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Gold price peters out in Pakistan amid sporadic volatility

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Gold prices petered out in Pakistan Monday as overstrung safe-haven investors preferred to sit tight amid the imposition of taxes and reversal of subsidies by the government to win back the International Monetary Fund’s (IMF) loan programme.

Data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of gold (24 carats) decreased by Rs800 per tola and Rs686 per 10 grams to settle at Rs197,600 and Rs169,410, respectively.

Dealers said an acute downtrend in sales could further pull the prices lower, but dwindling demand for gold imports could help shrink country’s yawning trade deficit and prop up a rickety rupee.

As the Pakistan rupee trades around 269-275 against the dollar in the interbank market, the yellow metal can get much costlier as the nation meets its gold requirements through imports — and the country is already facing a balance of payment crisis.

Gold prices eased on Monday, pressured by a firmer dollar as traders squared positions before the U.S. inflation data, which could influence the Federal Reserve’s roadmap for interest rate hikes, comes out on Tuesday.

Spot gold was down 0.1% at $1,863.38 per ounce, as of 0653 GMT US gold futures inched up 0.1% to $1,876.90.

Bullion is often seen as a hedge against inflation, but the opportunity cost of holding it rises when interest rates are increased to bring down inflation.

“A firmer US dollar and higher Treasury yields continue to put gold prices under pressure as expectations of a prolonged disinflation story are being challenged,” said Yeap Jun Rong, a market analyst at IG.

The dollar index edged up 0.1%, making greenback-priced bullion more expensive for buyers holding other currencies. Benchmark 10-year note yields hovered near their highest level since Jan. 6.

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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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