कारोबार

Pakistan’s foreign exchange reserves held by the State Bank of Pakistan (SBP) posted a slight increase during the week ending July 17. However, the country’s overall liquid reserves recorded a small decline as commercial banks’ holdings decreased. According to the latest figures released by the central bank, SBP’s foreign exchange reserves increased by $33 million, taking the total to $17.26 billion. The increase reflects a gradual improvement in the country’s external financial position. Despite the rise in the central bank’s reserves, Pakistan’s total liquid foreign exchange reserves slipped by $5.9 million to $22.67 billion. The decline was caused by a fall in the reserves held by commercial banks. Commercial banks’ net foreign exchange reserves dropped by $38.7 million, bringing their total holdings to $5.41 billion. As a result, Pakistan’s total foreign reserves now provide import cover for nearly 2.5 months, highlighting the need for further improvement in external inflows. The Pakistani rupee remained stable in the interbank market. It closed at Rs277.90 against the US dollar, compared with Rs277.91 a day earlier. The slight gain came as the US dollar also remained mostly steady in global markets despite continued geopolitical tensions. Meanwhile, gold prices in Pakistan declined sharply after international bullion prices fell by more than two percent. The price of 24-karat gold per tola dropped by Rs1,800 to Rs432,036. The price of 10 grams of gold fell by Rs1,543 to Rs370,401. Silver prices also moved lower, with the per tola rate declining by Rs33 to Rs6,370. The decline followed a strong rally in the previous trading session when gold prices had increased significantly in the domestic market. Internationally, gold prices fell after investors shifted their focus to rising oil prices and expectations that the US Federal Reserve may continue raising interest rates to control inflation. Spot gold traded near $4,047 per ounce, while US gold futures also recorded noticeable losses. Global energy markets remained under pressure as Brent crude oil climbed to around $100 per barrel. Rising tensions in the Middle East and concerns over disruptions to oil supplies supported higher crude prices. Analysts believe that increasing oil prices could push inflation higher around the world. This may encourage central banks, particularly the US Federal Reserve, to maintain a tighter monetary policy. Higher interest rates generally reduce the appeal of gold because the precious metal does not provide any interest or fixed return to investors. As borrowing costs increase, investors often shift towards interest-bearing assets.

A government audit has uncovered an alleged Rs47 billion electricity overbilling scandal, raising serious concerns over billing practices by power distribution companies (DISCOs). The findings were presented before a subcommittee of the Public Accounts Committee (PAC), where officials said inflated electricity bills were issued to hundreds of thousands of consumers. Audit officials informed the committee that 278,649 consumers received excessive electricity bills in a single month. According to the findings, the overbilling involved nearly 904 million electricity units, creating a major financial burden for households and businesses across the country. The audit report stated that the Lahore Electric Supply Company (LESCO) accounted for the largest share of the overbilling, with consumers allegedly charged around Rs45 billion beyond actual consumption. The Peshawar Electric Supply Company (PESCO) was identified as the second-largest contributor, with overbilling estimated at Rs1.56 billion. Officials told lawmakers that the inflated bills were mainly caused by incorrect meter readings and misuse of authority by field staff responsible for recording electricity consumption. They alleged that overbilling was used to hide electricity theft, transmission losses and inefficiencies within the distribution system. Consumers who regularly paid their bills were reportedly charged extra, while refunds were usually made only after formal complaints were submitted. The Power Division informed the committee that reforms are being introduced to improve the billing system. Smart electricity meters and transformer-based metering technology are being installed in different regions to reduce human error and improve transparency. Officials said these measures have already helped reduce complaints of overbilling in areas where the new system has been implemented. Members of the Public Accounts Committee expressed concern over the scale of the issue and questioned how many similar cases had gone unnoticed. They said the reported figures likely represent only the cases detected through audits, while many more consumers may have suffered from incorrect billing without being aware of it. Lawmakers highlighted the financial difficulties faced by ordinary citizens because of inflated electricity bills. They said many families had been forced to borrow money or sell personal belongings to pay their electricity charges, adding that such practices have increased public frustration over rising utility costs. The committee was also informed that disciplinary action had been taken against officials found responsible for irregularities. According to the management of LESCO, stronger anti-theft operations and stricter monitoring have significantly reduced electricity theft and eliminated overbilling in its service area. Several officers, including an executive engineer and multiple sub-divisional officers, have been dismissed over misconduct. During the same meeting, another audit report highlighted alleged financial irregularities in the Hyderabad Electric Supply Company (HESCO). The report claimed that Rs1.06 billion was misappropriated through payments made to ghost employees and retired staff, with investigators pointing to possible collusion among officials involved in financial administration.

Global oil prices continued their sharp upward trend on Friday as escalating conflict in the Gulf region raised fresh concerns about energy supplies and the outlook for the world economy. The sustained rise in crude prices has increased fears of renewed inflation, unsettled financial markets and strengthened expectations that central banks may keep interest rates higher for a longer period. Brent crude was trading at around $100 per barrel after briefly crossing $102, its highest level in nearly two months. Oil prices have climbed by almost 40% during the month, driven by growing concerns that the conflict could disrupt major shipping routes used for transporting crude oil. The latest increase comes as military tensions involving the United States, Iran and the Iran-backed Houthi movement continue to intensify. Attacks on commercial vessels in the Red Sea have heightened concerns about the safety of one of the world’s busiest maritime trade routes. At the same time, uncertainty surrounding shipping through the Strait of Hormuz has added to worries over global oil supplies. Analysts say the combination of risks to both the Red Sea and the Strait of Hormuz has significantly increased market uncertainty. Any prolonged disruption in these waterways could reduce oil exports from the Middle East and place additional pressure on global energy markets. The rise in crude prices has also revived concerns about inflation. Higher oil prices generally increase transportation, manufacturing and production costs, which can eventually lead to higher prices for goods and services. Economists warn that this could slow progress in reducing inflation across many countries. Global financial markets reacted cautiously to the latest developments. Major Asian stock markets recorded notable losses as investors worried about the combined impact of geopolitical tensions, rising energy costs and uncertainty over future economic growth. Investors increasingly shifted towards safer assets amid concerns that market volatility could continue. The outlook for monetary policy has also changed. Financial markets now expect that major central banks, including the US Federal Reserve, could delay planned interest rate cuts or even consider further rate increases if higher energy prices continue to fuel inflation.

The Pakistan Stock Exchange (PSX) remained under pressure on Friday, with the benchmark KSE-100 Index extending its recent losing streak during the morning trading session as investor sentiment stayed weak. By the time trading was suspended for the routine Friday prayer break, the KSE-100 Index had fallen 1,264.14 points, or 0.74%, to 170,475.30. The market opened in negative territory and continued to fluctuate throughout the session. The index reached an intraday high of 171,208.55 before declining to a low of 169,512.88, reflecting persistent selling pressure across the market. Trading activity remained moderate, with more than 114 million shares changing hands during the morning session. The total value of traded shares stood at approximately Rs7.83 billion before the temporary suspension. Market participants said investors remained cautious as profit-taking continued in several heavyweight stocks. The absence of strong buying interest also contributed to the downward trend, keeping the benchmark index below its previous closing level. The market moved within a wide range of nearly 1,700 points during the session, highlighting continued volatility as investors assessed economic conditions and overall market sentiment. Analysts said investors are closely monitoring developments that could influence market direction, including corporate earnings, economic indicators and broader financial conditions. They added that confidence has remained subdued in recent sessions, resulting in increased selling activity. Trading is expected to resume after the Friday prayer break, with investors watching for signs of a recovery. Market experts believe the direction of the afternoon session will determine whether the benchmark index can recover some of its losses or end the week on another negative note.

ISLAMABAD: Pakistan’s weekly inflation increased during the latest reporting period as higher fuel and food prices pushed up the cost of living, according to the latest report released by the Pakistan Bureau of Statistics (PBS). The report showed that weekly inflation rose by 0.91%, while the country’s annual inflation rate reached 9.66%, indicating that prices of essential goods continue to remain under pressure despite declines in a few commodities. According to the Bureau of Statistics, prices of 22 essential commodities increased during the past week, while eight items became cheaper and 21 items recorded no change. The sharpest increase was recorded in petroleum products. High-speed diesel became 15.87% more expensive, while the price of petrol increased by 5.23%. The rise in fuel prices is expected to affect transportation costs and may also increase the prices of other goods in the coming weeks. Among food items, tomatoes recorded the highest increase, with prices rising 39.92% in just one week. Egg prices increased by 7.31%, adding to household food expenses. The report also showed that the price of liquefied petroleum gas (LPG) increased by 0.91%, while potatoes became 3.70% more expensive. Prices of garlic, beef and several other essential food items also registered increases during the week. Although inflation remained on the rise, consumers received limited relief in the prices of a few commodities. Chicken prices fell by 4.66%, making it one of the biggest weekly declines among food products. Bananas became 1.72% cheaper, while prices of sugar, rice and different varieties of pulses also recorded decreases. Economists say rising fuel prices are one of the major reasons behind the increase in weekly inflation because higher transportation and production costs often lead to price increases across various sectors of the economy. The latest inflation figures suggest that many households continue to face pressure from the rising cost of essential goods, particularly food and fuel. While price reductions in some commodities have provided modest relief, overall inflation remains elevated due to continued increases in several key household items.