Category: Business

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

  • 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.

  • 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.

    Model Old price Retail price excluding tax Sales tax 17 per cent New price Increase
    YB 125Z Rs293,500 Rs261,111 Rs44,389 Rs305,500 Rs12,000
    YB 125Z DX Rs314,500 Rs279.487 Rs47,513 Rs327,000 Rs12,500
    YBR 125 Rs322,500 Rs287,179 Rs48,821 Rs336,000 Rs13,500
    YBR125G Rs336,000 Rs298,718 Rs50,782 Rs349,000 Rs13,500
    YBR 125G
    Matte dark grey    		 Rs339,000 Rs301,282 Rs51,218 Rs352,000 Rs13,500
  • 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.

  • 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.

    “The European market remains relevant, as the gas shortage persists, and we have every opportunity to resume supplies,” TASS cited Novak as saying in remarks published by the agency on Sunday.

    “For example, the Yamal-Europe Pipeline, which was stopped for political reasons, remains unused.”

    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.

    “This year we were able to significantly increase LNG supplies to Europe,” Novak said. “In the 11 months of 2022, they increased to 19.4 bcm, by the end of the year 21 bcm are expected.”

    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.

    “In the future, when they increase gas production, we will be able to discuss swaps,” he said.

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

  • McDonald’s opens first ‘mostly automated’ outlet and foodies are ‘not lovin’ it’

    McDonald’s opens first ‘mostly automated’ outlet and foodies are ‘not lovin’ it’

    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.

    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:

    Don’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.

  • Mobile banking grows by 100% during FY22 in Pakistan

    Mobile banking grows by 100% during FY22 in Pakistan

    According to the State Bank of Pakistan’s (SBP) Annual Payment Systems Review, the size of the digital payments ecosystem witnessed massive increase over the previous fiscal year. The report reveals that internet banking expanded by 51.7 per cent to 141.7 million users in FY22, while mobile phone banking increased by 100.4 per cent to 387.5 million.

    There were 15 million P2P (Person-to-Person) Raast users registered, who carried out 7.9 million transactions worth Rs102.1 billion.

    The report also notes that during FY22, there were 8.4 million and 12.3 million users of mobile phones and internet banking, respectively.

    In terms of transactions, mobile phone banking increased by 100.4 per cent to 387.5m, while internet banking grew by 51.7 per cent to 141.7m during the year.

    In 2021–2022, internet banking transactions had a value of Rs10.2 trillion, increasing 81.1 per cent. The volume of e-commerce transactions increased by 107.4 per cent to 45.5 million, and the value increased by 74.9 per cent to Rs106 billion.

    A total of 32,958 point-of-sale devices were installed during FY22, which caused the network to grow by 45.8 per cent to 104,865. The number of online retailers registered with the banks increased over this time from 3,003 to 4,887. The nation’s ATM network expanded by 4.8 per cent during the course of the year, totaling 17,133 machines.

  • Meta to settle Cambridge Analytica scandal case for $725 million

    Meta to settle Cambridge Analytica scandal case for $725 million

    Facebook parent Meta has agreed to pay $725 million to settle a lawsuit that accused the social media giant of allowing third parties to access users’ private data. The amount was disclosed in a court filing late on Thursday.

    “The proposed settlement of $725,000,000 is the largest recovery ever achieved in a data privacy class action and the most Facebook has ever paid to resolve a private class action,” lawyers for the plaintiffs said in the filing.

    As part of the settlement, Facebook has not admitted any wrongdoing, which must still be approved by a judge in the US District Court for the District of Columbia’s San Francisco division.

    In August, it was reported that Facebook had struck a preliminary agreement, though the sum and specifics of the settlement were not disclosed at the time.

    In 2018, Facebook users accused the social network of breaking privacy guidelines by sharing their data with third parties, including the British business Cambridge Analytica, which was tied to Donald Trump’s 2016 presidential campaign.

    According to the lawsuit, Cambridge Analytica, which has since shut down, then gathered and abused the personal data of 87 million Facebook users without their knowledge.

    This information was allegedly utilised to create software to sway US voters in Trump’s favour.

    Since then, Facebook has banned access to its data from thousands of apps suspected of abusing it, limited the amount of information available to developers, and made it easier for users to calibrate personal data sharing settings.

    In 2019, the federal government penalised Facebook $5 billion for deceiving its users and mandated independent control of its personal data handling.

  • S&P Global lowers Pakistan’s credit rating to CCC+

    S&P Global lowers Pakistan’s credit rating to CCC+

    Pakistan’s long-term sovereign credit rating was downgraded by S&P Global from “B” to “CCC+” to reflect the continuous deterioration of the country’s external, fiscal, and economic metrics.

    According to S&P, Pakistan’s already meagre foreign exchange reserves would continue to be under pressure through 2023 without a drop in oil prices or an improvement in international aid. The nation also faces significant political risks that could alter its future course of policies.

    According to the report, Pakistan’s economic and fiscal results are predicted to be negatively impacted by this year’s devastating floods, skyrocketing food and energy prices, and rising global interest rates, with refinancing issues over the medium term.

    The agency maintained its outlook at “stable”.

    With barely enough reserves to pay one month’s worth of imports, a dollar shortage, and a delay in its loan programme with the International Monetary Fund, Pakistan is in the midst of an economic catastrophe. Despite the payment of a $1 billion bond this month, long-term dollar bonds continue to trade at distressed prices, reflecting investors’ lack of confidence in Pakistan’s capacity to meet its international debt commitments.

    Following the terrible floods that hit the country earlier this year, Moody’s lowered Pakistan’s sovereign credit rating by one notch, from B3 to Caa1, citing heightened government liquidity and external vulnerability risks.

  • Gold price hits new all-time high of Rs178,800 per tola

    Gold price hits new all-time high of Rs178,800 per tola

    One-tola and 10-gramme rates for domestic gold reached record highs of Rs178,800 and Rs153,292 on Tuesday after increasing by Rs3,900 and Rs3,344 respectively.

    The price of the yellow metal on the global market increased by $12, according to the All Sindh Sarafa Jewellers Association (ASSJA), and surged to $1,808 as a result.

    Gold prices have increased by Rs52,800 per tola and Rs45,096 per 10-gramme since January 1 when prices stood at Rs126,200 and Rs108,196 respectively.

    Vice President of ASSJA Junaid Samiwala claimed that the lack of pure gold on the market was to blame for the price increase. “Big groups are investing black money in gold for good profits.”

    He asked Ishaq Dar, the finance minister, to start an operation on individuals who are stockpiling the yellow metal.

    “Gold prices have reached this point today because of speculators. Ideally, as per the dollar rate, gold rates in Pakistan should be Rs152,000 per tola,” Samiwala said, calling for strict action against “groups” controlling the rates.

    Furthermore, the price of silver per tola increased by Rs20 to reach Rs2,050. 10-gramme silver costs increased by Rs25.72 to Rs1,757.54.