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Gold extends downward spiral in Pakistan

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  • Gold price declines by Rs700 per tola,
  • Per tola rate settles at Rs197,300.
  • Silver price remain unchanged.

Gold extended its downward spiral on Tuesday for the fourth consecutive session as the Pakistan rupee continues to strengthen against the US dollar in both — interbank and open markets — fading the shine of the yellow metal.

The price of gold (24 carats) fell by Rs700 per tola and Rs600 per 10 grams to settle at Rs197,300 and Rs169,153, respectively, according to All-Pakistan Sarafa Gems and Jewellers Association (APSGJA).

The price of yellow metal fell Rs9,200 per tola in four trading sessions which was more than the amount it cumulatively gained Rs5,900, or 3.03% per tola during the week ended March 4.

The price of gold is declining due to the strengthening of the rupee which settled at 277.87 against the US dollar in the interbank market today after a meagre increase of 0.02% compared to Monday’s close of 277.92.

The precious commodity scaled to an all-time high of 210,500 per tola on January 30, 2023; however, the gold price started receding after the rupee recovered on hopes of revival of the $6.5 billion International Monetary Fund (IMF) bailout programme.

It should be noted that Pakistan meets almost all its gold demand through imports, and traders follow its international price in setting rates in the country. Jewellers import the metal against the US dollar and UAE dirham before converting its price into rupees.

Meanwhile, silver prices in the domestic market remained unchanged at Rs2,140 per tola and Rs1,834.70 per 10 grams, respectively.

In the international market, the gold prices eased, as investors awaited Federal Reserve Chair Jerome Powell’s testimony later in the day for clues on the future path of US interest rate hikes. The price of per ounce gold settled at $1,842 after a decline of $7.

Prices have eased from a more than two-week peak of $1,858.19 hit on Monday but remained hemmed in a narrow range.

The dollar index gained 0.1%, making bullion less affordable for overseas buyers.

Powell is due to deliver his semi-annual testimony before Congress on Tuesday and Wednesday. The US jobs report for February is due on Friday.

Gold’s quest to extend gains is set to be heavily influenced this week by potential policy clues from Powell’s testimonies and the incoming US payrolls report, said Han Tan, chief market analyst at Exinity.

If Friday’s jobs data shows significant resilience in the US labour market, it would pave the way for even higher US rates and could unwind the month-to-date gains garnered so far by gold, Tan added.

Despite being known as an inflation hedge, higher interest rates dent bullion’s appeal as they increase the opportunity cost of holding a zero-yield asset.

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Islamic Sukuk Bonds: Government Is Expected To Begin Bond Auction Next Week

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There is now more positive economic news for the people of Pakistan. The government is anticipated to begin the Sukuk Islamic Bond auction next week, after the central bank’s announcement of a large drop in the policy rate.

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SIFC Encourages Green Tourism: Reforming Visas to Increase Investment

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Enhancing investment in the tourism sector, Green Tourism Pakistan’s initiative has received backing from the Special Investment Facilitation Council.

Visa-On-Arrival for 126 countries, Visa-Free Entry for Gulf Cooperation Council nations, and 24-hour expedited visa processing are some of the main features of the Green Tourism Visa Policy.

It is anticipated that these endeavors will draw in about 80 million dollars in foreign direct investment and 8.3 billion rupees in domestic investment.

Green Tourism Private Limited has introduced hunting resorts in Naltar, Hunza, and Skardu, along with four- and five-star city hotels, to improve the tourism experience.

In the first phase of the project, 17 of the 78 areas have seen the start of development activity.

Approved is a central authority for Green Tourism that will supervise the growth of Air Operations.

To promote Religious Tourism, extra precautions have been taken to guarantee the security of visitors from all religions, including Sikhs and Buddhists.

Furthermore, in order to improve the quality of the tourist experience, the green guide quality program has been introduced to supply top-notch tour guides.

There is now a deluxe bus excursion from Islamabad to Peshawar that promotes local culture.

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July 2024 export data from Pakistan shows a significant rise.

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The Strategic Investment Facilitation Council (SIFC) has been instrumental in improving Pakistani products’ access to international markets, as seen by the significant surge in exports from the country at the start of the 2024–25 fiscal year.

With a 7.26% rise over the same month the previous year, July 2024 exports to the US were $476.017 million. After increasing by 7.74% annually, the United Arab Emirates emerged as the second-largest export destination.

The third and fourth places were occupied by exports to the UK ($183.303 million) and China ($60.100 million). A substantial increase in exports to Afghanistan was recorded in July of this year, rising from $46.262 million to $88.065 million, largely due to successful anti-smuggling efforts.

With a combined export volume of $553.951 million, more important export destinations included Germany, the Netherlands, Italy, Spain, Saudi Arabia, and Turkey.

A bright future for the national economy is suggested by the growing confidence major international markets have in Pakistani exports. Through the efforts of SIFC and the government, this greater access to global markets has been made possible.

Pakistan’s economy is predicted to remain stable as a result of the export growth that SIFC has enabled.

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