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Gold continues to shine, heads for major weekly rise

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2 years ago

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  • Price settles at Rs153,000 per tola.
  • Gold price rise by Rs7,300 per tola during week ended Sept 10.
  • Silver prices in domestic market remain unchanged.

KARACHI: Gold was on course to gain for the week as concerns over the rupee devaluation and rising prices boosted its appeal as a safe haven and an inflation hedge, as prices increased on Saturday as the local currency hovered near an all-time low.

The price of gold has jumped by Rs1,300 per tola and Rs1,115 per 10 grams to Rs153,000 and Rs131,173 in Pakistan on Saturday. Cumulatively, the price of yellow metal surged by Rs7,300 per tola during the week ended September 10.

All Pakistan Sarafa Gems and Jewellers Association (APSGJA) determines local prices based on rupee-dollar parity at the open market — as the association members finance gold imports by buying dollars from the open market — and international rates.

In Pakistan, it seems that the larger the depreciation in the rupee at domestic “open markets” — compared to the interbank markets — the higher the price of gold.

It should be noted that the rupee has depreciated by over 10% in the current fiscal year 2023 (July 1, 2022 to date) to Rs228.18 against the US dollar at the interbank market. In the previous fiscal year (FY22), it dropped by 30% to Rs205.

Pakistan meets its domestic demand for gold through imports, as it does not produce the metal locally. At present, however, the country is importing a very small volume of bullion since the government has imposed tight conditions on imports to save foreign exchange reserves.

In the international market, the price of yellow metal declined by $4 per ounce to settle at $1,717.

Gold rates in Pakistan are around Rs4,000 below the cost compared to the rate in the Dubai market.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,540 per tola and Rs1,320.30 per 10 grams.

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Business

Irfan Siddiqui meets with the PM and informs him about the Senate performance of the parliamentary party.

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22 hours ago

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The head of the Senate’s Foreign Affairs Standing Committee and the PML-N’s parliamentary leader paid Prime Minister Muhammad Shehbaz Sharif a visit in Islamabad.

Senator Irfan Siddiqui gave the Prime Minister an update on the Parliamentary Party’s Senate performance.

Additionally, Senator Irfan Siddiqui gave the Prime Minister an update on the Senate Standing Committee on Foreign Affairs’ performance.

He complimented the Prime Minister on his outstanding efforts to bring Pakistan’s economy back on track and meet its economic objectives.

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Business

SIFC Increases Direct Foreign Investment: Investment in the Energy Sector Rises by 120%

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The Special Investment Facilitation Council is intended to help Pakistan’s energy sector attract $585.6 million in direct foreign investment in 2024–2025. The amount invested at the same time previous year was $266.3 million.

This is a notable 120% rise, mostly due to investments in gas exploration, oil, and power. Such expansion indicates heightened investor confidence and emphasizes the development potential in important areas.

The State Bank reports that foreign investment in other vital industries has increased by 48% to $771 million.

This advancement is a blatant testament to SIFC’s efficient investment procedure and quick project execution.

The purpose of the Special Investment Facilitation Council is to establish Pakistan as an investment hub by aggressively promoting regional trade and investment in the energy sector and other critical industries.

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Business

Discos report losses of Rs239 billion.

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23 hours ago

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When compared to the same period last year, the data indicates that discos have decreased their losses in the first quarter of the current fiscal year.

The distribution businesses recorded losses of Rs239 billion in the first three months of the current fiscal year, a substantial decrease from the Rs308 billion losses sustained during the same period the previous year.

Additionally, the distribution businesses’ rate of recovery has improved. It has increased to 91% in the first quarter of this year from 84% in the same period last year, indicating success in revenue collection.

Regarding circular debt, the Power division observed a notable change. Last year, between July and October, the circular debt grew by Rs301 billion. Nonetheless, this year’s first four months saw a relatively modest increase in circular debt, totaling about Rs11 billion.

These enhancements show promising developments in the electricity sector’s financial health in Pakistan, where initiatives are being made to accelerate recovery rates and slow the expansion of circular debt.

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