Business

Pakistan now has $7.91 billion in foreign reserves, up $17 million.

Published

2 months ago

Farwa

The overall value of the nation’s liquid foreign reserves, as disclosed by the SBP, was $13.15 billion. There were $5.24 billion in net foreign reserves held by commercial banks.

The rise in reserves was announced by the central bank without explanation.

“SBP’s reserves increased by US$ 17 million to US$ 7,912.9 million during the week ended on March 8, 2024,” the statement stated.

Pakistan’s central bank had $54 million less in reserves last week.

The sources claimed that at the IMF’s initial meeting with representatives of the Finance Ministry, the organization expressed concerns over the subsidised gas supply to fertilizer companies.

The foreign lender made a demand to stop giving the fertilizer companies gas at a discounted price. The group also voiced their worries over rising commodity costs in Pakistan in spite of global stability.

According to the sources, the IMF team also received updates on circular debts in the energy sector, tariff outlooks, cost-side reforms, tax administration, tax policy, and the development of the Bilateral Investment Plan (BISP) from the relevant officials during the meeting.

The IMF group also requested that Pakistani authorities impose taxes on the industrial, retail, and real estate industries.

Meanwhile, during the first round of negotiations for the second review of the SBA program, Pakistan was given a “do more” ultimatum by the International Monetary Fund (IMF).

Business

Pakistan’s gold prices are still declining; see the most recent

Published

22 hours ago

Farwa

The price of 10-gram gold reduced by Rs943 to settle at Rs207,733, while the price of gold dropped by Rs1200 to close at Rs242,300 a tola, according to the Sindh Sarafa Jewellers Association.

In the global market, the price of the precious metal fell by $10 to $2,349 per ounce, resulting in losses.

At 04:48 GMT, the spot price of gold had dropped by 0.2% to $2,354.77 per ounce. In the previous session, prices reached a two-week high.

American gold futures dropped 0.6% to $2,361.

Spot silver decreased by 0.4% to $28.03 per ounce, while palladium remained steady at $978.03 and platinum decreased by 0.1% to $992.89.

Business

Pakistan and the IMF begin talks for a new loan.

Published

23 hours ago

Farwa

Pakistan is requesting a $6 to $8 billion bailout package from the international lender over the next three to four years to address its financial troubles.

A mission team led by Nathan Porter, the IMF’s Mission Chief in Pakistan, is meeting with a Pakistani delegation led by Finance Minister Muhammad Aurangzeb.

According to sources familiar with the situation, Islamabad may face more difficult options, such as raising power and gas bills.

Mr. Aurganzeb informed the IMF team that the country’s economy has improved as a result of the IMF loan package, and Islamabad is ready to sign a new loan programme to further develop.

The IMF mission expressed satisfaction with Islamabad’s efforts to revive the country’s struggling economy.

The IMF praised Pakistan’s economic growth in its staff report earlier this week, but warned that the outlook remains challenging, with very high downside risks.

The country nearly avoided collapse last summer, and its $350 billion economy has stabilized since the end of the last IMF program, with inflation falling to roughly 17% in April from a record high of 38% last May.

Business

Petrol prices are likely to drop significantly beginning May 16.

Published

23 hours ago

Farwa

According to sources, the government is set to decrease petrol prices by Rs 14 per litre and diesel prices by Rs 10 on May 16 for the next fortnight’s revision.

Last month, the government reduced the price of fuel and high-speed diesel by Rs5.45 and Rs8.42 per fortnight, respectively.

The current fuel price is Rs288.49 per litre, while the HSD price is Rs281.96.

Meanwhile, oil prices fell further on Monday, as signs of sluggish fuel consumption and comments from U.S. Federal Reserve officials dimmed optimism for interest rate reduction, which may slow growth and reduce fuel demand in the world’s largest economy.

Brent crude prices down 25 cents, or 0.3%, to $82.54 a barrel, while US West Texas Intermediate crude futures fell 19 cents, or 0.2%, to $78.07 per barrel.

Oil prices also declined on signals of poor demand, according to ANZ analysts, as gasoline and distillate inventories in the United States increased in the week before the start of the driving season.

Refiners throughout the world are dealing with falling diesel profitability as new refineries increase supply and warm weather in the northern hemisphere and weak economic activity reduce demand.