Tag: economic uncertainty

  • Gold price drops by Rs15,500 to Rs199,500 per tola

    Gold price drops by Rs15,500 to Rs199,500 per tola

    The All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) resumed its bullion rate updates after an approximate month-long hiatus, revealing a substantial decline in the value of precious metals.

    According to APSGJA’s data, the price of 24-carat gold plummeted by Rs15,500 per tola and Rs13,546 per 10 grammes, reaching new levels of Rs199,500 and Rs171,039, respectively.

    The last bullion rate report was issued on September 12, when the per-tola price of gold stood at Rs215,000.

    However, escalating uncertainties in the economic landscape led to increased speculation. Consequently, the government intervened with a crackdown on speculators, resulting in the temporary suspension of bullion rate updates.

    During this 28-day period of rate suspension, gold traders resorted to arbitrary pricing as no standardised rates were available. Simultaneously, in the international market, the price of gold experienced a notable decline, dropping by $55 to reach $1,891 per ounce.

    Furthermore, APSGJA’s data also revealed a decrease in silver prices, with a Rs50 per tola and Rs42.87 per 10 grammes reduction, bringing silver’s rates to Rs2,500 and Rs2,143.34, respectively.

  • Car sales in Pakistan witness 57% decline in July 2023 compared to last year

    Car sales in Pakistan witness 57% decline in July 2023 compared to last year

    In the midst of ongoing economic uncertainty, the automobile sector has encountered a substantial decline in car sales, marking another significant setback.

    The most recent data released by the Pakistan Automotive Manufacturers Association (PAMA) unveils a noteworthy trend, with exclusive member carmakers collectively retailing a mere 5,092 vehicles during July 2023. This figure represents a notable downturn both in comparison to the previous month, with a 16 per cent decrease in sales, and to the same period last year, with a staggering 57 per cent reduction.

    Among the industry leaders, the Toyota Indus Motor Company (IMC) experienced a sales figure of 1,368 cars, indicating a 26 per cent reduction in sales on a month-on-month basis. On the other hand, the Honda Atlas Cars Limited (HACL) reported a sale of 494 cars, reflecting an unexpected 61 per cent surge in monthly sales. Meanwhile, the Pak Suzuki Motor Company (PSMC) encountered a decline of 19 per cent in its monthly sales, with a total of 2,444 cars sold.

    Hyundai Nishat Motors Private Limited (HNMPL) also made its mark by selling 569 cars in the past month, showcasing a modest 2 per cent increase in sales compared to the previous month. The resounding success of the Tucson model has been a driving force behind the company’s performance.

    While a slight uptick in sales has been witnessed, the overarching trajectory of the local car industry remains somber. Production disruptions persist as car companies grapple with inventory shortages, further exacerbated by the escalating prices and taxes that have curbed consumer demand.

    Experts caution that the challenges facing the industry are far from over, with more potential production obstacles and price escalations looming on the horizon. The road ahead continues to be a demanding one, requiring the industry to navigate through these formidable headwinds.

  • Chery Pakistan increases Tiggo 4 Price to Rs7 million

    In the face of mounting economic uncertainty, import restrictions, and complications surrounding Letter of Credit (LC) transactions, Chery Pakistan has been forced to implement a significant price hike on one of its popular crossover SUVs.

    According to Pakwheels, the Chery Tiggo 4, a favoured choice among Pakistani car enthusiasts, will now come with a heftier price tag, soaring from Rs6,399,000 to Rs6,999,000, reflecting an increase of Rs600,000. This move comes as Chery Pakistan grapples with the multifaceted challenges posed by a volatile economic landscape and supply chain disruptions, as the company revealed in an official statement.

    The surge in pricing has been attributed to the prevailing precarious economic conditions and the stifling supply constraints that have been a constant thorn in the side of numerous industries, including the automotive sector. Nevertheless, Chery Pakistan aims to mitigate the impact on its customers by extending a price lock guarantee to all new bookings for the Chery Tiggo 4, providing a semblance of stability amidst the tumultuous market fluctuations.

    The price escalation, while not entirely unexpected, underscores the current tribulations faced by Pakistan’s local auto industry. As a sector heavily reliant on imported components, particularly critical vehicle parts, the domestic car manufacturing industry is inherently susceptible to the ripple effects of foreign exchange rate fluctuations.

    Compounding the challenges are the import restrictions introduced by governmental authorities, leading to a cascade of delays and, in some instances, complete production standstills for various car manufacturers.

    The predicament has been further exacerbated by the non-issuance of LCs by the State Bank of Pakistan (SBP), casting a darker shadow over an already beleaguered landscape. Industry experts predict that the situation is poised to persist for the foreseeable future, with a grim timeline of at least 2–3 years for the auto sector to regain its footing.

    The intertwining of persistent economic woes with a backdrop of political instability paints a disheartening picture, further clouding the prospects of a swift recovery.

  • Gold price drops by Rs2,000 per tola as Pakistani rupee gains ground against US dollar

    Gold price drops by Rs2,000 per tola as Pakistani rupee gains ground against US dollar

    The gold price in Pakistan experienced a significant decline of more than Rs2,000 per tola following the appreciation of the local currency against the US dollar in the interbank market.

    According to the data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) on Wednesday, the price of 24-carat gold witnessed a decrease of Rs2,400 per tola and Rs2,058 per 10 grammes, settling at Rs222,100 and Rs190,415, respectively.

    Conversely, the international market recorded a $12 increase in the price of gold, bringing it to $1,972.

    The fluctuating gold rate in Pakistan can be attributed to ongoing political and economic uncertainties and high inflation, prompting individuals to seek gold as a safe investment and hedge during such times.

    As per the data provided by the association, the price of silver remained constant at Rs2,750 per tola and Rs2,357.68 per 10 grammes.

    In parallel, the local currency demonstrated a positive trend against the US dollar in the interbank market today, appreciating by Rs1.48 or 0.52 per cent. The State Bank of Pakistan (SBP) reported that the rupee closed at Rs287.04 against the dollar.

  • Gold price in Pakistan increases by Rs4,000 to Rs208,000 per tola ahead of Muharram

    Gold price in Pakistan increases by Rs4,000 to Rs208,000 per tola ahead of Muharram

    In anticipation of the upcoming month of Muharram, which signifies the start of the new Islamic year, gold prices in Pakistan experienced significant gains on Thursday.

    Data provided by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) reveals that the price of 24-carat gold rose by Rs4,000 per tola and Rs3,429 per 10 grammes, settling at Rs208,000 and Rs178,326, respectively.

    Simultaneously, the international market witnessed a surge in the price of gold, with a $13 increase, reaching $1,959 per ounce. This rise in gold rates can be attributed to prevailing political and economic uncertainties, as well as high inflation in Pakistan. During such periods, individuals often turn to gold as a safe investment and hedge against market volatility.

    As the month of Muharram approaches, there is typically an upswing in the buying and selling of this precious commodity, leading to increased demand. Supporting this trend, APSGJA data reveals that the price of silver rose by Rs50 per tola and Rs42.87 per 10 grammes, settling at Rs2,600 and Rs2,229.08, respectively. Notably, the previous day witnessed a decline in the bullion price by Rs500 per tola and Rs429 per 10 grammes.

    Furthermore, the local currency demonstrated minimal gains of 0.37 per cent against the US dollar in the interbank market today, as reported by the State Bank of Pakistan (SBP). The rupee closed at Rs276.46 against the dollar.

  • Gold price increases to Rs209,000 per tola amid depreciation of Pakistani rupee

    Gold price increases to Rs209,000 per tola amid depreciation of Pakistani rupee

    The price of gold in Pakistan experienced a slight increase at the beginning of the week, corresponding to the devaluation of the rupee against the dollar.

    As per the data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-carat gold rose by Rs800 per tola and Rs686 per 10 grammes, reaching Rs209,000 and Rs179,184 respectively.

    In contrast, the international market maintained a stable price for gold at $1,925 per ounce. The gold market in Pakistan has displayed volatility in recent times, influenced by ongoing political and economic uncertainties, as well as high inflation. Consequently, individuals tend to view gold as a secure investment and a hedge during such periods.

    Data provided by the association indicates that the price of silver remained unchanged at Rs2,480 per tola and Rs2,26.20 per 10 grammes. During the previous session on Saturday, the price of gold experienced a decrease of Rs200 per tola.

    Meanwhile, the local currency underwent a marginal depreciation of 0.68 per cent against the US dollar in the interbank market, as reported by the State Bank of Pakistan (SBP). The rupee concluded the day at Rs279.80 against the dollar.

  • Gold market bounces back with second consecutive price increase of Rs1,800 to Rs207,800 per tola

    Gold market bounces back with second consecutive price increase of Rs1,800 to Rs207,800 per tola

    The price of gold in Pakistan has experienced a notable increase for the second consecutive session, following a prolonged period of decline subsequent to the $3 billion deal with the International Monetary Fund (IMF).

    Data provided by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) reveals that the price of 24-carat gold rose by Rs1,800 per tola and Rs1,543 per 10 grammes, reaching Rs207,800 and Rs178,155 respectively.

    Simultaneously, the international market witnessed a decrease in the price of gold by $23, resulting in a settlement at $1,905 per ounce.

    The gold market in Pakistan has exhibited volatility recently due to persistent political and economic uncertainty, along with high inflation. Consequently, individuals seek to invest in this valuable commodity as a means of safeguarding their assets and hedging against market fluctuations.

    The APSGJA’s data also indicates that the price of silver has remained unchanged at Rs2,380 per tola and Rs2,126.20 per 10 grammes. Notably, the previous day witnessed a Rs1,000 increase in the price of gold.

    Furthermore, the Pakistani rupee displayed a marginal recovery of 0.13 per cent against the US dollar on Thursday. The interbank market, as reported by the State Bank of Pakistan (SBP), recorded the local currency closing at Rs277.04 in relation to the greenback.

  • Fourth consecutive decline: Gold price drops by Rs1,800 to Rs218,700 per tola

    Fourth consecutive decline: Gold price drops by Rs1,800 to Rs218,700 per tola

    In line with the reduction in international rates, the per tola gold price in Pakistan experienced a significant decline of Rs1,800 on Wednesday. This marks the fourth consecutive day of falling prices for the precious metal.

    The All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) released data indicating that the price of 24-carat gold decreased by Rs1,800 per tola and Rs1,543 per 10 grammes, settling at Rs218,700 and Rs187,500, respectively.

    Internationally, the price of gold plummeted by $17, reaching $1,934 per ounce in today’s market. Pakistan’s gold rate has exhibited volatility in recent times, largely due to ongoing political and economic uncertainty, high inflation, and currency depreciation. Amid such fluctuations, individuals often turn to gold as a safe investment and a hedge against market instability.

    While gold prices experienced a notable decline, the price of silver saw only nominal losses. Data shared by the APSGJA revealed that the price of silver fell by Rs50 per tola and Rs42.87 per 10 grammes, settling at Rs2,550 and Rs2,186.21, respectively.

    In other market developments, the local currency made nominal gains against the dollar, increasing by Rs0.24 or 0.08 per cent. The interbank market witnessed the closing exchange rate of Rs286.98 on Tuesday.

    The recent downward trend in gold prices in Pakistan reflects the influence of international market conditions. Despite these fluctuations, gold remains a sought-after investment during times of economic and political uncertainty, providing individuals with a secure and reliable asset.