Category: Business

The most important business news, explained in a young, easy to understand way. News that affects young career professionals.

  • Pakistan’s biggest tractor manufacturer announces to shut down operations

    Pakistan’s biggest tractor manufacturer announces to shut down operations

    The biggest manufacturer of agricultural machinery in Pakistan, Millat Tractors Limited, has stated that it will cease operations starting on January 6 and continuing till further notice, citing weak demand and cash flow issues.

    Details indicate that Millat Tractors, a producer of agricultural machinery and tractors, informed the Pakistan Stock Exchange (PSX) of the situation in a letter.

    “Due to continuing reduced demand for tractors and cash flow constraints, the company will remain closed from Friday, January 6, 2023, till further notice,” the statement added.

    The development occurred as a number of other businesses recently declared a shutdown or reduction in operations in Pakistan due to a decline in demand, a scarcity of inventory, or issues with the supply chain.

    The federal government’s import restrictions forced KSB Pumps Company Limited (KSBP) to close its production facility in Pakistan earlier on January 3.

    Due to the import ban, KSB announced that operations at its Hasanabdal factory would be temporarily suspended beginning January 2, 2023. The company also informed the Pakistan Stock Exchange of their decision.

  • Amazon to cut over 18,000 jobs citing economic uncertainty

    Amazon to cut over 18,000 jobs citing economic uncertainty

    Amazon has announced it will cut more than 18,000 jobs from its workforce, the largest set of layoffs in the US company’s history, as it battles to save costs.

    The company’s e-commerce and human resources departments will be primarily impacted by the layoff decisions, which Amazon will announce on January 18.

    The layoffs represent 6 per cent of Amazon’s almost 300,000 corporate employees and are a striking turnabout for a business that just tripled its base pay level in an effort to compete more fiercely for talent, according to BBC.

    With around 1.5 million employees overall, including warehouse workers, Amazon is the second-largest private employer in the United States (US), after Walmart Inc.

    CEO Andy Jassy claimed in the message that the unstable economy and the increased hiring over the last few years have made this year’s annual planning more difficult.

    Amazon, whose stock price has more than halved in the past year, has prepared for slower growth as rising inflation has led both businesses and consumers to reduce spending. The company’s financial situation has drastically declined. It changed from a delivery service that was deemed essential during the epidemic to one that was overbuilt in comparison to overall demand.

    Jassy’s statement was published after the Wall Street Journal reported that over 17,000 staff would be let go. He claimed that as a result of a leak, Amazon decided to break the news without first informing worried staff.

    Amazon plans to pay severance and is still required to submit some legal notices regarding significant layoffs. Jassy claims that Amazon has survived unstable and difficult economic times in the past and will do so in the future.

  • Pakistan Customs foils attempt to smuggle chalia worth Rs2.6 crore in Karachi

    Pakistan Customs foils attempt to smuggle chalia worth Rs2.6 crore in Karachi

    An operation on Karachi’s Northern Bypass to smuggle chalia (betel nuts) worth millions was thwarted on Wednesday by Pakistan customs intelligence.

    According to information, the anti-smuggling squad of Pakistani customs stopped a dumper on the northern bypass of Karachi during an intelligence-based operation.

    In response to a tip, the customs team put in place intense surveillance, which resulted in the seizure of a dump truck carrying betel nuts worth around Rs26 million. A case has been filed, and further investigation is underway.

    The dangerous drug chalia (betel nuts), according to the customs inspectors, was concealed in the stones and several other cars were in the convoy with the dumper.

    Four non-custom-paid cars were also seized by the customs inspectors. The vehicles and chalia (betel nuts) are valued at Rs55 million.

    In an earlier large-scale operation, Pakistan Customs in Karachi seized non-duty-paid products worth over Rs160 million.

    The Pakistan Customs anti-smuggling team conducted the operations in various Karachi neighbourhoods.

    In another raid, the Pakistani customs team seized significant quantities of betel nuts, cigarettes, and gutka from a bus after acting on a tip-off in Liaquatabad. The items reportedly cost Rs26 million.

  • Govt retrieves precious property worth Rs23 billion from illegal occupants

    Govt retrieves precious property worth Rs23 billion from illegal occupants

    The Evacuee Trust Property Board (ETPB) has retrieved more than 3,500 acres of property worth Rs23 billion from illegal occupants, along with Rs650 million in rent arrears.

    This was revealed during the press conference alongside the ETPB chairman by Dr Shoaib Suddle, the chairman of the One Man Commission, according to The News. He claimed that in accordance with the Supreme Court’s instructions, a forensic audit of the trust board was carried out. Based on the audit’s findings, a plan of action was decided with the help of the ETPB and FIA.

    He said that the department’s revenue will increase as a result of the chairman board’s use of contemporary systems including the online billing system, complaints, geo-tagging, and e-office.

    The department had disposed of valuable trust land/property worth billions of rupees with the aid of FIA, the biggest undertaking in the board’s history to date, the ETPB chairman told the media representatives.

    In response to a query, he stated that various review sessions are held with the Trust Board and the FIA in accordance with the directives of the One-Man Commission, during which the action plan is formally implemented. Temples and Gurdwaras that are still in use have been renovated, and security measures have been improved.

  • Traders reject govt’s early market closure plan

    Traders reject govt’s early market closure plan

    The federal government’s proposal to close all markets and restaurants by 8:30 pm. as part of a new energy conservation plan has been opposed by traders across the nation, who claim that such measures cannot be used to save energy.

    The chief of Markazi Tanzeem-e-Tajran Pakistan (MTTP), Kashif Chaudhry, said that the government had developed the policy without consulting the business community and had failed to adhere to the energy conservation plan.

    “It is not possible to save energy by such measures,” Kashif Chaudhry said, warning of “strong resistance” if the government tried to forcefully close the market.

    He regretted the fact that the administration opted to enact its “unilateral” action despite loud protests and assurances from the authorities.

    In an effort to conserve energy, he urged that the government forbid its employees from using heaters and air conditioners in their workplaces. He said that since we buy the most expensive electricity, advantageous plans should be developed for us.

    Meanwhile, the president of the Karachi Electronics Dealers Association, Rizwan Irfan, disclosed that the Sindh government has met with owners of wedding venues and restaurants over the energy-saving strategy.

    During the meetings, he claimed, all parties involved agreed that markets and malls should be permitted to stay open until 9 or 10 pm., while eateries and wedding venues should be permitted to stay open until 11 or 12 pm.

    “However, despite the Sindh government’s assurance, they imposed a unilateral decision,” Irfan lamented, asking the government to bear their expenses.

    Additionally, Ilyas Memon, president of the Saddar Traders Association, claimed that the decision to close markets early amounted to the destruction of enterprises.

    “The police and the administration should not harass the businessmen,” he said, adding that the Sindh government should not file an FIR as per the decisions taken in the consultation meeting.

  • Govt raises ghee price by Rs75 per kg, sugar by Rs19 per kg

    Govt raises ghee price by Rs75 per kg, sugar by Rs19 per kg

    The government-run Utility Store Corporation (USC) has increased the price of sugar, flour, ghee, and other food items despite the prime minister’s relief package.

    Utility stores increased the price of sugar by Rs19 per kg, ghee by Rs75 per kg, and 20 kg bag of flour by Rs496.

    According to the notification, the new prices will go into effect at utility stores all around the nation on January 1, 2023.

    The Benazir Income Support Programme’s (BISP) deserving beneficiaries will not be subject to the new pricing.

    Prime Minister Shahbaz Sharif had previously stated that Food Stores Corporation would provide targeted subsidies on basic food items. These products included rice, lentils, ghee, sugar, and flour. Customers who are registered in the Benazir Income Support Programme are eligible to purchase food from the Food Stores outlets at discounted prices.

    In the meantime, the Food Stores Corporation has instructed all of its clients and consumers to SMS their Computerized National Identity Card numbers from their mobile phones to 5566. After receiving a one-time password, they can then purchase goods and apply for subsidies.

  • Twitter sued for failing to pay San Francisco office rent

    Twitter sued for failing to pay San Francisco office rent

    Elon Musk’s social media company is being sued by California Property Trust, the owner of the building where Twitter’s headquarters are located, for failing to pay $136,250 in rent.

    Bloomberg reports (via The Verge) that on December 16th, the company informed Twitter that it would be in breach of its contract for the 30th floor of the Hartford Building in San Francisco if it did not make the unpaid rent payment within four days.

    Twitter was said to have disobeyed the order by California Property Trust in a complaint submitted this week to the San Francisco County Superior Court.

    The New York Times reported on December 13 that Twitter had just stopped paying rent on all of its international locations to reduce costs. In addition, the business is being sued for failing to reimburse Musk for $197,725 in charter flights he took during his first week working for Twitter. In the same time frame, Musk is said to have bolstered Twitter’s legal team with “more than half a dozen” attorneys from SpaceX.

  • Petrol price to remain unchanged at Rs214.80 per litre for next fortnight

    Petrol price to remain unchanged at Rs214.80 per litre for next fortnight

    Finance Minister Ishaq Dar announced on Saturday that the government will maintain the price of petroleum products for the next two weeks.

    In a video statement, he said that the Oil and Gas Regulatory Authority (OGRA) requested an increase in domestic rates of petroleum products because of the upward trend in oil prices. However, he said that the price revision was rejected by the government.

    The price of petrol will remain unchanged at Rs214.8 per litre while diesel will be sold at Rs227.80 per litre till mid-January 2023.

    Kerosene oil will be sold at Rs171.83 per litre while light diesel oil will be sold at Rs169 per litre.

    “Kerosene is used by the low-income segment for heating needs,” the finance minister said.

    Previously, the market anticipated that the cost of petroleum products would remain unchanged.

  • Weekly inflation jumps by over 29% due to rising food prices

    Weekly inflation jumps by over 29% due to rising food prices

    The Sensitive Price Indicator (SPI) based inflation for the week ended December 29, recorded a decline of 0.09 per cent due to a reduction in the prices of food and non-food items, according to the Pakistan Bureau of Statistics (PBS).

    The year-on-year trend shows an increase of 29.30 per cent owing to an increase in the prices of onions (498.08 per cent), tea lipton (65.41 per cent), diesel (65.05 per cent), chicken (64.20 per cent), petrol (52.19 per cent), salt powdered (51.99 per cent), eggs (49.11 per cent), pulse moong (46.94 per cent), bananas (45.06 per cent), pulse gram (44.42 per cent) and mustard oil (41.64 per cent), while decrease is observed in the prices of chillies powdered (34.18 per cent), electricity for q1 (13.96 per cent) and gur (1.38 per cent).

    During the week, out of 51 items, prices of 23 (45.10 per cent) items increased, 07 (13.72 per cent) items decreased and 21 (41.18 per cent) items remained stable.

    The SPI for the consumption group up to Rs17,732, Rs17,732-22,888, Rs22,889-29,517 and above Rs44,175 decreased by 0.07 per cent, 0.12 per cent, 0.03 per cent and 0.12 per cent respectively while it increased by 0.02 per cent for the consumption group Rs29,518-44,175.

    The items, which recorded an increase in their average prices during the week over previous include eggs (2.86 per cent), rice basmati broken (2.81 per cent), wheat flour bag 20 kg (2.81 per cent), bread plain (2.76 per cent), firewood whole 40 kg (2.49 per cent), LPG (1.61 per cent), energy saver (1.27 per cent), bananas (1.18 per cent), gur (0.99 per cent), garlic (0.90 per cent), pulse masoor (0.80 per cent), mustard oil (0.72 per cent), rice irri-6/9 (0.60 per cent), pulse mash (0.54 per cent), tea prepared (0.45 per cent), sufi washing soap (0.28 per cent), pulse gram (0.26 per cent), onions (0.25 per cent), curd (0.23 per cent), chicken (0.20 per cent), milk fresh (0.15 per cent), pulse moong (0.12 per cent) and beef with bone (0.02 per cent).

    The items, which saw a reduction in their average prices included potatoes (8.85 per cent), tomatoes (6.02 per cent), electricity charges (2.44 per cent), vegetable ghee dalda/habib (1.47 per cent), sugar (1.22 per cent), vegetable ghee dalda/habib or other superior quality 1 kg pouch each (0.45 per cent) and cooking oil dalda or other similar brand (sn), 5 litre tin each (0.04 per cent).

  • SBP hikes export financing markup rates from 11% to 13%

    The State Bank of Pakistan (SBP) has revised the rates of specialised lending schemes in accordance with its increased monetary policy rate of 16 per cent.

    SBP said it had decided to reduce the gap between its policy rate and the Export Finance Scheme (EFS) and Long-Term Financing Facility (LTFF) rates from the existing 5 per cent to 3 per cent, according to a circular released by the central bank.

    The notification stated that the revised tariffs will be effective from December 30, 2022.

    “Further, as mentioned in above referred circular, in [the] future with any change in the SBP policy rate, markup rates for EFS and LTFF will be revised automatically so that the gap between [the] policy rate and EFS & LTFF rates is maintained at 3 per cent,” the central bank added.

    Exporters and industrialists, who are already feeling the strain of strong inflationary pressures together with record increases in energy costs, are anticipated to see a rise in the cost of doing business as a result of higher financing rates.