Current Final

Category: Business

  • NEPRA announces tariff hike of Rs3.33 per unit for ex-Wapda distribution companies

    NEPRA announces tariff hike of Rs3.33 per unit for ex-Wapda distribution companies

    The National Electric Power Regulatory Authority (NEPRA) has sanctioned an increase of Rs3.3321 per kilowatt-hour (kWh) in the electricity tariff for ex-Wapda distribution companies (XWDISCOs), according to a notification issued on Thursday.

    This tariff adjustment is attributed to fluctuations in fuel charges for April 2024. The increased rate will be itemised separately on consumers’ bills based on the units consumed during that month.

    NEPRA clarified that the revised tariff will apply to all consumer categories except Electric Vehicle Charging Stations (EVCS) and lifeline consumers.

    Previously, the Central Power Purchasing Agency (CPPA), a subsidiary of the Power Division, had requested an additional Rs3.49 per unit to cover the higher fuel costs for April 2024.

    The CPPA-G reported that the actual pooled fuel cost for April 2024 was Rs8.9801/kWh, significantly higher than the reference fuel cost of Rs5.4918/kWh, resulting in a difference of Rs3.4883/kWh.

    “After incorporating the aforementioned adjustments, NEPRA reviewed and assessed a national average uniform increase of Rs3.3321/kWh in the applicable tariff for XWDISCOs on account of variations in the fuel charges for April 2024,” the notification stated.

    Consumers can expect to see this adjustment reflected in their upcoming bills as NEPRA continues to address the variations in fuel costs impacting the electricity sector.

  • Gold price rebounds by Rs2,400 to Rs243,000 per tola

    Gold price rebounds by Rs2,400 to Rs243,000 per tola

    In a notable shift, gold prices in Pakistan surged significantly on Thursday, aligning with an upward trend in international markets.

    The local price of gold per tola (approximately 11.66 grammes) climbed to Rs243,000, marking a substantial single-day increase of Rs2,400.

    Similarly, the price of 10 grammes of gold rose by Rs2,057, reaching Rs208,333. These figures were reported by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA).

    This surge follows a minor decline on Wednesday, when the gold price per tola in Pakistan decreased by Rs400.

    Contrary to the local market trend, the international gold price witnessed a decrease on Thursday.

    According to the APGJSA, the international rate settled at $2,362 per ounce, inclusive of a $20 premium, after experiencing a $30 drop during the day.

    In contrast, silver prices remained stable, with the rate fixed at Rs2,800 per tola.

    It’s noteworthy that back in April, the price of gold in the local market reached an all-time high of Rs252,200 per tola, highlighting the volatility and significant fluctuations in the precious metals market.

  • Budget 2024-25: Pakistan Stock Exchange proposes tax reforms for economic growth

    Budget 2024-25: Pakistan Stock Exchange proposes tax reforms for economic growth

    Pakistan Stock Exchange (PSX) has forwarded a series of significant tax proposals to both the Ministry of Finance (MoF) and the Federal Board of Revenue (FBR) for potential inclusion in the upcoming federal budget for the fiscal year 2024-25.

    These proposed measures are designed to not only bolster revenue but also to incentivise the allocation of resources towards sectors of the economy that are both productive and officially documented. This move is deemed critical for fostering economic growth and generating employment opportunities across Pakistan.

    Notably, PSX has experienced a marked upswing in its performance, largely attributed to recent stability measures implemented within the broader macroeconomic landscape. In the outgoing year alone, the market capitalisation has surged by nearly Rs4 trillion, signifying a substantial boost to economic prosperity.

    Furthermore, foreign investments totaling approximately $132 million have flowed into the country through the stock market since July 2023, underscoring the significance of the stock market in attracting foreign capital.

    It is imperative that both the Ministry of Finance and the FBR carefully evaluate the proposals put forth by PSX to ensure that the stock market remains a vital contributor to economic growth, tax revenues, foreign investment inflows, and the formalisation of the economy. This strategic move is crucial for sustaining the positive momentum witnessed in both the capital market and broader economic recovery efforts.

    PSX stresses the importance of prioritising comprehensive documentation of all economic activities, with capital markets representing one of the most meticulously documented sectors within the economy. A robust capital market ecosystem not only aligns with key economic and social objectives but also serves as a catalyst for expanding the taxpayer base, augmenting savings and investment rates, and mitigating wealth disparities.

    To realise these overarching objectives, investors necessitate a conducive and predictable tax regime. As such, Pakistan Stock Exchange has articulated a range of proposals to the Ministry of Finance and the Federal Board of Revenue, all aimed at fostering a favorable environment for investment and economic growth in the fiscal year 2024-25.

  • Business community seeks budgetary reforms to promote industry growth

    Business community seeks budgetary reforms to promote industry growth

    The business community has called for comprehensive reforms and increased facilities in the upcoming 2024-25 budget to promote industry growth by broadening the tax base.

    According to APP, Ahsan Zafar Bakhtawri, President of the Islamabad Chamber of Commerce and Industry (ICCI), revealed that consultations with the business community have concluded, and their budget proposals have been submitted to the relevant ministry.

    Bakhtawri emphasised the importance of incorporating these proposals into the Federal Budget 2024-25, stating that their implementation would address critical trade and industry issues, enhance business growth, improve government tax revenue, and aid in economic revival.

    He noted that, as in previous years, the ICCI had forwarded its budget recommendations to the Finance Ministry with the expectation of their acceptance.

    He urged the government to engage with the business community and form joint committees at the district level to expand the tax net.

    He also stressed the necessity of enforcing penalties against tax evaders. Furthermore, Bakhtawri suggested that the National Tax Number (NTN) should be mandatory for opening bank accounts and for property and vehicle transactions.

    In a related statement, Karim Aziz, Chairman of the FPCCI Capital Office, echoed these sentiments. Aziz indicated that the chamber had proposed tax reforms to broaden the tax base, aiming to rejuvenate the country’s businesses. He urged the government to consult with all stakeholders in preparing the federal budget.

    Aziz confirmed that the FPCCI had finalised its budget proposals and submitted them to the relevant ministries, advocating for their inclusion in the Federal Budget 2024-25. He reiterated that implementing these proposals would address key trade and industry challenges, facilitate business growth, boost tax revenue, and support economic revival.

    He called for a reformed and simplified taxation system developed in consultation with genuine stakeholders. Aziz also highlighted the need for the upcoming budget to focus on ease of doing business, which would attract much-needed investment and stimulate economic growth.

    Additionally, Aziz stressed the need to enhance exports, reduce imports, and incentivise expatriates to invest in Pakistan.

    The business community’s recommendations reflect a concerted effort to foster an environment conducive to industrial and economic growth, urging the government to consider these proposals seriously in the upcoming budget.

  • Gold price in Pakistan drops by Rs400 per tola despite global surge

    Gold price in Pakistan drops by Rs400 per tola despite global surge

    On Wednesday, the price of gold in Pakistan saw a decrease, with 24-karat gold being sold at Rs240,600 per tola, marking a Rs400 drop per tola. This decline in gold prices reflects a broader trend tied to the reduced purchasing power of consumers.

    The Karachi Sarafa Association reported that the price of 24-karat gold per 10 grammes also fell, reaching Rs206,276, a decrease of Rs343. Similarly, 22-karat gold experienced a drop, now priced at Rs189,086 per 10 grammes.

    While gold prices declined, silver prices remained stable in the domestic market. The price of 24-karat silver stood unchanged at Rs2,820 per tola and Rs2,418 per 10 grammes.

    On the international stage, spot gold traded near $2,331 an ounce, a modest increase of $2.5 or 0.11 per cent from the previous session, reflecting the dynamic nature of global precious metal markets.

    The sustained decrease in local gold prices, despite global fluctuations, underscores the economic challenges faced by consumers in Pakistan, influencing their ability to invest in gold.

  • Govt’s debt rises to Rs5.53 trillion with recent Rs35.4 billion borrowing

    Govt’s debt rises to Rs5.53 trillion with recent Rs35.4 billion borrowing

    The government of Pakistan has secured an additional debt of Rs35.4 billion during the week ending on May 24, 2024, bringing the total net borrowing for the ongoing fiscal year 2024 to Rs5.53 trillion, according to the latest estimates from the central bank.

    Government borrowings this fiscal year have consistently outpaced those of previous years, indicating a persistent reliance on external financing. The borrowing is classified into three primary categories: budgetary support, commodity operations, and other purposes.

    For the week in question, net borrowing for budgetary support amounted to Rs24.52 billion, while loans for commodity operations totaled Rs13.07 billion. Conversely, a net amount of Rs2.19 billion was repaid under the “others” category.

    Cumulatively, for fiscal year 2024, borrowings for budgetary support have reached Rs5.68 trillion. In contrast, there has been a retirement of Rs149.47 billion in loans for commodity operations and Rs5.48 billion for other categories.

    The principal sources of financing for budgetary support are the State Bank of Pakistan and scheduled banks. This fiscal year, the government has repaid a net total of Rs1.07 trillion to the central bank. This repayment includes Rs598.84 billion by the Federal Government, Rs423.28 billion by the Provincial Government, Rs38.19 billion by the AJK Government, and Rs5.16 billion by the GB Government.

    On the other hand, scheduled banks have lent a net total of Rs6.75 trillion. The Federal Government borrowed Rs6.9 trillion from these banks, while the Provincial Government retired Rs151.49 billion.

    This pattern of borrowing underscores the government’s heavy dependence on domestic financial institutions to meet its budgetary needs amidst ongoing economic challenges.

  • Gold price increases by Rs700 to Rs241,000 per tola

    Gold price increases by Rs700 to Rs241,000 per tola

    The price of gold in Pakistan saw a notable increase on Tuesday, with 24-karat gold reaching Rs241,000 per tola, marking a Rs700 rise from the previous session.

    This hike comes despite efforts to maintain prices below their actual value to accommodate the reduced purchasing power among consumers. Currently, gold prices are set Rs3,000 lower than their market cost.

    In a broader context, last week witnessed a mild recovery in Pakistan’s bullion market. The price of 24-karat gold edged up by Rs300, settling at Rs240,300 per tola.

    The Karachi Sarafa Association reported an additional increase this week, with 24-karat gold rising by Rs600 to Rs206,619 per 10 grammes. In comparison, 22-karat gold was priced at Rs189,400 per 10 grammes.

    Silver prices remained stable, with 24-karat silver selling for Rs2,900 per tola and Rs2,486.28 per 10 grammes.

    On the international stage, spot gold traded near $2,331.69 an ounce, experiencing a decline of 0.81 per cent from the previous close. The global gold market is currently influenced by uncertainties surrounding potential interest rate cuts by the Federal Reserve.

    This ambiguity has caused confusion among market participants regarding the future trend of inflation, contributing to the recent depreciation in gold prices.

    The fluctuating gold prices in Pakistan reflect a combination of local economic conditions and international market trends, illustrating the intricate balance between domestic fiscal strategies and global economic influences.

  • Oil marketing companies in Pakistan report 26% increase in sales

    Oil marketing companies in Pakistan report 26% increase in sales

    The sales of oil marketing companies (OMCs) rose by 7 per cent year-on-year (YoY) in May 2024, reaching a nine-month high of 1.39 million tonnes (MTs), compared to 1.30 MTs in May 2023, according to data released by the Oil Companies Advisory Council (OCAC).

    On a month-on-month (MoM) basis, oil sales surged by 26 per cent from April 2024, where sales were recorded at 1.10 MTs.

    In the ongoing fiscal year (11MFY24), cumulative sales stood at 13.83 MTs, a 9 per cent decline from 15.26 MTs recorded during the same period in the previous fiscal year (11MFY23).

    In May 2024, sales of Motor Spirit (MS) and High-Speed Diesel (HSD) increased by 1 per cent and 18 per cent YoY, amounting to 0.61 MTs and 0.64 MTs, respectively. Conversely, sales of Furnace Oil (FO) dropped by 24 per cent YoY to 0.07 MTs.

    On a MoM basis, the sales of MS, HSD, and FO rose by 14 per cent, 37 per cent, and 131 per cent, respectively.

    Attock Petroleum Limited experienced the highest increase in total oil sales, reaching 0.14 MTs, a 14 per cent YoY growth. Shell Pakistan Limited (PSX: SHEL) followed with a 13 per cent YoY increase to 0.10 MTs. 

    Pakistan State Oil (PSO) recorded an 11 per cent rise, reaching 0.67 MTs. In contrast, Hascol Petroleum Limited (HACOL) saw a 39 per cent YoY decline to 0.04 MTs.

    Compared to the previous month, the sales of PSO, APL, SHEL, and HASCOL increased by 19 per cent, 42 per cent, 23 per cent, and 51 per cent MoM, respectively.

    In 11MFY24, all OMCs reported a decline in sales.

    In May 2024, PSO maintained its dominance in the OMC industry with a market share of 47.9 per cent. APL and SHEL held market shares of 10.1 per cent and 7.2 per cent, respectively, during the review period.

  • Pakistan’s trade deficit drops 15.25% amid export surge

    Pakistan’s trade deficit drops 15.25% amid export surge

    Pakistan’s trade deficit for the eleven months of fiscal year 2023-24 decreased by 15.25 per cent year-on-year (YoY) to $21.73 billion, compared to $25.64 billion in the same period last fiscal year.

    The trade deficit in May 2024 slightly increased by 0.1 per cent YoY to $2.11 billion, compared to $2.11 billion in May 2023. However, on a monthly basis, the trade deficit dropped by 15.4 per cent compared to April 2024, when it stood at $2.5 billion.

    According to data from the Pakistan Bureau of Statistics (PBS), exports in May surged by 27.1 per cent YoY to $2.79 billion, up from $2.2 billion in May 2023. Monthly exports also showed a notable increase of 18.8 per cent compared to April 2024, which recorded exports at $2.35 billion.

    On the other hand, imports during May 2024 grew by 13.9 per cent YoY, reaching $4.9 billion, compared to $4.3 billion in May 2023. In comparison to April 2024, imports saw a slight uptick of 1.2 per cent month-on-month (MoM), compared to $4.85 billion.

    These figures reflect a mixed trend in Pakistan’s trade dynamics, with a notable reduction in the annual trade deficit but a slight increase in the monthly deficit, driven by a significant surge in exports and a moderate rise in imports.

  • Gold rate remains unchanged at Rs240,300 per tola

    Gold rate remains unchanged at Rs240,300 per tola

    Gold prices in Pakistan remained unchanged on Monday, mirroring stability in the international market.

    According to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola was steady at Rs240,300, while the 10-gramme gold rate held firm at Rs206,019.

    The stability follows a decrease observed on Saturday, when the price per tola dropped by Rs1,400.

    Internationally, the gold price also saw no movement on Monday, maintaining a rate of $2,326 per ounce, inclusive of a $20 premium, as reported by APGJSA.

    In addition, silver prices in the local market remained steady, with the rate per tola fixed at Rs2,820.

    Pakistani rupee on first trading day of the week witnessed slight depreciation as the local currency dropped by Rs3.37 paisa against the US dollar and closed the day at Rs278.36 per USD.