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Business Recorder
18 hours ago
- Business
- Business Recorder
Potential fallout of Israel-Iran conflict: ICMAP for ensuring 90-day strategic oil reserves
KARACHI: To address the challenges arising from escalating regional tensions, the Institute of Cost and Management Accountants of Pakistan (ICMAP) has proposed a set of strategic policy recommendations. These include the establishment of 90-day strategic oil reserves, formation of an economic task force, and adoption of oil price hedging mechanisms to help shield Pakistan from the potential fallout of the Israel-Iran conflict. In response to escalating regional tensions, the ICMAP has issued a timely and policy-focused assessment of the potential economic fallout from the ongoing Israel-Iran conflict. Developed by ICMAP's Research and Publications Department, the report complements the government's recent decision to establish a high-level committee, headed by the Finance Minister, to evaluate emerging economic risks. ICMAP's assessment underscores that while the conflict remains geographically limited, its indirect economic consequences are already rippling across global markets, particularly affecting energy, trade, and financial systems. For Pakistan, the exposure is significant due to its dependence on imported fuel, critical maritime trade routes through the Gulf, and the livelihoods of over four million expatriate workers based in the Middle East. Central to the analysis is a warning that any disruption in the Strait of Hormuz, through which nearly 20% of global oil and LNG transit, could drive oil prices to between $100 and $130 per barrel. This would substantially increase Pakistan's energy import bill, elevate power generation costs, and accelerate inflation. Domestic diesel prices could rise by more than 30%, with wide-ranging effects on food production, transportation, and household expenditures. The report further highlights rising risks to financial stability. Depreciation of the Pakistani Rupee, increased external debt servicing costs, and fiscal pressure from potential fuel subsidies could erode macroeconomic resilience. Exporters are already facing sharp increases in shipping insurance premiums, reportedly climbing from $400 to $2,000 per container, thereby undermining export competitiveness. In addition, supply chain disruptions and elevated freight charges are expected to impact industrial production - particularly in key sectors such as textiles, chemicals, and edible oils. To address these challenges, ICMAP has outlined a set of strategic policy recommendations. At the forefront is the proposal to establish a Strategic Economic Task Force comprising the Ministry of Finance, Ministry of Commerce, Ministry of Energy (Petroleum Division), Ministry of Foreign Affairs, Ministry of Planning, Development and Special Initiatives, Ministry of Defence, and the State Bank of Pakistan. This high-level task force would be responsible for monitoring global developments and coordinating timely, cross-institutional policy responses to safeguard Pakistan's economic stability. The Institute also recommends expanding Pakistan's strategic petroleum reserves from the current 21 days to at least 90 days of national demand. This critical buffer could be financed through sovereign Sukuk, modelled after successful international practices, to enhance energy security and reduce vulnerability to global supply shocks. Additional recommendations include the adoption of Shariah-compliant oil price hedging instruments for up to 30% of imports to manage exposure to international price volatility. ICMAP also advocates diversifying oil procurement by pursuing local currency trade agreements with countries such as Russia, Iran, and China. Accelerating the modernization of local oil refineries is also advised, which could reduce reliance on imported refined fuels and potentially save up to $1 billion annually. ICMAP further recommends for reversing recent taxes on solar panel imports and fast-tracking the implementation of the 10,000 MW Solar Initiative to promote clean energy and enhance long-term energy resilience. On the external front, it emphasizes the need to safeguard overseas remittances by engaging Gulf countries, incentivizing formal remittance channels, and supporting returning workers to sustain household incomes and foreign exchange inflows. ICMAP further suggests applying for financing under the IMF's Resilience and Sustainability Trust (RST) and establishing an Energy Shock Stabilization Fund in collaboration with multilateral development partners to strengthen fiscal buffers. Copyright Business Recorder, 2025
Time Business News
05-06-2025
- Automotive
- Time Business News
Used Car Prices in Pakistan: Latest Market Trends & Updates
The automotive landscape in Pakistan continues to evolve, and as we step into 2025, the used car market is under the spotlight. The economic conditions, fluctuating exchange rates, changes in government policies, and increasing demand for personal transportation are reshaping the dynamics of used car prices in the country. Pakistani consumers are now more inclined towards pre-owned vehicles due to the significant rise in prices of brand-new cars. The affordability factor, availability of reliable options, and expanding online marketplaces have made used cars a more attractive and viable choice. When exploring the Used Car Prices in Pakistan, it becomes evident that buyers and sellers must stay informed with the latest updates to make sound financial decisions. This comprehensive guide will walk you through the latest pricing trends, influencing factors, popular models, and future outlook, while also offering insights into the trusted platform, Wise Wheels, for all your buying and selling needs. In recent years, the demand for used cars in Pakistan has surged significantly. Several contributing factors have influenced this shift. First, the persistent inflation and depreciating Pakistani Rupee have led to a steep increase in the prices of new cars. Many middle-class families now find brand-new vehicles unaffordable, pushing them towards the used car market. Additionally, imported vehicles have become pricier due to new tariffs and import restrictions. This has made locally used cars more appealing. The pandemic also played a role in increasing personal vehicle ownership as people opted for safer, private transport rather than using public means. Together, these elements have fueled the demand for used vehicles in both metropolitan and smaller cities across Pakistan. Several variables impact used car pricing in Pakistan. Understanding these elements helps buyers and sellers navigate the market more efficiently. The Pakistani economy plays a crucial role in shaping the auto market. High inflation, rising fuel prices, and currency devaluation have increased the cost of vehicle ownership. Consequently, this has driven more people toward the used car market. Moreover, the global chip shortage that began in 2020 continues to affect the production and import of new vehicles, leading to delayed deliveries and higher demand for available used models. Changes in government policies, such as higher withholding tax, registration fees, and increased customs duties on imported vehicles, have made new car purchases less attractive. In 2025, these regulatory changes will remain in effect, further enhancing the value proposition of the used car market. With better diagnostic tools, online vehicle history checks, and digital inspection services, buying a used car is now less risky than it was a few years ago. Platforms like Wise Wheels have leveraged these advancements to build consumer trust by ensuring vehicle transparency and quality assurance. The prices of used cars have gone through noticeable changes compared to previous years. Here's what defines the current state of the market: In the compact car segment, models like Suzuki Mehran, Suzuki Alto, and Daihatsu Mira continue to dominate. These vehicles are fuel-efficient, easy to maintain, and widely available in the secondhand market. In 2025, the Suzuki Alto 2020 model, for example, is priced between PKR 2.0 to 2.5 million, depending on mileage and condition. The Mehran, despite its discontinuation, is still found in the market with prices ranging from PKR 1.2 to 1.8 million. Sedans such as the Toyota Corolla, Honda City, and Honda Civic remain popular for their reliability and spacious interiors. Used Toyota Corolla models from 2017 to 2021 are being sold between PKR 3.0 to and 5.5 million. Honda City 2018 variants are priced around PKR 3.5 to 4.2 million, offering a budget-friendly option for those seeking a reliable family car. The SUV and crossover segment has witnessed substantial interest in 2025. With models like Kia Sportage, Hyundai Tucson, and Honda Vezel offering power, style, and comfort, these cars have become aspirational choices. A 2020 Kia Sportage in good condition ranges between PKR 6.0 to 7.5 million, while a used Honda Vezel hybrid 2018 model is typically available for PKR 5.0 to 6.5 million. Used car prices are not uniform across Pakistan. Cities like Karachi, Lahore, and Islamabad usually report higher vehicle prices due to better conditions, demand, and availability. In contrast, smaller towns often offer more affordable deals, albeit with limited variety. Transportation costs and local taxation policies also influence regional price differences. Digital transformation has significantly impacted how Pakistanis buy and sell used vehicles. Platforms like Wise Wheels have streamlined the process by offering verified listings, detailed vehicle histories, and professional inspection services. These platforms remove traditional middlemen, reduce fraud, and offer more transparency to users. Online portals allow customers to compare multiple options, negotiate prices, and even schedule test drives from the comfort of their homes. This shift is especially crucial in 2025 as people look for safe, efficient, and convenient car buying solutions. The Suzuki Alto continues to be one of the most sought-after models in the used car market due to its affordability and low maintenance costs. The 2020 model offers a compact design, decent fuel efficiency, and ease of driving, particularly suited for urban commutes. A household name in Pakistan, the Toyota Corolla remains a reliable option in the secondhand market. Its robust engine, comfortable ride, and excellent resale value make it a preferred choice. Used models from 2017 to 2021 are easily available with varying price points based on variant and condition. With its sleek design and performance capabilities, the Honda Civic is ideal for those looking for a mix of power and luxury. The 2018 Civic offers advanced features like touchscreen infotainment, climate control, and safety enhancements. Its used price in 2025 reflects both demand and durability. This Japanese-imported kei car is known for its compact size and fuel efficiency. It is ideal for first-time buyers and is widely available in urban centers. The 2017 Daihatsu Mira is priced reasonably and remains a favorite among budget-conscious consumers. In 2025, expect further segmentation of the market based on fuel type, features, and vehicle origin (local vs imported). Hybrid cars will see more traction due to their fuel-saving appeal, while budget models like Suzuki Alto, WagonR, and imported kei cars will remain hot sellers in the low-to-mid price range. Wise buyers will need to stay updated on macroeconomic changes, taxation policies, and evolving consumer preferences. The digital transformation of auto sales through platforms like Wise Wheels will play a critical role in shaping the way Pakistanis engage with the used car market. Whether you're on the hunt for your next vehicle or ready to sell your current one, Wise Wheels is your trusted online destination. The platform has earned a reputation for reliability, transparency, and customer-centric services. With verified listings, expert car evaluations, and secure payment options, Wise Wheels takes the guesswork out of used car transactions. Moreover, the user-friendly website and mobile app ensure that customers have access to thousands of listings anytime, anywhere. If you want to stay ahead in the used car market, make informed choices, and transact safely, Wise Wheels is the platform to rely on in 2025. Q: Why are used car prices increasing in Pakistan? A: Used car prices are rising due to high inflation, increased import duties, and the growing cost of new vehicles. Q: Which city has the lowest used car prices in Pakistan? A: Generally, smaller cities and rural areas offer lower prices than major urban centers like Karachi or Lahore, but options may be limited. Q: What documents should I check when buying a used car? A: Ensure the original registration book, valid tax token, transfer letter, and CNIC copies of the seller are available. Also, verify service records and any accident history. Q: Is it safe to buy a used car online in Pakistan? A: Yes, if you use reputable platforms like Wise Wheels that offer verified listings, secure payments, and professional inspections. Q: Are hybrid used cars a good option in 2025? A: Yes, they offer excellent fuel economy and are increasingly popular due to high fuel costs. However, ensure battery health and availability of spare parts. People can write informational articles on timebusinessnews. TIME BUSINESS NEWS
Khaleej Times
29-04-2025
- Business
- Khaleej Times
Gold & Forex Rates
UAE Draft Rates April 28, 2025 Updated 1 day ago currencies morning evening yesterday Indian Rupee (INR) 23.06 23.11 Pakistani Rupee (PKR) 76.48 76.48 Bangladesh Taka (BDT) 33.23 33.23 Sri Lankan Rupee (LKR) 81.42 81.42 Nepalese Rupee (NPR) 36.98 36.98 Egyptian Pound (EGP) 13.81 13.83 Philippines Peso (PHP) 15.33 15.33 Source Sponsored by
Express Tribune
14-04-2025
- Business
- Express Tribune
Remittances hit record $4.1b
Driven by the economic migration of approximately 2.4 million Pakistanis amid the worsening state of the domestic economy, workers' remittances to Pakistan surged past the $4 billion mark for the first time in March 2025. Workers' remittances have reached an unprecedented $4.1 billion, said the State Bank of Pakistan (SBP) in a press release. This reflects a strong year-on-year growth of 37.3% and a month-on-month increase of 29.8%. Cumulatively, remittances rose to $28.0 billion during the first nine months of FY25 (July-March), representing a 33.2% increase compared to the $21.0 billion received during the same period last year. The bulk of March inflows came from Saudi Arabia ($987.3 million), the United Arab Emirates ($842.1 million), the United Kingdom ($683.9 million), and the United States ($419.5 million), underscoring the critical role of the overseas Pakistani community in supporting the national economy "We believe, higher remittances are due to Ramazan/Eid effect," said Topline Securities. "Remittances have hit a record high, driven by growing confidence in the stability of the Pakistani Rupee due to a narrower gap between interbank and open market exchange rates," said Head of Research at JS Global, Waqas Ghani Kukaswadia. This stability is largely credited to stricter foreign exchange regulations. Additionally, a recent surge in immigration, particularly to Gulf countries, has boosted remittance inflows. With an increasing number of people attempting to get out of the country, Pakistan's monthly remittances have shown a strong upward trend over the past year. The remittance inflows had largely remained within the range of $2.8 to $3.2 billion, with notable peaks in May 2024 ($3.24 billion) and June 2024 ($3.16 billion). Inflows dipped slightly during the summer months but remained stable, with $3 billion in July, $2.94 billion in August, and $2.86 billion in September 2024. October saw a rebound to $3.05 billion, followed by $2.92 billion in November and $3.08 billion in December. The start of 2025 saw a steady climb, with $3.00 billion in January and $3.12 billion in February 2025, leading up to the sharp rise in March. This surge marks a significant jump from February 2024's low of $2.25 billion, indicating renewed momentum in overseas inflows. SBP Governor Jameel Ahmad, while attending the gong ceremony at the Pakistan Stock Exchange (PSX) on Monday, highlighted noticeable progress made by Pakistan on the macroeconomic front. Reflecting on the country's recent economic journey, Ahmad emphasised that Pakistan has successfully transitioned from a period marked by macroeconomic instabilitycharacterised by high inflation, low reserves, and fears of defaultto one of stable macroeconomic conditions, renewed confidence, and recovery in economic growth. He pointed to significant improvements across multiple economic indicators, signalling a much-needed revival of economic growth. He highlighted that inflation has come down substantially, external current account balance has turned into a surplus, FX buffers have been rebuilt, and public debt indicators have improved considerably during the past couple of years. He highlighted that workers' remittances reached an all-time high level of $4.1 billion in March 2025 – partly reflecting the result of government and SBP efforts to incentivise the channelling of inflows via formal channels, as well as the smooth functioning of the domestic FX market. He said that total remittances for FY25 are expected to be around $38 billion. The SBP governor noted that with a sound macroeconomic base and renewed investor confidence, we have the opportunity to set Pakistan on a trajectory of broad-based, inclusive prosperity. He emphasised that this macroeconomic stability has been achieved through difficult policy decisions. "Now, it is crucial to focus on sustainable growth." He pointed out that enhancing productivity and boosting exports must become central to Pakistan's growth model, as export activity directly contributes to greater productivity, innovation, and foreign investment. Ahmad urged stakeholders to come together and commit to long-term strategies that ensure sustainable and inclusive growth for Pakistan. While the country is on the path to recovery, he underscored the need for reforms to address structural issues to avoid boom-bust cycles and economic stagnation. He reaffirmed the SBP's commitment to creating a resilient and inclusive financial ecosystem, supported by an enabling regulatory environment, as the foundation for Pakistan's economic prosperity. The SBP governor also emphasised the need for financial literacy to achieve true financial inclusion. He highlighted that the SBP is holding the Pakistan Financial Literacy Week from April 14 to 18, where various activities are planned across the country to engage different segments of society in financial literacy efforts. Ahmad reaffirmed that enhancing financial inclusion remains a top strategic goal within the SBP's Strategic Vision 2028, alongside building an innovative and inclusive digital financial ecosystem. Ahmad shared key initiatives under the National Financial Inclusion Strategy (NFIS) 2024-28, including efforts to increase financial inclusion from 64% to 75% by 2028 while reducing the gender gap in financial services from 34% to 25% by 2028. The SBP governor also expressed his appreciation to the PSX management for their continued efforts to provide a vital platform for the country's capital market. Ahmad highlighted the importance of the PSX in enabling corporations to raise capital and offering investors the opportunity for substantial returns on their savings.
Express Tribune
09-03-2025
- Business
- Express Tribune
Ek Saal Bemisaal – A Year of Unprecedented Progress
Ek Saal Bemisaal stands as a defining moment in Pakistan's journey towards economic stability, governance excellence, and social development. Under the leadership of Prime Minister Muhammad Shehbaz Sharif, the past year has witnessed remarkable achievements that have positioned the country on a route to growth and progress. This year has not only been about economic recovery but also about restoring investor confidence, improving governance mechanisms and ensuring that the benefits of development reach every segment of society. As Pakistan reflects on the milestones achieved this one-year journey, it is evident that a solid foundation has been laid for a prosperous and sustainable future. One of the most remarkable milestones of this year has been the government's efficient handling of the economy, particularly securing a critical agreement with the International Monetary Fund (IMF). This agreement prevented Pakistan from facing a financial collapse, ensuring macroeconomic stability and setting the stage for sustainable growth. Investor confidence, which had been shaken in previous years, saw a revival, leading to improved financial indicators. The policy rate, which stood at an alarming 22% in March 2024, was successfully reduced to 12% by January 2025, providing a much-needed boost to business activity and investment. The value of the Pakistani Rupee (PKR) appreciated significantly, further reinforcing the country's economic fundamentals and strengthening its global market standing. A major challenge inherited by this government were the rising and unstable inflation rates, which had previously placed a severe financial burden on households. Over the past year, inflation has been brought down from a staggering 38% to an incredibly low rate of 2.4%, offering immense relief to the people of Pakistan. Essential commodities, particularly food and beverages, experienced a remarkable 48% price decline, allowing citizens to afford daily necessities without hardship. The government's meticulous approach to managing inflationary pressures, stabilizing supply chains, and curbing unnecessary price hikes has been one of its most significant successes. Infrastructure development has remained at the core of the government's agenda, with multiple projects initiated to modernize Pakistan's transportation and trade networks. Under the China-Pakistan Economic Corridor (CPEC), several groundbreaking initiatives were launched, including the inauguration of Gwadar International Airport, which is expected to transform Gwadar into a global trade hub. The expansion and rehabilitation of motorways across the country have enhanced connectivity, facilitating domestic and international trade. In Islamabad, the Serena Chowk underpass project is currently underway to address urban congestion, while the F-8 interchange has been successfully completed, streamlining traffic flow in the capital. These infrastructure advancements are not just symbolic but are critical drivers of economic growth, providing ease of movement for businesses and individuals alike. Social welfare has been another domain where the government has made a lasting impact. The launch of the PKR 20 billion Ramadan package has provided direct financial assistance to four million deserving families, ensuring that economic relief reaches those who need it the most. Unlike past schemes, where financial mismanagement was rampant, the introduction of the digital wallet system has ensured transparency and accountability, eliminating corruption and leakages in the distribution of funds. Each family receiving PKR 5,000 through this digital system marks a paradigm shift in how social welfare programs are implemented in Pakistan. Additionally, the Sasta Aata Scheme has provided subsidized flour to citizens, while the Benazir Income Support Program continues to uplift financially weaker households. The government's unwavering commitment to social protection reflects its deep-rooted vision for an inclusive Pakistan where economic stability benefits all citizens, not just a select few. The economic landscape has also witnessed unparalleled growth, with the Special Investment Facilitation Council (SIFC) playing a crucial role in attracting foreign direct investment (FDI). The Pakistan Stock Exchange (PSX) reached a historic high of 117,000 points, a testament to the renewed confidence of local and international investors in the country's economic trajectory. Foreign remittances surged to a record-breaking USD 17.8 billion, reflecting the trust of overseas Pakistanis in the government's policies. Foreign investment inflows also saw a significant boost, further reinforcing Pakistan's position as an attractive investment destination. With the country's GDP growth recorded at 2.5%, a current account surplus of USD 1.21 billion, and a 10% increase in exports from July 2024 to January 2025, the nation is steadily marching towards economic resilience. These accomplishments have led to consistent upgrades in Pakistan's international credit ratings, strengthening the country's economic credibility on the global stage. Diplomatic engagements have been another defining feature of this government's tenure. Pakistan's successful hosting of international events, including the Champions Trophy 2025, the CAYA Youth Summit in Islamabad, and the Shanghai Cooperation Organization (SCO) meetings, has projected the country as an active and responsible member of the global community. These events have not only enhanced Pakistan's international reputation but have also provided avenues for fostering stronger economic and strategic ties with key allies. The government's ability to navigate complex geopolitical landscapes and enhance Pakistan's diplomatic footprint showcases its vision for a progressive and globally engaged Pakistan. During a special cabinet meeting held at the Jinnah Convention Centre, Prime Minister Shehbaz Sharif lauded the performance of his ministers over the past year and emphasized that all economic indicators were showing a positive trajectory. He reiterated that under his leadership, there had not been a single case of corruption, a testament to the government's commitment to transparency and accountability. The Prime Minister also emphasized that the government had successfully averted default, leading to an economic turnaround that is now yielding visible results. He further highlighted the importance of resolving pending tax cases amounting to PKR 400 billion, with the Sindh High Court already providing relief in a PKR 23 billion case. Addressing another critical challenge, he called for the elimination of PKR 850 billion in losses incurred by loss-making state-owned enterprises that must be plugged for long-term financial stability. The government's efforts to curb circular debt in the power sector are also an important part of its broader economic stabilization strategy. The success of this government's first year is not just reflected in numbers but in the tangible impact it has had on the lives of ordinary Pakistanis. From providing financial relief to four million families through the Ramadan package to transforming the investment climate, from reviving economic confidence to enhancing diplomatic engagements, every initiative has been taken with the aim of securing a stronger and more prosperous Pakistan. Ek Saal Bemisaal is not just a slogan – it is a reality. The past year has been a remarkable journey of resilience, progress, and reform. The government's economic policies, social initiatives, and diplomatic efforts have collectively set Pakistan on a path towards sustained development. As the nation celebrates this milestone, it is evident that the steps taken over the past year have laid the groundwork for a brighter and more promising future. The momentum gained is not only an affirmation of the government's performance but also a commitment to continued excellence in the years ahead. Pakistan's economic revival, infrastructural development, and social welfare transformation stand as a testament to visionary governance, ensuring that the dream of a prosperous Pakistan is well on its way to becoming a lasting reality.
