Business

Gold retreats in Pakistan as international rates recede

Published

2 years ago

Farwa

Gold price in Pakistan settles at Rs221,700 per tola.
Price of silver remains unchanged in local market.
Yellow metal loses $2 in the international market.

KARACHI: Gold prices in Pakistan started the week on a negative note as they receded in line with the developments in the international market on Monday.

According to data issued by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) appreciated by Rs1,100 per tola and Rs943 per 10 grams to settle at Rs221,700 and Rs190,072, respectively.

Meanwhile, the price of the yellow metal decreased by $2 to settle at $1,94 per ounce in the international market as the US dollar and Treasury yields gained after traders digested Friday’s jobs report, with attention turning to US inflation data later this week.

The US economy added fewer jobs than expected in July, data showed on Friday, but solid wage gains and a decline in the unemployment rate pointed to continued tightness in labour market conditions.

“Market participants still see the job market in the US being tight… it’s not a considerably strong slowdown in job activity,” said UBS analyst Giovanni Staunovo.

The dollar regained some ground, while benchmark 10-year Treasury yields also rose after sliding from November highs on Friday.

Non-yielding gold is often sought as a safe investment against inflation but tends to lose its sheen when rates rise.

Data shared by the association also showed that silver prices remained unchanged to settle at Rs2,750 per tola and Rs2,357.68 per 10 grams, respectively.

Business

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

Published

2 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

3 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.