Business

Gold rate falls to Rs237,200 per tola

Published

2 years ago

Farwa

Local rate falls by Rs100 per tola and Rs85 per 10 grams.
Global price declines due to stronger dollar, Treasury bonds.
Association says local gold “overcost” by Rs4,000 per tola.

The gold price in Pakistan saw an insignificant decline Tuesday despite an extension in losses in the international market.

According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the rate of gold (24 carats) fell by Rs100 per tola and Rs85 per 10 grams to settle at Rs237,200 and Rs203,361, respectively.

Meanwhile, the international rate decreased by $13 to reach $1,959 per ounce due to a stronger US dollar and Treasury bonds, which gained on the back of an expected interest rate hike by the Federal Reserve.

Investors also waited to see whether US lawmakers could reach a deal on raising the federal debt limit, without which the country’s first-ever default would be triggered.

The domestic gold market has remained volatile recently due to several factors — economic and political turmoil, high inflation, and currency depreciation. People prefer to buy yellow metal in such times as a safe investment and a hedge.

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.