Category: Business

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

  • 49 buses arrive Karachi for Orange Line BRT, intra-city service

    49 buses arrive Karachi for Orange Line BRT, intra-city service

    A total of 49 buses procured for the Orange Line BRT project and the Intra-District Peoples Bus Service reached Karachi port on May 11.

    In June 2016, Syed Qaim Ali Shah laid the foundation stone for the Orange Line, predicting that the project will be finished in a year.

    After six years, the project is still unfinished. The Sindh Mass Transit Authority (SMTA) and contractors had originally been granted until November 2021 to complete the building of the Orange Line BRT track, however, they had missed the deadline.

    The provincial minister has directed the SMTA to finish the civil and electrical work for the Orange Line BRT by the end of this month. The Orange Line BRT is named after Abdul Sattar Edhi.

    Read more: CNG prices pushed to Rs140 per kg for sales tax collection

    As the 49 buses landed at the port, Sindh Transport and Information Minister Sharjeel Inam Memon tweeted that the remaining buses were on their way and will come in phases over the coming months.

  • Toyota Land Cruiser is now priced at Rs8 crore after a hefty price hike

    Toyota Land Cruiser is now priced at Rs8 crore after a hefty price hike

    The new Land Cruiser was unveiled in Pakistan by Toyota Indus Motor Company (IMC) at a staggering price of Rs72.50 million. The SUV is a one-of-a-kind vehicle in Pakistan, with pricing comparable to some of the most expensive German SUVs.

    Due to the depreciating Pakistani rupee, overall inflation and rising transportation costs, the Land Cruiser, like other locally built vehicles in Pakistan, has undergone a price hike of Rs7.5 million. The luxury SUV from Toyota is now available for Rs79,999,000.

    The Japanese automaker offers only one version of LC300 in Pakistan. It has a 3.5-liter twin-turbocharged V6 petrol engine with 409 horsepower (hp) and 650 Newton-meters (Nm) of torque that is sent to all four wheels via a 10-speed automatic transmission.

    Read more: Pakistani rupee reaches a new all-time low of Rs190 against the US dollar

    Considering its outrageous cost, the Land Cruiser 300 is clearly out of reach for the vast majority of Pakistanis. It is, however, a wonderful addition for aristocrats who have a garage with six to ten cars.

  • Pakistan’s cement exports fell by 82.15 per cent in April 2022

    Pakistan’s cement exports fell by 82.15 per cent in April 2022

    Owing to unpredictable economic and political conditions, cement sales remained weak last month and between July and April 2021-22 (10MFY22), according to All Pakistan Cement Manufacturers Association (APCMA).

    The sector shipped 3.37 million tonnes of local cement in April 2022, down 17 per cent from 4.06 million tonnes in April 2021, while exports dropped 82.15 per cent from 877,163 tonnes in April 2021 to 156,613 tonnes in April 2022.

    As a result, overall cement sales including local and exports plummeted by 28.6 per cent in April 2022 to 3.52 million tonnes, down from 4.94 million tonnes in April 2021, as per APCMA data.

    North-based cement mills sold 2.8 million tonnes in domestic markets in April 2022, down 17 per cent from 3.3 million tonnes in April 2021. Exports from northern mills declined 75.22 per cent in April 2021, from 250,072 tonnes to 61,971 tonnes.

    According to data from the State Bank of Pakistan (SBP), banks granted Rs180 billion in housing loans in 10MFY22, with Rs57 billion disbursed over the same time. Housing loan applications of Rs409 billion had been received by banks.

    The political and economic instability of March had begun to deter investors in the construction industry, as seen by the APCMA’s domestic April sales figures.

    Read more: CNG prices pushed to Rs140 per kg for sales tax collection

    Moreover, high lending rates of 12.25 per cent effective April 7 and the risk of further rate hikes will impact construction activity, while consumers are already under pressure due to increased living costs, with the CPI for April at 13.37 per cent.

    Owing to record high prices for steel bars, cement, and other construction supplies, people are also cautious to make new investments in building new homes.

  • CNG prices pushed to Rs140 per kg for sales tax collection

    CNG prices pushed to Rs140 per kg for sales tax collection

    The Federal Board of Revenue (FBR) has raised the sales tax rate on compressed natural gas (CNG) supplies to customers.

    On Tuesday, the FBR published S.R.O. 587(I)/2022 to replace S.R.O. 39(I)/2022, which was issued on January 8, 2022. It has amended the value of compressed natural gas (CNG) supply to consumers in order to charge sales tax from CNG stations.

    It has set the value of supply to CNG customers in order for gas generation and distribution businesses to charge sales tax from CNG stations.

    CNG rates

    The price of CNG in Region-I, which includes Khyber Pakhtunkhwa, Balochistan, and Potohar, has been raised from Rs134.57 per kg to Rs140 per kg (Rawalpindi, Islamabad, and Gujar Khan).

    Read more: Pakistani Rupee crashes to a record low against US dollar 

    Moreover, the cost of CNG has been raised from Rs128.11 per kg to Rs135 per kg in Region-II, which covers Sindh and Punjab except for the Potohar region.

  • Pakistani Rupee crashes to a record low against US dollar 

    After a fourth consecutive session of losses on May 10, Pakistan’s currency hit an all-time low in the interbank market due to a lack of clarity on foreign cash inflow and a stronger US dollar.

    The rupee ended the day at Rs188.66, down Rs1.13, or 0.60 per cent, according to the State Bank of Pakistan (SBP). After a 0.48 per cent decline on Monday, the rupee finished at Rs187.53. Prior to Tuesday, the PKR’s lowest closing was Rs188.18 on April 7, 2022.

    Oil prices, a key indicator of currency parity, dipped in tumultuous trade on Tuesday as the market weighed the impact of expected European Union penalties on Russian oil against demand concerns stemming from China’s coronavirus lockdowns, a strong dollar, and rising recession threats.

    Read more: Pakistani rupee nearing an all-time low

    Despite the decline, the price of oil remains far above $100 per barrel, a high level for oil-importing nations like Pakistan, which is already grappling with a growing current account deficit and dwindling foreign exchange reserves.

  • Tobacco companies in Pakistan may bump cigarette prices

    Tobacco companies in Pakistan may bump cigarette prices

    Farmers have asked the government and firms to increase the price of future tobacco products in accordance with the current price hikes in pesticides, fertilisers, and other crop preparation and selling charges.

    On May 9, the demand was made at a meeting of Ittehad-e-Kashtkaran in Khyber Pakhtunkhwa. The participants agreed that the government should reduce agricultural inputs because pesticide, fertiliser, and other costs have risen dramatically.

    Attendees suggested that the price of tobacco be set at Rs350 per kilogramme so that growers may meet the current price increases in pesticides, fertilisers, and other expenses spent during crop preparation and marketing.

    The newly elected officials also encouraged the government to create favourable local marketplaces for agricultural products to aid hardworking farmers. They demanded that the government and tobacco businesses pay the farmers’ outstanding debts immediately.

    Read more: Open market: Lemon being sold at Rs1,100 per kg in Lahore

    Growers also asked the government to develop a policy to prevent tobacco-related industries from moving from Khyber Pakhtunkhwa to Azad Kashmir and other provinces.

    It should be noted that tobacco is grown in Pakistan, with Khyber Pakhtunkhwa accounting for 80 per cent of total production.

    Tobacco products also give Rs135 billion to the federal budget, while the tobacco development tax contributes Rs980 million to the provincial budget.

  • Bitcoin falls to lowest since January after stock market

    Bitcoin falls to lowest since January after stock market

    Bitcoin on Monday, May 9 fell to its lowest level since January 2022, as falling equity markets weighed on cryptocurrencies, which are now trading in line with riskier assets like tech stocks.

    In early trade, bitcoin fell as low as $33,266 to test the January low of $32,951. If it drops below that level, it will be at its lowest since July of 2021. The price then settled at roughly $33,500, down 1.4 per cent.

    A Singapore-based crypto platform, Stack Funds said that everything in crypto is still classified as a risk asset, and most cryptocurrencies are pummelling in the same way that the Nasdaq has been.

    The Nasdaq, which is heavily weighted in technology, plummeted 1.5 per cent last week and is down 22 per cent year to date, as persistent inflation forces the US Federal Reserve to raise rates despite slowing GDP.

    On Monday morning Nasdaq futures were down another 0.8 per cent.

    Other factors in bitcoin’s weekend slide were the crypto market’s notoriously low liquidity on weekends, as well as short-lived fears that an algorithmic stablecoin dubbed Terra (UST) could lose its stability against the US dollar.

    Read more: Pakistan’s foreign currency reserves down by $328 million

    The crypto world is keeping a close eye on UST because of its unique method of maintaining a 1:1 dollar peg, as well as its founders’ aspirations to construct a $10 billion bitcoin reserve to support the stablecoin, implying that UST volatility might potentially leak over into the bitcoin markets.

    On Monday, Ethereum, the world’s second-largest cryptocurrency, plummeted to $2,421, its lowest level since late February.

  • Pakistan dispatches aid for flood-affected Afghans

    Pakistan dispatches aid for flood-affected Afghans

    Pakistan is delivering emergency aid commodities to Afghanistan, where severe rains and flooding killed several individuals and wrecked hundreds of residences.

    The Ministry of Foreign Affairs (MOFA) on April 7, revealed that Pakistan dispatched a C-130 plane to Mazar-e-Sharif with emergency relief supplies for Afghans affected by flash floods.

    According to Afghanistan’s National Disaster Management Authority (NDMA), flooding and storms killed roughly 22 people and injured 40 others in 12 regions.

    On Thursday, Prime Minister (PM) Shehbaz Sharif remarked that Pakistan is with Afghan people in this challenging hour and will provide them with every possible help. He stated that the Afghan people will receive all available assistance.

    PM Sharif voiced grief over the loss of innocent lives in at least ten provinces of Afghanistan as a result of floods, and urged the international community to assist the Afghan people in the aftermath of the devastating floods in a country already suffering from a humanitarian and economic crisis.

    Read more: Turkey: Food prices surged by 89 per cent, transportation costs increased by 106 per cent

    He emphasised that the Organization of Islamic Cooperation (OIC) should step up efforts to help the Afghan people afflicted by the conflict through the Afghan Humanitarian Trust. PM Sharif suggested that the international world, particularly the United Nations, begin an assistance programme for Afghanistan to offer food, medical help, and shelter to the poor and homeless.

  • NEPRA hikes power tariff by Rs2.86 per unit

    NEPRA hikes power tariff by Rs2.86 per unit

    The National Electric Electricity Regulatory Authority (NEPRA) has increased the power price by Rs2.86 per unit for the month of March 2022 due to Fuel Charges Adjustment (FCA) and also issued a notification in this regard.

    As per NEPRA’s notice, power consumers of Ex Wapda Distribution Companies (DISCOS) will be charged an increase of Rs2.86 per unit on account of FCA for March 2022 in their electricity bills for May 2022, resulting in an added strain of Rs29 billion on consumers, along with General Sales Tax (GST).

    The Central Power Purchasing Agency (CPPA) had urged the administration to raise the electricity tariff by Rs3.16 per unit. Except for lifeline and K-Electric (KE) customers, the hike will apply to all consumer categories.

    Read more: Pakistan starts oil and gas production from Dhok Sultan DS X-1

    Moreover, the authority also announced Rs1.38 per unit increase for K-Electric customers. For the month of February 2022, Karachi Electric (KE) requested an increase of Rs3.45 per unit. The hike will be billed to electricity customers in May 2022, according to the announcement. Except for lifeline customers who use less than 100 units per month, the tariff increase would affect all KE customers.

  • State Bank announces a five-day work week for banks

    State Bank announces a five-day work week for banks

    The State Bank of Pakistan (SBP) on Friday announced bank timings with five working days. The notification from the State Bank came after the federal government decided not to reinstate the Saturday weekly off, and decided to go with six working days with decreased working hours.

    According to a notification issued in this regard, banks will observe office hours from 9am to 5:30pm Monday to Thursday with a prayer/lunch break from 1:30pm to 2:15pm.

    On Friday, banks will observe timings from 9am to 6pm with a prayer/lunch break.

    The Securities & Exchange Commission of Pakistan (SECP) offices will be open on Saturday, but the stock market and the business sector will operate on a five-day schedule and will be closed on Saturday.

    The Pakistan People’s Party (PPP) government implemented two-day weekly holidays in 2011 with the goal of conserving energy.