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Category: Business

  • Russia agrees to supply blended crude oil to Pakistan, rates to be finalised next month

    Russia agrees to supply blended crude oil to Pakistan, rates to be finalised next month

    A delegation from Moscow will visit Islamabad in January 2023 to talk about the potential sale of Russian oil.

    Officials from Russia and Pakistan met via video link to discuss purchasing crude oil and petroleum products from Moscow, according to government sources.

    Musadik Malik, Pakistan’s State Minister for Petroleum, and the Secretary for Petroleum took part in the online meeting.

    Due to Pakistan’s inability to refine crude oil of a single specification, Russia has offered to supply Pakistan with blended crude oil. The offer represents a portion of the daily supply of 100,000 barrels of crude oil.

    Senior officials from the Petroleum Division and representatives from the oil industry made up the Pakistani side, which was chaired by State Minister for Petroleum Dr Musadik Malik, while senior officials from the Russian energy ministry and relevant departments constituted the Russian side.

    The Pakistani government informed its Russian counterparts that their nation needs crude oil, petroleum products, gas, and infrastructure investment, according to sources with knowledge of the meeting’s activities.

    According to The News, when a delegation from Russia visits Pakistan, the Russian side stated that they will further consider their intentions to collaborate with the Pakistani authorities.

  • SBP to start issuing new banknotes with Governor Jameel Ahmad’s signature from today

    SBP to start issuing new banknotes with Governor Jameel Ahmad’s signature from today

    The State Bank of Pakistan (SBP) will start issuing new banknotes on December 29, 2022.

    The new SBP Banking Services Corporation banknotes will include the signature of the new governor, Jameel Ahmad.

    Banknotes containing the signatures of his predecessors will also remain legal tender.

    Earlier, the SBP stated that banknotes of the old design, large-sized banknotes with denominations of Rs10, Rs50, Rs100, and Rs1,000 could be exchanged from the SBP till December 31, 2022.

    The federal government extended the deadline for exchanging old designed large-size banknotes in Notification F.No.2(1)IF-III/2010 until December 23, 2021.

    In a statement, State Bank stated that December 31, 2022, was the “last and final deadline for exchange of such banknotes, upon expiry of which, these banknotes shall no longer be exchangeable from the counters of the SBP Banking Services Corporation (BSC) and thus will lose their value.โ€

  • SBP to lift import restrictions next week

    SBP to lift import restrictions next week

    The government has lifted import restrictions on commodities intended for vehicle manufacturing, mobile production, solar power equipment, and nuclear reactors for power generation projects commencing in 2023, despite Pakistan’s limited foreign exchange reserves.

    Simultaneously, authorised dealers (ADs – largely commercial banks) have been encouraged to prioritise the import of food and energy products. They should consider enabling the import of non-essential and luxury products after first providing for the necessities.

    The State Bank of Pakistan (SBP) reminded ADs on Tuesday that for the past eight months, they had been required to obtain prior permission from the Foreign Exchange Operations Department, SBP-BSC, before initiating any import transaction involving HS Code Chapters 84, 85, and certain items of Chapter 87.

    โ€œIt has now been decided to withdraw instructions (of prior permission) with effect from January 2, 2023. Consequently, requests for import transactions already submitted to SBP-BSC pertaining to referred HS codes stand returned to the ADs for appropriate disposal at their end,โ€ the SBP said in the circular.

    Arif Habib Limited (AHL) Head of Research Tahir Abbas said that the import system may โ€œcontinue to work in its present form. The removal of restrictions will not re-open imports in a full-fledged manner.โ€

    He stated that due to the country’s short foreign exchange reserves, the government has encouraged banks to first allow the import of necessary items before catering to others.

    The SBP advised ADs (commercial banks) to “prioritise and facilitate the import of essential sectors such as food (wheat and edible oil) and pharmaceuticals (raw material, life-saving or essential medicines, and surgical instruments, including stents).”

    According to Express Tribune, the second priority of ADs is to focus on energy imports “like oil, gas, and coal” (for power projects based on the merit order of the Ministry of Energy).

    Imports for export-oriented businesses should be prioritised as well. They should facilitate “imports, especially of raw materials, input goods, and spare parts, by the export-oriented industries,” stated the SBP. Imports of agri-inputs should be the fourth priority of ADs, as explained by SBP: “import of items required as inputs for agriculture (seed, fertilizers, and pesticides).”

  • Flour prices hit record high in Punjab due to inter-provincial smuggling

    Flour prices hit record high in Punjab due to inter-provincial smuggling

    Owing to increased smuggling of wheat and subsidised flour bags to other provinces, the price of flour in the Punjabi capital increased by Rs5 per kilogramme to Rs140.ย 

    Smuggling has exacerbated Punjab’s flour problem, increasing open-market prices to an all-time high. According to sources, the subsidised flour bags were being smuggled into Sindh and Khyber Pakhtunkwa at a cost of Rs2,400 each bag.

    Prices for 10-kg and 20-kg flour sacks in Lahore have risen to Rs1,400 and Rs2,800, respectively, while Chakki flour has risen to Rs140 per kilogramme, according to Dunya News.

    Meanwhile, on Wednesday, the local administration in Jhang stopped an attempt to smuggle flour bags from a local flour factory, seizing nearly 1,000 20 kg bags from a truck.

    According to wheat dealers, the open market price of wheat has risen to Rs4,700 per 40 kg. Furthermore, the rate for a commercial unit of power from 6 pm to 10 pm has risen to a staggering Rs70 to Rs80, severely hurting the economics of grain trading.

    Lahore Atta Chakki Owners Association has requested the government to immediately prohibit the inter-provincial movement of wheat and its products in order to halt the ongoing rise in wheat prices.

  • Yamaha Pakistan increases bike prices by up to Rs13,500 due to an increase in production costs

    Yamaha Pakistan increases bike prices by up to Rs13,500 due to an increase in production costs

    Yamaha Motor Pakistan on Tuesday announced an increase in the prices of its overall motorcycle lineup owing to an increase in production costs.

    According to a notification made in this respect, the Japanese bike manufacturer raised the price of its five models by up to Rs13,500, with the new rates taking effect on January 4, 2023.

    The price of the YB125 Z model has been increased by Rs12,000 to Rs305,500. The price of the YB125 Z DX model has also been increased to Rs327,000 from Rs314,500, according to Geo.

    ModelOld priceRetail price excluding taxSales tax 17 per centNew priceIncrease
    YB 125ZRs293,500Rs261,111Rs44,389Rs305,500Rs12,000
    YB 125Z DXRs314,500Rs279.487Rs47,513Rs327,000Rs12,500
    YBR 125Rs322,500Rs287,179Rs48,821Rs336,000Rs13,500
    YBR125GRs336,000Rs298,718Rs50,782Rs349,000Rs13,500
    YBR 125G
    Matte dark grey    		Rs339,000Rs301,282Rs51,218Rs352,000Rs13,500

  • Landa Bazar traders threaten to close shops due to increased taxes on imported products

    Landa Bazar traders threaten to close shops due to increased taxes on imported products

    Shop owners at Landa Bazaar Karachi have threatened to close their shops in protest of the hike in import tariffs.

    Muhammad Usman, secretary general of the Pakistan Second Hand Clothing Merchant Association, urged that the government remove the increased levies placed on imported cotton clothing at a news conference while threatening to close their stores.

    The spokesperson pointed out that the price of imported used clothing had increased due to government action. With the value of the dollar rising steadily, it is getting harder for people to satisfy their necessities. The authorities have raised the valuation on imported goods in such circumstances, he said.

    It was previously reported on December 23 that the government increased the tax on imported items from Rs81 to Rs225 per kg, forcing the dealers to increase the cost of normally inexpensive shirts, blankets, and other warm clothing.

    In the country’s numerous “Landa Bazars,” shoppers shopping for affordable winter clothing will have to contend with inflationary pressure.

    According to the announcement made in this respect, in addition to the sales tax and customs duty of 5 per cent, which are levied on imported used products, there is also a regulatory charge of 10 per cent and an income tax of 5.5 per cent.

    The price of imported used goods, such as warm clothing, sweaters, blankets, jackets, and shoes, as well as children’s toys, would increase as a result of the tax rate increase.

  • Suzuki to halt car and bike production in January 2023 due to parts shortage

    Suzuki to halt car and bike production in January 2023 due to parts shortage

    Following in the footsteps of Toyota Indus Motor Company (IMC), Pak Suzuki Motor Company (PSMC) has said that its production facility will be totally shut down from January 2 to 6, as a result of a ban on the import of auto parts.

    The automaker, in a notice sent to the Pakistan Stock Exchange (PSX), said that the State Bank of Pakistan (SBP) has introduced a mechanism for prior approval for import under “HS code 8703 category (including completely knocked down – CKDs) vide circular No.09 of 2022 dated May 20, 2022”.

    โ€œRestrictions had adversely impacted clearance of import consignment which resultantly affected the inventory levels.”

    “Therefore, due to shortage of inventory level, the management of the company has decided to shut down its plant for the automobile as well as a motorcycle for the period from January 2 to January 6, 2023,โ€ PSMC said.

    It is important to note that this is not the first time that Suzuki, one of the country’s top-selling automakers, has closed a production facility. Several shutdowns have already been announced in 2022 by some well-known automakers, including Honda and Toyota.

    PSMC is involved in the assembly, progressive manufacturing, marketing, and distribution of Suzuki vehicles, pickup trucks, vans, 4x4s, motorcycles, and associated spare parts.

    According to Geo, due to the central bank’s limits on the opening of letters of credit (LCs) as a result of a severe liquidity crunch, Pakistan’s car sector, which is heavily dependent on imports, is currently experiencing serious difficulties.

  • Russia may send natural gas supplies to Pakistani markets in long term: Russian Deputy PM

    Russia may send natural gas supplies to Pakistani markets in long term: Russian Deputy PM

    According to Russian Deputy Prime Minister Alexander Novak, Moscow is ready to resume gas supplies to Europe via the Yamal-Europe Pipeline and can also send supplies to Pakistan and Afghanistan in the long term.

    โ€œThe European market remains relevant, as the gas shortage persists, and we have every opportunity to resume supplies,โ€ย TASSย cited Novak as saying in remarks published by the agency on Sunday.

    โ€œFor example, the Yamal-Europe Pipeline, which was stopped for political reasons, remains unused.โ€

    The Yamal-Europe Pipeline normally flows westward, but it has been mostly reversed since December 2021, when Poland chose to draw on stored gas in Germany rather than buy from Russia.

    Warsaw canceled its arrangement with Russia in May, after previously rejecting Moscow’s demand that it pay in roubles.

    Gazprom, Russia’s largest supplier, responded by cutting off supply and announcing that it would no longer be allowed to export gas through Poland after Moscow slapped sanctions on the company that operates the Polish section of the Yamal-Europe pipeline.

    Novak also stated that Moscow is exploring increased gas deliveries via Turkey following the establishment of a hub there.

    He also stated that by 2022, Moscow intends to have exported 21 billion cubic meters (bcm) of liquefied natural gas (LNG) to Europe.

    โ€œThis year we were able to significantly increase LNG supplies to Europe,โ€ Novak said. โ€œIn the 11 months of 2022, they increased to 19.4 bcm, by the end of the year 21 bcm are expected.โ€

    Novak also stated, in a wide-ranging interview with the TASS news agency, that in the long run, Russia can provide natural gas to the markets of Afghanistan and Pakistan, either through Central Asian infrastructure or through an exchange from Iranian territory.

    He also stated that Russia and Azerbaijan have agreed to enhance gas supplies for domestic usage.

    โ€œIn the future, when they increase gas production, we will be able to discuss swaps,โ€ he said.

    Moscow is also discussing higher supplies of its gas to Kazakhstan and Uzbekistan, he said.

  • McDonaldโ€™s opens first โ€˜mostly automatedโ€™ outlet and foodies are โ€˜not lovinโ€™ itโ€™

    McDonaldโ€™s opens first โ€˜mostly automatedโ€™ outlet and foodies are โ€˜not lovinโ€™ itโ€™

    The renowned fast food chain McDonald’s has opened an automated outlet in Texas, which is a first of its kind. The restaurant allows customers to order food without requiring a kiosk or a smartphone app.

    Without any human interaction, customers will get their orders on the conveyor belt. The restaurant lacks any seating or set-ups for eating inside since it is meant to be a “grab and go” outlet.

    This unique McDonald’s is smaller than other McDonald’s, and the restaurant’s primary objectives are to improve accuracy and order speed. Instead of waiting and ordering at the restaurant, guests can place their orders before they arrive.

    The business claimed to be creating fresh approaches to provide clients with faster, more effective service.

    Although there are still people working in the restaurant to prepare the food, the new approach only eliminates client interaction. According to the restaurant’s franchisor, Keith Vanecek, the new strategy enables the restaurant team to focus more on order speed, enhancing the effectiveness and enjoyment of both the customer and employee experiences.

    The food chain has, however, come under heavy fire for automating the process since it would harm people’s jobs. At $7.25 per hour, Texas’ minimum wage is one of the lowest in the country. Additionally, reducing employment in such a situation scares those who are already wary of automation and robots taking jobs away from people.

    Many individuals opposed the plan and posted their opinions and personal experiences on social media.

    https://twitter.com/parismarx/status/1606290843144376320
    https://twitter.com/SparkDreamers/status/1606147148499849216

    A Twitter user said that it would result in the elimination of jobs for restaurant employees. Another user said that after speaking with Google and Siri, he now needs to communicate with yet another robot.

    While McDonald’s believes that the strategy will improve the consumer experience.

  • Suzuki announces free registration for Wagon R amid sales slump, production issues

    Suzuki announces free registration for Wagon R amid sales slump, production issues

    Suzuki Wagon R buyers can now benefit from a free registration offer on the purchase of an automatic gear shift (AGS) variant thanks to a limited-time offer from Pak Suzuki Motor Company (PSMC).

    According to sources, the automaker is expected to deliver the vehicle 45 to 90 days from the time of booking.

    The company made the announcement on its official Facebook account, stating:

    Donโ€™t wait to avail this amazing offer. Offer is valid across all Suzuki Authorized Dealerships for a limited time only. Terms and conditions applied.

    The Suzuki Wagon R’s base price will drop as a result of this, as stated by the Islamabad Excise and Taxation Department, which states that the registration cost for all vehicles with an engine capacity of under 1000cc is equal to 1 per cent of the car’s original price.

    Meanwhile, Suzuki has not yet made a formal announcement or acknowledged any rumours that the company may be considering retiring the Wagon R owing to weak sales, significant price increases, and production problems.

    Prior to the Suzuki Alto, the 1000cc Wagon R was one of the most popular vehicles on the local auto market.