Gold prices hit record high in global, local markets
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Gold prices surged to record highs in both international and domestic markets on Thursday, driven by continued investor interest and global economic uncertainty.
According to market reports, the international bullion rate rose by $31 per ounce, taking the price to $3,052, its highest level to date.
In response, gold prices in Pakistan also witnessed a sharp rise. The price of 24-karat gold per tola increased by Rs3,200, reaching an all-time high of Rs321,000.
Meanwhile, the rate for 10 grams of gold rose by Rs2,743, hitting Rs275,205.
Bullion traders attributed the surge to strong demand, inflation concerns, and currency fluctuations. The local market continues to mirror global trends, with buyers seeking gold as a safe-haven asset.
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Express Tribune
20 minutes ago
- Express Tribune
Govt hints at Rs500b mini-budget
Listen to article Finance Minister Muhammad Aurangzeb on Wednesday cautioned that the government may be compelled to impose up to Rs500 billion worth more new taxes if the National Assembly did not allow it to ban economic transactions by ineligible persons. The minister also made a paradoxical comment where he defended the decision to keep the minimum monthly wage unchanged at Rs37,000 but advocated an annual increase in salaries of the parliamentarians to adjust for the impact of inflation. The warning about a mini-budget before the approval of the new budget came just a day after the finance minister proposed roughly Rs432 billion worth of new taxes, which targeted the digital economy, solar panels, middlemen's cars and fuel, including that used in agriculture. He made the remarks during a post-budget press conference where he expanded upon the federal budget proposed for the new fiscal year. If the law to ban economic transactions is not passed and the enforcement measures are not implemented, we will have to impose Rs400 billion to Rs500 billion worth of new taxes, repeated by the finance minister twice to register his point. "We have two ways — either we ensure enforcement or we introduce additional measures of up to Rs400 billion to Rs500 billion. This is why we will go to the parliament to help us out with the enabling amendments and legislation", he added. He said that the International Monetary Fund has accepted the government's point of view that it can get Rs389 billion additional in the next fiscal year through enforcement measures, which is not possible without new legislation. Transactions to be banned In the budget, the government has proposed restrictions on economic transactions by ineligible persons lacking sufficient financial resources. These restrictions include: a ban on booking, purchasing, or registering motor vehicles; a ban on registering, recording, or attesting the transfer of immovable property; a ban on selling securities — including debt securities or mutual fund units — to ineligible persons; and a ban on opening or maintaining current, savings, or investor portfolio securities accounts. Only individuals holding 130% of the value in cash and equivalent assets — comprising local or foreign currency, fair market value of gold, net realisable value of stocks, bonds, receivables, or any other cash-equivalent asset — will be eligible to buy such assets. Rs37,000 minimum wage appropriate In a surprising statement, the finance minister defended the decision to freeze the minimum wage at Rs37,000 per month — or Rs1,423 per day, excluding holidays. "Go to the industries and get their feedback on the minimum wage. I think we are in a good place," said Aurangzeb. However, he also defended the substantial hike in salaries of the Senate chairman and deputy chairman, and the National Assembly speaker and deputy speaker, raised sixfold to Rs1.3 million per month. He said their salaries were being adjusted after nine years. Like the annual increment in government employee salaries, parliamentarians' pay should also increase, he recommended. Media protests for its rights At the outset of the press conference, reporters voiced concerns over not receiving a technical briefing from the Federal Board of Revenue (FBR) on the Finance Bill 2025 on Tuesday. They walked out in protest and returned only after Information Minister Attaullah Tarar and FBR Chairman Rashid Langrial acknowledged that such a briefing should have been given as per tradition. Finance Minister Aurangzeb later acknowledged the "worry" caused to reporters and said he "regretted if there was anything of the sort". Cash on delivery disparity The government's move to charge 2% tax on online shopping up to Rs20,000 — while charging only 0.25% for purchases exceeding that amount — is likely to further encourage cash-on-delivery for high-value transactions. Dr Najeeb, FBR Member Policy, explained that while the value of goods in such transactions is high, the profit margins are low, hence the proposed lower tax rate of 0.25%. Under the proposed rates, tax on a Rs20,000 transaction will amount to Rs400, but for Rs21,000 it will drop to Rs52. Dr Najeeb noted that grocery items have lower margins but are taxed at higher rates than electrical goods. "We did not follow previous policies where everyone suffered under the same category," he added. Pakistan's East Asia moment Finance Minister Aurangzeb asserted that reducing import duties would move Pakistan toward an export-led economy. He emphasised the significance of tariff reforms under the National Tariff Policy. "People ask us if revenue will decline. But if we are to take this country forward toward an export-led model, this is the discussion we must have," he said. The minister noted that additional customs duties were eliminated from four tariff lines and reduced for 2,700 more, all linked to raw materials intended to benefit exporters. "This is an East Asia moment for Pakistan. Whatever was available in the fiscal space reflects the direction of travel. We've tried to reduce tariffs. This is not the eventual end state," he remarked. On the increased tax rate for the sale of plots, Aurangzeb said the selling side still receives capital gains, but the buying side should receive some relief. Finance Secretary Imdad Ullah Bosal stated that there was no more fiscal space to reduce expenditure, and savings from downsizing the government were limited to the abolishment of vacant positions. Responding to a question about delinking population statistics from the National Finance Commission (NFC) award, Aurangzeb insisted, "Everything will be done in consultation with provinces." Earlier this week, the finance minister had said that the population should be delinked from the NFC formula to address 2.6% annual population growth. "Nothing will be done without the provinces, including the national fiscal pact," he added. To a question about the impact of reducing the income tax surcharge by 1%, which still leaves it at 9%, on brain drain, Aurangzeb said the government had set a rare direction, one indicating that "anything going up is, within a year, going down". "The things that had never been reversed before have now been put into reversal - but that's not the eventual end state," he said. He clarified that the government is trying to send a message to sectors facing undue burden, particularly the formal sector, that it is "serious". "This is just signalling, from my perspective, in the right direction," he said. When asked about the rationale for imposing an 18% sales tax on imported solar panels, FBR Chairman Rashid Langrial explained that panels were being imported either fully or partially assembled. Those adding value locally were already taxed at 18%, while fully assembled imports were not, putting local assemblers at a disadvantage. "We also closed the door for future local assembly, so this was not an option. We have to create a level playing field," Langrial said, asserting that incentives were no longer needed, given the falling cost of technology. He estimated that the 18% tax on solar panel imports would increase the payback period by only two months, from 18 to 20 months. Eurobond repayments On bond repayments, the finance minister said the first instalment of $500 million worth of Eurobonds is due in September, followed by the next in March. "We are prepared and willing to pay," he said. "With the international credit rating improving, we want to access the euro and US dollar markets, which is expected in 2026, but certainly not this calendar year," Aurangzeb added.
Business Recorder
an hour ago
- Business Recorder
Punjab to present ‘tax-free budget' on 16th: minister
LAHORE: The Punjab government will present its annual budget for the fiscal year 2025–26 on June 16, following a short delay from the initially announced date of June 13. Finance Minister Mujtaba Shujaur Rehman confirmed the change during the Punjab Revenue Authority performance review meeting on Wednesday. He also reiterated that the expansion of the tax net will be ensured to increase revenue in the next fiscal year. Meanwhile, according to the sources, the upcoming budget will be tax-free, and no new taxes will be introduced. Estimated at over Rs1,200 billion, the new fiscal plan is expected to feature a record-breaking development outlay emphasising health, education, infrastructure, and tourism. The new budget will include over 850 development schemes and the key projects include the expansion of Nawaz Sharif Medical City in Lahore where new hospitals will be constructed under a public-private partnership model. The government also plans to roll out extensive sanitation and clean drinking water initiatives throughout Punjab. Infrastructure development remains a central priority. Moreover, the provincial transport network will be expanded to additional cities, while road and urban infrastructure projects are planned for 66 cities across the province. These initiatives reflect the government's strategy to improve public services and promote inclusive growth without imposing new tax burdens on citizens, said sources. The sources also confirmed that proposals for new taxes, submitted by the Board of Revenue and the Punjab Revenue Authority, were rejected by Punjab Chief Minister Maryam Nawaz Sharif. The government is instead reviewing the current tax structure to identify adjustments in existing rates where necessary. The Punjab Assembly is scheduled to convene on June 16 for the formal presentation of the budget. Copyright Business Recorder, 2025
Business Recorder
2 hours ago
- Business Recorder
Traders, consumers, politicians reject taxation measures
PESHAWAR: Traders, consumers and politicians have rejected the federal budget and warned that imposition of massive new taxes will further push the downtrodden class below poverty. Reacting to the federal government's budget office bearers of various groups of traders, and leaders of political parties in separate statements here on Wednesday pointed out that the rulers failed to provide any relief to the poverty-stricken masses. Qaumi Watan Party (QWP) provincial Chairman Sikandar Hayat Khan Sherpao said the federal budget failed to reflect the aspirations of the people and offered no relief to the public, business community as well as the agricultural sector. He said the budget lacked any measures aimed at economic growth, agricultural revival, or public welfare. He warned that the imposition of massive taxes was likely to have severe negative impacts, particularly on agriculture, which was already facing unprecedented decline. He pointed out that inflation was at its highest level and agricultural degradation was pushing nearly half of the country's population below the poverty line. He remarked 'Instead of curbing its extravagant expenditures, the government has increased them by 17 percent, and this burden will ultimately fall on the poor.' Highlighting regional disparities, Sikandar Sherpao said around 42 percent of the country's population now lived below the poverty line; a number that had surged to 48 percent in Khyber Pakhtunkhwa and nearly 70 percent in Balochistan. 'Despite depriving smaller provinces of their due resources, the government is imposing heavy taxes on them,' he added. Sikandar Sherpao criticised the government for once again failing to allocate promised funds for the merged tribal districts, warning that continued neglect would lead to further underdevelopment and despair in the region. Sikandar Sherpao expressed alarm over the state of agriculture, noting that agricultural output recorded a sharp decline from 6.4 percent growth last year to just 0.65 percent this year. 'This is a matter of serious concern, given our heavy economic reliance on agriculture,' he stated, accusing the government of using IMF conditions as a pretext to overburden the sector with unjust taxes. The QWP leader further said there was little hope for a significant increase in exports under the current circumstances. Regarding the 10 percent salary increase for government employees, he termed it deceptive. 'The government has taken back double the amount through excessive taxation,' he said. He also questioned the rising value of the US dollar in Pakistan while it was declining globally, blaming it on flawed government policies. 'A lower dollar rate would reduce national debt and petroleum product prices,' he observed. Expressing scepticism over the government's ambitious tax target of Rs14,000 billion for the next fiscal year, Sikandar Sherpao noted that it had failed to meet last year's target of Rs12,700 billion. 'How can the government expect to achieve an even higher target when it couldn't meet the previous one?' he asked. The QWP leader warned that the overall impact of the federal budget would lead to a further spike in inflation and hurt the poor. He lamented the lack of specific measures for the development of smaller provinces, saying it would only deepen their sense of deprivation. Similarly, Tajir Itehad provincial president Mujeeb-ur-Rehman, also strongly criticized the budget, calling it a 'budget of numbers' that fails to address the real issues faced by traders and the general public. Mujeeb-ur-Rehman stated that the implementation of new taxes worth Rs. 2,000 billion will make it impossible for businesses to operate. He emphasized that the tax target of Rs. 14,000 billion was unrealistic and will further shrink the economy. He questioned how the government plans to service debts exceeding Rs. 8,500 billion without a viable strategy. He said increasing the petroleum levy from Rs. 78 to Rs. 100 per liter will be detrimental to the economy. He expressed concerns that the ordinance will open new avenues for corruption and bribery. He warned that digital invoicing will empower FBR officers with unlimited powers, making it difficult for businesses to operate. Instead of expanding the tax net, the government is increasing the tax burden on existing filers. He demanded that the condition of paying extra Rs. 2-3 per liter for petrol purchases without a card should be abolished. Electricity prices should be reduced, and 13 types of taxes on electricity should be abolished to promote economic growth. Copyright Business Recorder, 2025
