Category: Business

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

  • Major relief announced for power consumers using less than 200 units

    Major relief announced for power consumers using less than 200 units

    Prime Minister Shehbaz Sharif has unveiled a substantial relief package worth Rs50 billion aimed at domestic electricity consumers.

    This initiative, set to benefit those using up to 200 units per month, will be in effect for the months of July, August, and September.

    The announcement was made during a ceremony on energy sector reforms held in Islamabad this afternoon. According to the Information Ministry, the relief package is designed to assist 25 million domestic consumers, which constitutes 94 per cent of the total domestic user base.

    Under the terms of the package, the cost of electricity per unit will range between Rs4 and Rs7. This subsidy will also extend to K-Electric consumers. The PM noted that the funding for this initiative will come from the development fund.

    “This decision has been taken to provide relief to the common man in the wake of rising electricity prices,” PM Shehbaz stated

    He acknowledged that the summer months are particularly challenging due to higher electricity consumption. However, he expressed optimism that from October onwards, as the weather cools, electricity usage will naturally decrease.

    PM Shehbaz also reiterated his commitment to addressing the country’s economic challenges, emphasising that tackling corruption is essential for economic recovery. He assured the public that the coalition government is united in its efforts to overcome these difficulties.

  • PSX closes at new record high despite fire incident

    PSX closes at new record high despite fire incident

    On Monday, a fire incident caused a temporary halt in trading at the Pakistan Stock Exchange (PSX), yet the benchmark KSE-100 index continued its bullish run, closing at a new record high.

    The index remained relatively stable during the first hour of trading but faced a suspension from 10:25 am to 12:30 pm due to a fire outbreak at the main building, which houses several brokerage offices.

    Once trading resumed, the market quickly regained momentum. The KSE-100 index surged to an intra-day high of 80,737.71 points, adding 524.92 points. By the close of trading, the benchmark index settled at 80,566.21 points, marking an increase of 353.41 points or 0.44 per cent.

    Key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, and oil marketing companies, saw significant buying activity. Prominent stocks such as OGDC, PPL, PSO, SHEL, HBL, and NBP ended the day in positive territory.

    The PSX had already been on a bullish trend the previous week, driven by aggressive buying from both local and foreign investors, as well as institutional support. The KSE-100 index had gained 1,767.83 points on a week-on-week basis, crossing the 80,000 mark to close at 80,212.79 points.

  • Gold price drops by Rs1,300 per tola to Rs245,100 per tola

    Gold price drops by Rs1,300 per tola to Rs245,100 per tola

    Gold prices in Pakistan experienced a notable drop on Monday, mirroring a decrease in international markets.

    The All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) reported that the price of gold per tola fell by Rs1,300, bringing it down to Rs245,100. Similarly, the rate for 10 grammes of gold decreased by Rs1,113, settling at Rs210,134.

    On the global stage, the price of gold was set at $2,376 per ounce, including a $20 premium, after a decline of $12 during the day.

    In contrast, silver prices in Pakistan remained steady, with rates holding firm at Rs2,900 per tola.

    Moreover, the Pakistani rupee on the first trading day of the week declined by Rs12.74 paisa to Rs278.5 against the US dollar.

  • FIA directed to identify and suspend officials involved in overbilling electricity consumers

    FIA directed to identify and suspend officials involved in overbilling electricity consumers

    Prime Minister Shehbaz Sharif has announced stringent measures against officials responsible for overcharging electricity consumers.

    During a meeting in Islamabad on Saturday, attended by Minister for Power Sardar Awais Ahmed Leghari, Minister for Information and Broadcasting Attaullah Tarar, and other relevant officials, the Prime Minister directed the Federal Investigation Agency (FIA) to identify and suspend such officials.

    He emphasised that these actions will not be tolerated, labelling the perpetrators as “enemies of the people.”

    In the same session, the Cabinet Committee on Energy (CCoE) revealed that the circular debt in the power sector had soared to Rs2,655 billion by May 2024.

    The committee, chaired by Prime Minister Sharif, approved the creation of a support unit aimed at enhancing the efficiency of electricity distribution companies (DISCOs), curbing electricity theft, and ensuring timely bill collection.

    This support unit, which will operate for two years after receiving federal cabinet approval, will begin its work with the Multan Electric Power Company (MEPCO).

    The government’s initiatives aim to address systemic issues in the power sector, thereby alleviating financial pressures and improving service delivery.

  • PM Shehbaz orders immediate action to tax 4.5 million non-filers

    PM Shehbaz orders immediate action to tax 4.5 million non-filers

    Prime Minister Shehbaz Sharif has mandated immediate action to bring 4.5 million identified non-filers into the tax net.

    Chairing a review meeting on Federal Board of Revenue (FBR) reforms, he stressed the need for swift implementation of measures to ensure these potential taxpayers are registered and contributing their due share.

    During the meeting, officials updated the prime minister on the ongoing reforms and digitisation efforts within the FBR. The implementation of Sharif’s directives is progressing rapidly, with a comprehensive review of the FBR’s existing systems and manpower nearing completion.

    Initial steps have already led to the identification and cessation of fraudulent sales tax refund claims by approximately 4,000 companies.

    The prime minister underscored the importance of ending discretionary powers of customs appraisers, instructing the FBR chairman to ensure compliance and report back within 24 hours. He highlighted that more than 300,000 new taxpayers have submitted their returns in recent weeks, a testament to the government’s initiatives.

    PM Shehbaz also called for strict action against individuals and officials involved in tax evasion, emphasising that those who facilitate such crimes will be punished. Conversely, taxpayers who comply with their obligations will be acknowledged.

    To enhance transparency and reduce corruption, the prime minister directed the installation of modern, international-quality scanners at ports. He reiterated that the digitisation of the tax system is a top government priority to prevent billions in tax evasion.

    PM Shehbaz also recommended the creation of a dashboard to monitor the progress of digitisation and reforms.

  • Fourth consecutive surge pushes gold price to Rs246,400 per tola in Pakistan

    Fourth consecutive surge pushes gold price to Rs246,400 per tola in Pakistan

    Gold prices in Pakistan rose for the fourth consecutive session on Saturday, mirroring an uptick in the international market.

    The price of gold per tola in the local market climbed by Rs2,000, reaching Rs246,400, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).

    Similarly, the price of 10-gramme gold increased by Rs1,740, selling at Rs211,247. This follows a Rs1,100 rise in the price per tola observed on Friday.

    Internationally, gold prices also saw an increase on Saturday. The rate, as reported by APGJSA, was $2,388 per ounce (including a $20 premium), marking a $24 gain for the day.

    Silver prices also saw an upward trend, rising by Rs50 to settle at Rs2,900 per tola.

    In April, the price of gold in the local market hit a record high of Rs252,200 per tola.

  • Milk prices in Karachi higher than cities in France, Netherlands, Australia

    Milk prices in Karachi higher than cities in France, Netherlands, Australia

    Milk has become more expensive in Pakistan as compared to many countries of the world, Bloomberg has reported.

    According to the report, the price of boxed milk in Pakistan is 370 rupees per liter, while the same milk is available in Paris, the capital of France, for 342 rupees per liter. The price of milk in the Netherlands has also been declared cheaper than Pakistan.

    The report states that milk is available at Rs 358 per litre in Amsterdam and in Australia for Rs 300 per litre, while the price of canned milk in Pakistan is Rs.370.

    “Ultra-high temperature, or UHT, milk now costs 370 rupees ($1.33) a litre in supermarkets in Karachi. That compares with $1.29 in Amsterdam, $1.23 in Paris, and $1.08 in Melbourne, according to data collected by Bloomberg.” the report highlights.

    Bloomberg says that more than 60 percent of children in Pakistan are suffering from anaemia and increasing the price of milk is akin to putting the lives of sick children at stake.

  • Pakistan’s central govt debt hits record Rs67.82 trillion in May 2024

    Pakistan’s central govt debt hits record Rs67.82 trillion in May 2024

    In May 2024, the central government’s total debt reached a record high of Rs67.82 trillion, marking a 15.01 per cent increase compared to Rs58.96 trillion a year earlier, according to data released by the State Bank of Pakistan (SBP).

    Sequentially, the central government debt also rose by 2.62 per cent from April 2024, when it stood at Rs66.08 trillion.

    This significant year-on-year rise in debt is mainly attributed to increased borrowing from both domestic and foreign sources, aimed at managing the fiscal deficit.

    According to details provided by the SBP, the majority of the debt was domestic, amounting to Rs46.21 trillion. This includes Rs36.6 trillion in long-term debt, Rs9.52 trillion in short-term debt, and an additional Rs86.79 billion raised through Naya Pakistan Certificates.

    Comparing year-on-year figures, the domestic debt showed a substantial increase of 24.7 per cent, with sequential growth of 3.88 per cent.

    By the end of May 2024, the government’s long-term debt had risen by 24.14 per cent year-on-year to Rs36.6 trillion, up from Rs29.48 trillion recorded a year earlier, with a month-on-month increase of 3.91 per cent.

    Similarly, short-term debt saw a notable increase of 28.09 per cent year-on-year, reaching Rs9.52 trillion in the review period.

  • Weekly inflation rises 1.28% as essential food items, fuel costs surge

    Weekly inflation rises 1.28% as essential food items, fuel costs surge

    In a challenging economic climate, food prices in Pakistan have surged, forcing consumers to purchase essential items at elevated costs.

    According to the Weekly Sensitive Price Indicator (SPI) released by the Pakistan Bureau of Statistics (PBS), the SPI for the Combined Group increased by 1.28 per cent week-on-week (WoW) for the week ending July 4, 2024.

     Additionally, the SPI saw a substantial year-on-year (YoY) rise of 23.59 per cent compared to the same period last year.

    The PBS data revealed that the Combined Index stood at 318.61, up from 314.57 a week earlier, and significantly higher than the 257.79 recorded a year ago. Out of 51 monitored items, prices of 29 (56.86 per cent) increased, 5 (9.80 per cent) decreased, and 17 (33.34 per cent) remained stable during the week.

    Significant weekly price increases were observed in tomatoes (70.77 per cent), wheat flour (10.57 per cent), powdered milk (8.90 per cent), diesel (3.58 per cent), and petrol (2.88 per cent). Conversely, notable price hikes on a yearly basis were recorded for onions (9.05 per cent), wheat (1.79 per cent), potatoes (1.04 per cent), eggs (0.79 per cent), and bananas (0.60 per cent).

    The SPI percentage change by income groups showed that the SPI rose across all income quantiles, ranging from 1.23 per cent to 1.44 per cent weekly. The lowest income group experienced a weekly rise of 1.43 per cent, while the highest income group saw a 1.23 per cent increase.

    Yearly SPI analysis across different income segments indicated increases ranging between 16.97 per cent and 26.49 per cent. The SPI for the lowest income group rose by 16.97 per cent, while the highest income group recorded a 21.39 per cent increase.

    Additionally, the average price of Sona urea was reported at Rs4,746 per 50 kg bag, which is 0.13 per cent higher than the previous week and 51.52 per cent higher compared to last year.

    Meanwhile, the average cement price reached Rs1,409 per 50 kg bag, marking a significant 10.48 per cent increase from the previous week and a 23.16 per cent rise from last year’s prices.

    The persistent rise in food and essential item prices continues to burden Pakistani consumers, exacerbating the financial strain on households across the country.

  • Petroleum dealers strike as OGRA directs oil companies to keep pumps open

    Petroleum dealers strike as OGRA directs oil companies to keep pumps open

    The Oil and Gas Regulatory Authority (OGRA) and the Petroleum Division have issued a joint statement following the strike announced by the Petroleum Dealers Association, stating that petroleum products will be available nationwide.

    The statement directed oil marketing companies to keep pumps open and ensure continuous supply.

    According to the joint statement, the country has abundant petroleum products, and they will remain available throughout the nation.

    Earlier, the Petroleum Dealers Association had declared a nationwide strike starting on July 5.

    Abdul Sami Khan, Chairman of the Petroleum Dealers Association, announced the strike, emphasising that businesses cannot sustain operations with such high taxes. He warned that pumps across the country will begin to run dry tonight and stated that negotiations will not resume until the government accepts their demands.