Business

Gold gains lustre as price goes up

Published

2 years ago

Farwa

Domestic gold rate reaches Rs237,800 per tola.
International rate rises to $1,982 per ounce.
Silver price remains stable at Rs2,900 per tola.

The price of gold went up again in Pakistan Wednesday after the international rate edged higher as traders eyed a possible deal on raising the US debt limit as well as a future interest rate hike.

According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold increased by Rs600 per tola and Rs514 per 10 grams to reach Rs237,800 and Rs203,875, respectively.

The international price rose by $23 to settle at $1,982 per ounce.

US Democrats and Republicans ended another round of talks on Tuesday on the federal debt ceiling without reaching an agreement.

If the debt ceiling — which is currently capped at $31.4 trillion — is not raised, it would trigger the first-ever US default.

Investors also awaited the minutes from a recent Federal Reserve meeting regarding the interest rate.

The international developments also affected the domestic market, where the gold rate has been volatile in recent weeks. This has been due to a number of factors, including economic and political turmoil, high inflation, and currency depreciation. People prefer to buy the yellow metal in such times as a safe investment and a hedge.

The rupee, which fell to an all-time low of Rs298.93 on May 11, closed at Rs287.13 per US dollar in the interbank market Wednesday.

The jewellers’ body also said that local gold was “overcost” by Rs4,000 per tola in Pakistan compared to the Dubai bullion market. This means that, at present, the Pakistani gold market is more expensive than the world market.

Data shared by the association showed the price of silver remained unchanged at Rs2,900 per tola and Rs2,486.28 per 10 grams, respectively.

Business

E&P Companies Will Invest $5 Billion in Pakistan’s Petroleum Industry

Published

2 days ago

Farwa

Over the next three years, local and foreign companies involved in Pakistan’s oil and gas exploration and production sector have shown a strong desire to invest more than $5 billion in the nation’s energy sector.

Recent changes to the Petroleum Policy and the implementation of an exclusive tight gas policy, which provide better incentives and a more investor-friendly regulatory framework, are credited with the increase in investor confidence.

These strategic changes are expected to boost domestic energy production, open up new avenues for growth, and draw large amounts of both domestic and foreign investment.

Business

With inflation slowing, the SBP is anticipated to lower the policy rate for the eighth time in a row.

Published

2 days ago

Farwa

Businesspeople anticipate another reduction in the policy rate when the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) releases the updated rate.

The interest rate for the upcoming two months will be announced by the central bank. It is still unclear if the rate will stay the same or be lowered to reflect stakeholder expectations.

According to experts, the policy rate will be lowered in order to further boost the nation’s economic sector.

Interest rates may be lowered for the seventh time in a row if the inflation rate declines significantly more than anticipated.

In its last six sessions, the MPC had cut the policy rate by 10 percent. In January 2025, it decreased the rate by one percent to 12pc.

12PC POLICY RATE

In January, the State Bank of Pakistan (SBP) announced cut in key policy rate by 100 basis points (bps) to 12 percent from 13pc in line with expectations of the business community.

The policy rate, which had been at 22 percent since June 2024, was slashed by 1,000 basis points to 12 percent.

The SBP governor said the decision was taken with careful consideration. “Although inflation is expected to decline next month (February), core inflation remains a pressing concern,” he stated.

Ahmed highlighted strong remittance inflows and robust export growth as key factors supporting the current account.