Category: Business

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

  • Federal ministers predict petrol price reduction, oil authority cautions against speculation

    Federal ministers predict petrol price reduction, oil authority cautions against speculation

    The Oil and Gas Regulatory Authority (OGRA) has cautioned against engaging in speculative discussions regarding the future pricing of petroleum products. This advisory comes in response to recent statements made by federal ministers suggesting potential reductions in Petroleum Oil and Lubricants (POL) rates during the upcoming fortnightly review.

    Caretaker Federal Commerce and Industries Minister Gohar Ejaz and Interim Federal Minister for Information and Broadcasting Murtaza Solangi had asserted last week that POL prices might see a decrease, attributing this possibility to the strengthening of the Pakistani rupee against the US dollar.

    Over the past two weeks, the rupee has appreciated by approximately Rs16 against the dollar, prompting these statements. It’s important to note that Pakistan, as a petroleum importer, conducts its transactions in US dollars.

    In the preceding fortnightly review, the caretaker government had substantially raised the prices of petrol and diesel, setting historic highs at Rs331.38 and Rs329.18 per litre, respectively.

    In light of the ministers’ remarks, OGRA has released a statement reiterating the importance of refraining from speculative discourse concerning petroleum product prices. The regulatory authority clarified that these prices in Pakistan are primarily influenced by international market rates and the prevailing dollar-to-ruble exchange rate.

    OGRA pointed out that recent times have witnessed an upsurge in global petroleum prices, while the rupee has demonstrated an improvement against the dollar. However, OGRA emphasised that there is still one week remaining before the announcement of the new pricing structure.

    The statement from OGRA further underscores that any conjecture regarding price fluctuations during this interim period is highly speculative and could potentially disrupt the efficient functioning of the petroleum supply chain.

  • Pakistani rupee settles at Rs290.86 against US dollar, marking 14th consecutive gain

    Pakistani rupee settles at Rs290.86 against US dollar, marking 14th consecutive gain

    In continuation of its recent positive streak, the Pakistani rupee extended its upward trajectory against the US dollar for the 14th consecutive session, marking a gain of 0.31 per cent in the interbank market on Monday.

    According to data released by the State Bank of Pakistan (SBP), the rupee closed at Rs290.86, representing a noteworthy increase of Re0.9 in the inter-bank market. This sustained appreciation trend has seen the rupee make significant gains, amounting to 5.28 per cenr, or Rs16.24, since its record low of Rs307.1 against the US dollar on September 5 in the inter-bank market.

    In the previous week, the rupee experienced a further appreciation of 1.74 per cent, concluding positively for all five trading sessions and settling at Rs291.76 against the US dollar in the inter-bank market by the end of the week. Additionally, the rupee’s performance in the open market has strengthened, reducing the ‘premium’ to negligible levels and aligning with the benchmarks established by the International Monetary Fund (IMF).

    While several experts attribute the rupee’s recent gains to administrative and enforcement measures, some argue that these increases reflect the currency’s intrinsic value when speculative influences and negative sentiment are excluded.

  • Pakistan’s Civil Aviation Authority is dividing into two entities

    Pakistan’s Civil Aviation Authority is dividing into two entities

    A specialised committee consisting of nine members has been established to supervise the division of the Pakistan Civil Aviation Authority (CAA).

    Heading this committee is Shazia Rizvi, who holds the position of Joint Secretary II within the Ministry of Aviation. Assisting her as the committee’s deputy is Vice Air Marshal Taimoor Iqbal.

    As per the official notification, Vice Air Marshal Taimoor Iqbal will serve as the committee’s deputy. The committee will also include other distinguished members, namely Asif Iqbal, the Joint Secretary of the Ministry of Aviation; Abdul Malik from the Ministry of Finance; and Nadir Shafiq, the Deputy Director General of Regulatory CAA.

    In addition to the aforementioned members, Commodore Mirza Aamir, President of the Aircraft Accident Investigation Board; Saqib Butt, Director of Finance at CAA; Sameer Saeed, responsible for Aviation Security; Sadiqul Rahman, Director of APS; and Abid Ali Shah, Director of HR at CAA, will also be integral parts of this committee.

    The committee has been allocated a deadline of October 15th to carry out its assigned tasks. The primary objective of this restructuring initiative is to bifurcate the CAA into two distinct entities, namely the Pakistan Airport Authority (PAA) and the Bureau of Air Safety Investigation (BASI).

    In addition to the creation of these new entities, the committee holds the vital responsibility of seamlessly transferring assets, funds, personnel, records, and equipment between them.

  • Are you a woman looking to start your own business? State Bank of Pakistan has an interest-free loan for you

    Are you a woman looking to start your own business? State Bank of Pakistan has an interest-free loan for you

    In pursuit of fostering both economic stability and enhanced female workforce participation, the State Bank of Pakistan (SBP) has initiated a noteworthy endeavor. It involves extending interest-free loans to unemployed women, empowering them to embark on substantial entrepreneurial ventures.

    During a seminar titled ‘Women Bankability and Banking on Equality’ at the Government Polytechnic Institute for Women in Dera Ismail Khan, Fazal Muqeem, Deputy Chief Manager of SBP in Dera Ismail Khan, articulated this pivotal announcement.

    Muqeem underscored that women, through the establishment of their own businesses, would not only be able to provide for their families but also confront the pervasive impact of the current inflationary trends that affect every echelon of society. He highlighted the financial difficulties faced by economically disadvantaged individuals in meeting their daily expenses due to limited income avenues.

    In light of the restricted employment opportunities within the country, the pursuit of self-employment emerges as the most viable option in such circumstances, according to Muqeem. He elucidated that these initiatives are the result of collaborative efforts between the Prime Minister and the central bank, aimed at cultivating productive citizenship among unemployed women.

    These policies have facilitated the opening of bank accounts for unemployed women on an equitable basis with men, thereby enabling them to access interest-free loans of up to Rs0.5 million.

    Muhammad Zubair, Assistant Director, asserted that the contemporary era is characterised by digital mobility, and citizens should harness this resource to their advantage. He encouraged citizens to become income tax filers, which would help them reduce their tax liabilities.

    Sara Khan, Principal of GPI for Women, expressed her gratitude to the SBP for their support and highlighted their institution’s dedication to equipping students with skills that empower them to be self-sufficient and valuable contributors to society.

    According to Geo News, she envisioned that numerous women would benefit from SBP’s policy in the future and hoped that such insightful seminars would continue to be organised, enabling the underprivileged and eligible women of Dera Ismail Khan to reap the benefits.

    The event also saw the presence of key figures such as Muhammad Amir Ejaz, Assistant Chief Manager of SBP in Dera Ismail Khan, Rizwanullah Shah, Zafar Awan, Placement Officer at GPI (Women), and a substantial gathering of teachers and female students.

  • Tesla CEO Elon Musk is buying an iPhone 15 due to its ‘incredible’ camera

    Tesla CEO Elon Musk is buying an iPhone 15 due to its ‘incredible’ camera

    Apple’s latest flagship, the iPhone 15, made headlines after its debut at the company’s Wonderlust event on September 12. It became available to eager customers on September 22, causing long queues at Apple stores worldwide. Billionaire Elon Musk has announced his intention to purchase the iPhone 15, a sentiment shared by many.

    Apple’s CEO, Tim Cook, took to X (formerly Twitter) to share images featuring renowned photographers Stephen Wilkes and Reuben Wu. One image depicts the photographers presenting their work to Cook, demonstrating the limitless creative potential of the iPhone 15 Pro Max. The vibrant photos capture breathtaking scenes, from the beauty of summer in Rhode Island to the otherworldly landscapes of Utah. Cook expressed his appreciation, saying, “Thank you for showing me your work.”

    In response, Elon Musk praised the iPhone’s incredible capabilities, stating, “The beauty of iPhone pictures & video is incredible.”

    Cook also shared images of Apple’s new product launches at the Fifth Avenue store in New York, celebrating the latest iPhone 15 family, the first carbon-neutral Apple Watch models, and the latest AirPods. Musk, impressed by these new offerings, exclaimed, “I’m buying one!”

    Musk’s announcement sparked curiosity among social media users. One person wondered about his choice of model and color, while another playfully questioned if he was buying a single unit or the entire company. Some users even joked about Musk promoting Apple products.

    Apple’s latest flagship, the iPhone 15, made headlines after its debut at the company’s Wonderlust event on September 12. It became available to eager customers on September 22, causing long lines at Apple stores worldwide. 

    Billionaire Elon Musk has announced his intention to purchase the iPhone 15, a sentiment shared by many.

    Apple’s CEO, Tim Cook, took to X (formerly Twitter) to share images featuring renowned photographers Stephen Wilkes and Reuben Wu. One image depicts the photographers presenting their work to Cook, demonstrating the limitless creative potential of the iPhone 15 Pro Max. The vibrant photos capture breathtaking scenes, from the beauty of summer in Rhode Island to the otherworldly landscapes of Utah. Cook expressed his appreciation, saying, “Thank you for showing me your work.”

    In response, Elon Musk praised the iPhone’s incredible capabilities, stating, “The beauty of iPhone pictures and video is incredible.”

    Cook also shared images of Apple’s new product launches at the Fifth Avenue store in New York, celebrating the latest iPhone 15 family, the first carbon-neutral Apple Watch models, and the latest AirPods. Musk, impressed by these new offerings, commented, “I’m buying one!”

    Musk’s announcement sparked curiosity among social media users. One person wondered about his choice of model and colour, while another playfully questioned if he was buying a single unit or the entire company. Some users even joked about Musk promoting Apple products.

    Meanwhile, the iPhone 15 series boasts four models: the iPhone 15, the iPhone 15 Plus, the iPhone 15 Pro, and the iPhone 15 Pro Max. The iPhone 15 and iPhone 15 Plus come in three storage options (128GB, 256GB, and 512GB) and five colours (pink, yellow, green, blue, and black).

  • World Bank urges urgent economic reforms in Pakistan to tackle rising poverty

    World Bank urges urgent economic reforms in Pakistan to tackle rising poverty

    The World Bank has issued a grave warning regarding Pakistan’s economic state, urging the nation to take swift action. They propose taxing key sectors like agriculture and real estate while reducing wasteful expenditures to stabilise the economy. This endeavour aims for a significant fiscal adjustment, equivalent to over 7 percent of Pakistan’s economic size.

    The World Bank also revealed alarming statistics, with poverty levels surging to 39.4 percent in the last fiscal year, pushing an additional 12.5 million people below the poverty line. Currently, nearly 95 million Pakistanis live in poverty.

    To address these challenges, the World Bank has drafted a set of policy recommendations in collaboration with stakeholders, focusing on low human development, unsustainable fiscal practices, overregulation in the private sector, and issues in the agriculture and energy sectors.

    Immediate measures include raising the tax-to-GDP ratio by 5 percent and reducing expenditures by about 2.7 percent of GDP, primarily targeting previously protected sectors.

    Tobias Haque, the lead country economist at the World Bank, underscores the need for substantial policy changes, given Pakistan’s economic and human development crises.

    According to Express Tribune, the World Bank’s recommendations encompass a range of fiscal reforms, including the removal of tax exemptions, increased taxation on real estate and agriculture, and mandatory use of CNIC for transactions.

    Furthermore, the institution advises cutting energy and commodity subsidies, implementing a single Treasury account, and adopting temporary austerity measures for short-term savings. Medium-term savings entail streamlining federal spending and enhancing the quality of development expenditures.

    Najy Benhassine, the country director for Pakistan at the World Bank, emphasises the importance of political consensus and domestic solutions to address Pakistan’s challenges.

    The World Bank highlights the need to address the human capital crisis, reduce energy subsidies, and promote inclusive, sustainable, and climate-resilient development in Pakistan. These measures are imperative to stabilise the nation’s precarious economic situation and alleviate the growing poverty crisis.

  • Govt attributes UAE’s fresh meat export ban to faulty refrigeration systems in containers

    Govt attributes UAE’s fresh meat export ban to faulty refrigeration systems in containers

    The Trade Development Authority of Pakistan (TDAP) has attributed the United Arab Emirates’ (UAE) restriction on fresh chilled meat exports from Pakistan to issues with inefficient or non-functional refrigeration systems.

    The ban, effective October 10, 2023, was enacted in response to substandard fresh beef shipments detected in Dubai. TDAP revealed that subpar meat quality was linked to refrigeration problems in reefer containers, a responsibility of shipping lines. Exporters affected by the ban have filed claims against these shipping entities.

    According to Brecorder, the UAE’s Ministry of Climate Change and Environment revised its list of approved slaughterhouses for meat exports via sea routes, imposing specific requirements on shipments of fresh and chilled meat until October 10. Only vacuum-packed or modified-atmosphere-packed meat, conforming to specific shelf-life criteria, will be permitted via sea transport.

    Notably, this ban does not affect fresh and chilled meat shipments by air. TDAP is actively engaged in resolving the issue, with the Pakistani Consulate in Dubai collaborating with stakeholders to determine the cause. TDAP remains optimistic that constructive dialogue and cooperation will lead to a resolution, allowing the resumption of fresh chilled meat exports from Pakistan to the UAE.

  • Commerce minister warns of financial loss over proposed early market closure 

    Commerce minister warns of financial loss over proposed early market closure 

    Caretaker Minister for Commerce, Industries, and Production, Dr Gohar Ejaz, has voiced his opposition to the early market closure proposed as part of the energy conservation plan, expressing concerns over the significant financial losses the government could incur as a result.  

    According to ARY News, Dr Ejaz said that Pakistan currently has a surplus of electricity, making the decision to close markets prematurely economically unfavorable. 

    He revealed that recommendations were sought from all chambers of commerce across the country within a 30-day period. Additionally, Dr Ejaz announced an upcoming anti-gas theft initiative following the anti-power theft operation. He urged traders to be flexible, considering the limited gas resources in the country. 

    Furthermore, he revealed plans to invite 100 international brands to a conference in Pakistan, granting them the status of state guests. Dr Ejaz also mentioned the current exchange rate of the US dollar, which stands at Rs260. 

    To encourage the purchase of electricity from Thar, he directed Sindh and Punjab to do so, promising tax exemptions if they comply. This move aims to make electricity tariffs in these regions more competitive. 

    The caretaker minister stressed the need to boost exports, pointing out that Pakistan’s foreign direct investment is contingent on increased exports. He called for cooperation from business leaders to resolve various issues.  

    Dr Ejaz expressed his commitment to serving the country and previously outlined plans to support industry stakeholders in boosting exports and establishing business parks in major cities to stimulate economic growth. 

  • NEPRA recommends electricity rate increase of Rs3.28 per unit

    NEPRA recommends electricity rate increase of Rs3.28 per unit

    The National Electric Power Regulatory Authority (NEPRA) has officially proposed to the government an increase in the electricity tariff of Rs3.28 per unit, citing the need for a quarterly adjustment.

    In this proposal, NEPRA is looking to impose an additional financial burden of approximately Rs160 billion on consumers of electricity. According to ARY News, this recommendation has been conveyed to the caretaker federal government through an official summary, outlining the suggested increment of Rs3.28 in electricity rates as part of the fourth-quarter adjustment for the fiscal year 2022–23. 

    The proposed increase, subject to approval by the federal government, would also apply to K-Electric consumers. As a result of this adjustment, power consumers would be required to make additional payments over the next six months, spanning from October 2023 to March 2024. 

    It is worth noting that the proposed surge in power tariffs has incited protests throughout the country, with citizens expressing their displeasure over the considerable rise in electricity costs and the imposition of excessive taxes on electricity bills. In some instances, individuals infuriated by inflated bills have resorted to burning them as a form of protest, while certain political factions have threatened to stage sit-in demonstrations outside K-Electric offices. 

    This unrest surrounding the increased electricity tariffs coincides with Pakistan’s ongoing economic struggles, characterised by financial constraints and an inflation rate hovering around 29 per cent. 

    Furthermore, it is important to highlight that the International Monetary Fund (IMF) has reportedly discouraged Pakistan from offering relief to consumers using over 200 units of electricity on a monthly basis. According to sources, the IMF argued that reducing electricity bills for such consumers would not address the issue of circular debt. 

    Consequently, relief in the form of deferred payments for electricity bills will be exclusively extended to consumers who consistently utilise less than 200 units for six consecutive months. This relief would be rescinded if a consumer’s bill exceeded 200 units within the same timeframe, as per the sources. 

    Caretaker Federal Minister for Energy, Power, and Petroleum, Muhammad Ali, has also announced that the revised electricity tariff will be introduced before October 31. During a press conference held alongside Sindh Governor Kamran Tessori, Minister Ali emphasised the government’s commitment to combating electricity and gas theft through indiscriminate measures. 

    He added that efforts are being made to regulate and potentially lower electricity tariffs, with a goal to supply cost-effective electricity to industries starting on October 31. Muhammad Ali attributed the surge in electricity bills to electricity theft and the increased price of the US dollar. 

    While acknowledging the challenges of amending previous agreements, the minister pledged that the government would explore solutions within the framework of existing arrangements. He also expressed the government’s commitment to promoting solar energy despite the lack of reductions in solar equipment prices, outlining plans to devise a strategy for the promotion of solarization. 

  • IG Punjab orders aggressive action against electricity thieves costing nation Rs600 billion annually 

    IG Punjab orders aggressive action against electricity thieves costing nation Rs600 billion annually 

    Inspector-General Police Punjab, Dr Usman Anwar, has directed top police officials in Punjab, including Regional Police Officers (RPOs), City Police Officers (CPOs), and District Police Officers (DPOs), to intensify efforts against anti-national and anti-social elements involved in electricity theft, which is causing a staggering annual loss of Rs600 billion to the national treasury. 

    In a special video message, Dr Usman Anwar emphasised that Punjab Police’s crackdown on electricity thieves has gained momentum, with over 1,000 cases registered daily, spanning the entire province, including Lahore. This financial loss surpasses the cumulative losses from 15 years of various crimes, such as dacoity and robbery, across Punjab. 

    According to Business Recorder, Dr Usman Anwar clarified that the scale of this theft far outweighs other criminal activities and assured that, following the directives of the Prime Minister and Chief Minister of Punjab, there will be no leniency for those involved in electricity theft. Offenders, regardless of their methods, will face legal consequences. 

    He expressed concern that innocent citizens must bear the financial burden of others’ theft, emphasising that no one will be allowed to rob citizens of their hard-earned money. Dr Usman Anwar urged citizens to cooperate with law enforcement, district administrations, and relevant institutions by reporting electricity theft in their areas to accelerate actions against these elements harming the nation’s financial interests.