Connect with us

Business

Gold rate jumps to another all-time high in Pakistan

Published

on

  • Rate of gold (24 carats) increases by Rs1,400 per tola.
  • Gold’s rate also sees a rise in the international market.
  • Silver rate also surges to an all-time high. 

Gold prices jumped to another all-time high in Pakistan as the economic prospects remain gloomy amid a stalled International Monetary Fund (IMF) bailout programme.

According to data provided by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the rate of gold (24 carats) increased by Rs1,400 per tola and Rs1,200 per 10 grams to reach Rs226,900 and Rs194,530, respectively.

The rise in the gold price also came as the precious metal’s value increased in the international market by $5 to settle at $2,022 per ounce.

Gold prices ticked up as the dollar eased and economic risks prevailed, while investors prepared for US inflation data to gauge the Federal Reserve’s policy path.

The bullion rate has been on a steady uptrend in Pakistan, as economic fundamentals weakened, the rupee depreciated and inflation soared to record highs. During such times, people prefer to buy the yellow metal to protect themselves against inflation and currency depreciation.

There has been no relief for the masses as the weekly inflation hit an all-time high of 48.35% year-on-year (YoY) with prices of chicken and wheat flour increasing during the seven-day period ending May 4.

Meanwhile, it seems that Pakistan may not get the crucial tranche from the IMF anytime soon, as the country’s loan programme is not on the agenda of the lender’s Executive Board till May 17.

Pakistan and the IMF have been discussing fiscal policy measures in the review since February, aiming to resume stalled funding of $1.1 billion due in November from a $6.5-billion programme agreed in 2019.

The delay in the revival of the IMF programme negatively impacts the currency market which, in turn, bolsters the demand for gold.

Data shared by the association also showed that the price of silver hit record highs after they increased by Rs30 per tola and Rs25.72 per 10 grams to settle at Rs2,900 and Rs2,486.28, respectively. 

Business

ADB authorizes a $200 million loan for Pakistan to upgrade its power distribution system.

Published

on

By

A $200 million loan from the Asian Development Bank (ADB) has been authorized to update Pakistan’s power distribution system.

The project intends to improve data management and communication networks and deploy more than 300,000 smart metering equipment.

The project will involve improvements to voltage levels at SEPCO grid stations and monitoring systems for 15,500 transformers. LESCO plans to build or upgrade 25 grid stations with cutting-edge machinery. The initiative will reinforce income security, enhance demand management, and lower power losses, all of which will help to address

Continue Reading

Business

Bulls recover from a sharp fall.

Published

on

By

The benchmark KSE-100 Index hovered at 111,005 points after rising more than 2000 points against the previous closing of 108,896 points, indicating that bullish momentum has returned to the Pakistan Stock Exchange (PSX) a day after a sharp bearish rally.

For the past month or so, the proverbial bulls have been galloping thanks to the cash infusion from the International Monetary Fund’s loan release and more discussions on climate funding.

The impending SBP policy rate-cutting meeting is another factor contributing to the current market mood. On December 16, the Central Bank’s Monetary Policy Committee is anticipated to convene.

Market analysts claim that the government’s decision to form a committee to address the outstanding problem of the Advances to Deposit Ratio (ADR) in the banking industry was the cause of the market’s abrupt collapse. However, the trend didn’t last long.

Following an extraordinary run of gains over the past month or so, the Pakistan Stock Exchange (PSX) reached a historic high of 100,000 points on November 30.

The KSE-100 index achieved one milestone after another in November 2024 amid recurring reports of economic stability, mainly due to the recent loan disbursement by the IMF.

The reassuring agreement with the international lender and Pakistan’s economic czar Muhammad Aurangzeb’s subsequent announcement ruling out a mini-budget boosted investor confidence in recent times.

The State Bank of Pakistan lowered the policy rate by 250 basis points to 15% on November 5.

Inflation dropped more quickly than anticipated and approached its medium-term target range in October, according to the SBP’s relevant committee.

Continue Reading

Business

PSX 100-index reaches an unprecedented peak, exceeding 111,000 points.

Published

on

By

The Pakistan Stock Exchange (PSX) reached the significant milestone of 111,000 points shortly after today’s market opening.

The KSE-100 Index ascended by more than 1,000 points in the initial five minutes of trade, achieving a notable increase of 1,044 points to attain 111,014 points.

The increase indicates heightened investor confidence and a robust market sentiment.

Continue Reading

Trending