Category: Business

  • Pakistani rupee gains Rs1.28 against US dollar, closes at Rs275.30

    Pakistani rupee gains Rs1.28 against US dollar, closes at Rs275.30

    On Monday, the Pakistani rupee exhibited a slight improvement in its exchange rate against the US dollar, closing with a gain of 0.46 per cent in the inter-bank market. The local currency settled at Rs275.30 per US dollar, an improvement of Rs1.28, according to the State Bank of Pakistan (SBP).

    During the current fiscal year, the rupee has depreciated by 25.47 per cent against the US dollar. This appreciation follows a recent decline, with the rupee hitting an all-time low against the US dollar on Friday, closing at Rs276.58, a decrease of Rs5.22 or 1.89 per cent.

    Last week, the Pakistani rupee experienced a cumulative decline of 5.05 per cent. This was due to a number of factors, including low foreign exchange reserves, which decreased by an additional $592 million to reach a mere $3.09 billion.

    Additionally, comments made by Prime Minister Shehbaz Sharif regarding the challenging loan negotiation process with the International Monetary Fund (IMF) further added to investor concerns.

    Discussions with the IMF are ongoing, and reports indicate that the organization is requiring reforms and preconditions in several critical areas, including taxation, the power sector, and energy pricing. Analysts predict that the rupee will continue to face pressure until the IMF program is fully clarified.

  • Honda City 1.2 manual now costs more than Rs4.3 million after latest price hike

    Honda City 1.2 manual now costs more than Rs4.3 million after latest price hike

    Honda Atlas Cars Limited (HACL) has once again raised its car prices for the second time in two weeks. The company attributed the increase to rising inflation and a depreciating local currency.

    Below are the new prices for all Honda cars:

    CarOld Price (Rs)New Price (Rs)Hike (Rs)
    City 1.2 M/T4,069,0004,329,000260,000
    City 1.2 CVT4,199,0004,469,000270,000
    City 1.5 CVT4,449,0004,739,000290,000
    City Aspire 1.5 M/T4,629,0004,939,000310,000
    City Aspire 1.5 CVT4,799,0005,119,000320,000
    Civic 1.5T M-CVT6,849,0007,299,000450,000
    Civic Oriel 1.5T M-CVT7,099,0007,599,000500,000
    Civic RS 1.5T LL-CVT8,099,0008,649,000550,000
    HR-V VTi 1.56,399,0006,799,000400,000
    HR-V VTi S 1.56,599,0006,999,000400,000
    BR-V S 1.55,299,0005,649,000350,000

    The automobile industry is facing challenges due to foreign exchange limitations and parts supply issues. The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) and the Pakistan Automotive Manufacturers Association (PAMA) have jointly sent a letter to the Governor of the State Bank of Pakistan (SBP), Jameel Ahmed, highlighting the dire situation.

    In the letter, the organizations state that the industry is facing the brink of collapse due to restrictions imposed by the SBP on imports and a lack of support from banks in the automotive sector. This has resulted in sporadic plant closures and lay-offs among assemblers and suppliers.

    The joint letter from PAAPAM and PAMA advised that failure to take corrective action would result in negative consequences such as widespread job loss, reduction in government income, the shutdown of car assembly plants, and capital loss. The letter emphasized that the negative effects of the letter of credit (LC) issue have contributed to the collapse of the automobile industry.

  • Petrol pumps to face strict consequences for creating artificial fuel shortage

    Petrol pumps to face strict consequences for creating artificial fuel shortage

    The inflation crisis in the country has been exacerbated by an artificial fuel shortage in Rawalpindi and Islamabad. Petrol and diesel supplies have been cut off at several pumps for two days.

    Petrol pump owners were only supplying petrol of Rs250 for motorcycles and Rs500 for a car. Dealers and pump owners are causing the shortage in order to make extra profit when fuel prices are announced to increase. During the day, 60 per cent of pumps have ceased supplying fuel, rising to 80 per cent at night until midnight. The dealers and owners are waiting for the government to announce a fuel price hike until midnight.

    In response to the fuel shortage, Rawalpindi’s Deputy Commissioner, Shoaib Ali, has ordered assistant commissioners to take immediate action against petrol pumps for not supplying fuel. Despite previous fines, notices, and applications for FIRs against Oil Marketing Companies, the government has been unable to control the artificial petrol crisis in the twin cities of Rawalpindi and Islamabad and across the country. There is speculation that the government will raise fuel prices by Rs20 to Rs30 per liter, leading to over 60 per cent of dealers and pump owners halting supply for two days to increase profits. Despite having tanks filled with petrol, they have stopped supply.

    Assistant Commissioner Syed Asad Abbas informed The News that the DC has ordered strict action against petrol pump owners for causing an artificial fuel shortage for two days. The AC has begun taking action, including sealing pumps and filing FIRs against them. Residents of Rawalpindi and Islamabad have reported a lack of fuel at several petrol pumps for two days, with long lines of motorists observed at Pakistan State Oil (PSO) pumps while other pumps were not providing fuel.

    Motorists were seen frantically searching for fuel as it was unavailable at many petrol pumps in areas such as Tipu Road, Murree Road, Jhanda Chichi, Kutcherry Chowk, Adiala Road, Pirwadhai, Mall Road Saddar, Rawal Road, Jhelum Road, and others. The long lines of vehicles at petrol pumps also caused traffic congestion throughout the city.

    Petrol pump managers, speaking to The News on the condition of anonymity, confirmed that fuel supply had been cut off, with some blaming unknown reasons for the shortage. They warned that if the supply did not resume, motorists could experience severe fuel shortages in the future. Taxi drivers, who rely on daily earnings to support their families, were particularly affected by the situation and expressed strong criticism of the government for failing to provide basic services to the public.

  • Pakistani traders threaten to launch nationwide protests if new taxes imposed

    Pakistani traders threaten to launch nationwide protests if new taxes imposed

    Traders in Pakistan have threatened to launch a nationwide protest in response to the government’s potential imposition of new taxes to meet the International Monetary Fund’s (IMF) conditions. The Central Organisation of Traders has called for the government to reduce the salaries of army generals, judges, and parliamentarians instead.

    On Saturday, representatives of the Central Organisation of Traders spoke to the media in Islamabad and announced their plan for a protest movement starting on February 13th if the new taxes are introduced. The leaders of the organization warned the government that the current economic situation in the country cannot withstand further taxation of the general public and the trading community.

    They expressed dismay that the state of the economy of a nuclear country was in dire straits and the situation was worsening with each passing day, and said that the public should not suffer because of the “flaws or crimes committed by the leaders of this country.”

    “Our reaction will be severe if more taxes worth billions of rupees were imposed, as being reported in the media,” Kashif Chaudhry, the organisation’s president, said, asking the stakeholders, including the ruling elites, to make “sane decisions” if they want to improve the economy.

    Mr Chaudhry has proposed that the government reduce the expenses of high-level officials such as the President, Prime Minister, legislators, judges, army officers, and bureaucrats. He believes the government should immediately decrease “non-productive expenditures” by half.

    The trader representatives have also made demands of the government. They have called for the creation of both short-term and long-term economic policies and for more consistent income tax collection across all sectors, instead of imposing billions of dollars in new taxes.

    “I assure the government that the business community was ready to contribute to steering the country out of the current economic crises and we traders are ready to pay fixed taxes,” he said.

    Khawaja Salman Siddiqui, the chairman of the organization, criticized Finance Minister Ishaq Dar. According to Siddiqui, Dar was appointed by the PML-N to stabilize the economy and prevent the depreciation of the rupee, but he failed to deliver on his responsibilities.

    Mr Siddiqui said putting an artificial cap on the dollar’s rate led to a wide gap between the interbank and open market rates, and despite the demand to remove the cap, Mr Dar “remained stubborn and did not listen to anybody.”

    Other speakers called for the implementation of the decision of the Federal Shariat Court to make Pakistan’s economy interest-free to “eradicate exploitation in the system.”

    According to Dawn, the speakers also suggested an amnesty program that would allow wealthy individuals to repatriate their foreign wealth. The government could then borrow money from these individuals and provide them with profits instead of taking loans from the International Monetary Fund (IMF) and World Bank with unfavorable conditions.

  • Bugatti sells its last gas-powered hypercar for Rs2.97 billion, sets world auction record

    Bugatti sells its last gas-powered hypercar for Rs2.97 billion, sets world auction record

    At a Wednesday auction in Paris, Bugatti sold its final gas-only supercar for more than $10 million, breaking the previous record for a brand-new vehicle.

    The one-of-a-kind Bugatti Chiron Profilée, which was originally a unique development vehicle and was never intended for the market, sold at RM Paris collector auto auction for a bid of $9.5 million. The final selling price, after fees to the auction house, was around Rs2.97 billion ($10.7 million).

    The amount paid was significantly higher than the $4.5 million to $6 million that RM Sotheby’s had pegged the car’s value at. According to Hagerty, a business that monitors the market for collector cars, the eight-figure price surpasses past auction sales of new autos.

    Bidding for this gleaming blue supercar went so high because it is unique and, in cases like this, collectors “bid knowing they won’t get a second chance,” said John Wiley, manager of valuation and analytics at Hagerty.

    According to Bugatti, going from zero to 100 kilometers an hour, or 62 miles per hour in only 2.3 seconds, the Profilée is the fastest-accelerating Chiron variant. Shockingly, it’s capable of up 200 kph, or 124 mph, in 5.5 seconds. Able to reach 236 miles an hour, it also has a higher top speed than the Pur Sport, but still not as high as some other Bugatti models that can reach 300 miles an hour.

    The convertible W16 Mistral, unveiled last August, was the French ultra-luxury automaker’s prior announcement that it would be the final gas-powered vehicle it would produce. Only 99 of those cars, each costing at least $5 million, will be produced. According to Mate Rimac, CEO of Bugatti Rimac, the parent business of Bugatti, the next high-performance model from Bugatti will be a plug-in hybrid with a different kind of gas engine.

    However, it turned out that Bugatti only had one additional gasoline-only vehicle to offer for sale. However, this Bugatti was never meant to be put up for sale.

    From late 2020, the Bugatti Chiron Profilée was produced as one of numerous variations of the company’s flagship model, the Chiron. There would only ever be 500 Chirons produced, according to Bugatti. A few variations, including the Chiron Sport, Chiron Pur Sport, and Chiron Super Sport, all with different levels of top speed, acceleration, and cornering aggression, were included in that 500-strong group.

    Incredible performance was provided by the Chiron’s turbocharged 16-cylinder engine, which is capable of producing close to 1,600 horsepower, while the Pur Sport added more forceful steering, suspension, and acceleration. However, other buyers were looking for a hybrid product that offered the capabilities of the Pur Sport but with a more relaxed aesthetic.

    As a response, Bugatti’s engineers and designers began developing a new Chiron model with Pur Sport-like performance but a more ethereal, fluid appearance. In order to draw in more air to cool the massive engine, the Profilée sports a larger grille and broader front air intakes than the standard Chiron. Additionally, the transmission was altered to have shorter gear ratios for faster acceleration and greater engine speeds.

    According to Bugatti, the Profilée is the Chiron model with the fastest acceleration. It can accelerate from 0 to 100 kph, or 62 mph, in only 2.3 seconds, and from 0 to 200 kph, or 124 mph, in just 5.5 seconds. Its top speed of 236 mph is more than the Pur Sport’s but still lower than several other Bugatti models, some of which are theoretically capable of reaching 300 mph.

    The name Profilée refers to a classy teardrop-shaped body style that was employed on some well-known Bugatti automobiles in the 1930s.

  • Weekly Inflation jumps 34.5% from last year due to petrol and food prices

    Weekly Inflation jumps 34.5% from last year due to petrol and food prices

    According to official statistics released on Friday, prices rose at their fastest pace in more than four months in the outgoing week, mostly due to rises in the cost of food and petroleum.

    Sensitive Price Indicator (SPI) data showed that as a result, short-term inflation increased from the previous week’s 32.6 per cent to 34.5 per cent on an annual basis for the week that ended on February 2, according to the Pakistan Bureau of Statistics (PBS).

    The week-on-week inflation figure also jumped to 2.8 per cent from 0.45 per cent a week ago. Of the 51 items tracked, prices of 32 items increased, one item decreased, whereas those of 18 items remained unchanged.

    The 34.5 per cent surge in prices is the highest increase since the week ending Sept 15, 2022, when the SPI inflation was recorded at 40.6 per cent.

    The items whose prices increased the most compared to the previous year were onions (up 556.36 per cent), chicken (90.9 per cent), eggs (81.7 per cent), diesel (81.4 per cent), petrol (68.8 per cent), tea (63.9 per cent), broken basmati rice (63.4 per cent), rice Irri-6/9 (62.4 per cent), pulse moong (61.1 per cent), bananas (57.4 per cent), gram pulse (53.2 per cent), bread (48.8 per cent), wheat flour (48.4 per cent), powdered salt (48.1 per cent), maash pulse (46.2 per cent), LPG (43.8 per cent), mustard oil (42.1 per cent), and washing soap (42 per cent).

    Prices of tomatoes (62 per cent), powdered chillies (15.3 per cent), electricity (12.3 per cent) and gur (0.27 per cent) dropped.

    On a week-on-week basis, the highest change was noted in the prices of garlic (17.1 per cent), gram pulse (7.1 per cent), bananas (4.8 per cent), chicken (4.4 per cent), mash pulse (3.9 per cent), masoor pulse (3.9 per cent), mustard oil (3.5 per cent), eggs (3.4 per cent), moong pulse (2.3 per cent), sugar (2.3 per cent), vegetable ghee (2.13 per cent), and broken basmati rice (2.12 per cent), LPG (17.6 per cent), petrol (16.2 per cent), and diesel (15.3 per cent).

    The SPI increased by 1.71 per cent for the lowest-income group (i.e. people earning below Rs17,732 per month) and by 3.3 per cent for the group with a monthly income of more than Rs44,175, according to the PBS.

  • Pakistan will have to agree to ‘unimaginable’ IMF conditions for bailout: PM Shehbaz

    Pakistan will have to agree to ‘unimaginable’ IMF conditions for bailout: PM Shehbaz

    The government will have to accept “beyond imagination” International Monetary Fund (IMF) bailout requirements, according to Pakistan’s Prime Minister (PM) Shehbaz Sharif, who made the statement on Friday in a meeting of civil and military leaders in the northwestern city of Peshawar.

    In order to avoid backlash before the upcoming elections in October, the administration has refused to implement the tax increases and subsidy reductions that the IMF has required.

    “I will not go into the details but will only say that our economic challenge is unimaginable. The conditions we will have to agree to with the IMF are beyond imagination. But we will have to agree with the conditions,” PM Shehbaz said.

    In the midst of political unrest, a deteriorating security situation, and a balance of payments crisis caused by its high levels of foreign debt, Pakistan’s economy is in terrible circumstances.

    The nation’s central bank announced Thursday that its foreign exchange holdings had decreased once again to $3.1 billion, which analysts said was just enough to cover imports for fewer than three weeks.

    On Wednesday, year-over-year inflation reached a 48-year high, making it difficult for Pakistanis to afford food products.

    With the possibility of national bankruptcy looming and no friendly countries prepared to give less painful bailouts, Islamabad started to submit to pressure ahead of the IMF visit.

    To manage a rogue illicit market in US dollars, the government relaxed regulations on the rupee, which led to the currency falling to historic lows. Additionally, artificially low gasoline costs have increased.

    A backlog of thousands of cargo containers filled with material the countrycannot afford is accumulating at Karachi port as a result of the government no longer providing letters of credit, with the exception of necessary food and medication.

    IMF advises Pakistan to fetch additional revenue

    The IMF has suggested the Pakistani government implement significant, high-quality, and long-lasting tax and non-tax revenue initiatives in order to raise extra funds to close the anticipated Rs. 600 billion fiscal framework shortfall.

    Currently in Pakistan, an IMF delegation led by Mission Chief Nathan Porter is having discussions for the ninth review, which will go through February 9.

    After months of resistance, the government was finally obliged to agree to all the terms laid forth by the Washington-based lender due to the country’s declining foreign exchange reserves and deteriorating economic circumstances.

    Following the conclusion of the negotiations under the $6.5 billion Extended Fund Facility, a staff-level agreement is anticipated.

  • Intraday update: Pakistani rupee drops to historic low of Rs278.67 against US dollar

    Intraday update: Pakistani rupee drops to historic low of Rs278.67 against US dollar

    After Finance Minister Ishaq Dar authorised a proposal for charity groups to help raise almost $2 billion from overseas Pakistanis, the Pakistani rupee (PKR) fell by over 2.5 per cent against the dollar during intraday trade on Friday, falling as low as Rs278 against the dollar.

    The rupee was trading at Rs278.67 versus the dollar in intraday trade on the interbank market around 12:50 pm, according to the Exchange Companies Association of Pakistan (ECAP).

    The local currency fell by Rs7.32 from its previous day’s closing rate of Rs271.35 to the US dollar.

    The PKR has lost Rs7 or more versus the US Dollar during intraday trade for the third time in a week.

    Bloomberg reports that Pakistani rupee and dollar bonds fell after Prime Minister Shehbaz Sharif said that the International Monetary Fund (IMF) is making life difficult for the country in the ongoing loan negotiations.

    According to information gathered by the US publication, USD/PKR increases 1.8 per cent to a record 275.0250. Bonds that are due in April 2024 were priced at 56.94 cents on the dollar, down 0.3 cents.

    Experts claim that the market is responding to news stories about the demands put forward by the IMF. In the coming days, rupee losses will intensify if Pakistan is unable to reach a staff-level agreement with the Fund.

  • First-generation Apple iPhone 2G set to sell for Rs1.36 crore at auction

    First-generation Apple iPhone 2G set to sell for Rs1.36 crore at auction

    Apple fans have the chance to own an original 2007 first-generation iPhone – if they are willing to pay the price.

    According to LCG Auctions, where the item is offered for sale, the original 2007 factory iPhone is likely to fetch an amazing $50,000 or more. It is still sealed and unopened in its factory packaging.

    The iPhone had a 3.5-inch screen, a 2-megapixel camera, and 4 or 8 GB of storage when it was originally manufactured. According to CNN, the initial phone was only offered by AT&T on a 2G network and did not have an app store. Time Magazine awarded it the Invention of the Year for 2007.

    The particular iPhone up for grabs is being consigned by its owner, Karen Green, who was gifted the Apple product when it was first released. In a 2019 appearance on “The Doctor & The Diva,” the proud owner said she was gifted the phone but never opened the package as she was happy with her current device.

    She said she held onto it hoping it would come in handy one day. On the air, her 8 GB phone was appraised at $5,000 by Ph.D. Antiques Appraiser Dr Lori.

  • SBP-held foreign exchange reserves now stand at only $3.09 billion

    SBP-held foreign exchange reserves now stand at only $3.09 billion

    According to figures issued on Thursday, the State Bank of Pakistan’s (SBP) foreign reserves fell precipitously by $592 million to just $3.09 billion. This is the lowest level of central bank reserves since February 2014.

    The nation’s total holdings of liquid foreign exchange were $8.74 billion. There were $5.65 billion in net foreign reserves held by commercial banks.

    “During the week ended January 27, 2023, SBP’s reserves decreased by $592 million to $3,086.2 million due to external debt repayments,” the SBP said in a statement.

    The SBP’s foreign exchange reserves decreased sharply last week, falling by a whopping $923 million to only $3.7 billion.

    The central bank reserves, which were around $18 billion at the beginning of 2022 but have significantly decreased, highlight the pressing need for Pakistan to finish the next assessment of the International Monetary Fund (IMF) programme.