Category: Business

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

  • Gold price jumps to record high of Rs277,200 per tola

    Gold price jumps to record high of Rs277,200 per tola

    Gold price in Pakistan unexpectedly surged by Rs2,200 per tola to its new record high following an increase in the international bullion rates.

    According to the  All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), after the big rise seen in yellow metal’s rate in local market, the price of 24 karat gold was recorded at a new all-time high of Rs277,200 per tola on Wednesday.

    The latest rate is Rs200 per tola higher than the last record high observed in the month of September 2024.

    APGJSA said that the price of 10-gramme gold also increased by Rs1,886 to Rs237,654.

    In the last trading session, the precious metal’s price was recorded Rs700 per tola higher than Monday’s, clocking in at 275,000 per tola.

    Read more: Exchange rates: PKR drops over two paisa against US dollar

    On the international front, gold rate surged by $22 per ounce, as the APGJSA quoted the new rate at $2,675. This price also includes a premium of $20 per ounce.

    Silver prices in Pakistan witnessed no change and stayed at Rs3,050 per tola.

  • New fuel prices announced

    New fuel prices announced

    The government of Pakistan has announced the prices of petroleum products, under which the price of petrol will remain the same.

    Petrol price in Pakistan today

    The cost of gasoline per litre has been maintained at 247.3 Rupee while the price of diesel has been increased.

    The price of high-speed diesel has been increased by Rs 5 per litre, after which the new price of high-speed diesel has risen to 251. 29 Rupee per litre.

    According to the notification issued by the Ministry of Finance, the prices will be applicable from October 16 to October 31.

    Record increase in crude oil production:

    Apart from this, an increase in crude oil production in Pakistan has been recorded on a weekly basis. According to Pakistan Petroleum Information Service (PPIS) and industry data, the average daily output of crude oil in the country for the week ended September 30 was recorded at 63,898 barrels, which is one per cent higher than the previous week. The average daily production of crude oil was recorded at 63376 barrels.

  • Pakistani rupee sheds over eight paisa against US dollar

    Pakistani rupee sheds over eight paisa against US dollar

    The Pakistani rupee (PKR), continuing the trend of minor fluctuations against the US dollar (USD), dropped more than eight paisa on the second trading day of the week.

    The latest exchange rate shared by the State Bank of Pakistan (SBP) showed the Pakistani currency down by about 0.03 per cent, or more than eight paisa, on Tuesday, as the local unit settled the trade at Rs277.74 against the greenback.

    This is slightly lower than Monday’s closing rate of Rs277.66 per USD. The highest value of the US dollar was quoted at Rs277.85, while the lowest rate was reported at Rs277.75.

    Money exchangers bought the USD for Rs277.86 and sold it for Rs279.35.

    In terms of other foreign currencies, PKR’s performance, as expected, was not that impressive as the home unit remained largely stable.

    PKR’s performance versus other foreign currencies

    Currency Difference Percentage change Tuesday’s closing Previous rate
    British Pound -42.61 -0.12% 363.22 362.79
    Euro +42.46 +0.14% 303.04 303.47
    Swiss Franc +67.43 +0.21% 322.45 N/A
    Chinese Yuan +17.73 +0.45% 39.04 39.22
    Japanese Yen -0.43 -0.23% 1.8632 1.8589
    UAE Dirham -2.32 -0.03% 75.62 N/A
    Exchange rates

    Against the British pound, the rupee dropped by 42.61 paisa or 0.12 per cent, closing at PKR 363.22 compared to PKR 362.79 on Monday.

    The PKR gained 42.46 paisa or 0.14 per cent against the euro, closing at PKR 303.04 from the previous rate of PKR 303.47.

    Against the Swiss franc, the rupee strengthened by 67.43 paisa or 0.21 per cent, closing at PKR 322.45.

    The PKR appreciated by 17.73 paisa or 0.45 per cent against the Chinese yuan, ending at PKR 39.04 from PKR 39.22.

    However, the local currency fell by 0.43 paisa or 0.23 per cent against the Japanese yen, closing at PKR 1.8632 from the previous close of PKR 1.8589.

    Lastly, the rupee declined by 2.32 paisa or 0.03 per cent against the UAE dirham, closing at PKR 75.62.

  • Filling tanks and pockets: Pump owners anticipate PKR 3.95 petrol price hike

    Filling tanks and pockets: Pump owners anticipate PKR 3.95 petrol price hike

    With fuel prices anticipated to rise, travel buses and apps like Uber may see a hike in their fare, too. As PSO (Pakistan state oil) drafts up price revisions, fuel suppliers prepare to celebrate. This is because the expected price increases will boost profit margins to PKR 9.22 for oil companies and PKR 10.04 for petrol dealers, respectively.

    Reportedly, petrol prices are expected to be revised by PKR 3.95 per litre, kerosene oil by PKR 7.85 per litre, and LDO (light diesel oil) by PKR 8.33 per litre and the most significant of all, HSD (High-speed diesel) by PKR 10.

    It is to be noted that fuel is a good that is inelastic in demand. Simply put, any hikes in fuel prices are not likely to cause a reduction in consumption as it is considered a necessity. Moreover, it is unlikely that vehicles are utilising multiple fuel sources (barring the age-old combination of Petrol-CNG), which makes it impossible to switch to a cheaper alternative.

    It is this very principle that will allow business owners involved in the trade of fuel to benefit from the expected rise in prices.

    However, these profits will come at the cost of the rest of the economy. People will still have to consume petrol and other such products regularly. The higher prices will result in a decline in the purchasing power of customers. This would spell bad news for non-fuel businesses, as a higher proportion of the consumer budget would be allocated towards the purchase of fuel, which would mean fewer revenues for non-fuel businesses.

    This is likely to cause businesses to suffer as their customers will have less money to spend on their products.

    Moreover, businesses are expected to suffer as transport costs of goods from warehouses to stores will rise. Businesses will either have to absorb these extra costs, resulting in a drop in profits, or this additional cost will have to be passed onto consumers in the form of higher prices, resulting in a rise in inflation.

    Nevertheless, it’s not a win either for businesses or customers. However, it’s great news for businesses trading fuel.

  • Pakistani rupee closes at Rs277.64 against US dollar, Rs362.79 versus Pound

    Pakistani rupee closes at Rs277.64 against US dollar, Rs362.79 versus Pound

    The Pakistani rupee dropped more than two paisa or 0.01 per cent against the US dollar (USD) in Monday’s interbank session to settle the trade at PKR 277.66 per USD, compared to previous closing of Rs277.64.

    During the day, the Pakistani currency saw an intraday high of Rs277.75 and low of Rs277.50.

    US dollar to Pakistani rupee exchange rate today

    Speaking of the open market, local exchange companies quoted greenback value at Rs278 for buying and Rs279.5 for selling.

    During the ongoing fiscal year, PKR appreciated against the USD by 68.06 paisa or 0.25 per cent. While the current calendar year has seen PKR appreciate by Rs4.2 or somewhat around 1.5 per cent.

    In comparison to major foreign currencies, the home unit gained 47.48 paisa against the Euro, closing at 303.47 compared to the previous value of 303.94 on the last trading day (Friday).

    Dirham in PKR: The UAE Dirham surged in value by 0.41 paisa from 75.59 a day ago to 75.59.

    Pound in PKR: The British Pound was seen in red as it became cheaper by 26.18 paisa closing at 362.79 compared to 363.05 from a day ago.

    Franc in PKR: The Swiss franc saw losses of 93.52 paisa, closing at 323.12 compared to 324.06 from the previous session.

    Yen in PKR: Against the Japanese Yen, PKR gained 0.6 paisa, closing at 1.8589 versus 1.8649 a day ago.

    Yuan in PKR: The Chinese Yuan lost 6.62 paisa, closing at 39.22 against 39.28 from the previous session.

    Saudi Riyal in PKR: Lastly, the Saudi currency ended at 73.94 with gaining 0.41 paisa in its previous value of 73.94.

  • Saudi fast food giant AlBaik to shake up Pakistan’s fast food scene

    Saudi fast food giant AlBaik to shake up Pakistan’s fast food scene

    Saudi Arabia’s renowned fast food chain, AlBaik, famous for its fried and broasted chicken, is set to challenge Pakistan’s existing fast food market. According to latest reports, the company is planning to open several restaurants across the country and is currently in discussions with government to facilitate this expansion.

    A reliable source disclosed that a memorandum of understanding (MoU) has already been signed between AlBaik Food Systems Company and Gas and Oil Pakistan Ltd (GO), the same company behind GO petrol stations in Pakistan.

    Founded in 1974 by Shakour Abu Ghazalah in Jeddah, AlBaik has grown into a beloved household name, with over 120 outlets worldwide. Its popularity is such that many Saudis prefer it over international chains like KFC and McDonald’s.

    The MoU between AlBaik and GO petroleum is part of a larger framework of 27 agreements, valued at more than $2 bn, signed between Pakistan and Saudi Arabia. These agreements were finalised during the visit of a Saudi delegation led by the Minister for Investment, Sheikh Khalid Bin Abdul Aziz Al Faleh.

    Prime Minister Shehbaz Sharif stated on Thursday that the MoUs, which focus on boostin bilateral investment, are expected to significantly boost trade and economic cooperation between the two nations.

  • Weekly inflation slows as prices of eight essential items drop across local markets

    Weekly inflation slows as prices of eight essential items drop across local markets

    Short-term inflation in Pakistan has somewhat eased, as the Pakistan Bureau of Statistics (PBS) reported a decrease in the prices of eight essential items.

    According to data collected through the Sensitive Price Indicator (SPI), weekly inflation was recorded as 0.8 per cent lower on a weekly basis. However, SPI-based inflation increased by 12.74 per cent on a year-on-year (YoY) basis.

    The SPI tracks price movements of key items on a weekly basis. In the week ending on October 10, the prices of 15 items increased, while the prices of 8 items decreased compared to the previous week. Moreover, the prices of 28 items remained unchanged during the week.

    These prices were collected from nearly 50 markets across Pakistan.

    The most prominent reductions were observed in the prices of tomatoes, which saw a decline of over 19 per cent. Prices for bananas, sugar, pulse mash, and chicken were also recorded lower.

    However, a notable increase was seen in the prices of onions, wheat flour, pulse gram, and potatoes.

  • Cement Rate Today in Pakistan: The Pressing Need for Affordable Solutions

    Cement Rate Today in Pakistan: The Pressing Need for Affordable Solutions

    As of October 2024, the cement rate today in Pakistan has maintained its ever-constant variations owing to supply chain disruptions and high raw material costs. A 50-kg cement bag retails for an average price of between PKR 1,100 and PKR 1,400, subject to the area and brand. The prices are expected to be higher in urban centers like Karachi, Lahore, and Islamabad because of the sprawling demand and transport rates.

    Also, most current flat cement rates in Pakistan are boosted by a surge in construction activity, with much more infrastructure and housing construction. The growing markets for this construction can be attributed to more price-distorted projects, namely government construction projects and the growth of the private housing market. To make matters worse, the expensive oil and inflation experienced by the economy have equally pushed the prices of cement production higher, making its selling prices rise in recent months.

    The industry predicts prices will rise in the upcoming years unless supply chains are improved or input costs are decreased. Pakistani cement companies work to meet the country’s economic challenges and current demand. Cement consumption in Pakistan has surged economically. But its cheap rate helps complete construction projects without breaking the budget.

    Here is the list of the latest 53 Grade cement prices of different cement-producing companies in Pakistan.

    Serial No Brands Price per 50kg bag
    1 Flaying Pakistan Rate RS. 1,445-1,455
    2 Cherat Cement Rate RS. 1,460-1,470
    3 Power Cement Rate RS. 1,460-1,470
    4 Paidar Cement Rate RS. 1,460-1,470
    5 Falcon Cement Rate RS. 1,460-1,470
    6 Kohat Cement Rate RS. 1,465-1,475
    7 Lucky Cement Rate RS. 1,465-1,475
    8 Askari Cement Rate RS. 1,465-1,475
    9 BestWay Cement Rate RS. 1,475-1,485
    10 Maple Leaf Cement Rate RS. 1,475-1,485

    Here is the list of the white cement prices of different cement-producing companies in Pakistan.

    Serial No Brands Price per 50kg bag
    1 Maple Leaf White Cement RS. 2150-2250
    2 Kohat White RS. 2050-2100
    This data is collected from jbms.pk.
  • Tax evaders beware: Finance minister cracks down to boost tax revenues by $21 billion

    Tax evaders beware: Finance minister cracks down to boost tax revenues by $21 billion

    Pakistan is losing out on approximately $21 billion annually to tax evasion. As Finance Minister Muhammad Aurangzeb tightens the metaphorical noose around tax evaders with his crusade, law-abiding citizens could expect better times.

    This is because, as per the latest federal budget, the interest payments of the debt incurred to finance the fiscal deficit of $30.6 billion will be financed using taxpayer funds. However, if Aurangzeb successfully expands the tax net, this fiscal deficit will fall massively to just a mere $9.6 billion.

    Simply put, there are two ways to narrow a fiscal deficit: either the government can cut down on expenditures, or tax collections can be increased. In a bid to reduce the deficit, the finance minister plans to hold corrupt FBR officials accountable. This is to be done by implementing strict punishments: 10-year prison sentences and hefty fines. And with FBR agents raiding non-taxpaying businesses, the government budget deficit is likely to see a turn for the better.

    The primary culprits of tax evasion are big companies that are responsible for 50 per cent of all unpaid taxes, a figure that translates into an annual loss of PKR 3.4 trillion in revenue for the FBR. With Aurangzeb taking strict action against corporate tax fraud, it is only a matter of time before every non-compliant business is paying its fair tax rate of 29%.

    The motivation behind people skipping out on paying taxes stems from an economic concept known as the “free rider effect”. In simple words, people who don’t pay taxes have just as much a right to enjoy security from the police or acquire free healthcare at a public hospital as opposed to people who do pay their taxes.

    Is this morally right? Perhaps not. However, compliance with tax legislation does not seem attractive—not when selling morality can net non-taxpayers $21 billion per annum by withholding taxes.

    Regardless of morality, though, tax evasion is a crime, and Aurangzeb is not playing softball with people who cross him.

  • Pakistani rupee ends week with a loss of 12 paisa against the US dollar

    Pakistani rupee ends week with a loss of 12 paisa against the US dollar

    The Pakistani rupee (PKR), on its last trading day of the week, managed to resume the trend of minor gains.

    According to the State Bank of Pakistan (SBP), the PKR rose by 15.29 paisa against the US dollar (USD) and ended Friday’s trading session at Rs277.64.

    As compared to the last closing of Rs277.79, the PKR recorded a not-so-impressive gain of 0.06 per cent.

    During the trading session, the local currency remained mostly unchanged as it saw an intraday high of Rs277.85 with a low of Rs277.75.

    Exchange companies were buying the greenback for Rs278.50 and selling for Rs279.75. The Pakistani currency, in total, has lost 12 paisa against the greenback this week.

    A look at PKR’s performance against other foreign currencies

    As compared to the Euro, the PKR lost 29.92 paisa and closed the day at Rs303.94. The PKR was seen 17.23 paisa up against the British Pound as it closed at Rs363.05.

    The rupee also gained 0.09 paisa against the Japanese Yen and closed the session at Rs1.8649.

    Currency Closing (PKR) Change (Paisa) Previous rate
    Euro 303.94 24.92 303.69
    British Pound 363.05 17.23 363.23
    Swiss Franc 324.06 99.05 323.07
    Japanese Yen 1.8649 0.09 1.8658
    Chinese Yuan 39.28 2.7 39.26
    Saudi Riyal 73.94 5.06 73.99
    UAE Dirham 75.63 4.37 75.59
    Exchange rates

    In the current fiscal year, the home unit has gained over 70 paisa in total against the US dollar.