Business

Gold nears historic high as rupee recovers

Published

2 years ago

Farwa

Gold price in Pakistan jumped to near a historic high after the rupee recovered as investors await the resumption of the International Monetary Fund (IMF) programme.

According to data provided by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) increased by Rs1,350 per tola and Rs1,157 per 10 grams to reach Rs218,200 and Rs187,071, respectively.

The rupee moved upward against the US dollar, appreciating 0.15% or Re0.42, to 283.47 in the inter-bank market, according to the State Bank of Pakistan (SBP).

The yellow metal had reached a record high of Rs218,600 per tola last week. It then dropped to Rs216,000 per tola on April 15 as its rate declined in the international market. It was again on the rise as the current week began.

The price of gold increased by $26 today to settle at $2,000 per ounce in the international market, which also affected the domestic market rate.

The increased demand for the precious metal and the resulting rise in its value can be attributed to the economic crisis prevailing in the country. During times of economic turmoil, people prefer to buy gold, which is considered to be a hedge against inflation and the local currency’s declining value.

Moreover, gold was the top-performing asset in 2022, according to a report by Topline Securities.

Data shared by the association showed that the price of silver in the domestic market remained unchanged at Rs2,530 per tola and Rs2,170 per 10 grams, respectively.

Business

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

Published

15 hours 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

16 hours 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.