Category: Business

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

  • Apple is reportedly considering transferring some of its iPad production to India

    Apple is reportedly considering transferring some of its iPad production to India

    According to two sources close to the Indian government, India is looking into ways to transfer some of Apple’s iPad production from China. The tech behemoth is reportedly in constant communication with authorities. Although no specific plans have been established, if the initiative is successful, Apple’s presence in the country would expand.

    Apple said earlier this year that it has started producing the premium iPhone 14 in southern India. For a number of years, the tech giant has produced the country’s older iPhone models.

    Following nationwide protests that have taken place over the past two weeks in response to Beijing’s tough zero-Covid policy, the tech giant has announced plans to diversify more of its supply chain away from China. Apple issued a warning in early November that iPhone shipments will be delayed as a result of the Chinese government’s lockdowns, and experts have been lowering their expectations for the important holiday shopping period.

    Over the weekend, The Wall Street Journal claimed that Apple is aggressively exploring to move production out of China to other Asian nations, including Vietnam and India.

    Even so, sources warn that similar ambitions in India could be slowed down by a shortage of highly skilled workers and people with experience in creating complicated products like the iPad. The backdrop of foreign policy, with rising hostilities between China and India, is particularly unhelpful. Due to recent territorial disputes between the two nations, the military presence near the China-India border has increased.

    10 per cent of Apple iPhones, according to Gene Munster of Loop Ventures, are produced in India, but he anticipates a gradual increase in output.

    “I think in five years, 35 per cent will be manufactured in India,” added Munster. “I think Apple will add iPhone production to other countries outside of India and China in the next five years. Perhaps Vietnam, Malaysia and the USA.” In a note to clients, Piper Jaffray’s Harsh Kumar wrote: “While Apple has made efforts to move production out of China, in our opinion, India still accounts for less than 5.”

  • Gold price hits new all-time high of Rs164,200 per tola

    Gold price hits new all-time high of Rs164,200 per tola

    Despite a $4 decline in the international market price to $1,794 per ounce, domestic gold prices rose to an all-time high of Rs164,200 per tola and Rs140,604 per 10 grammes on Monday. This is an increase of Rs700 and Rs601 from Saturday.

    The president of the All Sindh Saraf and Jewellers Association (ASSJA), Haji Haroon Rasheed Chand, claimed that the pressure on bullion rates has been caused by exchange rate changes.

    He claimed that despite the ongoing peak wedding season, jewellery sales remained low due to high gold prices.

    On January 1, the price of a tola and ten grammes of gold was Rs126,200 and Rs108,196, respectively, while the price of the precious metal was $1,830 per ounce on the world market. In the interbank market, the dollar was worth Rs177, while the current exchange rate was Rs223.99.

  • Pakistan aims to build $8.2 billion rail link with Uzbekistan

    Pakistan aims to build $8.2 billion rail link with Uzbekistan

    Pakistan plans to build a rail link with Uzbekistan in an attempt to expand relations with Central Asian states. The project will roughly cost $8.2 billion.

    The decision to build the rail link was disclosed in a meeting of the Senate Standing Committee on Railways which was held at the Old PIPS Hall in the Parliament Lodges, reports SAMAA.

    The meeting was chaired by Senator Deputy Chairman Mirza Muhammad Afridi. The meeting was attended by Senator Dost Muhammad, Senator Shahadat Awan, Senator Mushtaq Ahmad, Railways Ministry Secretary Zafar Ranjha, and other concerned officers.

    During the meeting, Ranjha said that the government is deliberating on an Afghan Transit project which will link Pakistan with Uzbekistan.

    Uzbek Ambassador to Pakistan, Oybek Usmanov met with Finance minister Ishaq Dar in Islamabad on Saturday. During the meeting, he apprised the Uzbek Ambassador of the potential investment avenues in Pakistan.

    The Uzbek ambassador expressed the Uzbek government’s strong desire to improve trade, investment, and business relations with Pakistan on a variety of fronts.

  • Illegal commercial properties worth billions sealed in Lahore

    Illegal commercial properties worth billions sealed in Lahore

    The Evacuee Trust Property Board (ETPB) has sealed 11 distinct commercial buildings and properties worth billions of rupees in Lahore on the Supreme Court’s directives.

    The Federal Investigation Agency (FIA), a police team, and the administration conducted a raid and took action against encroachments under the direction of ETPB Chairman Habibur Rahman.

    In renowned commercial areas like Sheesha Moti Bazaar, Wichuwali, Hingana Street, Sutar Mandi, Ravi Road, Mohini Road, and Bradlaugh Hall, the team sealed numerous properties that were in illegal possession.

    Participating in the operation under the direction of Administrator Lahore Akram Joya were Deputy Administrator Taskinullah, Abdul Waheed Khan, Asim Ejaz, Ahmed Hassan, and Saad Butt.

    While, Director FIA Mohammad Zawar, SHO Raza Awan, SHO Benish Rehman, Rana Naeem, Kashif Gujjar also participated in the raid.

  • Rolex to begin certifying used watches as original

    Rolex to begin certifying used watches as original

    Luxury watchmaker Rolex SA will start issuing certificates of authenticity to authorised dealers selling pre-owned Rolex watches.

    According to the report, Bucherer, a Swiss retailer, will be the first to start offering pre-owned Rolex watches that have been certified as authentic by the brand at its retail locations across Europe.

    The report also stated that other authorised Rolex dealers can start taking part in the initiative in the spring of 2023.

    In an effort to deter market flippers who sell recently released watches above retail, Rolex stated that it will only certify timepieces that have been purchased at least three years prior.

    Rolex, a luxury brand whose timepieces predominate in secondhand sales through dealers and online, is making a dramatic turn by authenticating its own used watches. Deloitte predicts that the market for high-end used watches would reach $35 billion by 2030.

    Prior to this, Rolex did not play a part in authenticating or monitoring the products it supplied to its dealer network. Additionally, the action will help to strengthen its brand and weed out fakes.

    Auction houses and unlicensed sellers of used watches both offline and online will not be permitted to take part in the programme.

    Secondhand watches have already been certified by other Swiss watchmakers. The majority of pre-owned timepieces sold are Rolex watches.

    Independent brands like H. Moser & Cie and MB&F, as well as smaller rival brands like Vacheron Constantin and Zenith, sell pre-owned watches in their own boutiques. Richemont, which owns Vacheron as well as a stable of brands like Jaeger-LeCoultre, IWC, and A. Lange & Sohne, purchased online retailer Watchfinder in 2018.

    Authorized dealers may occasionally sell certified pre-owned timepieces through the programme at a premium to those offered at retail rates for new watches in rare circumstances. These models include enduringly well-liked categories like the Rolex Submariner, Daytona, and GMT that frequently sell above retail pricing because retail demand outpaces supply.

    It was previously believed that the demand for luxury watches increased as a result of many wealthy customers learning about Swiss brands like Rolex, Omega, Audemars Piguet, and Patek Philippe while confined to their houses during the pandemic.

    According to estimates from Morgan Stanley, Rolex is the largest Swiss watch brand, producing over 1 million watches annually, with annual sales of roughly 8 billion Swiss francs ($8.5 billion) and a market share of close to 29 per cent.

    As demand for Rolex, Omega, and Vacheron Constantin timepieces continued to soar, Swiss watch exports hit record highs in July, with prices rising to their highest levels in eight years, according to a report from Bloomberg in August.

  • Finance Ministry agrees to IT minister’s suggestion regarding Google payments

    Finance Ministry agrees to IT minister’s suggestion regarding Google payments

    Following the Ministry of Finance’s decision to allow blocked payments to international service providers, including Google, on the advise of IT Minister Aminul Haque, Pakistan averted the suspension of paid Google Play mobile apps on Thursday.

    A $34 million payment suspension by the State Bank of Pakistan (SBP) to foreign service providers might have prevented inward mobile users from downloading paid Google Play Store services using their cell balance as a source of payment starting on December 1, 2022.

    After the SBP stopped using the direct carrier billing (DCB) mechanism, a $34 million payment to foreign service providers like Google, Amazon, and Meta was put on hold.

    Using their mobile phone carrier bill as a form of payment, users of the DCB online mobile payment system can make purchases.

    According to Geo, customers of telecommunications firms can buy these products using airtime and send money abroad to pay for IT-related services.

    However, Tariq Bajwa, the Special Assistant to the Prime Minister (SAPM) on Finance, got in touch with Haque and expressed his thoughts on the payments that had been halted.

    The Finance Ministry agreed to distribute the payments on schedule, the IT minister later confirmed.

    Insisting that “paid Google Play apps will not be suspended in Pakistan,” he said that the Finance Ministry had instructed the SBP to postpone for one month the implementation of the policy that had blocked payments.

    He stated that the payment method must be implemented by telecom companies within a month.

    According to the IT minister, the ministry has written to the finance minister, Ishaq Dar, requesting a timeline for the implementation of the telecom operators’ request for help from the government. Haque commended Dar and Bajwa for their prompt judgement.

  • Toyota IMC announces another price hike for Corolla Altis X

    Toyota IMC announces another price hike for Corolla Altis X

    Toyota Indus Motor Company has announced a hefty price hike for the Toyota Corolla Altis 1.8 CVT variant. The popular sedan from the automaker has witnessed a price increase of Rs370,000 from its earlier price tag of Rs5,269,000.

    The Altis 1.8 CVT now has a new price tag of Rs5,639,000. Earlier, the automaker also increased the price of the Altis 1.6 variants.

    The company has cited the depreciation of the local currency and ongoing economic instability as reasons for the latest price increase.

    An official statement from the automaker reads:

    The volatile situation of Forex, increase in utilities and overheads have also impacted the cost of manufacturing for IMC. Thus, this situation has made it extremely difficult for IMC to hold the current retail selling prices, and therefore, we are compelled to pass on some impact to the market.

    It is worth noting that Toyota IMC has raised car prices by up to 37 per cent since the beginning of 2022 for its cars across the board. This new price hike on top of that comes as a big surprise for Toyota lovers.

  • Govt expected to increase petroleum levy on diesel

    Govt expected to increase petroleum levy on diesel

    The government is expected to raise the petroleum levy beginning tomorrow, implying that diesel customers are unlikely to receive any relief. 

    Finance Minister Ishaq Dar is also anticipated to maintain the oil prices for the first two weeks of December.

    The government now has the flexibility to raise the rate of PL on diesel, a crucial good that is extensively utilised in the transportation and agricultural sectors, thanks to the recent rise in PL on gasoline and High-Octane Blending Component (HOBC) to the budgeted level of Rs50 per litre.

    However, this change will directly affect how the majority of people live. High-speed diesel (HSD) is currently priced per litre at Rs12.59. However, according to sources, the price of diesel had decreased by Rs11.95 per litre during the past two weeks. Diesel prices could decrease to Rs223.35 per litre from Rs235.3 per litre if the government decides to pass along the savings.

    Despite the rupee losing Rs1.81 to reach Rs223.62, the cost of diesel, kerosene, and light diesel oil (LDO) fell significantly. The current rate of PL and GST is the basis for the variation in oil prices.

    The Inland Freight Equalization Margin has been set at Rs1.90 for HSD and Rs6.69 for gasoline per litre. The exchange loss for Pakistan State Oil was Rs3.01 for gasoline and Rs2.10 for HSD per litre.

    PSO imports goods, therefore it may experience exchange gains or losses depending on how much the local currency is worth. Kerosene oil prices also decreased by Rs9.91 per litre, and LDO prices decreased by Rs13.39 per litre.

    In isolated locations without access to LPG, kerosene oil is used for cooking. Kerosene oil’s price could decrease from Rs191.83 to Rs181.92 per litre and LDO’s price from Rs186.50 to Rs173.11 per litre if the government grants relief.

    Petrol prices have increased by Rs2.62 per litre, with a potential increase to Rs227.42 per litre from the current level of Rs224.80 per litre.

  • Pakistani delegation leaves for Russia to hold discussions on cheaper oil

    Pakistani delegation leaves for Russia to hold discussions on cheaper oil

    Minister of State for Petroleum Dr Musadik Malik and the petroleum secretary have flown to Russia to hold talks over oil and gas, a source with knowledge of the situation said on Monday on the condition of anonymity.

    The trip comes as the country struggles to meet domestic gas supply demands as winter approaches while battling to contain a current account deficit swelled by energy payments, mostly for oil.

    Ishaq Dar, the federal minister of finance, had already stated that the delegation will discuss an oil contract with Moscow.

    “We should pray the visit is successful and the government manages to secure a deal on favourable terms and conditions,” Dar said during an interview.

    Given the sharp rise in the cost of energy commodities in recent months, buying Russian oil at lower prices has gained popularity. This has been difficult, especially for emerging economies like Pakistan, whose energy requirements are mostly met by imports of petroleum.

    The State Bank of Pakistan (SBP) said that during the first four months of the current fiscal year, Pakistan imported petroleum products worth $7.547 billion.

    Dar had earlier stated, speaking to a crowd in Dubai on November 13, that Islamabad hoped to clinch an import pact with Moscow on conditions comparable to those of New Delhi. He said that Pakistan could purchase oil from Russia since India was doing the same, and the US had been informed of this.

  • Pakistan Customs seizes 67 non-custom paid vehicles in an operation

    Pakistan Customs seizes 67 non-custom paid vehicles in an operation

    Pakistan Customs has impounded 67 non-custom paid vehicles in a crackdown against the smugglers in Quetta.

    67 non-custom paid vehicles, sugar, and fertiliser valued at approximately Rs336 million were confiscated in accordance with the Prime Minister’s goal to eradicate smuggling.

    The Customs team launched a crackdown in Nokandi, Quetta, and thwarted the attempt to smuggle goods across the Pakistan-Afghanistan border.

    Earlier, the Federal Board of Revenue (FBR) said on February 21 that non-custom paid vehicles worth Rs11.2 billion were seized between July 2021 and January 2022.

    During the July–January 2020–2021 period, smuggled goods worth a total of Rs35 billion were discovered, compared to Rs22 billion during the same time the previous year.

    Many people in Quetta continue to purchase non-custom vehicles despite the fact that they are illegal since they are much more expensive than legal or custom-paid vehicles.

    For instance, if a car is sold for Rs5 million at a dealership or local car market, it may be offered by smugglers for Rs2.5 million or even less. As these are smuggled vehicles, non-custom-paid automobiles are less expensive and lack the necessary paperwork or legal documents.