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Category: Business

  • Toyota announces second price hike in less than 20 days due to economic uncertainties

    Toyota announces second price hike in less than 20 days due to economic uncertainties

    Toyota Indus Motor Company (IMC) has announced a second price increase for its vehicles in January 2023, following a significant depreciation of the Pakistani rupee against the US dollar.

    According to the company’s statement, they are facing difficulties in maintaining their current prices due to the economic uncertainties and volatility of the PKR.

    “This situation has made it extremely difficult for IMC to hold on to the current retail selling prices, and therefore, we are compelled to pass on some impact to the market,” the company said in a statement.

    Toyota also stated that the price increase is subject to change and that the prices in effect at the time of delivery will continue to apply to all orders.

    “Any change in government levies and taxes (including FED, Sales Tax, CVT, etc.), tariffs, fiscal policies, import policies, etc., will be on the account of the customer,” the automaker said.

    This latest price increase for Toyota vehicles comes at a time when Pakistan’s economy is already struggling. Moreover, experts believe that this won’t be the only price hike, as the continued volatility of the PKR will pressure other manufacturers and importers as well.

    Here are the new prices of all cars:

    ModelOld price (Rs)New price (Rs)
    Yaris GLI MT 1.33,819,0004,079,000
    Yaris GLI CVT 1.34,069,0004,339,000
    Yaris ATIV MT 1.34,039,0004,309,000
    Yaris ATIV CVT 1.34,239,0004,529,000
    Yaris ATIV X MT 1.54,339,0004,649,000
    Yaris ATIV X CVT 1.54,609,0004,929,000
    Corolla Altis X MT 1.64,939,0005,269,000
    Corolla Altis 1.6 X CVT-i5,369,0005,749,000
    Corolla Altis 1.6 X CVT-i SE5,909,0006,319,000
    Corolla Altis Grande X CVT-11.8 Beige6,169,0006,609,000
    Corolla Altis Grande X CVT-i1.8 Black6,209,0006,649,000
    Revo V AT 2.811,429,00012,239,000
    Revo V AT Rocco12,049,00012,899,000
    Fortuner 2.7 G Petrol12,509,00013,419,000
    Fortuner 2.7 V Petrol14,319,00015,359,000
    Fortuner 2.8 Sigma 4 Diesel15,099,00016,189,000
    Fortuner Legender Diesel15,909,00017,069,000
  • ‘Misleading and incorrect’: OGRA rejects speculations about massive petrol price hike

    ‘Misleading and incorrect’: OGRA rejects speculations about massive petrol price hike

    The Oil and Gas Regulatory Authority (OGRA) on Saturday rubbished rumours about a whooping increase of Rs80 per litre in petrol price.

    “It has been observed that speculative prices of gasoline and diesel are being reported in the print and electronic media since last evening, which is misleading and incorrect,” an OGRA spokesman said in a press statement.

    He advised the elements to avoid disseminating speculative prices of petroleum products in the “public interest” by spreading misleading and incorrect information.

    Earlier, OGRA also denied reports of a shortage of diesel and gasoline in the country, saying that sufficient stocks were available. However, in line with the government’s aim to convince the International Monetary Fund (IMF), the Ministry of Finance is expected to increase the price of petroleum in the upcoming fortnightly review.

    The massive depreciation of the local currency against the US dollar in the last two days would not reflect greatly in the review due on January 31 (Tuesday) as the average exchange rate would clock in at Rs240, information gathered from the country’s oil sector showed.

    However, the fortnightly review due on February 15 may reflect a significant increase in domestic petroleum prices on account of rupee depreciation.

    Free on board (FOB) pricing will result in a significant increase in the price of fuel and gasoline in the subsequent weekly review the following week, according to The News.

    According to sources with knowledge of the situation, using FOB would likely result in an increase of Rs25 in the price of fuel. “The exchange rate would create some hike, but not so much”, they said, attributing the hike to FOB as diesel price in the international market went up to $117 per barrel compared to $114 per barrel.

  • IMF mission to visit Pakistan next week to discuss stalled bailout programme

    IMF mission to visit Pakistan next week to discuss stalled bailout programme

    At the end of this month, an IMF delegation will travel to Pakistan to discuss the stalled ninth review of the country’s ongoing funding programme.

    The IMF provided Pakistan with a $6 billion bailout in 2019, which was increased by an additional $1 billion in 2022. However, the lender halted disbursements in November because Pakistan had not made further progress on fiscal reduction and economic reforms.

    “At the request of the authorities, an in-person Fund mission is scheduled to visit Islamabad January 31st–February 9th to continue the discussions under the ninth EFF review,” according to IMF Resident Representative in Pakistan Esther Perez Ruiz.

    A successful visit is crucial for Pakistan, which is facing an increasingly acute balance of payments crisis and is desperate to secure external financing with less than three weeks’ worth of import cover in its foreign exchange reserves.

    Multilateral and bilateral financing pledges for the cash-strapped country’s effort to rebuild after devastating floods last year are also tied to the country getting the green light from the IMF.

    According to Ruiz, the mission’s main objectives would be power sector reforms and local and international sustainability restoration strategies, such as strengthening the budgetary situation while aiding flood victims.

    The reinstatement of a market-based process to decide the value of the Pakistani rupee would also be discussed, she added. The country must have such a structure in place before receiving IMF assistance, but up until this week, it had not done so.

    The relaxation of price ceilings that the government had established but that the IMF disagreed with has resulted in a loss of close to 10 per cent of the value of the Pakistani rupee in just two days.

    In just two days, the local currency has lost close to 10 per cent of its value after the removal of price caps imposed by the government, which the IMF opposed.

    Stronger policy initiatives and reforms, according to Ruiz, are essential for Pakistan to get financial help from official partners and the markets and to lessen the high level of uncertainty that is weighing on its future.

    Market observers claimed that the IMF programme was trying to be restarted when the price limitations were abruptly removed.

  • Intraday update: Pakistani rupee drops to Rs268.30, losing more than Rs12 versus US dollar

    Intraday update: Pakistani rupee drops to Rs268.30, losing more than Rs12 versus US dollar

    Pakistani rupee (PKR) continued its downward trend on Friday, with the rupee declining over Rs12 versus the US dollar in the interbank market. The local currency was trading at Rs268.30, compared to yesterday’s close of Rs255.43 in the interbank market.

    The dollar has gained Rs30.41 in the interbank market since Thursday as exchange companies removed the dollar cap, a key demand of the IMF as part of a bailout programme agreed upon in 2018.

    PKR fell to Rs265 against the US dollar in the open market, a decline of Rs3 compared to the day before.

    The removal of the cap on the dollar rate took the currency market by surprise and resulted in extreme volatility. Experts termed it a “much-awaited adjustment” and predicted that it would help in increasing export proceeds and inward remittances through legal banking channels.

    The difference in rates between the interbank and open markets owing to the price cap removal, which had widened to Rs15 in recent months, was almost wiped out.

    The country’s foreign exchange reserves have depleted to a critical level, falling to $3.678 billion in the week ending January 20. This is not enough to finance even three weeks of imports.

    This is a developing story and will be updated after interbank closing.

  • Gold price hits all-time high of Rs195,500 per tola after removal of an unofficial dollar cap

    Gold price hits all-time high of Rs195,500 per tola after removal of an unofficial dollar cap

    Gold prices in Pakistan continued their record-breaking spree as the price of 24-carat gold reached an all-time high of Rs195,500 after gaining Rs4,900.

    In addition, the price of 10 grammes also witnessed an increase of Rs4,201 to settle at Rs167,610, according to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA).

    Moreover, the bullion rate in the international market reached $1,936 after a surge of $11.

    The Pakistani rupee (PKR) on Thursday dropped drastically to approach an all-time low, days after exchange companies abolished the cap on the rupee-dollar exchange rate.

    The sudden hike in yellow metal prices comes as the weakening rupee pushed investors to the safety of bullion to hedge against intensifying economic turmoil in the country.

    On Thursday, the local currency crashed to approach another historic low, as it dropped to Rs255.43 versus the US dollar in the interbank market, sliding Rs24.54 or 9.61 per cent from Wednesday’s close, according to the State Bank of Pakistan.

  • Pakistani rupee witnesses biggest single-day decline against dollar in more than two decades

    Pakistani rupee witnesses biggest single-day decline against dollar in more than two decades

    Pakistani rupee dropped significantly against the US dollar in the interbank market on Thursday, as it fell more than 9 per cent during the intraday trade. Around 1:30 PM, the dollar’s intraday quote was Rs254.75, which represents a depreciation of Rs23.86.

    According to Ismail Iqbal Securities, “This is the largest single-day decline in both absolute and percentage terms, at least since 2000.”

    Earlier in the day the local unit was trading under Rs231.

    Experts predicted that as Pakistan attempted to meet the International Monetary Fund’s (IMF) requirements to renew its bailout programme, the local currency would depreciate significantly in the coming days.

    While speaking to Brecorder, the Head of Research at Ismail Iqbal Securities Limited, Fahad Rauf, said it seems like the rupee has been let go today.

    “This is a market-driven rate,” Rauf said. “This is a sign that we are moving closer to reviving the stalled IMF programme.”

    The market expert said the development was much-needed, as capping the interbank rate only led to the creation of the grey market. He said that the development will improve the greenback supply to a significant extent.

    On Wednesday, the rupee registered a loss for the 26th successive session against the dollar to settle at Rs230.89, a decrease of Re0.49 or 0.21 per cent.

    Pakistani rupee on Thursday fell 9.61 per cent or Rs24.54 to a shocking all-time low of Rs255.43, according to the State Bank of Pakistan (SBP).

  • Dar assures US of Pakistan’s commitment to the IMF ‘despite challenging economic conditions’

    Dar assures US of Pakistan’s commitment to the IMF ‘despite challenging economic conditions’

    Pakistan gave the United States reassurance on Wednesday that it was still committed to the International Monetary Fund (IMF) programme as the nation’s reserves fell to barely enough to cover one month’s worth of imports following another $500 million loan repayment.

    According to a formal statement from the Ministry of Finance, Finance Minister Ishaq Dar met Robert Kaproth, Deputy Assistant Secretary of the US Department of the Treasury for Asia.

    The status of the IMF programme was discussed by both parties during the meeting. Dar informed the US official about Pakistan’s efforts to reactivate the IMF programme.

    “Despite challenging economic conditions, the government is focusing on fixing things in the right direction and introducing reforms in all sectors including the energy sector and capital market to achieve economic growth and development,” Dar told Robert.

    Pakistan has been asked by the IMF to maintain a market-based currency rate, remove import restrictions, raise taxes, and raise electricity rates. However, the administration has not yet implemented any of these steps and is holding off until there has been a formal interaction with the international lender.

    According to Express Tribune, the summit was held as foreign exchange reserves were sharply declining, falling to only two weeks’ worth of import coverage, the lowest level in more than nine years.

  • Pak Suzuki increases motorcycle prices by up to Rs25,000

    Pak Suzuki increases motorcycle prices by up to Rs25,000

    Pak Suzuki Motor Company Ltd. (PSMCL) has increased motorcycle prices by Rs20,000-25,000, effective February 1st.

    The new rate for GD110 S, GS150, GSX125, and GR150 is Rs264,000, Rs286,000, Rs384,000, and Rs410,000.

    However, the company’s communication to authorised dealers lacked any explanation for the price increase.

    PSMCL had temporarily ceased taking new bike orders as of January 20 due to supply chain constraints based on imports and unpredictable production capacity in the current economic climate.

    Read more: Latest Suzuki car prices

    Pak Suzuki has been enjoying a smooth journey, recording sales of 20,762 units in FY23 compared to 18,030 at the same time last fiscal year, as sales of all two-wheeler assemblers have remained flat due to rising prices, quality problems, and affordability difficulties.

    The assembler of Hi-Speed motorcycles has also increased the rate by Rs25,000 of 150cc Infinity and 200cc Freedom followed by a Rs2,500-Rs3,500 hike in 70cc-125cc motorcycles.

  • Suzuki Swift GLX now costs more than Rs4.1 million after recent price hike of Rs355,000

    Suzuki Swift GLX now costs more than Rs4.1 million after recent price hike of Rs355,000

    As expected, Pak Suzuki Motor Company (PSMC) has announced a price hike for all cars after Toyota Indus Motor Company (IMC) and Honda Atlas Cars Limited (HACL).

    The revised retail sale prices will come into effect from January 25, 2023, according to PSMC.

    Here are the new prices:

    ModelOld Price (Rs)New Price (Rs)Increase (Rs)
    Alto VX1,699,0001,859,000160,000
    Alto VXR 1,976,0002,156,000180,000
    Alto VXR AGS 2,120,0002,310,000190,000
    Alto AGS2,223,0002,423,000200,000
    Wagon R VXR 2,421,0002,629,000208,000
    Wagon R VXL 2,564,0002,789,000225,000
    Wagon R AGS 2,802,0003,059,000257,000
    Cultus VXR 2,754,0003,039,000285,000
    Cultus VXL 3,024,0003,339,000315,000
    Cultus AGS 3,234,0003,569,000335,000
    Swift GL MT3,180,0003,479,000299,000
    Swift GL CVT3,420,0003,742,000322,000
    Swift GLX CVT3,760,0004,115,000355,000
    Ravi 1,424,0001,539,000115,000
    Ravi w/o Deck 1,349,0001,464,000115,000
    Bolan Van 1,500,0001,619,000119,000
    Bolan Cargo1,487,0001,606,000119,000

    Surprisingly, the automaker has announced the highest price increase for its flagship hatchback, the Suzuki Swift GLX variant, which will now be sold for Rs4.115 million, a Rs355,000 increase from its previous price of Rs3.760 million. 

    Read more: Honda cars latest prices

    According to the notification from PSMC, the revised retail prices include the FED and sales tax but exclude advance income tax, with another condition that the prices are subject to change without notice at the time of delivery.

  • Exchange companies remove cap on dollar-rupee exchange rate to abolish grey market

    Exchange companies remove cap on dollar-rupee exchange rate to abolish grey market

    The exchange companies have decided to stop artificially keeping Pakistani rupee (PKR) overvalued against US dollar in the open market and let the rupee-dollar exchange rate depreciate to its actual value.

    Pakistani rupee may steadily lose value until it reaches the level of the grey market in a few days, according to reports.

    The black market price of local currency is currently between Rs250 and Rs260 per US dollar, although traders had artificially kept the rate at Rs238 till Tuesday.

    “The association has decided to remove cap on rupee-dollar exchange rate,” Exchange Companies Association of Pakistan (ECAP) President Malik Bostan said in audio and video messages after chairing a zoom meeting on Tuesday.

    “The move would help eliminate black currency markets, increase flow of foreign currencies to the dealers and available to public (for international travelling, education and hospital fees and etc.”

    He said that in the interest of the country, traders voluntarily opted to restrict the exchange rate. But the choice led to an underground market for cash that seemed to be more detrimental to the country.

    “People were buying dollars from open market (at Rs238) and selling in black market (at Rs250-260), making it a business to mint profit,” he said, adding no one was coming to the dealers’ counters to sell foreign currency which resulted into drying up supplies on the other hand.

    According to ECAP General Secretary Zafar Paracha, the decision to abolish the exchange rate ceiling will aid in the eradication of the black market and restore the inflow of foreign money from the illicit system into the legitimate one.

    Additionally, the government has been urged by the International Monetary Fund (IMF) to relinquish control over the rupee-dollar exchange rate in the interbank market and allow market forces to decide the rate while taking the demand and supply of US dollars into account.

    Accordingly, it is anticipated that the local currency would also reach Rs250-260 in the interbank market as compared to the US dollar.

    Pakistan technically has three currency markets, including the interbank, open, and black markets. As a result, each of the three markets is providing a different rate.

    The black currency market was formed after Finance Minister Ishaq Dar tried to keep the currency artificially overvalued at Rs180–200 to the US dollar after returning to the ministry in late September 2022.

    The currency, therefore, appreciated to Rs218 in the early days of October from its all-time low of Rs240 the first time in late July 2022 and the last time in September 2022.

    Dar opened an investigation against the commercial banks, blaming them for market forces that had artificially devalued the currency to Rs240 per dollar.

    Governor State Bank of Pakistan (SBP) Jameel Ahmed said that the central bank has completed the investigation against 13 commercial banks allegedly involved in rupee-dollar parity manipulation.

    “The central bank is all set to take action against them in days (instead weeks and months). The action could be fiscal or regulatory one,” he added.