Tag: Economic Indicators

Winning streak: Pakistani rupee appreciates 0.04% in fourth consecutive session

In a resilient display, the Pakistani rupee continued its upward trajectory against the US dollar, marking gains for the fourth consecutive session in the interbank market on Monday.

The State Bank of Pakistan (SBP) reported a noteworthy appreciation of 0.04 per cent, with the rupee settling at Rs281.28 after a rise of Re0.12.

This positive trend extends the rupee’s recent performance, as it achieved a 0.16 per cent appreciation during the preceding week, settling at Rs281.40 against the US dollar in the inter-bank market.

Impressively, this marks the eighth consecutive week of the local currency advancing against the greenback.

The momentum driving the rupee’s strength can be attributed to the recent announcement of a staff-level agreement (SLA) between Pakistan and the International Monetary Fund (IMF).

This agreement pertains to the first review of the $3 billion standby arrangement (SBA), reinforcing investor confidence in Pakistan’s economic stability.

A significant development contributing to this positive outlook is the notable increase in foreign exchange reserves held by the State Bank of Pakistan.

According to SBP data from the previous week, the central bank’s reserves surged by $464 million on a weekly basis, reaching $8.2 billion as of December 29.

Internationally, the US dollar maintained stability on Monday, with investors eagerly awaiting a crucial US inflation report later in the week. This report is expected to provide clarity on the Federal Reserve’s monetary policy outlook.

The greenback’s recent rally was supported by a rebound in US Treasury yields as traders adjusted their expectations regarding the pace and scale of potential Fed cuts this year.

This cautious optimism globally has complemented Pakistan’s positive economic indicators, contributing to the sustained strength of the Pakistani rupee against the US dollar.

January 8, 2024
Gold sees Rs1,800 per tola dip in local market

Gold continued its decline for the second consecutive session on Thursday, mirroring the international downtrend.

In the local market, the price of gold reached Rs218,200 per tola, registering a loss of Rs1,800 during the day.

According to data from the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), 10-gramme gold was traded at Rs187,071, reflecting a decrease of Rs1,543.

Notably, Wednesday witnessed a Rs1,300 decrease in gold prices per tola in Pakistan.

The international gold rate, accompanied by a $15 decline in the global market, stood at $2,067 per ounce on Thursday, with a $20 premium, as reported by APGJSA.

In a parallel development, silver experienced a modest decline of Rs20, settling at Rs2,660 per tola.

January 4, 2024
Gold prices in Pakistan follow global trend, decline by Rs1,300 per tola

On Wednesday, gold prices in Pakistan experienced a reduction, mirroring the global downward trend.

The current valuation of the precious metal stands at Rs220,000 per tola, marking a decrease of Rs1,300 throughout the day.

As reported by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the 10-gramme gold rate now stands at Rs188,614, reflecting a decline of Rs1,115.

In contrast, the previous day witnessed a surge of Rs 1,600 per tola in gold prices.

The international gold rate, despite a $12 dip in the global market, settled at $2,082 per ounce on Wednesday, with a $20 premium, according to APGJSA.

In contrast, silver rates remained unchanged at Rs2,680 per tola during this period.

January 3, 2024
Second consecutive decline: Gold price drops by Rs900 per tola in Pakistani markets

Gold sustained its downward trend for the second consecutive session on Saturday, experiencing a decline of Rs900 per tola in the Pakistani gold market.

The price of one tola gold was established at Rs220,000, and the 10-gramme gold recorded a sale at Rs188,615, reflecting a decrease of Rs771.

These figures were provided by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA).

In comparison, Friday witnessed a decrease of Rs1,900 per tola in gold rates in Pakistan. This local downturn aligns with the global moderation observed in the price of gold.

The international rate of gold, marked by a $20 premium, was set at $2,082 per ounce on Saturday, following an $8 dip in the international market, according to APGJSA.

In contrast, silver rates in Pakistan remained stable at Rs2,680 per tola.

Reflecting on the broader trend, the year 2023 saw a noteworthy 20 per cent increase in gold prices in Pakistan, with the price per tola reaching around Rs184,000 by the end of 2022.

The pinnacle of gold rates in 2023 occurred on September 2, recording Rs242,700 per tola, while the lowest point in the year was noted on October 4 at Rs188,400 per tola, based on APGJSA data.

December 30, 2023
Gold prices surge in Pakistan: 24-karat soars to Rs217,600 per tola

The price of 24-karat gold per tola witnessed a surge, rising by Rs400 and reaching Rs217,600 on Tuesday, as compared to its previous closing at Rs217,200.

Similarly, the cost of 10 grammes of 24-karat gold also experienced an uptick, increasing by Rs343 to Rs186,557 from Rs186,214.

Meanwhile, the rates for 10 grammes of 22-karat gold climbed to Rs171,011 from Rs170,696, as reported by the All Sindh Sarafa Jewellers Association.

In contrast, both the per-tola and 10-gramme silver prices remained stable at Rs2,670 and Rs2,289.09, respectively.

On a global scale, the price of gold saw an increment of $4, reaching $2,047 from $2,043, according to the Association.

Simultaneously, the Pakistan Stock Exchange (PSX) witnessed a significant downturn in intra-day trading on Tuesday, with the benchmark KSE-100 index plummeting by over 2,600 points.

The PSX reported a loss of 2,633 points, causing the 100 index to dip below the 63,000-point threshold, trading at 62,571 around 2:30 pm.

This decline comes after a sustained bullish trend lasting over a month, which followed the successful conclusion of a staff-level agreement with the International Monetary Fund (IMF).

Market analysts attribute the bearish trend to stocks in the exploration and production (E&P), fertiliser, and banking sectors.

Throughout the session, profit-taking was evident, contributing to the index fluctuating by over 2,500 points.

December 19, 2023
Gold price in Pakistan surpasses Rs217,000 per tola

In Monday’s trading session, the price of 24-karat gold witnessed a surge, with a per-tola increase of Rs400, reaching Rs217,200.

This marks a notable uptick from its previous closing at Rs216,800. Similarly, the cost of 10 grammes of 24-karat gold experienced an increment of Rs1,543, now standing at Rs186,214, compared to its earlier rate of Rs185,871.

Concurrently, the rates for 10 grammes of 22-karat gold rose to Rs170,696 from Rs170,382, as outlined by the All Sindh Sarafa Jewellers Association.

Maintaining stability, the prices of silver remained unchanged, with per tola and ten-gramme silver being quoted at Rs2,670 and 2,289.09, respectively.

On the global front, the international market witnessed a $3 increase in the price of gold, reaching $2,043 from $2,040, according to the association’s report.

Shifting focus to economic indicators, the State Bank of Pakistan (SBP) announced a surplus in the current account, reporting a noteworthy $9 million surplus for November 2023.

This represents a remarkable improvement, considering the current account deficit (CAD) was recorded at $775 million in July 2023.

The data provided by SBP indicates a substantial turnaround, with the CAD evolving from $15.7 million in the last financial year to the recent surplus.

The positive trend in the current fiscal year continues, with the CAD for the first five months showing significant improvement.

December 18, 2023
Pakistan’s current account records first surplus since June 2023

In a noteworthy turnaround, Pakistan’s current account, after four consecutive months of deficits, revealed a surplus of $9 million in November 2023.

This marks a stark contrast to the $157 million deficit recorded in the same month the previous year, as reported by the State Bank of Pakistan (SBP) on Monday.

This surplus, the first since June 2023, is significantly lower in volume compared to its standing at $520 million.

Analysts attribute this surplus to a substantial rise in the country’s exports and remittances, coupled with a marginal decline in imports. Worth noting is the previous month’s current account deficit of $184 million in October 2023.

According to SBP data, November 2023 witnessed a 12 per cent surge in the country’s exports (goods and services) to $3.364 billion, compared to $2.999 billion in November 2022.

Simultaneously, remittances reached $2.25 billion, reflecting a 4 per cent increase from the same month last year. Conversely, total imports saw a nearly 6 per cent reduction to $5.29 billion in November 2023, down from $5.01 billion the previous year.

SBP reports a significant improvement, with Pakistan’s current account deficit for July-November of FY24 standing at $1.16 billion, a remarkable 64 per cent decrease from the $3.3 billion deficit in the same period of the previous fiscal year (FY23).

During its latest Monetary Policy Committee meeting on December 12, the SBP highlighted a notable enhancement in the current account balance, with the deficit narrowing by 65.9 per cent year-on-year to $1.1 billion during Jul-Oct FY24.

This shift is crucial for economically challenged Pakistan, heavily reliant on imports, as a widening deficit exerts pressure on the exchange rate and depletes official foreign exchange reserves, currently standing at slightly over $7 billion according to the latest data.

December 18, 2023
24-karat gold price plunges by Rs1,800 per tola, reflecting global market trends

On Tuesday, the price of gold experienced a further decline, with 24-karat gold witnessing a decrease of Rs1,800, settling at Rs213,600 per tola.

The Karachi Sarafa Association indicated that the closing rate for 10 grammes of 24-karat gold in today’s session was Rs183,128, reflecting a loss of Rs1,543.

Simultaneously, 10 grammes of 22-karat gold registered a decline to Rs167,867, down by Rs1,415.

Last week, gold investors in the domestic bullion market faced a significant setback when the price of 24-karat gold plummeted by Rs8,000 per tola.

This drop was attributed to a notable decrease in international prices and the strengthening of the local currency.

In contrast, the price of silver remained stable in the domestic market today, with 24-karat silver and 10 grammes of 24-karat silver closing at Rs2,600 and Rs2,229.08, respectively.

The downturn in the local market is linked to the ongoing decline in international prices.

The international spot gold market experienced a 1.04 per cent decrease this week, currently standing at $1,994.46.

This decline is influenced by the pressure stemming from a stronger dollar and increased US Treasury yields, marking the second consecutive session in which the commodity has traded in the red zone.

Market participants are eagerly anticipating the US consumer price report scheduled for 05:30 pm PST today.

This report could offer valuable insights into potential rate cuts ahead of the Federal Reserve’s statement and Chair Jerome Powell’s comments on Wednesday.

In the domestic market, gold prices are also susceptible to fluctuations in the local exchange rate.

Rupee remains stable against US dollar

During yesterday’s interbank session, the Pakistani rupee (PKR) maintained stability, settling at PKR 283.9 per USD, representing a marginal depreciation of around 3 paisa against the US dollar compared to the previous session’s closing of PKR 283.87 per USD.

As gold is denominated in US dollars, a strengthening local unit contributes to a decrease in the value of PKR-denominated gold.

December 13, 2023
PSX bounces back with gain of nearly 500 points

The Pakistan Stock Exchange (PSX) welcomed a resurgence of bullish activity as the KSE-100 Index marked a substantial gain of nearly 500 points in Tuesday’s trading session.

At 1:55 pm, the benchmark index stood at 66,496.21, reflecting a noteworthy increase of 483.89 points, or 0.73 per cent.

The positive momentum was evident in key sectors such as cement, fertiliser, oil and gas exploration, OMCs, refineries, and power generation. However, a mixed trend characterised the automobile and commercial bank sectors.

In contrast to the previous session, where profit-taking led to a 211-point dip in the KSE-100 Index, today’s bullish trend is attributed to favourable economic indicators.

Investors are keenly observing the upcoming International Monetary Fund (IMF) executive board meeting on January 11, 2024.

Simultaneously, the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) is convening today, with market expectations leaning towards a maintenance of the key interest rate—a rate that reached an unprecedented 22 per cent in June and has remained unchanged for the past three meetings.

Analysts note that investors have factored in the pinnacle of Pakistan’s interest rates, and optimism surrounds the anticipated successful conclusion of the IMF programme, contributing to the positive sentiment in both the stock markets and the currency.

December 12, 2023
24 karat gold price drops by Rs3,000 per tola

On Saturday, the price of 24 karat gold per tola experienced a decrease of Rs3,000, reaching Rs215,600 as compared to its previous value of Rs218,600 on the last trading day.

Similarly, the cost of 10 grammes of 24 karat gold saw a decline of Rs2,572, settling at Rs184,842 from its earlier rate of Rs187,414.

The price of 10 grammes of 22-karat gold also decreased, falling to Rs169,439 from Rs171,786, according to the All Sindh Sarafa Jewellers Association.

Meanwhile, the prices of silver remained unchanged, with per tola and ten grammes priced at Rs. 2,600 and Rs2,229.08, respectively.

In the international market, the cost of gold experienced a drop of $26, reaching $2,024 from its previous value of $2,050, as reported by the Association.

December 10, 2023