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Gold price rises in Pakistan; silver hits all-time high

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2 years ago

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  • Gold prices increase in world markets as dollar trims gains.
  • Trend to take cue on central bank’s monetary stance, inflation.
  • Silver in local market touches all-time high of Rs2,350 per tola.

Gold prices in Pakistan rose on Monday, tracking global trends and a possible push from a retreating rupee that consequently turns dollar-quoted safe-haven metal pricier, forcing traders to err on the side of caution on the eve of monetary policy meeting.

According to the data released by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) rose by Rs1,200 per tola and Rs1,028 per 10 grams to settle at Rs209,500 and Rs164,645 respectively.

Rupee depreciated 0.44% against the dollar in the inter-bank market on Monday. As per the State Bank of Pakistan (SBP), the rupee settled at 285.04, a loss of Rs1.25.

The State Bank of Pakistan is expected to raise the policy rate by 100-200 basis points as inflation is spiralling out of control. Consumer price inflation in Pakistan jumped to a record 35.37% in March from a year earlier.

Gold is often hailed as a hedge against inflation—increasing in value as the purchasing power of the dollar declines. 

Pakistan’s monthly inflation blew past forecasts in March and soared to a nearly all-time high level — 35.4% — from a year earlier, with people feeling more pain from some of the fastest rising consumer prices amid straining budgets as cost of living continues to outstrip average incomes.

Last month, the central bank hiked the policy rate by 300 basis points to 20%.

World gold prices bounced back on Monday as the dollar trimmed its initial gains that were driven by bets that OPEC’s surprise output cuts could jack up global energy prices and force central banks to hike interest rates.

Spot gold rose 0.5% to $1,977.43 per ounce by 1206 GMT. U.S. gold futures gained 0.4% to $1,994.50.

Earlier in the session, gold touched a one-week low of $1,949.54.

While gold is traditionally considered a hedge against inflation, increasing the interest rates to rein in rising price pressures dims the appeal of the asset since it pays no interest.

Silver prices in the domestic market rose by Rs80 per tola and Rs68.59 per 10 grams to settle at their all-time highs of Rs2,350 and Rs2,014.47, respectively.

International prices of silver fell 0.3% to $24.01 per ounce, platinum was also down 0.3% to $988.60 while palladium rose 0.7% to $1,470.72.

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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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