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Express Tribune
5 days ago
- Business
- Express Tribune
Gold rises despite global decline
Listen to article Gold prices in Pakistan rose on Tuesday, defying the trend in the international market where bullion slipped due to renewed optimism about a possible trade agreement between the United States and its trading partners. A stronger US dollar and rising Treasury yields further weighed on global gold prices. In the local market, the price of gold per tola increased Rs1,500 to reach Rs354,500, according to data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA). Meanwhile, the price of 10 grams of gold rose Rs1,286, closing at Rs303,926. This upward movement in domestic gold prices comes a day after the local market saw a drop of Rs2,500 on Monday, when gold settled at Rs353,000 per tola. Commenting on the international outlook, Interactive Commodities Director Adnan Agar noted that gold was trading around $3,294 per ounce, having touched the low of $3,280-85 and the high of $3,340 during the session. "As I mentioned earlier, the market appears to be gradually declining. There is strong support at $3,270 and $3,250. If prices drop to these levels, we could see a rebound. However, a break below this range could push the market down towards $3,200," he said. International spot gold eased 0.4% to $3,322.93 per ounce, as of 1325 GMT. US gold futures fell 0.3% to $3,332.30, according to Reuters. The benchmark 10-year Treasury yield hit a more than two-week high, making non-yielding gold less attractive, while the US dollar edged 0.2% higher. Meanwhile, the Pakistani rupee continued its downward trend against the US dollar, slipping 0.05% in the inter-bank market on Tuesday. By the end of trading, the rupee stood at 284.36, marking a drop of 14 paisa from Monday's close at 284.22. Moreover, Money Link Exchange Company closed its operations and surrendered its licence to the State Bank of Pakistan (SBP), which has officially revoked the company's authorisation to carry out any kind of foreign exchange business. The move highlights concerns among foreign exchange companies over what industry stakeholders describe as excessive regulations and a shrinking scope of operations. Exchange Companies Association of Pakistan (ECAP) General Secretary Zafar Paracha expressed disappointment over the closure, stating that overregulation and limited business avenues have pushed even well-established companies out of the market. "It is unfortunate that a big group like Money Link is exiting. The environment is no longer viable for us," he said. Another exchange company official, speaking anonymously, said that the formal exchange business was losing ground to the grey market as a result of overly strict regulations and limited flexibility. "We have only two avenues left – selling currency to retail customers and handling remittances. Meanwhile, banks have been given preferential treatment to operate in this space, while exchange companies face harsh compliance demands," he added. Key regulatory conditions, such as mandatory biometric verification for transactions as low as $100, the requirement of travel documents for outward remittances of over $950 and the restriction that transfers above $1,950 can only be made through bank accounts, have been cited as major obstacles. Stakeholders argue that this level of scrutiny hampers genuine customer transactions and deters individuals from using formal channels. "We operate by buying and selling dollars between individuals, but excessive interference has made the business unsustainable. This could lead to monopolies and the collapse of healthy competition," warned a senior industry member.
Express Tribune
16-06-2025
- Business
- Express Tribune
Rupee loses 21 paisa on imports, global woes
The Pakistani rupee on Monday lost 21 paisa, or 0.07%, reaching its lowest level in 18 months against the US dollar amid rising import demand and evolving geopolitical factors. By the end of trading, the rupee stood at 283.17/$, down 21 paisa compared to the previous day. This marks the first time the currency has touched the 283 level since December 2023. The rupee remains under pressure due to increased import payments and ongoing debt repayments. Over the past week, the currency lost 0.28%, or 79 paisa, settling at 282.96 against the dollar, compared to the prior week's close at 282.17, as per data from the State Bank of Pakistan (SBP). The rupee has depreciated by 1.63% so far in the current calendar year and by 1.71% in the current fiscal year, according to Ismail Iqbal Securities. Exchange Companies Association of Pakistan General Secretary Zafar Paracha said the rupee has remained relatively stable compared to past crises, despite recent geopolitical tensions. He noted that unlike previous situations when the dollar surged sharply, the market has been managed better this time around. However, ongoing tensions and uncertainty have led to a slight depreciation of the rupee and rise in gold prices. Paracha also highlighted reduced remittances and increased capital outflows during recent India-Pakistan tensions, with some investors turning to alternatives like cryptocurrencies. Gold prices in Pakistan fell on Monday, mirroring the decline in the international market where bullion slipped over 1% as investors booked profits following an eight-week high. Market participants also remained cautious due to escalating Israel-Iran tensions and the upcoming US Federal Reserve policy meeting. In the domestic market, the price of gold per tola dipped Rs700 to settle at Rs362,300. Likewise, the price of 10 grams of gold decreased Rs600 to Rs310,613, according to the All Pakistan Sarafa Gems and Jewellers Association.
Express Tribune
10-03-2025
- Business
- Express Tribune
Rupee trades above 280/$ for 1st time since Jan'24
The Pakistani rupee has once again slipped past the 280 threshold against the US dollar in the interbank market, a level last seen in January 2024. As per the latest exchange rate, the rupee closed at 280.07, reflecting a 0.04% decline on a day-on-day (DoD) basis. The last time the rupee traded above 280/$ was in January 2024. Over the past week, the currency continued its gradual decline, losing Rs0.30 (0.11%) in the interbank market. According to the State Bank of Pakistan (SBP), the rupee ended at 279.97/$, compared to 279.67/$ in the previous week's closing. The currency has recorded a 0.14% depreciation month-to-date, while the calendar year-to-date decline stands at 0.54%. Since the start of the fiscal year, the rupee has weakened by 0.62%, according to AHL data. The historical trend highlights a sharp depreciation in late 2023, followed by relative stability in mid-2024, before resuming a gradual decline. The recent depreciation signals renewed pressure on the external front, influenced by rising imports and financial outflows. Zafar Paracha, Secretary General of the Exchange Companies Association of Pakistan (ECAP), stated that while there is some pressure on the currency market, particularly due to rising import demand and debt repayments by the SBP, the situation remains stable. He noted that December typically sees profit-taking by foreign investors, as nearly 80% of banks have foreign shareholders who repatriate profits at year-end. Additionally, import pressure has increased, but there is no cause for concern. The exchange rate movement is minimal, with a less than 1% decrease, keeping the rupee stable at around 280/$. Paracha highlighted that remittance inflows tend to improve during Ramazan, as overseas Pakistanis send financial support to their families and contribute towards charity, zakat, and donations. Exchange companies alone are expected to contribute $600 million in inflows. He further emphasised the need for incentives for exchange companies and overseas remittances, similar to the benefits provided to exporters. According to the SBP, workers' remittances recorded an inflow of $3.1 billion in February 2025, reflecting a 38.6% year-on-year (y/y) and 3.8% month-on-month (m/m) increase. Cumulatively, remittances reached $24.0 billion during July-February FY25, marking a 32.5% rise from $18.1 billion in the same period last year. The largest sources of remittances were Saudi Arabia ($744.4 million), the United Arab Emirates ($652.2 million), the United Kingdom ($501.8 million), and the United States ($309.4 million). Paracha projected that remittances would rise by 10% month-on-month during Ramazan, further strengthening Pakistan's foreign exchange reserves. "Billionaire exporters receive billions of rupees in incentives, including rebates, low-cost loans, and other subsidies, yet their contribution remains stagnant. In contrast, overseas workers, who earn an average of $250 per month, have sent over $35 billion in remittancesa figure that could double if given the same importance and incentives as exporters," he said. Meanwhile, gold prices in Pakistan remained unchanged on Monday, with per tola holding steady at Rs306,000. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the 10-gram gold rate also remained stable at Rs262,345. On Saturday, gold per tola had dropped by Rs1,000, settling at Rs306,000. The international gold price also saw no change, standing at $2,910 per ounce, including a $20 premium, as per APGJSA.
