hike within the last 20 days, which has further eroded the purchasing power of the middle class that is already struggling due to inflation. With car and bike prices on the rise, the common person is finding it increasingly difficult to afford their daily means of transportation.

  • Pakistani rupee bounces back after steep decline against dollar

    Pakistani rupee bounces back after steep decline against dollar

    During the early hours of trading on Friday, the Pakistani rupee (PKR) saw a significant recovery against the US dollar, with an increase of 4.51 per cent. The inter-bank market quoted the PKR at Rs272.78 by 11:50 am, representing an increase of Rs12.31 against the US dollar.

    This follows a steep decline of 6.66 per cent or nearly Rs19 to settle at an all-time low of Rs285.09 against the US dollar on Thursday.

    On Thursday, the State Bank of Pakistan’s Monetary Policy Committee (MPC) raised the key policy rate by 300 basis points (bps) to 20 per cent, aiming to curb inflation.

    The committee also emphasized the need for energy conservation measures to ease pressure on the external account and meet import requirements. The MPC expects this decision to stabilize inflation expectations and bring it to a medium-term target of 5 per cent-7 per cent by end-FY25.

    Globally, the US dollar eased back from a 2-1/2-month high against the yen on Friday, and weakened toward its first weekly loss since January against major peers. This comes as traders tried to gauge the path for Federal Reserve policy.

    According to Geo, the dollar index, which measures the currency against the yen, euro, and four other major peers, fell 0.11 per cent to 104.85, from its peak of 105.36 earlier this week. The index has decreased by 0.36 per cent since last Friday.

    Meanwhile, oil prices, a critical currency parity indicator, dropped on Friday, but remained poised for a weekly gain due to renewed optimism regarding China’s demand recovery, outweighing concerns over growing crude inventories in the US and tighter monetary policy in Europe.

    This is an intraday update.

  • Rupee depreciation may lead to an increase in petroleum prices, says Musadik Malik

    Rupee depreciation may lead to an increase in petroleum prices, says Musadik Malik

    Dr Musadik Malik, the State Minister for Petroleum, issued a warning on the potential increase of petroleum product prices due to the significant decline in the value of the Pakistani rupee against the US dollar.

    During an appearance on the Geo News program “Capital Talk” on Thursday, Dr Malik stated that the depreciation of the rupee could lead to an upsurge in the prices of petroleum products in the upcoming days. He also shared that the negotiations between Pakistan and Russia on oil imports were progressing well.

    According to Dr Malik, the sudden increase in the US dollar’s price was due to political instability, making it difficult to govern the country in such an uncertain environment. Notably, during the last fortnight’s review, Finance Minister Ishaq Dar announced a reduction in petroleum prices.

    As a result, the government cut the price of petrol by Rs5 per litre, setting it at Rs267 per litre, while the price of diesel remained steady at Rs280 per litre.

    In addition, the price of light diesel oil decreased by Rs12 per litre, bringing it down to Rs184.68 per litre. Furthermore, the cost of kerosene oil was reduced by Rs15 per litre, bringing its price to Rs187.73.

  • All economic indicators moving in right direction: Dar dismisses rumors of Pakistan’s default

    All economic indicators moving in right direction: Dar dismisses rumors of Pakistan’s default

    According to the announcement by Pakistan’s Federal Finance Minister Ishaq Dar, negotiations between Pakistan and the International Monetary Fund (IMF) are about to conclude, and a staff-level agreement is expected to be signed soon.

    The minister also dismissed rumours of Pakistan defaulting as completely false and stated that all economic indicators are moving in the right direction. He highlighted that the State Bank of Pakistan’s foreign exchange reserves have increased and that foreign commercial banks have started extending facilities to Pakistan.

    However, the Pakistani rupee has plunged to a new all-time low of Rs290.18 against the US dollar in the interbank market, which is causing concern among importers who are panic buying dollars while exporters are reportedly withholding selling the greenback in anticipation of a higher exchange rate.

    It is reported that the IMF wants the value of the rupee in the interbank market to match its value in the black currency market.

  • SBP jacks up policy rate by 300 bps to 20%

    SBP jacks up policy rate by 300 bps to 20%

    In a meeting held today, the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) increased the policy rate by 300 basis points (bps) to 20 per cent as a measure to curb inflationary pressure.

    The meeting’s result matched the market’s predictions, with analysts expecting the State Bank of Pakistan’s Monetary Policy Committee to implement a significant hike of 200-300 basis points.

    During today’s meeting, the MPC acknowledged that recent fiscal adjustments and depreciation of the exchange rate have resulted in a significant deterioration of the near-term inflation outlook. This has also led to an increase in inflation expectations, as indicated by the latest survey results.

    The committee anticipates that inflation will continue to rise in the coming months due to the impact of these adjustments, before gradually decreasing. The projected average inflation rate for this year is now estimated to be between 27 per cent to 29 per cent, compared to the November 2022 projection of 21 per cent to 23 per cent. Given this context, the MPC stressed the importance of stabilizing inflation expectations and implementing strong policy measures.

    On the external front, the MPC acknowledged that while there has been a substantial reduction in the current account deficit (CAD), there are still some vulnerabilities present. In January 2023, the CAD decreased to $242 million, the lowest level since March 2021.