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Gold retreats once again in Pakistan, per tola price declines by Rs1,000

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Gold prices fell on Friday as the rupee ticked higher, while traders continued to position themselves for further rate hikes from the State Bank of Pakistan (SBP) — as the precious commodity is highly sensitive to rising interest rates. 

Data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of gold (24 carats) declined by Rs1,000 per tola and Rs857 per 10 grams to settle at Rs195,100 and Rs167,267, respectively.

Investors expect the State Bank of Pakistan (SBP) to raise interest rates as early as this week in an off-cycle review as the South Asian nation faces pressure to mend its finances amid a $1 billion loan tranche it is seeking from the International Monetary Fund (IMF).

While gold is considered an inflation hedge but is highly sensitive to rising interest rates, which increase the opportunity cost of holding the non-yielding bullion.

Moreover, the local currency extended its winning streak for the third day as it gained 0.36% against the US dollar to close below the psychological level of 260 after a hiatus of 20 days in the interbank market — which faded the appeal for the precious commodity. 

Meanwhile, silver prices in the domestic market fell by Rs20 per tola and Rs17.14 per 10 grams to settle at Rs2,100 and Rs1,800.41, respectively.

In the international market, gold prices headed for another weekly fall on Friday, holding near last session’s two-month lows as prospects of more interest rate hikes by the US Federal Reserve dimmed bullion’s appeal amid a slew of strong economic data. 

The price registered a meagre decline of $8 per ounce to settle at $1,818.

Bullion has lost about 7% since the beginning of February, having posted significant declines in the previous two out of three weeks and is down about 1% this week.

Gold is trying to find support around the $1,820 level, but prices could drift still lower towards $1,776 on strong personal consumption expenditure data, said Ole Hansen, head of the commodity strategy at Saxo Bank.

“The market is looking to stabilise after the long overdue correction, which has now been unfolding for the past three weeks.”

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Business

Irfan Siddiqui meets with the PM and informs him about the Senate performance of the parliamentary party.

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The head of the Senate’s Foreign Affairs Standing Committee and the PML-N’s parliamentary leader paid Prime Minister Muhammad Shehbaz Sharif a visit in Islamabad.

Senator Irfan Siddiqui gave the Prime Minister an update on the Parliamentary Party’s Senate performance.

Additionally, Senator Irfan Siddiqui gave the Prime Minister an update on the Senate Standing Committee on Foreign Affairs’ performance.

He complimented the Prime Minister on his outstanding efforts to bring Pakistan’s economy back on track and meet its economic objectives.

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Business

SIFC Increases Direct Foreign Investment: Investment in the Energy Sector Rises by 120%

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The Special Investment Facilitation Council is intended to help Pakistan’s energy sector attract $585.6 million in direct foreign investment in 2024–2025. The amount invested at the same time previous year was $266.3 million.

This is a notable 120% rise, mostly due to investments in gas exploration, oil, and power. Such expansion indicates heightened investor confidence and emphasizes the development potential in important areas.

The State Bank reports that foreign investment in other vital industries has increased by 48% to $771 million.

This advancement is a blatant testament to SIFC’s efficient investment procedure and quick project execution.

The purpose of the Special Investment Facilitation Council is to establish Pakistan as an investment hub by aggressively promoting regional trade and investment in the energy sector and other critical industries.

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Business

Discos report losses of Rs239 billion.

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When compared to the same period last year, the data indicates that discos have decreased their losses in the first quarter of the current fiscal year.

The distribution businesses recorded losses of Rs239 billion in the first three months of the current fiscal year, a substantial decrease from the Rs308 billion losses sustained during the same period the previous year.

Additionally, the distribution businesses’ rate of recovery has improved. It has increased to 91% in the first quarter of this year from 84% in the same period last year, indicating success in revenue collection.

Regarding circular debt, the Power division observed a notable change. Last year, between July and October, the circular debt grew by Rs301 billion. Nonetheless, this year’s first four months saw a relatively modest increase in circular debt, totaling about Rs11 billion.

These enhancements show promising developments in the electricity sector’s financial health in Pakistan, where initiatives are being made to accelerate recovery rates and slow the expansion of circular debt.

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