Tag: economic news

  • State Bank of Pakistan cuts policy rate to 20.5%

    State Bank of Pakistan cuts policy rate to 20.5%

    The State Bank of Pakistan (SBP) has reduced its key policy rate by 150 basis points to 20.5 per cent, marking the first rate cut in nearly four years.

    The move, announced on Monday, aligns with market analysts’ expectations and comes just ahead of the country’s annual budget for 2024-25.

    Since June 2023, the central bank had maintained borrowing costs at a record 22 per cent. The Monetary Policy Committee (MPC) highlighted that while the significant decline in inflation since February was generally anticipated, the inflation figures for May were better than expected.

    The MPC also observed that underlying inflationary pressures are easing due to the tight monetary policy stance and fiscal consolidation efforts.

    This trend is evident from the continued moderation in core inflation and the improvement in inflation expectations among both consumers and businesses, according to recent surveys.

    Despite acknowledging some upside risks to the near-term inflation outlook, particularly from upcoming budgetary measures and uncertainties regarding future energy prices, the MPC remains confident that the cumulative impact of previous monetary tightening will help keep inflationary pressures in check.

  • Gold rates in Pakistan edge closer to historic high

    Gold rates in Pakistan edge closer to historic high

    The price of domestic gold is swiftly climbing, inching closer to its historic peak, with 24-karat gold now standing at Rs238,900 per tola, marking an increase of Rs1,800 in a single day.

    Back in June 2023, the pinnacle of gold prices saw 24-karat gold reaching Rs240,000, making the current rate just Rs1,100 short of that milestone.

    March witnessed a notable surge in the price of gold, with the precious metal gaining a significant Rs19,100, mirroring the upward trend in international gold rates.

    According to the Karachi Sarafa Association, the price of 24-karat gold stands at Rs204,818 per 10 grams, marking an increase of Rs1,543 from the previous session. Meanwhile, 22-karat gold is quoted at Rs187,750 per 10 grams.

    International gold rates are on the rise, fueled by escalating tensions in the Middle East and growing expectations for an imminent rate cut by the US Federal Reserve.

    In yesterday’s trading session, spot gold closed at an unprecedented high of $2,280.82. Daniel Ghali, commodity strategist at TD Securities, attributed this surge to the inflow of safe-haven demand triggered by Israeli strikes on Iran’s embassy in Syria, as reported by Reuters.

    Ghali further noted that the recent spike in gold prices may also be influenced by short covering activities among family offices and proprietary trading shops.

  • Suzuki Swift GLX CVT now priced above Rs5.4 million

    Suzuki Swift GLX CVT now priced above Rs5.4 million

    Pak Suzuki Motor Company Limited (PSMC) announced a substantial increase of Rs304,000 in the price of its Swift G. CVT model, effective from March 8, 2024.

    This adjustment comes in response to the recent surge in taxes imposed by the government on locally manufactured or assembled vehicles, as indicated in the company’s official notice issued today.

    Consequently, the new sale price for the Swift G. CVT model will see an adjustment from Rs5.125 million to Rs5.429 million, reflecting the impact of the revised tax structure.

    The decision stems from a notification released by the Ministry of Finance and Revenue on the same date, highlighting a hike in the sales tax rate from 18 per cent to 25 per cent for vehicles falling under chapter 87.03 of the Pakistan Custom Tariffs, with an invoice price (excluding sales tax) exceeding Rs4 million.

  • Pak Suzuki hikes prices, Cultus AGS now priced above Rs4.5 million

    Pak Suzuki hikes prices, Cultus AGS now priced above Rs4.5 million

    In response to inflationary pressures and rising overhead costs, Pak Suzuki has announced a significant hike in car prices, impacting models across the range.

    The adjustments, ranging from Rs80,000 to Rs180,000, are set to take effect on March 1, 2024.

    Shafiq Ahmed Shaikh, Head of Corporate Affairs at Pak Suzuki, explained the rationale behind the decision, citing factors such as inflation, increased overhead expenses, higher international raw material and accessory costs, and elevated shipment and freight charges.

    The latest adjustments mean that the top-of-the-line model, Alto VXL AGS, will now be available at Rs3.045 million, reflecting a price increase of Rs110,000.

    However, the most significant surge is observed in the Cultus AGS, with its new price set at Rs4.546 million, following an increase of Rs180,000.

    This move by Pak Suzuki aims to navigate the challenges posed by the current economic landscape, ensuring the sustainability of operations amid various cost escalations.

    Customers will experience the impact of these changes as they come into effect, marking a new pricing structure for Suzuki vehicles in Pakistan.

    Here are the new prices for all Suzuki cars:

  • Gold prices dip by $8 internationally, Rs1,200 locally

    Gold prices dip by $8 internationally, Rs1,200 locally

    In a significant development in the precious metals market, the per-tola price of 24 karat gold experienced a notable decline, dropping by Rs1,200 on Saturday.

    According to the All Sindh Sarafa Jewellers Association, the precious metal was sold at Rs214,300, marking a decrease from its previous rate of Rs215,500 on the last trading day.

    Similarly, the price of 10 grammes of 24 karat gold exhibited a downward trend, declining by Rs1,028 to reach Rs183,728, as opposed to the earlier rate of Rs184,756. 

    Meanwhile, the prices of 10 grammes of 22 karat gold also saw a decrease, settling at Rs168,416 from Rs169,360, as reported by the Association.

    Notably, the per-tola and ten-gramme silver prices remained unchanged at Rs2,600 and Rs2,229.08, respectively, indicating stability in the silver market.

    The dip in local gold prices is mirrored on the international stage, as the global market reported a decrease of $8 in the price of gold.

    The international rate now stands at $2,045, down from the previous figure of $2,053, as outlined by the Association.

    This shift in prices is likely to have implications for investors, jewellers, and consumers alike, prompting a reassessment of investment strategies and purchase decisions in the coming days.

    Analysts are closely monitoring these fluctuations to gauge the market’s response and anticipate future trends in the precious metals sector.

  • Gold prices in Pakistan remain unaffected by political uncertainties

    Gold prices in Pakistan remain unaffected by political uncertainties

    Despite political uncertainties, the domestic bullion market exhibited stability, with 24-karat gold maintaining its price at Rs215,500 on Friday, showing no deviation from the previous session.

    This stability is indicative of the domestic gold market functioning normally, aligning with international gold rates and the exchange rate.

    The Karachi Sarafa Association reported that the prices of 10-gramme 24-karat gold and 10-gramme 22-karat gold also remained constant at Rs184,756 and Rs169,360, respectively.

    Similarly, silver prices showed resilience in the domestic market, with 24-karat silver being traded at Rs2,600 per tola and Rs2,229.08 per 10-gramme.

    On the global stage, the international spot gold exhibited minimal fluctuations, standing at $2,033.5 as of 12:40 pm.

    This stability in both domestic and international markets suggests a steady scenario despite the prevailing political uncertainties.

  • OGRA approves massive gas tariff hike for SNGPL, SSGC consumers

    OGRA approves massive gas tariff hike for SNGPL, SSGC consumers

    In a move to address the fiscal challenges faced by Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGC), the Oil and Gas Regulatory Authority (OGRA) has granted approval for a noteworthy increase in gas tariffs.

    Effective January 1, 2024, consumers of SNGPL will experience a 35.13 per cent surge, while SSGC customers will witness an 8.57 per cent rise.

    This marks the second adjustment in gas prices within the current fiscal year, following a substantial 193 per cent increase announced by OGRA, effective November 1, 2023. The decision to implement these changes is aimed at bridging the Rs98 billion shortfall collectively faced by both gas companies.

    The interim government’s initial projections aimed to collect Rs980 billion, intending to cover the estimated revenue requirements of Rs700 billion for both SNGPL and SSGC.

    The recommended average increase in the prescribed gas price is set at 23 per cent, reaching Rs1,590 per mmbtu, compared to the previous average of Rs1,291 per mmbtu determined on June 2, 2023.

    Specifically, OGRA has outlined a 50 per cent increase (Rs415.11 per mmbtu) for SNGPL, elevating the gas price to Rs1,238.68 per mmbtu, effective July 1, 2023.

    Simultaneously, the gas price for SSGC has been raised by 45 per cent (Rs417.23 per mmbtu) to reach Rs1,350.68 per mmbtu.

    The decision to increase gas prices aligns with the interim government’s commitment to the International Monetary Fund (IMF), with an agreement to announce a raise in gas sale prices by February 18, 2024.

    However, the OGRA Ordinance stipulates that if the government remains unresponsive to OGRA’s notification within 40 days, the determined tariff by the regulator will be automatically enforced.

    The recent approval underscores the ongoing efforts to address financial challenges and ensure the sustainability of the gas sector in Pakistan.

  • Pakistan’s exports surpass Rs4,300 billion, up by 35.33% in six months

    Pakistan’s exports surpass Rs4,300 billion, up by 35.33% in six months

    The Pakistan Bureau of Statistics (PBS) has reported a substantial increase of 35.33 per cent in the country’s exports in rupee terms during the first half of the current fiscal year, as compared to the corresponding period of the previous year.

    According to provisional data released by PBS, exports from July to December 2023 amounted to Rs4,300,752 million, a significant rise from Rs3,177,893 million recorded during the same period last year.

    On a year-on-year basis, exports for December 2023 witnessed a remarkable surge of 54.59 per cent, reaching Rs799,588 million, compared to Rs517,240 million in October 2022.

    Additionally, on a month-on-month basis, exports increased by 8.86 per cent when compared to the figure of Rs734,541 million reported in November 2023.

    The key commodities contributing to this growth in December 2023 were rice other than basmati (Rs124,040 million), knitwear (Rs103,898 million), readymade garments (Rs84,569 million), bedwear (Rs64,119 million), cotton cloth (Rs40,678 million), cotton yarn (Rs26,984 million), towels (Rs24,814 million), rice basmati (Rs22,888 million), articles excluding towels and bedwear (Rs16,991 million), and meat and meat preparations (Rs12,472 million).

    In contrast, imports during July–December 2023–24 amounted to Rs7,533,700 million, showing an increase of 8.20 per cent compared to Rs6,962,865 million during the corresponding period last year.

    On a year-on-year basis, December 2023 imports totaled Rs1,317,463 million, reflecting a 13.94 per cent increase from December 2022. Moreover, on a month-on-month basis, imports increased by 1.66 per cent in December 2023 compared to Rs1,295,968 million in November 2023.

    The main commodities of imports during December 2023 were petroleum crude (Rs158,260 million), petroleum products (Rs150,888 million), natural gas, liquified (Rs109,516 million), electric machinery & apparatus (Rs63,667 million), palm oil (Rs60,316 million), plastic materials (Rs52,218 million), mobile phones (Rs49,887 million), iron & steel (Rs41,654 million), iron and steel scrap (Rs30,426 million), and motor cars (Rs29,543 million).

    This surge in exports, coupled with a measured rise in imports, signifies a positive trend in Pakistan’s trade balance, reflecting the resilience and competitiveness of the country’s export sector.

  • Gold price drops by Rs2,000 per tola to Rs215,300

    Gold price drops by Rs2,000 per tola to Rs215,300

    On Wednesday, the domestic bullion market experienced a notable decline, influenced by a drop in international prices. 

    In Pakistan, the price of 24-karat gold plunged by Rs2,000 per tola, reaching Rs215,300.

    The Karachi Sarafa Association reported a decrease of Rs1,715 in the price of 10-gramme 24-karat gold, standing at  Rs184,585. 

    Additionally, the price of 10-gramme 22-karat gold dipped to Rs169,203 compared to Rs170,775 on Tuesday.

    Silver prices also witnessed a downturn in the domestic market, with 24-karat silver selling at Rs2,600 per tola and Rs2,229.08 per 10-gramme, reflecting declines of Rs50 per tola and Rs 42.86 per 10-gramme, respectively.

    On the global stage, international spot gold experienced a $6, or 0.31 per cent, decrease, currently trading at $2,021.77 [02:46 pm PST]. 

    This follows a $26 or 1.27 per cent decline yesterday, contributing to the overall impact on the domestic bullion market.