Business

Gold glitters again as record high inflation boosts demand

Published

2 years ago

Farwa

Gold price settles at Rs141,000 per tola.
A surge of over 1.43% per tola snapped four-day losing streak of gold.
Silver prices plummet by Rs50 per tola.

KARACHI: Gold prices rose on Thursday, as skyrocketing inflation dulled risk appetite and boosted demand for the safe-haven metal, although an advancing Pakistani rupee limited bullion’s gains.

Data released by All Sindh Sarafa Association showed that the gold price in Pakistan surged by Rs2,000 per tola and Rs1,715 per 10 grams to settle at Rs141,000 and Rs120,885.

A surge of over 1.43% per tola snapped the four-day losing streak of the yellow metal during which the price of gold declined by Rs8,100 in the local market.

Record high Pakistan’s consumer price index-bases inflation surged to a multi-decade high of 27.3% in August which pushed the gold price to a one-and-a-half-year-high.

The safe-haven asset reversed its downtrend today as multi-year high inflation data boosted the appeal of the asset; however, the appreciation of the Pakistani rupee was pulling at the heels of the gold market and limiting its upside.

Gold is traditionally seen as an inflation hedge. However, reduced central bank interest rate hikes tend to push government bond yields up, translating into a higher opportunity cost for holding gold that pays no interest.

Gold is considered a hedge against inflation, but interest rate hikes would raise the opportunity cost of holding non-yielding bullion.

In the international market, the price of yellow metal plunged by $13 per ounce to settle at $1,702. Gold prices briefly slid below the key $1,700 psychological level for the first time in six weeks, as major central banks stuck to an aggressive stance to combat inflation, dulling demand for non-yielding bullion.

It should be noted that the gold price stands below cost and is cheaper by Rs3,000 per tola compared to Dubai.

Meanwhile, silver prices in the domestic market plummeted by Rs50 per tola and Rs42.87 per 10 grams to settle at Rs1,470 per tola and Rs1,260.28 per 10 grams today.

Business

PSX surpasses the historical 71,500-point threshold.

Published

1 day ago

Farwa

Investors celebrated as the PSX finally crossed the historic 71,500 point threshold, signalling a critical turning point in the state of the economy in the country.

The KSE-100 index jumped more than 740 points, soaring to a record high of 71,650 points, demonstrating the tenacity and optimism that pervaded the Pakistani financial market.

This outstanding accomplishment indicates strong growth possibilities for the foreseeable future and demonstrates investors’ faith in the nation’s economic prospects.

The Pakistan Stock Exchange (PSX)’s KSE-100 index saw a minor decline of 60.92 points on Friday, or 0.09 percent, and ended the day at 70,483.66 points.

In the foreign exchange market, the US dollar lost value in relation to the Pakistani rupee at the same time.

Currency dealers claim that on the first day of the workweek, the value of the US dollar dropped by 11 paisas to Rs278.20 in the interbank market, significantly strengthening the rupee.

Business

Outsourcing: Investors from Turkey stop by the airport in Karachi

Published

1 day ago

Farwa

Turkish investors, who are interested in outsourcing Pakistan’s airport industry, sent a high-level team to Karachi Airport.

The domestic arrival and departure lounge at Karachi airport was visited by the Turkish investment group, according to information. The investors were briefed about the workings of the Karachi airport by a delegation of the Civil Aviation Authority, headed by Secretary Aviation Saif Anjum.

An update on the volume of people and business leaving the airport was also provided to Turkish investors. It is anticipated that the delegation would tour the cargo terminal and CAA headquarters today.

The nation’s three main airports, Karachi, Lahore, and Islamabad, were formerly to be outsourced by the federal government.

Interest in outsourcing three of Pakistan’s airports has been expressed by local parties as well as investors from Germany, France, the Netherlands, Qatar, the United Arab Emirates, Malaysia, and Turkiye.

The timeframe for proposal submission for Islamabad International Airport’s outsourcing was extended by the Civil Aviation Authority (CAA) earlier on March 21.

The government’s top objective in the process of outsourcing international airports, according to Prime Minister (PM) Shehbaz Sharif, is openness.

First, he stated that Pakistan is willing to participate in a public-private partnership to outsource a portion of the airport’s commercial activities.

Business

The inaugural flight of Azerbaijan Airlines is between Baku and Karachi.

Published

4 days ago

Farwa

The national airline of Azerbaijan launched direct flights from Baku to Karachi today. There will be two weekly flights on this route, on Thursdays and Sundays.

The first flight will land in Karachi, and Azerbaijan’s ambassador, Khazar Farhadov, will be there to greet it.

This evening also marks the departure of the inaugural flight from Karachi to Baku, in addition to the arrival of the flight from Baku.

Azerbaijan Airlines said last month that it would be growing its network and flight operations in Pakistan.

Aviation insiders have verified that Azerbaijan Airlines is preparing to launch service to Karachi in the coming month of April.

In addition to its current services in Islamabad and Lahore, the airline plans to launch its Karachi route on April 18, with the inaugural flight anticipated to depart on that date.

Azerbaijan Airlines has been given permission to operate flights on the Karachi route, according to sources within the Civil Aviation Authority (CAA).

Following a bilateral agreement between the two nations, Azerbaijan Airlines has been given permission to extend its operations in Pakistan.