Business

Govt constitutes task force to combat gold smuggling, ‘mafia’

Published

1 year ago

Farwa

Task force will take decisive measures against illegal activities.
It has prepared lists of mafia and smugglers to kick-start action.
Govt decides to start work on computerising gold trade.

ISLAMABAD: Intelligence and law enforcement agencies have initiated a major operation to combat gold smuggling and the “gold mafia,” The News reported on Friday.

According to sources, a task force comprising the agencies has been constituted to take decisive measures against illegal activities.

The sources told The News that the objective behind constituting the task force is to nab the smugglers so that legal action could be taken against them.

It was further learnt that the task force had also prepared lists of mafia and smugglers and action against them was in the offing.

Moreover, the government also decided to start work on a war footing to computerise the sale and purchase of gold and bring the gold dealers into the tax net.

“This step will benefit both the people and the country,” the sources said, adding that the gold price was already on the decline.

It may be pointed out here the gold price over the last two weeks has come down from Rs236,000 per tola to Rs214,000 per tola.

Traders stop issuing bullion rates

Meanwhile, The News also reported regarding the closure of Karachi’s bustling gold market for the second consecutive day on Thursday following the crackdown reportedly by the authorities.

The market, one of the largest in Pakistan, did not issue new gold rates as reports emerged of raids and arrests in some sections of the market, a local trader who declined to be named, said.

Traders have also stopped issuing bullion rates for the last two days. The price of 24-carat gold had closed at Rs215,000 per tola (11.66 grams) on Tuesday and since then, the All Pakistan Gems and Jewellers Sarafa Association has not updated the market price.

Onlookers and stakeholders in the industry were also met with silence as no official rates were announced by the All Sindh Saraf Jewellers Association.

Attempts to reach out to market participants for insights on the situation proved futile, with most refusing to comment. However, when pressed about the possible reason behind the market’s closure, one spokesperson cryptically responded, “You know better than us”.

The veil of silence shrouding the gold market appears to be linked to recent law enforcement activities targeting gold smuggling. Reports have emerged of four gold smugglers being apprehended by authorities on Wednesday.

In the wake of these developments, the gold market has largely ceased its usual operations, with many traders switching off their phones and refraining from returning calls.

Speculation is prevalent that the closure of the gold market is related to recent incidents in which gold prices experienced a sharp decline. However, the prices in the local market were raised despite a concurrent decline in the international gold market and the strengthening of the rupee.

Traders said it is suspected that certain market participants may have sought to manipulate gold rates for their own gain. This manoeuvre allegedly led to a staggering increase of Rs5,600 per tola in local gold prices, driving rates to Rs215,000 per tola on Tuesday.

This perplexing price hike stood in stark contrast to the global trend, where gold rates had decreased by $15, settling at $1,911 per ounce on Tuesday.

The sudden fluctuation in gold prices has puzzled industry observers and investors, especially considering that gold rates had dipped to Rs209,400 per tola on Monday, September 11. Just weeks prior, on August 31, gold had reached its second-highest rate of Rs239,800 per tola.

While the gold market often experiences fluctuations, the current situation has raised eyebrows due to its enigmatic nature.

As market regulators and law enforcement agencies investigate the circumstances surrounding the gold market closure and price surge, there is growing hope for greater transparency and accountability in the industry in the near future.

Business

Gold prices in Pakistan approach an all-time high.

Published

18 hours ago

Farwa

Following a substantial surge the prior day, gold prices in Pakistan are ascending to unprecedented levels with an additional gain on Thursday, coinciding with a rise in global precious metal rates.

The price of 24-karat gold in the local market rose by Rs700 per tola, reaching Rs277,900, as reported by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).

Likewise, the cost of 10 grams of 24-karat gold increased by Rs600, currently priced at Rs238,254.

Globally, gold prices exhibited an upward trend, increasing by $7 throughout the day. The APGJSA reports that the international gold price was $2,682 per ounce.

Notwithstanding the increase in gold prices, the silver market exhibited stability, with the price of silver maintained at Rs3,050 per tola.

In the previous month, gold prices in Pakistan reached an unprecedented high of Rs 277,000 a tola, driven by substantial gains in the worldwide market.

Business

World Bank: Power industry subsidies soar by 400% in just five years.

Published

19 hours ago

Farwa

Ninety-four percent of domestic customers will benefit from the budgetary subsidy in 2024, according to a World Bank report, which credits the increase in protected consumers with contributing to the weight of subsidies.

In the current fiscal year, the electricity sector subsidy has increased by an astounding Rs. 954 billion, from Rs. 236 billion in the 2020 fiscal year to Rs. 1190 billion.

Notwithstanding changes, the circular debt has averaged Rs. 400 billion yearly over the last four years due to the incapacity to minimize losses and inadequate recovery of electricity payments.

According to the World Bank, the government must solve the fundamental problems in the power industry in order to lower the burden of subsidies and circular debt, as rising electricity prices and inadequate tax collection will only serve to worsen the circular debt crisis.

The rise in Pakistan’s power sector circular debt has raised worries from the World Bank (WB) despite an unprecedented increase in energy pricing.

Within the last six years, the debt has grown by 1241 billion rupees, according to the World Bank’s study. Between 2019 and 2021, the debt climbed by 1128 billion rupees.

The electricity sector’s circular debt has been increasing at an alarming rate, according to a World Bank analysis. Between 2022 and 2024, there was a substantial increase of 113 billion rupees.

Pakistan’s electricity industry has 2393 billion rupees in total circular debt as of 2024.

Restructuring is required to solve the circular debt issue, according to the World Bank.

Business

Final settlement: Govt to pay five IPPs Rs 72 billion.

Published

19 hours ago

Farwa

On October 10, Prime Minister (PM) Shehbaz Sharif declared that the agreements with five IPPS would be terminated in the first phase. Sources claim that the government will give Rs 15.5 billion to Rousch Power and Rs 36.5 billion to Hubco.

In a same vein, the federal government would pay Lalpir Power Rs 12.8 billion, Atlas Power Rs 15.5 billion, and Sapphire Power Rs 6 billion.

The sources state that late payment fees are not included in the settlement. With effect from October 1, the agreements with the five IPPs will be considered officially ended.

PM Shehbaz earlier remarked that the termination was carried out with the owners of the IPPs’ mutual permission while presiding over the federal cabinet meeting in Islamabad.

The Prime Minister notified the Cabinet that the only money that will be paid, interest-free, to these IPPs is the outstanding balance.

According to him, the national exchequer will gain over 411 billion rupees from the termination of these contracts, while power customers will save roughly sixty billion rupees.

According to Prime Minister Shehbaz Sharif, it was the result of the arduous teamwork of the entire government. In this regard, he also acknowledged the contributions and assistance of the associated parties. He specifically mentioned General Asim Munir, the Chief of Army Staff, who showed a personal interest in the situation.

The prime minister characterized the development as the start of a trip that will ultimately lead to the advancement and prosperity of the populace.

PM Shehbaz Sharif also brought up the assistance that the Punjabi and Federal governments gave to power users over the summer.