Tag: investment

  • Pakistan to receive $10 billion investment in refinery sector soon

    Pakistan to receive $10 billion investment in refinery sector soon

    Minister of State for Petroleum, Musadik Malik, announced that Pakistan will soon receive a $10 billion investment in its refinery sector. The investment, to be inaugurated by Prime Minister Shehbaz Sharif, holds significant details that cannot be disclosed at this time, according to Malik’s statement at a ceremony.

    This development follows the approval of a new refinery policy by the current government, which aims to incentivise greenfield investment.

    Malik emphasised the need for sustained GDP growth of 5 per cent in Pakistan’s growing population. To achieve this, he stated that an annual energy sector growth rate of 7.5-10 per cent is necessary. As part of this plan, the government aims to establish a comprehensive energy agreement with Central Asian countries and Russia, which will be made public by the end of the year.

    Additionally, Pakistan intends to leverage its historical ties with the Gulf Cooperation Council (GCC) countries for trade and commerce, including meeting energy needs such as LNG and petroleum products.

    The government also plans to open energy corridors with Central Asia and the GCC countries. Malik highlighted the significance of purchasing crude oil from Russia, stating that it will have a transformative impact on Pakistan, leading to industrial proliferation. The goal is to establish small industrial areas in rural regions to promote value addition.

    Malik underscored that Pakistan possesses the necessary infrastructure, labour force, and technology to present itself as an attractive investment destination. He emphasised the government’s efforts to enhance border enforcement to curb oil smuggling from Iran, expressing confidence that the flow of smuggled oil will reduce in the coming days.

    In an off-camera meeting with media persons, the minister revealed that vessels carrying 100,000 tonnes of discounted Russian oil will arrive at Pakistan’s ports in the first week of June as part of the government’s energy security plan. The oil will be transported from Oman port to Pakistan in smaller vessels within seven to ten days. Malik assured that although transportation costs may increase slightly, the impact will be minimal.

  • Gold price in Pakistan is currently Rs5,000 higher than global market rate

    Gold price in Pakistan is currently Rs5,000 higher than global market rate

    The price of gold continued to increase in Pakistan on Monday, following the gains of last week. According to the All Pakistan Sarafa Gems and Jewellers Association, the rate of 24-carat gold rose by Rs2,000 per tola and Rs1,714 per 10 grammes, settling at Rs237,300 and Rs203,446, respectively.

    In the international market, the gold rate declined by $5, reaching $1,972 per ounce. Throughout last week, the rate of gold experienced fluctuations in both the domestic and international markets, amidst uncertainty surrounding the raising of the US debt limit.

    If the US debt limit, which is currently capped at $31.4 trillion, is not raised, it could trigger the first-ever US default.

    According to Geo, recent volatility in the domestic gold market can be attributed to various factors, including economic and political turmoil, high inflation, and currency depreciation. In such times, people tend to prefer buying yellow metal as a safe investment and a hedge.

    On May 10, the safe-haven bullion reached an all-time high of Rs240,000 per tola, driven by increased political uncertainty following the arrest of Imran Khan, the Chairman of Pakistan Tehreek-e-Insaf (PTI). However, it subsequently dropped in line with the decline in the international rate.

    Pakistan’s gold price peaks above global market levels

    The jewellers’ body also highlighted that local gold in Pakistan is currently overpriced by Rs5,000 per tola compared to the Dubai bullion market. Consequently, the Pakistani gold market is presently more expensive than the world market.

    Data shared by the association revealed a significant jump in the price of silver, with an increase of Rs50 per tola and Rs42.87 per 10 grammes, settling at Rs2,900 and Rs2,486.28, respectively.

  • AIC warns of reputational damage to Pakistan’s investment appeal due to internet shutdown

    AIC warns of reputational damage to Pakistan’s investment appeal due to internet shutdown

    The Asia Internet Coalition (AIC), an industry association of major internet and technology companies, has released a statement urging the Pakistani government to consider the serious consequences of their recent actions on the people and economy of the country.

    The AIC has called for the immediate restoration of internet access in Pakistan. Jeff Paine, the Managing Director of the AIC, has expressed concern that the government’s actions will damage the country’s reputation as an investment destination, and has urged the government to focus on the opportunities presented by the digital economy to promote overall economic growth.

    More than one hundred prominent members of the Pakistani business community, tech entrepreneurs, and civil society have condemned the government’s use of partial and complete internet shutdowns, as well as targeted content and app blocking.

    These actions have been taken in response to recent nationwide protests. Tens of millions of Pakistanis rely on internet-dependent services for essential business activities, and by blocking or shutting down these services, the government is limiting civic space, creating economic uncertainty, and disrupting access to healthcare, emergency services, and financial services.

    The government’s decision to shut down mobile internet services across the country has resulted in significant revenue losses for mobile phone companies and online taxi and bike services. This decision was made in response to the arrest of former Prime Minister Imran Khan, which led to nationwide protests.

    As a result of the internet shutdown, online taxi and bike services have been unavailable for the past two days, causing inconvenience to commuters who depend on these services for transportation.

    According to sources in the Pakistan Telecommunication Authority, there are no plans to restore internet access in the country today.

  • US expresses confidence in Pakistan’s economic policies and offers support for bilateral relations

    US expresses confidence in Pakistan’s economic policies and offers support for bilateral relations

    On Wednesday, Finance Minister Senator Ishaq Dar reaffirmed the federal government’s commitment to the International Monetary Fund (IMF) programme during a meeting with US Embassy Charge’d Affaires Andrew Schofer at the Finance Division.

    Dar informed Schofer about the ongoing programme and assured him that the government was dedicated to completing it. Schofer expressed his confidence in Pakistan’s economic policies and programs and offered his support to strengthen economic and trade relations between the two nations.

    The finance minister also discussed the current economic challenges and policy decisions taken by the government to stabilize and promote sustainable and inclusive growth. Both parties exchanged their views on the notable bilateral relations between the US and Pakistan.

    Dar thanked the US Charge’d Affaires and reiterated the government’s desire to expand bilateral trade and investment ties. The meeting followed a report published by The News that stated the IMF and Pakistani authorities were holding each other responsible for the delay in reviving the stalled programme.

    It is still uncertain how Pakistan will proceed to accomplish the current IMF programme, which expires on June 30, 2023.

  • China’s $57.7 billion railway project aims to boost Pakistan’s economy

    China’s $57.7 billion railway project aims to boost Pakistan’s economy

    A study conducted by scientists from China Railway First Survey and Design Institute Group has estimated the cost of a proposed China-Pakistan railway project to be $57.7 billion. The railway will connect Gwadar Port with Xinjiang’s Kashgar, and is expected to have strategic significance, potentially reshaping trade and geopolitics. The project will improve connectivity among the countries along the ancient Silk Road trade routes and is part of a plan to reduce dependence on Western-dominated routes.

    The study urges the Chinese government and financial institutions to provide strong support for the project, including increasing coordination and collaboration among relevant domestic departments and striving for the injection of support funds. Pakistan’s economy is expected to receive a much-needed boost from the infrastructure and will easily trade with China. The researchers said the project is expected to create more jobs, boost infrastructure investment, and increase trade.

    However, the study notes that Pakistan’s GDP last year was just six times the estimated cost of the project, making sufficient financing difficult. Pakistan is mainly relying on Chinese enterprises for investment and construction, as it is unable to provide sufficient financial and material support.

    Moreover, the security issues in Pakistan pose a risk to Chinese workers and investments, which may hinder the railway project. Despite these challenges, the study emphasizes the strategic significance of the railway project and urges strong support and policy guarantees for its construction.

  • Gold price soars to an all-time high of Rs217,700 per tola amid economic tensions

    Gold price soars to an all-time high of Rs217,700 per tola amid economic tensions

    The price of gold has soared to an all-time high following a significant slump in the rupee against the dollar, with the country struggling to secure external financing. The data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) shows that the price of gold (24 carats) has spiked by Rs3,100 per tola and Rs2,656 per 10 grammes, settling at Rs217,700 and Rs186,643 respectively.

    The gold rush is in line with the movement of the rupee, which has fallen 2.44 or 0.85 per cent against the US dollar in the interbank market, and an increase in weekly inflation. Inflation has shot up 0.92 per cent week-on-week and 44.49 per cent year-on-year during the seven-day period that ended on April 6th. Prices of sugar and chicken have surged due to Ramzan, and hoarding has caused a likely uptick in inflation.

    Gold is often seen as a hedge against inflation, increasing in value as the purchasing power of the dollar declines. Plus, it’s the season of Ramzan, which brings with it a surge in demand for the precious metal. Investors’ attention has shifted towards gold as economic tensions continue to rise, with the International Monetary Fund (IMF) reviewing external financing commitments from friendly countries before it releases bailout funds. The delay in the revival of the program has negatively impacted the currency market, which is boosting demand for gold.

    The APSGJA also noted that the price of gold in Pakistan is Rs5,000 per tola “undercost” compared to the Dubai market. Thus, the Pakistani gold market is cheaper than the global market. Meanwhile, silver prices in the domestic market have also jumped to historic highs, increasing by Rs30 per tola and Rs25.72 per 10 grams to settle at Rs2,480 and Rs2,126.20, respectively.

    In the international market, the price of gold dropped $6 per ounce, settling at $2,002. Nevertheless, gold’s rise in Pakistan is set to bring a lot of excitement to the local market.

  • World Bank and IMF spring meetings to address global economic uncertainties and climate change

    World Bank and IMF spring meetings to address global economic uncertainties and climate change

    On Monday, the 2023 spring meetings of the World Bank Group and the International Monetary Fund (IMF) commence in the US capital to examine the “uncertainties and risks weighing heavily” on the global economy. The meetings, which run from April 10 to 16, will take place at the IMF and World Bank headquarters and will focus on the impact of climate change, which is endangering lives and livelihoods worldwide.

    Finance ministers and central bank governors from around the world will attend the meetings to reconnect with international financial leaders, and some may hold one-on-one meetings with officials from the US Treasury and State Department. Pakistan will be represented at the meetings by the secretaries of finance and economic affairs, as well as the State Bank governor, in place of Finance Minister Ishaq Dar.

    An official statement outlining the issues to be discussed at the meetings indicated that “stubborn inflation, the cost-of-living crisis, and slower growth effects” are causing harm to the poor and most vulnerable. The statement further highlighted that record-high debt is impeding the progress of developing countries, and that the consequences of climate change are threatening lives and livelihoods globally. According to Dawn, experts are urging the World Bank and the IMF to create a comprehensive strategy to address the challenges that developing nations are facing.

    A picture on the UN Foundation’s website illustrates the widespread devastation caused by last year’s floods in Pakistan, prompting international financial institutions to devise a new mechanism to “assist communities affected by (climate change) catastrophes.” The caption beneath the photo emphasised that “many lives were lost, and millions lost their homes, with one-third of the country submerged.”

    According to a World Bank study released shortly after the floods, “Pakistan urgently requires substantial investment in climate resilience to safeguard its economy and reduce poverty.”

  • Pakistan has averted default, Army Chief assures businessmen of economic prosperity

    Pakistan has averted default, Army Chief assures businessmen of economic prosperity

    The Chief of Army Staff (COAS), General Asim Munir, held a meeting on Monday night with the top businessmen in the country, in the presence of Finance Minister Ishaq Dar. While no official statement has been issued about the meeting, sources suggest that the army chief expressed optimism and confidence that the current economic difficulties would be overcome. He assured the businessmen that Pakistan has overcome the possibility of default, and urged them to remain firm and confident.

    The businessmen raised concerns about political polarization and chaos, and urged the military to ensure that this did not deepen further. They asked the army chief why politicians were not being brought together to meet the country’s challenges.

    The army chief emphasized that difficult times are a natural part of a nation’s progress, and reassured the businessmen that the worst is behind them. He referred to Islamic teachings to reinforce his message of resilience and strength.

    One participant, who requested anonymity, said that the businessmen had requested the meeting with the army chief. The meeting was deemed successful by the participants, and it was revealed that all prior conditions of the IMF had been met.

    The businessmen were told that agreements with friendly countries to provide dollars for the country’s foreign exchange reserves should be documented, and commitments had been secured for investments in agriculture, mining, and IT, with advanced equity expected from these countries.

    Sources further said the business community also expressed hope that army won’t allow unrest in the country. 

  • Experts predict gold price may reach Rs200,000 per tola soon

    Experts predict gold price may reach Rs200,000 per tola soon

    On Wednesday, the price of gold reached another record high as it continued its upward trend. The price of precious yellow metal in Pakistan is currently higher than the global market.

    Gold prices increased by Rs900 per tola and Rs772 per 10 grammes, respectively, according to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA). These prices now stand at Rs188,600 and Rs161,694 respectively.

    Owing to the Pakistani rupee’s depreciation against the US dollar during the present cycle and the lack of US dollars, traders predict that the price of gold would reach Rs200,000 per tola.

    According to market analysts, the $6–$8 billion inflow from multilateral and bilateral creditors will pop Pakistan’s gold price bubble.

    Silver’s price per tola, however, stayed constant at Rs2,150. The cost of 10-gramme silver remained essentially constant at Rs1,843.27.

    Gold prices increased more than 1 per cent on Wednesday, reaching their highest level since mid-June due to a weaker rupee and mounting predictions that the Federal Reserve will raise interest rates gradually rather than aggressively.

    The markets have now priced in the possibility that the central bank may raise interest rates by a full 50-100 basis points on January 23 after Pakistan’s December inflation data was revealed on Monday.

    Greater interest rates increase the opportunity cost of owning non-yielding metal, despite the fact that gold is regarded as a safe investment during times of uncertainty and a hedge against higher inflation.

  • Gold price hits an all-time high of Rs163,500 per tola in Pakistan

    Gold price hits an all-time high of Rs163,500 per tola in Pakistan

    In line with the continuous increase in global prices, the price of gold in Pakistan rose by another Rs750 per tola on Friday, hitting an all-time high of Rs163,500.

    According to information provided by the All Pakistan Sarafa Gold and Jewellers Association (APSGJA), the price of gold for a tola settled at Rs163,500. The price per 10 grammes increased by Rs643 to reach Rs140,175.

    Given that Pakistan imports the precious metal it needs to meet its demand, the rupee’s stability against the US dollar at a record high level is thought to be the main cause of the increase.

    The stock market is currently experiencing selling pressure due to the economy’s overheating, therefore players are shifting their investments to gold, according to Geo.

    Safe-haven investment is once again drawn to gold. Analysts contend that during times of inflation individuals typically invest in gold.

    The cost of gold on international markets, the rupee-to-dollar exchange rate, and the supply and demand in domestic markets affect the price of gold on local markets. The latest price for local markets was determined considering the prices at which trade took place among buyers and sellers.

    As cautious investors prepared for the release of US jobs data, the price of gold rose by $19 per ounce on the international market, finishing at $1,799, but safe-haven bullion was still expected to post a second consecutive weekly gain due to forecasts of a slowing in the rate of US rate hikes.

    In Pakistan, gold is priced about Rs1,000 less than it would be in the Dubai market.

    In the meantime, domestic silver prices increased by Rs10 per tola and Rs8.58 per 10 grammes, respectively, to settle at Rs1,780 per tola and Rs1,526.06 per 10 grammes.