Category: Business

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

  • Apple’s ‘Far Out’ event to unveil the best-ever products today

    Apple’s ‘Far Out’ event to unveil the best-ever products today

    The greatest Apple event of the year is officially here. It begins at 10:00 AM PT for those who will attend the event in person as well as those watching via stream on Apple’s official website and YouTube channel.

    It is titled “Far Out” and will take place at the Apple Park facility.

    iPhone 14 lineup

    It’s the main Fall event for Apple, and as usual, it’s all about the new iPhones. The 6.1-inch iPhone 14 and iPhone 14 Pro, as well as the new 6.7-inch iPhone 14 Plus and iPhone 14 Pro Max, are the four new iPhone 14 models that Apple will introduce.

    The iPhone mini will be discontinued as a result of the switch to a more cost-effective Plus-sized phone due to weak sales.

    Dual cutout notch

    The more reliable speculations suggest that the Pro duo will receive the larger improvements. The selfie and FaceID cameras on the iPhone 14 Pro and iPhone 14 Pro Max will have a new dual cutout, which will Apple combine in software to form a single, long pill-shaped notch. The privacy indications for the microphone and camera will fit between the physical cutouts.

    Rumours of newer camera and A16 Chipset

    A new, larger 48MP sensor will be installed in the primary wide camera, enabling 8K video recording.

    The selfie camera will finally receive autofocus and probably see imager enhancements, while the ultrawide camera will get a larger sensor for better low light images.

    According to rumours, Apple will finally demonstrate an Always-on iPhone display. The new A16 chipset will finally be available for the iPhone 14 Pro models.

    Apple Watch Series 8

    The Apple Watch Series 8 will be the upcoming announcement in terms of priority, while it’s possible that Apple will make a lead announcement first.

    Expect the Apple Watch Series 8 to come equipped with a speedier S8 chip. Blood pressure monitoring is improbable, but a new temperature monitor that can measure fertility and warn the wearer of a potential fever is very likely to become available.

    AirPods Pro 2

    A new version of the three-year-old AirPods Pro is coming. In order to better support Bluetooth, the new AirPods Pro will be the first to utilise Apple’s Lossless Audio Codec (ALAC).

    Like the Beats Fit Pro, the AirPods Pro 2 might include a revolutionary stem-free design with integrated wing tips.

    iOS 16

    After the announcement of the iPhone 14 in a week, Apple is expected to have completed work on iOS 16 and release the upgrade. Its greatest additions include a new lock screen that can be customised, bottom-positioned notifications, new profiles for various situations, and the option to modify and unsend messages.

  • Intraday trade: PKR resumes downward spiral against US dollar, falls to Rs223

    Intraday trade: PKR resumes downward spiral against US dollar, falls to Rs223

    The Pakistani rupee was trading between Rs222-223 on Wednesday as losses against the US dollar persisted in the early hours of trading.

    During intra-day trading, the rupee was quoted at Rs222.49 at roughly 10:30 am, depreciating by Rs1.07 or 0.48 per cent against the US dollar.

    The local unit lost for the third session in a row on Tuesday, falling down Rs1.56 or 0.7 per cent against the dollar to close at Rs221.42.

    According to analysts, the government’s decision to let the duty-free import of edible commodities to promote food security after floods severely damaged the nation’s agriculture sector has led to a spike in demand for dollars on the local market.

    However, the dollar is also strengthening globally. On Wednesday, after U.S. economic data supported the notion that the Federal Reserve will continue with policy tightening, it reached fresh highs against the yen and the Australian and New Zealand dollars.

    The US dollar index, which compares the value of the dollar to six important rival currencies, increased 0.08 per cent to Rs110.43, remaining close to the 20-year high set on Tuesday of Rs110.57.

    On Wednesday, oil prices, a major factor in determining currency parity, fell more than $1 to their lowest level since before Russia invaded Ukraine as COVID-19 restrictions in the world’s top crude importer China and anticipation of further interest rate increases stoked concerns about a global economic slowdown and a decline in fuel demand.

  • Majority of property owners in London are Indians, followed by English and Pakistani people

    Majority of property owners in London are Indians, followed by English and Pakistani people

    Indians are among the people who own the most real estate in the capital of the United Kingdom (UK), London, more than the English themselves.

    According to London-based residential developer Barratt London, the largest group of property owners in London are Indians, who are represented by those who have lived in the UK for generations, NRIs, investors from other countries, students, and families who travel to the UK for education. English and Pakistani people are next in number.

    These Indian investors, who reside in both the UK and India, are prepared to spend anywhere between GBP 290,000 and GBP 450,000 for a one, two, or three-bedroom property in London, the nation’s capital.

    “We are seeing a strong demand from Indian investors looking to purchase properties in London and invest in the stable and long-term property market. Outside of London, most of our products are sold to UK residential buyers, who buy these properties and live in them,” Stuart Leslie – International Sales and Marketing Director for Barratt London, told Financial Express.

    In London, 30 per cent of sales are made to pure investors (those who want to use the apartments as rentals), and 30 per cent of those buyers come from foreign markets.

    “This year we have seen a growth in the percentage of Indian homebuyers, who make up 7-8 per cent of the overseas market players. We are really reacting to where the demand is coming from rather than speculating and looking for business,” Stuart Leslie said.

    According to a Knight Frank survey, 10 per cent of India’s UHNWIs intend to purchase a new home in 2022, and they prefer to invest in domestic real estate, followed by homes on the UK, UAE, and US foreign markets.

    London is well-liked by Indian investors and homebuyers because it is a hub for finance and education and one of the major international entry points for investors.

    Additionally, it makes sense for Indian homebuyers to look at the real estate market in London given that the cost per square foot is roughly comparable between London and Mumbai and that the two cities also share a similar legal framework, making transactions simpler.

    “The reason why Indians are comfortable with buying property is because of the market fundamentals and confidence along with a history of Indians investing in houses in London. They’re eager to invest in the UK residential markets because they are getting better returns owing to the exchange rates and market presence presently. It is relatively a safer market in comparison to the UAE or India,” he said.

    In addition to being a “stable market” for residential real estate, the UK has advantages over other international potential markets, such as good weather and quicker travel times.

    Many families and students, especially those from India, relocate to the UK for educational opportunities. According to Stuart Leslie, the number of Indian students applying to UK colleges and universities has surged by 128 per cent in just one year.

    Therefore, there are several reasons why Indians have traditionally preferred to invest in the UK, including the country’s high-quality educational institutions, business-friendly environment, cosmopolitan mindset, language familiarity, and expanding investment opportunities.

    Currently, there is a demand for finished or nearly finished projects since people are looking to move quickly after the pandemic. Barratt London’s common price range for real estate is between GBP 390,000 and GBP 450,000.

    “This is not a price which people normally associate with the London market but with tier-II or tier-III cities. This makes people want to own properties in London rather than smaller cities of the UK,” he said.

  • Bentley Mulsanne stolen from London, recovered in DHA Karachi with a Sindh license plate

    Bentley Mulsanne stolen from London, recovered in DHA Karachi with a Sindh license plate

    A Bentley Mulsanne that was stolen from London, United Kingdom (UK), has been recovered by the Collectorate of Customs Enforcement (CCE) in Defence Housing Authority (DHA) Karachi.

    According to Geo, the British intelligence agency reportedly informed the CCE, Karachi, through reliable sources that a grey Bentley Mulsanne, V8 Automatic, with the VIN numbers SCBBA63Y7FC001375 and CKB304693, which was stolen from London, was parked in DHA, Karachi.

    The conduct of the nation’s various agencies has been under intense scrutiny following an extraordinary incident in which a stolen car from London was found in Karachi thanks to information provided by the UK intelligence agency.

    To check the accuracy of the report, the CCE team has mounted strict monitoring at the mentioned place. The car that was discovered parked within the house’s car porch was found during a physical search by the department.

    When the light grey fabric was removed, a grey Bentley Mulsanne with the Pakistani registration number BRS-279(2020 Sindh) was discovered at the back of the vehicle, and a white handcrafted number plate with the letters BRS-279 was discovered at the front.

    The vehicle’s chassis number, however, matched the information provided about the stolen car. As a result, the department has detained the owner and the car for additional inquiry.

    The vehicle’s owner revealed during the opening stages of the investigation that another person had sold the vehicle to him and had taken full responsibility for obtaining the necessary clearances from the relevant authorities.

    On the basis of his information, the department also detained the individual who identified himself as a broker and revealed the identity of the primary offender, who is still at large.

    The registration of such a pricey vehicle required NOC from Pakistan Customs, receipt of duty and tax payments, and selling approval from the Ministry of Foreign Affairs, according to sources in the customs department.

    Surprisingly, the Sindh Excise and Taxation department registered this stolen car without following all the legal procedures, proving that Sindh Excise officers were involved in these illegal acts.

    The case has been filed, and further investigation is being conducted to bring the guilty parties to justice.

  • Summary to deduct two days’ salary of government employees sent to PM

    Summary to deduct two days’ salary of government employees sent to PM

    According to Finance Minister Miftah Ismail, a summary to deduct two days’ amount of government employees’ salary is being sent to Prime Minister (PM) Shehbaz Sharif for approval in order to assist the flood-affected families.

    Additionally, he requested that the State Bank of Pakistan (SBP) should instruct banks to direct a portion of their profits and staff pay to be withheld in order to support flood victims at this crucial time.

    According to Brecorder, Miftah claimed the federal government has provided Rs28 billion for the flood victims while speaking to the Jamiyat Panjabi Saudagaran Delhi Karachi members at the group’s office.

    “I am ready to contribute Rs60 billion for the flood victims, and I have already requested the PM for the consideration, yesterday. This amount will be arranged from the budget, and some other sources,” Ismail said.

    Govt to pay Rs25,000 to one woman from each affected family

    The federal government has decided to pay Rs25,000 for one woman from each family over the next two weeks in order to help flood-affected families who are currently in desperate need of assistance in various districts across the nation.

    This will help them to pay for their essential living costs and prevent them from having to spend the night sleeping on the ground on an empty stomach.

    Import of essential food items

    In response to comments about rising vegetable and petroleum product prices, he said that the government is importing essential products from nearby nations, particularly onions and tomatoes. It is possible to import onions from the neighbouring country of India, and two international organisations have been contacted in this regard.

    Standing crops have been damaged by the monsoon floods, according to Miftah. Loss of at least $10 billion has been calculated thus far.

    He estimated that it will cost about Rs500 billion to rebuild. He acknowledged that the main problem facing the average person is inflation, and he promised to lower electricity rates in two months and put inflation under control in four to five months.

    Ismail said that by successful negotiations with the IMF and obtaining the required support from friendly nations, particularly Qatar, he had saved the country from a potential default.

    He also blamed the ongoing conflict between Russia and Ukraine for the recent increase in fuel costs for gas, diesel, and coal in Pakistan and around the globe.

    The Finance Minister said that the decision to impose ban on import of some luxury products was in larger interest of the country.

  • India beats UK to become fifth-largest economy in the world

    India beats UK to become fifth-largest economy in the world

    India has surpassed the United Kingdom to take over as the world’s fifth-largest economy. The country was ranked as having the fifth-largest economy after outperforming England in the first three months of 2021.

    The UK has moved up to the sixth spot from where it was rated during the 2019 fiscal year. According to a survey by Bloomberg, the US economy was worth USD 854.7 million in ‘nominal’ cash terms in the quarter ending in March, compared to USD 816 million for the UK.

    According to reports, the mark was calculated using an adjusted basis and the dollar exchange rate on the last day of the relevant quarter.

    The update was released two days after the government published the first-quarter GDP figures.

    According to statistics, the Indian economy is expanding by 13.5 per cent annually. Despite the fact that this figure was lower than the RBI’s prediction, the rate is reported to be the highest among emerging nations.

    This fiscal year, India is expected to grow at a rate of about 7 per cent.

  • IMF report exposes incorrect PTI policies that led to rupee’s devaluation

    IMF report exposes incorrect PTI policies that led to rupee’s devaluation

    The International Monetary Fund (IMF) has issued its country report for Pakistan, exposing erroneous policies implemented by the PTI administration that, according to the Fund, undermined the country’s currency reserves and led to the rupee’s devaluation.

    The study also discloses what the present administration, led by the PML-N, has promised the international lender, according to Samaa.

    The study does not identify any political party, but it does mention rising GDP, which the PTI has said is the outcome of its policies. Pakistan’s GDP increased by 6 per cent in fiscal year 2021-22 (FY22), which ended less than three months after Imran Khan was overthrown by parliament in early April.

    According to experts, the increase in GDP was driven by unsustainable expansion, which resulted in economic overheating. The IMF study comes to the same conclusion.

    According to the Fund, GDP growth in FY22 was “driven by permissive fiscal policy and a delayed monetary reaction to inflationary pressures.”

    These factors, together with worldwide food and fuel price shocks, resulted in a major worsening of the external situation, including an unsustainable current account deficit, a considerable decrease in reserves, and a significant devaluation of the rupee.

    The PTI administration failed to respond to the worldwide commodity price increase, and its policies caused the rupee to depreciate and currency reserves to dwindle, according to the international lender.

    Pakistan is at a crossroads in its economic development. Internal demand reached unsustainable levels as a result of a challenging external environment paired with procyclical domestic measures. According to the IMF, the resulting economic overheating resulted in high fiscal and external deficits in FY22, contributed to increasing inflation, and destroyed reserve buffers.

    The PTI administration broke its pledges quickly after collecting roughly $1 billion from the IMF. Following the completion of the sixth evaluation, programme implementation worsened. In the midst of a volatile political scene, planned fiscal adjustment was reversed, and some significant EFF agreements were honoured, as per the report.

    According to the report, the present administration has informed the Fund that it would reimpose the general sales tax (GST) on petroleum products and will not provide any fuel subsidies.

    The current administration will not declare a tax amnesty unless Parliament first approves it. It will also simplify the sales tax on services throughout the country. Currently, different provincial territories apply varying rates of sales tax on services.

    The Fund takes notice of the actions implemented by the PML-N administration to re-establish the IMF programme, including a budget based on a basic surplus, a rise in interest rates, and the elimination of fuel subsidies.

    The IMF has advised the government to maintain a market-based currency rate, enhance tax income, and strengthen foreign reserves. The IMF also said that the lending programmes entail exceptional risks even after policy adjustments.

  • Pakistan inflation hits highest level since 1973

    Pakistan inflation hits highest level since 1973

    According to the Pakistan Bureau of Statistics (PBS), Pakistan’s Consumer Price Index-based inflation (CPI) climbed by 27.3 per cent on a year-over-year basis in August 2022 as opposed to an increase of 24.9 per cent the previous month and 8.4 per cent in August 2021.

    Inflation has increased by an average of 26.1 per cent in the first two months of the current fiscal year 2023 compared to 8.36 per cent in 2022. August’s inflation rate was the highest since November 1973.

    According to brokerage house Arif Habib Limited (AHL) the Consumer Price Index (CPI) for the month of Aug’22 clocked in at 27.26 per cent YoY (+2.45 per cent MoM). This takes 2MFY23 average inflation to 26.1 per cent compared to 8.36 per cent in 2MFY22.

    CPI inflation

    Urban

    In August 2022, urban CPI inflation was 26.2 per cent on an annual basis, up from 8.3 per cent in August 2021 and 23.6 per cent the month before.

    It climbed by 2.6 per cent month over month in 2022, compared to 4.5 per cent the month before and 0.5 per cent in August 2021.

    Rural

    In addition, rural CPI inflation reached 28.8 per cent on an annual basis in August 2022, up from 8.4 per cent in August 2021 and 26.9 per cent in the preceding month.

    In August 2022, it climbed by 2.2 per cent month over month, compared to 4.2 per cent the month before and 0.7 per cent in August 2021.

    Further increase expected

    Rising inflation has become a major worry for Pakistan’s economy, which is already experiencing a loss of foreign exchange reserves.

    In the midst of severe flash floods that have resulted in at least 1,100 fatalities, extensive destruction, and millions of displaced people, experts have cautioned that the country will experience additional increases in food costs.

  • UK’s £1.5 million financial support for Pakistan flood victims termed ‘pathetically small’

    UK’s £1.5 million financial support for Pakistan flood victims termed ‘pathetically small’

    The International Development Committee (IDC) of the British Parliament has called the UK’s financial support for disastrous floods in Pakistan ‘risible’.

    The “pathetically small” amount of support provided, according to IDC chair Sarah Champion, made her feel ashamed. She further said that by choosing to take the money out of Pakistan’s current aid, the UK was really doing nothing for Pakistan.

    According to Independent, the contribution of up to £1.5 million announced last week, according to IDC chair Sarah Champion in a letter to foreign secretary Liz Truss, equals less than 5p for each individual impacted by the heavy rain that has devastated more than 700,000 homes.

    As soon as parliament reconvened on Monday after its summer recess, she requested Ms Truss make an urgent statement regarding the calamity.

    The response to the floods, according to Ms Champion, revealed Boris Johnson’s administration policy of continued apathy towards Pakistan, which has dropped from first to seventh in the list of countries receiving bilateral aid from the UK since 2019.

    Last week, Lord Ahmad, a minister in the Foreign Office, expressed his thoughts and prayers for the millions of people impacted by the floods that have apparently inundated a third of Pakistan’s territory. “The UK stands with the people of Pakistan during this time of need,” he said.

    And on Tuesday, Mr Johnson expressed his deepest sympathies for the Pakistani people, saying, “We have witnessed the destruction there, and it is truly heartbreaking.

    “Pakistan is traditionally one of the biggest recipients of UK overseas aid. We will of course make sure that we send a fitting package commensurate with the vital relationship that there is between the UK and Pakistan and people’s natural sympathies with those who have been affected by the floods.”

    However, Ms. Champion wrote to Ms Truss in her letter, saying, “Considering the scope and impact of the flooding, I was ashamed to read the government’s declaration of ‘up to £1.5m from the UK’ in humanitarian support on August 27, 2022.”

    “Even if the full £1.5m were delivered, it would amount to less than 5p for each person affected.”

    “Furthermore, that pathetically small sum will be subtracted from ‘existing support to Pakistan’. The UK government’s risible response to this humanitarian disaster arguably amounts to nothing.”

     “However, UK aid funding to Pakistan has been cut dramatically. Pakistan has fallen to seventh in the list of UK bilateral aid recipients since it experienced the largest single decrease in any country budget.”

    A Foreign Office spokesperson said that Ms Champion’s letter had been received and a response would be made in due course.

    It is important to note that Ahsan Iqbal, Pakistan’s Minister of Planning, previously estimated that the cost of the flood damage could reach $10 billion.

  • Govt may add 9,000 MW solar energy to national grid as an alternative power source

    Govt may add 9,000 MW solar energy to national grid as an alternative power source

    The federal government intends to prioritise the addition of 9,000 megawatts (MW) of solar energy to the national grid.

    According to Express Tribune,  the government may spend money on producing 6,000 MW of solar energy. A scheme to install 2,000 MW of solar photovoltaic (PV) power on 11 kV feeders is also being considered. The government has chosen a number of locations in south Punjab for this purpose.

    By solarizing the public-sector buildings, the government will also add 1,000 MW of solar energy to the national grid.

    Through a single-stage, two-envelope bid process and a tariff indexation of 70 per cent every three months, the authorities will implement a straight-line tariff. In this regard, it aims to provide friendly nations with competitive tariffs.

    The government may acquire all the electricity produced on a 25-year BOOT (Build, Own, Operate, and Transfer) basis due to increased demand. It also intends to guarantee power off-take and offer the land for the projects.

    Additionally, the government intends to exempt all investors from import customs and other taxes, as well as from income tax on gains and profits for the first ten years.

    Incentives for the 4MW solar generation to be installed at 11kv feeders through a bid process may also be announced by the Ministry of Energy.

    In this context, the government can propose a straight-line tariff and a quarterly 50 per cent Pak CPI indexation with a 15 per cent maximum. Additionally, a bid/lease procedure will be used to install the solar rooftop system.