Gold price rises Rs1,000/tola, rupee loses 10 paisa vs dollar
Gold prices continued their upward trajectory on Tuesday, in line with the international market trend. The price of gold per tola rose Rs1,000, reaching Rs304,200, while the 10-gram price increased Rs857 to Rs260,802, according to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).
This follows a Rs1,700 per-tola increase recorded on Monday. On the global front, gold prices also experienced an uptick, with the metal trading at $2,910 per ounce, reflecting a $10 increase, including a $20 premium, as per APSGJA. According to Mohammad Qasim Shikarpuri, President of APSGJA, the global economic slowdown and financial instability have driven investors towards gold as a safe-haven asset. He explained that the rising investment demand for gold is not limited to Pakistan but is a worldwide phenomenon.
Countries like China are preferring gold over the US dollar and many investors globally are shifting their capital to gold due to uncertain market conditions. This surge in demand has contributed to the continued increase in gold prices. The local market has also been affected by weakened consumer purchasing power. Gold has become unaffordable for many in Pakistan, leading to a decline in traditional jewellery purchases.
In the past, weddings often involved buying multiple tolas of gold, but now, many families opt to repurpose old jewellery or purchase minimal new gold. The soaring gold prices have made large-scale purchases out of reach for the average consumer. Another major factor influencing gold prices is global trade tensions and economic policies. The ongoing US-China trade war, which has led to higher tariffs on Chinese exports, has increased global economic uncertainty.
Investors, anticipating financial instability, have responded by increasing their gold holdings, further pushing up prices. Additionally, geopolitical conflicts, particularly the Russia-Ukraine war, have intensified the demand for gold as a protective asset.
Despite these rising trends, Shikarpuri predicts that a market correction is likely in the near future. He suggests that if global political stability improves, especially if tensions in the Russia-Ukraine conflict ease or if US economic policies become more predictable, gold prices could see a downward shift.
However, for now, investors continue to see gold as a reliable and liquid asset, making it one of the safest investment options available in an uncertain global economy.
Meanwhile, the rupee experienced a slight decline against the US dollar in the inter-bank market on Tuesday, depreciating by 0.04%. By the end of the trading session, the rupee closed at Rs279.37, marking a 10 paisa loss compared to Monday's closing value of 279.27.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
an hour ago
- Business Recorder
Post-budget presser: ‘Have to get money from somewhere to provide relief somewhere', says Auranzgeb
Federal Minister for Finance and Revenue Muhammad Aurangzeb on Wednesday addressed the concerns of stakeholders regarding the budget for fiscal year 2025-26 presented before the National Assembly (NA) a day ago. Addressing the media persons, Aurangzeb maintained that the income tax levy for the salaried persons earning between Rs600,000 and Rs1.2 million annually is 2.5%. 'Because every number is locked, so we have to get money from somewhere to provide relief somewhere,' he said. 'This is a work in progress.' During the budget speech, Aurangzeb proposed halving the income tax rate to 2.5% for the salaried persons earning between Rs600,000 and Rs1.2 million annually. However, it is important to note that there was a discrepancy between the rate announced during the speech and the rate stated in the Finance Bill — the latter sets the tax at an even lower 1% for this income bracket. The finance minister reiterated that the government remains committed to issuing the inaugural Panda bond during this calendar year. 'We do want to access the euro and US dollar market, we anticipate entering these markets in 2026, certainly not during this calendar year, as we need to achieve a certain rating,' he said. Aurangzeb said that the tariff reform mentioned during the budget speech 'is very significant' for the country and will enhance the country's exports. 'Out of a total of 7,000 tariff lines, the government has decided to eliminate additional customs duty on 4,000 of them,' he said. Fiscal space limited Aurangzeb said that the government wanted to provide maximum relief to the salaried class, but added, 'The reality is that we can only offer as much relief as our fiscal space permits.' The country's tax-to-GDP ratio has reached 10.3% in the current fiscal year. 'In FY26 we intend to increase it to 10.9%,' he said. 'We need enabling amendments and legislation to plug leakages in the system, so the government doesn't have to resort to additional taxation measures of around Rs400-500 billion,' Aurangzeb said. The finance minister noted that the government expenditure has increased by 1.9% this fiscal year. 'We have not imposed any additional tax on the agriculture sector,' he said. The government will provide soft-term loans to small farmers. The finance minister noted that the government expenditure has increased by 1.9%. Meanwhile, Finance Secretary Imdadullah Bosal clarified that the increase is limited to critical needs. Surcharge on Electricity Bills On reports regarding the imposition of a 10% surcharge on electricity bills, Chairman FBR, Rashid Mehmood Langrial, clarified that no additional surcharge has been imposed. Responding to a query on how the federal government could delink population from the National Finance Commission (NFC) award, Auranzgeb maintained, 'Everything will be done in consultation with provinces.' Responding to a query on why the government maintained the minimum wage at Rs37,000, Aurangzeb said the decision was made in consideration of industrial growth. On the imposition of 18% tax on solar panels, Langrial explained that the GST of around 16-18% was imposed on less assembled solar panels, whereas there was no GST on imported fully assembled solar panels. 'The local manufacturing was at a disadvantage. We want to create an enabling environment for the local sector,' the FBR chief said. Responding to a query, Imdadullah Bosal informed that the budget figures are 'locked with the International Monetary Fund (IMF)'. Govt salary increase Bosal stated that the budgeted increase in government salaries—from 6% to 10%—would have a fiscal impact of approximately Rs28–30 billion. He informed that the Ministry of Finance will hold consultations with the defence ministry regarding the introduction of a contributory pension scheme. Earlier, reporters staged a boycott of the press conference after the government failed to hold a scheduled technical briefing on the Finance Bill. Ruckus ahead of post-budget press conference Prime Minister Shehbaz Sharif-led coalition government's Finance Minister Muhammad Aurangzeb on Tuesday presented the federal budget 2025-26 to the parliament, with a total outlay of Rs17.573 trillion, targeting a GDP growth target of 4.2% against 2.7% in the outgoing year. Aurangzeb termed the budget the start of a strategy to create a competitive economy and economic productivity to increase exports and fundamentally change the economy's DNA. The government has set an inflation target of 7.5% for the next fiscal year. Regarding the fiscal deficit, the government projected a target of 3.9% of the GDP — or Rs5,037 billion — from the outgoing fiscal year's target of 5.9%. The primary surplus is targeted at 2.4% of the GDP against the budgeted 2% in the current fiscal year, which has been revised to 2.2%. More to follow
Express Tribune
3 hours ago
- Express Tribune
PSX continues record rally as KSE-100 breaches 124,000 points for first time
The stake sale would be followed up with a listing of a further 20% of stock exchange shares in the domestic market Listen to article The Pakistan Stock Exchange (PSX) reached a new all-time high on tuesday, with the KSE 100 Index crossing the 124,000-point mark for the first time in history during intraday trading. The index gained 1,990.41 points, or 1.63%, as the market stood at 124,014.85 around noon local time. During the ongoing session, it peaked at 124,135.96 points, while the intraday low was 123,237.99 points. Trading volume stood at 146.42 million shares, with a total market value of Rs13.84 billion. This surge follows the announcement of the federal budget, which has been well-received by investors, sparking optimism in the market. Read: Anti-digital, pro-realty sector budget Yesterday, Finance Minister Muhammad Aurangzeb unveiled a Rs17.6 trillion federal budget for fiscal year 2025-26, laying stress on the government's focus on economic stability and growth. Finance Minister highlighted key economic indicators during a post-budget briefing, citing improvements in remittances, inflation, and growth. Aurangzeb said remittances had reached $31.2 billion so far, with projections of $37–38 billion by the end of the financial year. The country's GDP growth stands at 2.7%, while inflation has eased to 4.7%, according to the minister. The National Economic Council (NEC) approved Rs4.224 trillion in development spending, including Rs1 trillion for the federal Public Sector Development Programme (PSDP), Rs2.869 trillion for Provincial Annual Development Plans (ADPs), and Rs355 billion from state-owned enterprises' own resources. For the fiscal year 2025–26, the government projects economic growth at 4.2% and both inflation and interest rates at 7.5%. Aurangzeb said the budget deficit is forecast at 3.9% of GDP, with a primary surplus of 2.4%.
Business Recorder
5 hours ago
- Business Recorder
Pakistan govt offers tax relief, cuts rates for salaried class
ISLAMABAD: The government has announced substantial tax relief measure in the federal budget (2025-26) for salaried class taxpayers, and reduced tax rates across all income slabs for salaried individuals, aiming to provide much-needed financial respite amid economic challenges. Tax rates for salaried individuals for income slab upto Rs.3,200,000 has been reduced to provide relief to lower and middle tiers income bracket. Similarly, surcharge rate is proposed to be reduced from 10% to 9% for salaried individuals only. The Finance Bill (2025-26) introduced a revised tax structure for salaried individuals, significantly lowering tax rates and amounts across various income brackets. Federal budget 2025-26: Cut in taxation rates for salaried people likely Income between Rs600,000 and Rs1.2 million: The tax rate has been set at 1%, with the tax liability on an income of Rs1.2 million reduced from Rs30,000 to Rs6,000. Income between Rs1.2 million and Rs2.2 million: The 15% tax rate imposed on annual income between Rs1.2 million and Rs2.2 million has been reduced by 4%. The new tax is set at 11%. This means, an employee earning up to Rs 2.2 million, who used to pay a maximum of Rs330,000 annually in tax, will now pay Rs242,000. Income between Rs2.2 million and Rs3.2 million: The tax rate has been lowered from 25% to 23%, providing relief to higher-earning salaried individuals. An employee earning up to Rs2.2 million, whose maximum tax was previously Rs550,000 per year, will now have Rs506,000 deducted annually. These reductions across all tax slabs reflect the government's commitment to supporting the salaried class, which has faced significant economic pressures due to inflation and rising living costs. When contacted, tax lawyer Waheed Shahzad Butt informed that salaried individuals, earning between Rs600,000 and Rs1.2 million annually, will get the largest relief as the Pakistan government proposed a one percent tax rate from the earlier five percent. The proposal means that individuals earning Rs1.2 million will pay Rs6,000 in taxes, down from Rs30,000. Additionally, the Pakistan government has proposed 11 percent income tax on taxpayers earning up to Rs2.2 million annually, a sharp four percent decline from the earlier 15 percent. Copyright Business Recorder, 2025
