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Gold reaches historic high of Rs169,650 per tola

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  • Silver price surpasses key level of Rs1,900 per tola.
  • Gold price jumps Rs2,350 per tola.
  • Expert cites shortage of dollars major reason behind rising prices.

Gold price in Pakistan reached a historic high of Rs169,650 per tola on Monday as investors continued to take refuge in the safe-haven metal on mounting concerns that the country’s economic conditions will deteriorate further.

According to All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the prices of gold surged by Rs2,350 per tola and Rs2,016 per 10 grams to settle at an all-time high of Rs169,650 and Rs145,448, respectively, data released by All Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed.

Gold, which has been continuously touching new peaks for the last few days, closed at Rs167,300 per tola after registering a gain of Rs4,000, or 2.49% during the week ended December 10.

Meanwhile, silver prices surpassed the key level of Rs1,900 per tola. The price surged by Rs80 per tola and Rs68.58 per 10 grams to settle at an all-time high level of Rs1,970 and Rs1,688.95.

Speaking to Geo.tv, AA Gold Commodities Director Adnan Agar cited a shortage of dollars as major reason behind rising gold prices in the local market.

“Investors want to invest in the dollar because of the rising difference between the open market and the interbank market rate, which is around Rs20-30; however, despite the significant difference dollar isn’t available and people are concerned about the financial situation in Pakistan and chances of default,” he explained the reason behind sudden shift in investors focus.

He added that because of the speculations that the dollar can reach 350-400 against the rupee; investors are trying to invest in the precious commodity.

“However, due to its [dollar] shortage they have shifted their focus toward gold as the price of the yellow metal is also rising in the international market,” Agar maintained.

Elaborating on the main driving points, he said that amid the current situation people are looking for investment options which are very limited because small investors cannot invest in real estate at the moment because of its high prices.

“Therefore, small and medium investors are investing in gold so that their money is secured as the rupee is continuously depreciating against the dollar,” he stated.

Gold dealers, however, lament that since gold prices were touching new peaks in the country, it had seized to exist as a lucrative business.

Only investors are investing in gold here. Otherwise, artificial jewellery is being used in marriages and other ceremonies.

It should also be noted that gold demand in Pakistan jumped 34% to 13 tonnes during the period of July and September 2022 from a year earlier, Bloomberg reported Wednesday citing data compiled by the World Gold Council.

The data revealed that this was the most amount of gold purchased during a quarter in at least about three years.

In the international market, gold price fell registered a decline of $3 per ounce settling at $1,794.

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Finance Minister: A “big” IMF program is coming for Pakistan.

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Speaking at the Karachi Stock Exchange ceremony, the Finance Minister announced that meetings with IMF representatives would take place in Washington on April 14 and 15.

He applauded the caretaker government’s effort to bring about economic stability and predicted that the nation’s economy would stabilize with improved economic policies.

Muhammad Aurangzeb emphasized that in order to move the country’s economy toward stabilization, structural reforms must be implemented.

He restated that the nation’s recovery from the economic crisis depends heavily on the stock market. The stock market is, nevertheless, trending upward.

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Pakistan is still classified as a secondary emerging market by the FTSE.

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The nation could perhaps be demoted, according to the worldwide index provider, since its index weight has decreased over the previous few years.

Pakistan’s market capitalization peaked in 2017 at $100 billion, but it fell to $21 billion by 2024, according to a Bloomberg research.

It did, however, state that Pakistan’s standing as a secondary emerging market will remain unchanged due to favorable political changes brought about by the establishment of a stable government.

Bloomberg saw Shehbaz Sharif’s election as prime minister, who is open to reform, as a step in the right direction for the nation struggling financially.

Shehbaz Sharif, the president of the Pakistan Muslim League-Nawaz, was chosen on March 4 to serve as the country’s 24th prime minister.

With 201 votes, PM Shehbaz defeated Omar Ayub Khan of the Sunni Ittehad Council (SIC) by 92 votes.

over the economy, earlier this month, Pakistan and the International Monetary Fund (IMF) came to an agreement at the staff level over the second and last review conducted under Pakistan’s Stand-By Arrangement.

The IMF secured a staff-level agreement with Pakistan on the second and final review of the nation’s stabilization program, which is backed by the IMF’s US$3 billion (SDR2,250 million) SBA authorized, according to the official statement released by an IMF team led by Nathan Porter.

The remaining US$1.1 billion (SDR 828 million) of SBA access will be made available following the IMF Executive Board’s approval of the deal.

It was reported shortly after the February 8 election that the newly elected PML-N-led government intended to apply for a new IMF credit package.

Pakistan is anticipated to pursue a $6–8 billion loan program from the global lender, and the IMF will be contacted right once to begin negotiations for this. The sources went on to say that the IMF would have tighter requirements this time.

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PM Shehbaz Sharif: “A plan to digitize the tax system is underway.”

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In an address to the All Pakistan Newspapers Society delegation in Islamabad today, the prime minister announced that plans were in motion to update the tax collection system.

The prime minister added that efforts are underway to broaden the revenue base and that the Federal Board of Revenue (FBR) is fully digitizing.

He emphasized that the Tax Excellence Awards were a recent initiative by the government to support female entrepreneurs, exporters, and engaged taxpayers.

The government’s priorities, according to the prime minister, are institutional changes, austerity, domestic and external investment, and privatization of government-owned businesses.

Praiseing the media’s contribution to public awareness-raising and good governance, he called on the sector to successfully communicate the benefits of economic stability under SIFC.

Calling fake news a major problem, he emphasized the need for cooperation to combat it. Additionally, he extended an invitation to the press to back Pakistan’s administration in its endeavors for the country’s growth and well-being.

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