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The federal government on Wednesday slashed prices of petroleum products for the next fortnight.

According to a notification issued by the finance ministry, the price of petrol has been decreased by Rs. 15.39 per liter to Rs. 273.10, while the price of high-speed diesel has been cut by Rs. 7.88 per liter to Rs. 274.08. The new prices will be applicable from May 16.

In a short statement, the finance ministry said that the prices of petroleum products have seen a decreasing trend in the international market during the last fortnight and the Oil and Gas Regulatory Authority (OGRA) worked out the consumer prices, based on the price variations in the international market.

At the last fortnightly review of petroleum prices, the price of petrol was decreased by Rs. 5.45 per liter, while the price of high-speed diesel was reduced by Rs. 8.42 per liter.

Source: Pro Pakistani

BAT, one of the world’s largest multi-category consumer goods companies, has officially launched its Global Business Solutions (GBS) hub in Lahore.

The grand event ‘Digital Destination Pakistan’ included a ribbon-cutting, a tour of the hub, and presentations by senior leaders of the GBS Pakistan hub where they reiterated Pakistan’s potential as a tech hub. BAT GBS Pakistan also marked the launch with ambitions to expand its services and capabilities in Pakistan over the coming years.

BAT invested USD 5m in 2021 for the setup of GBS in Pakistan. Currently, it employs more than 350 individuals and provides services to more than 50 countries such as Japan, UAE, Malaysia, Australia, Turkey and various others in the areas of finance, marketing, supply chain, data analytics, insights, and other various functions. In 2023, BAT GBS PK brought forex inflow of USD 11.8 Million and continues to grow from strength to strength in its journey of creating a better future.

Various dignitaries from the private sector atte
nded the event.

Speaking at the occasion, BAT Group Director, Digital and Information, Javed Iqbal said, ‘BAT has reaffirmed its intention to continue investing in Pakistan in order to create more jobs, enable and empower Pakistan’s IT talent, ensure forex inflow, and strengthen Pakistan’s global image as a viable Tech Destination. It has also set the standard for other multinational companies to follow and invest in the country to provide opportunities to graduates and enable them to showcase their skills at the world stage.’

Talking about BAT’s role in elevating Pakistan’s economy through GBS, Mueen Afzal, Retired Bureaucrat and former chairman of Pakistan Tobacco Company Limited said, ‘I want to thank BAT for choosing Pakistan as its GBS Hub and congratulate the entire group for developing such a modern and future-ready hub with global ambitions’.

Speaking about how other companies can leverage the potential of Pakistan’s talents, Zafar Mahmood, Chairman of Pakistan Tobacco Company Limited said: ‘Pakist
an is truly the best destination for multinational groups because we have the talent, ambition, resolve, and support of the entire Government. We have a thriving tech economy and IT skillset in our graduates who want to showcase what they can do to the world. I would encourage other organizations to invest in Pakistan and utilize the quality of our services, and help the nation develop to its full potential’.

BAT’s General Manager for GBS Pakistan Zubair Khan said, ‘In just a short period of time, we have rapidly grown to an organization that now has more than 350 employees, serving more than 50 countries. Our ambition for the next 10 years is to keep our momentum of growth, and invest in Pakistan’s talent and economy to bring our GBS strategy to light’.

Source: Pro Pakistani

Living up to its reputation of creating revolutionary solutions and taking unprecedented initiatives, Salaam Takaful Limited has gone ahead and developed another first, not only in Pakistan but what is believed to be a first across the globe, a digital-only Islamic Life Insurance company, Salaam Family Takaful Limited.

The coveted license was handed over to Mr. Rizwan Hussain, MD and CEO of Salaam Family Takaful Limited by Mr. Akif Saeed, Chairman, Securities and Exchange Commission of Pakistan (SECP) in the presence of Salaam Family Takaful’s Shariah board, and their endorsement signified that the new organization with its operations and offerings are completely Shariah compliant.

The company will provide a complete end-to-end digital offering as per the stipulations and guidelines of SECP. On this occasion, Mr. Rizwan Hussain, MD and CEO of Salaam Family Takaful Limited stated: ‘With this license of our new company, we will be revealing a new brand very soon, which will not only resonate with our values
of customer centricity and innovation but will also introduce the much-needed game changing Islamic Life Insurance and Savings offering, never seen before in Islamic Life Insurance segment across the globe. We have done extensive work in developing a comprehensive infrastructure to be the first ever digital-only Life Takaful operator, and inshallah our products will provide an exquisite digital experience.’

With a lot of details expected in the coming days, the company sources have revealed this much that the products will not be the usual Life Insurance or Family Takaful products available in the market, but disruptive in terms of policyholder benefits and quite unique features, with the induction of technology and real-time information availability, being another hallmark of the total offering.

Salaam Family Takaful Limited is the subsidiary of Salaam Takaful Limited, a renowned name in the Insurance and Takaful industry being the largest general takaful operator in Pakistan. Digital processes and innovat
ive products have been the foundation of their phenomenal success in the non-life insurance and takaful arena. With this new company, they are entering the world of Life Insurance and Family Takaful, with the same success factors in their stride.

Source: Pro Pakistani

The State Bank of Pakistan in its State of Pakistan’s Economy Report for H1-FY24 admitted that it doesn’t understand why the depreciation of the Pakistani Rupee (PKR) impacts inflation in the country.

‘The real effective exchange rate in Pakistan (REER) depreciates in response to increases in global oil prices, even when they are in the process of recovering from an immense fall in the preceding period. However, the impact of exchange rate depreciation itself on headline inflation is not particularly clear,’ it said in the report.

SBP mentioned a survey that suggests that exchange rate depreciation influences the price-setting behavior of firms, more than even the strength of domestic demand, rising financing costs, and weakening of labor productivity. The exchange rate played a significant role in explaining inflation, especially during the short to medium-term. However, most other prior studies show that the pass-through of exchange rate depreciation is either low or unconvincingly established, the regul
ator explained.

It said past surveys do not find any significant relationship between changes in the exchange rate and domestic prices. Another study finds no long-run relationship between the exchange rate and inflation during the period 1980-2009.

SBP mentioned periods where the exchange rate pass-through was low on consumer price inflation even when it had a stronger impact on the wholesale price index (WPI), particularly its fuel and lighting and manufacturers’ baskets.

There was another period many years ago when SBP detected pass-through of exchange rate depreciation on domestic prices but the effect was not precisely determined and termed ‘statistically insignificant’ by the bank.

SBP noted that the Consumer Price Index’s response to exchange rate shocks was close to zero for up to 10 quarters during the period 1982-2001. These findings seem contrary to popular opinion as exchange rate depreciation influences prices through both direct and indirect channels, such as the price of both imported finis
hed goods and raw materials for domestic production.

The central bank said there were two plausible reasons why most earlier research on the impact of exchange rate depreciation on inflation found little to no impact:

earlier studies have not conducted episode-wise analyses, which means the impact, if any, of one-time adjustment may have been diluted over long sample periods; and

the data analyzed in these surveys are mostly before Pakistan transitioned to a flexible exchange rate in July 2000, and a market-based exchange rate in May 2019.

SBP added that inflation in Pakistan has significantly been a monetary phenomenon, but failed to ascertain whether currency trends directly impact it or not.

Source: Pro Pakistani

The price of gold in Pakistan increased on Wednesday after falling on the opening two days of the week.

According to data issued by the Karachi Sarafa Association, the price of gold (24 carats) rose by Rs. 2,900 per tola to Rs. 241,100, while the price of 10 grams went up by Rs. 2,487 to Rs. 209,191.

The price of the precious metal in the local market fell by Rs. 1,200 each on Monday and Tuesday. The slight decline came on the back of a Rs. 5,500 per tola increase in the price during the previous week.

In the international market, spot gold was up 0.5 percent to $2,368.62 per ounce as of 0943 GMT, while the US gold futures also increased by 0.6 percent to $2,374.40.

Source: Pro Pakistani