Category: Business

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

  • Here’s why Honda CD70 is the real Road Prince

    Here’s why Honda CD70 is the real Road Prince

    Similar to the price of cars, motorcycle prices in Pakistan have reached an all-time high in the current year 2022. Not even a single two-wheeler among the credible and well-known brands costs less than Rs100,000.

    Even the Chinese Road Prince 70cc model, which was viewed as a less expensive substitute for the Honda CD70, is currently being sold for about Rs75,000.

    Motorcycle buyers are now giving the new Honda CD70 more thought even if it costs Rs116,000, as the Chinese competitors are no longer any less expensive. Customers also consider the Honda CD70 since it comes from a dependable brand that has long dominated the Pakistani motorcycle market.

    The Honda CD70 has significantly better fuel economy than any other 70cc motorcycle made in China, and it is also much more durable than its competitively priced alternatives. It consumes relatively little fuel; some owners even assert that their bike travels more than 60 kilometers per liter, making it Pakistan’s most fuel-efficient bike.

    Read more: Cheapest new cars to buy in Pakistan

    There is no denying that the Honda CD70 is the best motorcycle and actual road prince of Pakistan, considering the current price of petrol in Pakistan, the Honda CD70 is a much better option since it requires little to no upkeep and may help you save a lot of money.

  • Annual inflation in Pakistan jumps to 38.63% after weekly increase of 0.82%

    Annual inflation in Pakistan jumps to 38.63% after weekly increase of 0.82%

    The sensitive price indicator (SPI) hit an annualised high of 38.63 per cent due to a lack of perishable goods brought on by severe rains, and weekly inflation increased by 0.82 per cent for the seven days ending August 4, 2022.

    The base for most cooked meals in the country is an onion and tomato. Onions increased in price from Rs75.41/kg to Rs94.2/kg while tomatoes increased from Rs74.07/kg to Rs82.91/kg.

    Data from the Pakistan Bureau of Statistics (PBS) indicates that the increase is attributable to the increased price of diesel (109.15 per cent), onions (107.95 per cent), pulse masoor (106.71 per cent), petrol (88.94 per cent), cooking oil 5 litre (74.44 per cent), mustard oil (73.89 per cent), chicken (73.42 per cent), vegetable ghee 1 kg and 2 kg (72.26 and 70.48 per cent), washing soap (62.62 per cent), pulse gramme (59.07 per cent), electricity for Q1 (52.61 per cent), gents sponge slippers (52.21 per cent), pulse maash (46.01 per cent) and garlic (41.16 per cent).

    According to The News, consumers are struggling with soaring food and fuel prices. Hi-speed diesel was being sold last August 5 for Rs117.58 per litre, but it is now Rs245.92 per litre.

    Various items in the SPI basket are given varying weightages. The goods with the heaviest weights in the bottom quintile are milk (17.5449 per cent), electricity (8.3627 per cent), wheat flour (6.1372 per cent), sugar (5.1148 per cent), firewood (5.0183 per cent), long cloth (4.2221 per cent), and vegetable ghee (3.2833 per cent).

    While the cost of firewood and electricity remained consistent, the cost of milk, wheat flour, sugar, long fabric, and vegetable ghee 2.5kg increased. Vegetable ghee 1kg saw a decrease in price.

    SPI is made up of 51 necessities that were gathered from 50 markets spread over 17 cities across the nation.

    Out of 51 goods, 33 (64.71 per cent) of the prices rose during the week, 4 (7.84 per cent) of the prices fell, and only 14 (27.45 per cent) of the prices kept the same.

    The price of onions increased by 24.92 per cent, tomatoes by 11.93 per cent, pulse moong by 5.72 per cent, pulse mash by 5.28 per cent, potatoes by 5.03 per cent, pulse masoor by 4.43 per cent, diesel by 3.78 per cent, pulse gramme by 2.69 per cent, eggs by 2.44 per cent, powdered milk by 1.61 per cent, gur by 1.53 per cent, LPG by 1.49 per cent, salt by 1.46 per cent, and garlic by 1.30 per cent on a WoW basis.

  • PSX resumes recovery as KSE-100 index gains 670.87 points

    PSX resumes recovery as KSE-100 index gains 670.87 points

    The KSE-100 increased for the fourth consecutive session on Friday as the rupee continued to strengthen against the US dollar, maintaining positive investor confidence at the Pakistan Stock Exchange (PSX).

    The price of WTI crude oil was $87.95 per barrel during the day, while Brent crude oil was being sold at $93.75 per barrel, bringing the global oil prices to multi-month lows.

    The domestic equities market gained 670.87 points, or 1.62 per cent, to close at 42,096.24 points as a result of this development.

    The Pakistani currency’s ongoing rebound, which continued for the sixth day in a row against the US dollar, provided additional support for the market.

    Despite initial selling pressure on the market and a period of time in which the KSE-100 index traded flat, investor interest picked up toward the end of the first session, and the market closed roughly 300 points higher.

    The rise gained momentum in the second session, which enabled the index to pass the 42,000-point threshold and conclude with significant gains.

    The day ended strongly for index heavyweights in the banking, fertiliser, cement, chemical, automobile, and cement industries. On a weekly basis, the benchmark KSE-100 increased by 4.85 per cent. Capital Stake said that the PSX had strong sentiment for the fourth straight session.

    According to Topline Securities’ analysis, Pakistan’s stocks saw good momentum as a result of softening global energy prices for coal and oil, which experienced some correction.

    The decline enabled the market maintain its purchasing mood from Thursday and helped the KSE-100 index conclude the day at 42,096 points.

  • Rupee gets stronger by Rs2.11 to close at Rs224.04 against US dollar

    Rupee gets stronger by Rs2.11 to close at Rs224.04 against US dollar

    During intraday trade on Friday in the interbank market, the Pakistani rupee (PKR) climbed by Rs2.11 against the US dollar for the sixth session in a row.

    In the course of the day’s trading, the local currency gained Rs2.11 or 0.94 per cent versus the dollar and closed at Rs224.04, down from Thursday’s closing of Rs226.15.

    Dollar to PKR rate – Friday 8 August 2022

    At yesterday’s closing, the rupee marginally increased by Rs2.65 or 1.17 per cent.

    Following the government’s austerity measures, which caused a sharp rise in inflation but also prevented the nation’s economy from collapsing, the rupee has been on the upswing.

    On Wednesday, PKR increased by Rs9.58 against the US dollar, the local currency saw a significant gain. The biggest one-day rise since 1999, it grew by 4 per cent.

    In his speech at an event at the Pakistan Stock Exchange (PSX), Finance Minister Miftah Ismail said that if the nation can manage imports, exports may be increased through a number of strategies.

    After the coalition partners made unpopular decisions, Miftah stated Pakistan was “on the right track” and that the pressure on the rupee will continue to lessen in the days ahead as it strengthened against the dollar.

  • Another friendly country to confirm assurance this week: Miftah Ismail

    Another friendly country to confirm assurance this week: Miftah Ismail

    According to Pakistan’s Finance Minister Miftah Ismail, “one friendly country” has confirmed its commitment to assist Pakistan in filling the funding gap, while another nation would confirm its assurance in a day or two.

    An announcement will be made soon on this subject after confirmation.

    Earlier, the International Monetary Fund (IMF) said that Pakistan has completed the final prior action for the combined seventh and eighth reviews with the increase in the petroleum development levy (PDL).

    The IMF also stated that the board meeting is tentatively scheduled for late August once adequate financing assurances are confirmed.

    In order to prevent Pakistan from having a liquidity vacuum following the IMF loan, the international lender wants to make sure Pakistan will be able to get $4 billion in additional cash.

    The country has a $4 billion finance imbalance, according to Miftah, and the IMF wants our reserves to grow by $6 billion.

    Pakistan is in touch with friendly nations to cover the gap, and one of them has already reaffirmed its assurance. Within a day or two, the other nation will confirm as well.

    The assurances would be announced in advance of the IMF board meeting, which is slated to take place in the last week of August. According to reports, the IMF would announce the disbursement for Pakistan as soon as sufficient finance assurances are verified.

    The import bill has decreased to $4.92 billion, according to the minister. Due to this, there is now more cash coming in than going out. The market attitude has improved as a result of this.

    He believed that the Pakistani rupee had grown significantly versus the US dollar and would continue to do so.

    The Pakistani rupee made a significant recovery on Wednesday, recording its largest day-over-day gain in absolute terms against the US dollar to settle at Rs228.8, up Rs9.58 or 4.19 per cent in the inter-bank market. In the early hours of Thursday, trade, the rupee kept rising.

    On Thursday, stocks extended their gains, with analysts blaming the strong recovery of the rupee and soaring global equities for the optimistic trend.

    Read more: Dollar may drop near Rs180 after IMF tranche

    The benchmark KSE-100 index increased 356.50 points or 0.87 per cent to settle at 41,425.37 points, according to the Pakistan Stock Exchange (PSX).

    After being battered for weeks due to political and economic unrest, the local currency recovered by Rs9.59 on Wednesday, marking the highest one-day rise in decades.

  • Cheapest new cars to buy in Pakistan

    Cheapest new cars to buy in Pakistan

    Automotive companies in Pakistan have consistently announced significant price increases since the beginning of 2022, pushing up car prices to the point that those with low incomes cannot even consider sedans from the top or new brands.

    However, there are some reasonably priced options on the Pakistani market that buyers can consider. Here are a few cars that are priced under Rs2 million:

    Prince Pearl

    Prince Pearl may not offer the flashiest interior or the most appealing appearance, but the little hatchback is one of the most affordable vehicles on the local market.

    Regal Automobiles, the manufacturer of Prince Pearl is also among the businesses that recently revised car prices.

    Prince Pearl’s price has been increased by Rs386,000 by the company from its earlier price of Rs1,534,000 to Rs1,920,000.

    Prior to this price increase, Regal Automobiles was renowned for having one of the most affordable car lineups in Pakistan. However, its entry-level vehicle is now almost Rs2 million in price.

    Suzuki Alto VX

    Suzuki Alto VX (Manual Transmission) is also a good choice. It also has the advantage of being manufactured by a reputable brand.  Despite the fact that the car may not seem very comfortable, this variant is one of the most affordable at less than Rs1.8 million.

    Alto is currently available for Rs1,789,000. The mini-hatchback was being sold for Rs1,475,000 prior to a significant price increase of Rs314,000.

    United Alpha

    Last but not least, the United Alpha, which has a 1000cc engine and costs Rs1,559,000, is the least expensive car on the Pakistani market.

    Even though the price of this vehicle is incomparable, potential buyers may evaluate the Alpha’s resale value and parts availability.

    Given the lack of options in the Pakistani auto market, these cars are excellent choices for those who are looking for a cheap vehicle.

  • Pakistani rupee continues to recover, PSX witnesses bullish trend

    Pakistani rupee continues to recover, PSX witnesses bullish trend

    The dollar was trading at Rs223 on Thursday, as the Pakistani rupee (PKR) increased by Rs5.79 in interbank trade to extend its winning streak versus the dollar to five days.

    The Pakistani rupee increased against the US dollar for the fifth day in a row, rising Rs2.65 to close at Rs226.15.

    US dollar to Pakistani rupee rate – 4 August 2022

    As the market opened on a good note and remained optimistic with heavy volumes in nearly all sectors for a while, the benchmark KSE-100 likewise rose up to 500 points before 12:00 pm. However, as of 1:40 pm, the market fell by 290 points.

    On Wednesday, the rupee gained the most against foreign currencies in a single day, ending the day at Rs228.80. The dollar’s decline versus the rupee reached its biggest level since November 2, 1998, when it dropped by Rs5.10.

    The local currency is strengthening as a result of increased export inflows and reduced import expenditures, with optimism that the cash-strapped nation was getting closer to winning an IMF bailout bolstering confidence.

    A board meeting is provisionally scheduled for late August after sufficient finance assurances are secured, according to a statement released on Tuesday by Esther Perez Ruiz, the IMF’s Resident Representative for Pakistan.

    Read more: Pakistan rupee appreciates Rs9.58 against US dollar, closes at Rs228.8

    The dollar may devalue between Rs180 and Rs190 against the Pakistani rupee if the IMF releases the $1.2 billion tranche in August, according to Malik Bostan, chairman of the Exchange Companies Association of Pakistan (ECAP).

  • Gold price drops by Rs8,600 per tola as rupee strengthens

    Gold price drops by Rs8,600 per tola as rupee strengthens

    The price of 24 karat gold decreased by Rs8,600 per tola and Rs7,373 per 10 grams to settle at Rs145,300 and Rs124,571, respectively, in the local market, according to figures released on Wednesday by All Sindh Sarafa and Jewellers Association (ASSJA).

    The latest decrease was in accordance with what the traders anticipated that the market would correct itself after achieving fresh heights in earlier sessions.

    On July 28, the price of a tola of gold rose to an all-time high of Rs162,500.

    The local currency made a significant comeback against the US dollar, rising by nearly Rs9 or 4 per cent, which diminished the shine of the precious metal.

    In the last three sessions, the price of gold has fallen by a total of Rs14,300 per tola, from Monday to Wednesday.

    Read more: Pakistan rupee appreciates Rs9.58 against US dollar, closes at Rs228.8

    Compared to Dubai, the price of gold in Pakistan is Rs2,000 per tola less.

    Bullion prices also fell $14 per ounce to close at $1,766 on the global market.

  • Pakistan rupee appreciates Rs9.58 against US dollar, closes at Rs228.8

    Pakistan rupee appreciates Rs9.58 against US dollar, closes at Rs228.8

    The US dollar dropped Rs9.58 during Wednesday’s session, closing at Rs228.80 versus the rupee, down from Rs238.38 at Tuesday’s interbank close.

    On the other hand, the greenback depreciated Rs14.50 in the open market, closing at Rs226, according to the Forex Association of Pakistan.

    Following comments from an IMF official that Pakistan has met its final requirement by raising the tax on fuel prices on July 31, the Pakistan Stock Exchange (PSX) on Wednesday also experienced a bullish trend as the KSE-100 index rose 1016 points.

    The KSE-100 index increased by 1016 points to trade at 41,208. Experts claim that the rupee’s progressive strengthening was also responsible for the market’s increased confidence.

    Pakistan had raised the petroleum development levy (PDL), according to Esther Perez Ruiz, the IMF’s resident representative in Islamabad, completing the final previous action needed for the Fund’s combined seventh and eighth assessment.

    “With the increase in PDL on July 31, the last prior action for the combined seventh and eighth review has been met. The [Executive Board] meeting is tentatively planned for late August once adequate financing assurances are confirmed,” she said in a statement.

    Read more: Intraday trade: US dollar sheds Rs7.38 against Pakistani rupee

    The $6 billion agreement, known as the Extended Fund Facility (EFF), was signed by Pakistan and the IMF in 2019.

    However, since the IMF voiced concerns about Pakistan’s adherence to the agreement early this year, the disbursement of the combined seventh and eighth tranche has been put on hold.

  • Intraday trade: US dollar sheds Rs7.38 against Pakistani rupee

    Intraday trade: US dollar sheds Rs7.38 against Pakistani rupee

    As Pakistan’s import pressure decreased, the US dollar lost strength versus the Pakistani rupee (PKR) for the fourth session in a row during intraday activity in the interbank market on Wednesday.

    The value of the US dollar decreased by Rs7.38 during Wednesday’s intraday trade, falling from Rs238.38 at Tuesday’s interbank close to Rs231.

    The rupee, one of the poorest performing currencies in the world, began losing momentum on Friday after falling for 10 straight sessions in the latter days of July and appreciating by about 5 per cent just last week.

    According to data from the Pakistan Bureau of Statistics (PBS), imports fell by 38.3 per cent over the previous month as a significant decline in imports was observed after the government prohibited a number of luxury goods to address the dollar deficit in the economy.

    Tuesday’s interbank trading ended with the rupee up a pitiful Rs0.46 or 0.19 per cent, reaching Rs238.38, from 238.84 in the previous trading session. In the meantime, the open market exchange rate remained constant at Rs241.