Connect with us

Business

Petrol price may reduce by Rs10-15 per litre on rupee strength

Published

on

  • The price of diesel may be slashed by Rs2 per litre.
  • OGRA to meet for price revision for next fortnight.
  • IMF reservations could cause hurdles in price cut.

KARACHI: The improvement in the exchange rate, mostly in the favour of local currency, is likely to bring the prices of petroleum products down in the next fortnightly review by the oil sector regulator.

The Oil and Gas Regulatory Authority (OGRA) will meet soon to revise the petroleum prices for the next fortnight starting October 16, 2022.

If the government decides to pass on this rupee-dollar parity impact to the end consumers, the price of petrol may be slashed by an estimated Rs10-15 per litre and that of diesel by Rs2 per litre, according to industry sources.

The rupee fell for the second straight session on Thursday as dollar demand from importers outpaced greenback sales by exporters, who chose to sit on the sidelines in anticipation of range-bound trading in the local currency going forward, dealers said.

However, the sources added that this facilitation could be delayed owing to International Monetary Fund’s (IMF) reservations over the petroleum subsidy as Pakistan had agreed with the lender of the last resort to gradually add Petroleum Development Levy (PDL) to the prices of fuels.

The addition of PDL will offset the exchange rate impact.

According to the working of the oil industry, all petroleum prices are showing a declining trend worldwide; however, it is not clear if the government would pass on the impact or offset it by raising taxation.

Oil prices traded about 2% higher on Thursday, reversing course, as low levels of diesel inventory ahead of winter helped investors shrug off higher-than-expected stocks of crude and gasoline.

Analysts say Finance Minister Ishaq Dar seems to be following a populist policy and may avoid burdening the masses further at least for now, doing good on the word that he gave before assuming the office of finance minister.

There’s a chance that the finance minister might pass the impact of a global downtrend and a stronger rupee if world markets continued to retreat.

Business

The gold price in Pakistan today

Published

on

By

According to the All Sindh Sarafa Jewellers Association, the price of 10 grammes of 24 karat gold increased by Rs772 to Rs184,928 from Rs184,156, while the price of 10 grammes of 22 carat gold increased to Rs169,517 from Rs168,810.

These oscillations are strongly correlated with shifts in the US dollar’s value, demonstrating the complex interplay between gold prices and exchange rates.

This emphasises how local gold prices are impacted by events related to the global economy.

On the other hand, the cost of 24-karat silver was constant at Rs 2,570. Globally, too, the price of gold increased somewhat by $9 to $2,057 per ounce.

Continue Reading

Business

Pakistan receives a $2 billion loan from China, according to the finance minister

Published

on

By

The $2 billion loan was one year ahead of schedule and became due in March. According to reports, Beijing had informed Islamabad of the decision.

The International Monetary Fund granted Pakistan’s cash-strapped economy a $3 billion standby arrangement last summer, but the country is still battling to recover from the financial crisis.

According to ratings firm Fitch, one of the top concerns confronting the next administration would be obtaining funding from bilateral and multilateral partners due to Pakistan’s precarious foreign situation, as was stated last week.

This event occurs one month after Anwaar-ul-Haq Kakar, the acting prime minister, asked for a $2 billion loan to be rolled over for a year in a letter to his Chinese counterpart.

In his letter, Kakar also expressed gratitude for China’s efforts to lessen Pakistan’s load

of foreign payments.

It is to be noted that Pakistan acquired safe deposits of $4 billion from China to address the balance of payments issue.

Continue Reading

Business

“Ready to work with Pakistan’s new government,” the IMF said.

Published

on

By

In response to the former premier’s request, IMF Director of Communications Julie Kozak stated, “I’m not going to comment on ongoing political developments,” during a news conference.

She continued by saying that they “look forward to working on policies to ensure macroeconomic stability and prosperity for all of Pakistan’s citizens with the new government.”

In addition to stating that the plan is “supporting the authority’s efforts to stabilise the economy and to, of course, with a strong focus on protecting the most vulnerable,” Kozack said the lender increased the total disbursements under the Standby Arrangement (SBA) to $1.9 billion.

This has been accomplished by closely adhering to budgetary constraints and safeguarding the social safety net. In order to keep foreign exchange reserves growing and rein in inflation, a strict monetary policy stance has been maintained, the speaker stated.

The PTI founding chairman decided to write a letter to the international lender, asking it to demand an audit of the election held on February 8 before it proceeds with discussions with Islamabad for a new loan programme. This move prompted the IMF to release its statement.

In response to the former premier’s request, IMF Director of Communications Julie Kozak stated, “I’m not going to comment on ongoing political developments,” during a news conference.

She continued by saying that they “look forward to working on policies to ensure macroeconomic stability and prosperity for all of Pakistan’s citizens with the new government.”

In addition to stating that the plan is “supporting the authority’s efforts to stabilise the economy and to, of course, with a strong focus on protecting the most vulnerable,” Kozack said the lender increased the total disbursements under the Standby Arrangement (SBA) to $1.9 billion.

This has been accomplished by closely adhering to budgetary constraints and safeguarding the social safety net. In order to keep foreign exchange reserves growing and rein in inflation, a strict monetary policy stance has been maintained, the speaker stated.

The PTI founding chairman decided to write a letter to the international lender, asking it to demand an audit of the election held on February 8 before it proceeds with discussions with Islamabad for a new loan programme. This move prompted the IMF to release its statement.

Continue Reading

Trending