Gold prices jump to new record high in Pakistan

KARACHI: Gold prices in Pakistan hit a new all-time high at Rs226,900 per tola on Monday in line with the global trend amid economic uncertainty due to a stalled International Monetary Fund (IMF) bailout programme, ARY News reported.

According to All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the rate of gold (24 carats) increased by Rs1,400 per tola and Rs1,200 per 10 grams to reach Rs226,900 and Rs194,530, respectively.

The rise in the gold price also came as the yellow metal’s value increased in the international market by $5 to settle at $2,022 per ounce.

Meanwhile, the price of silver receded slightly from a record high reached yesterday. The rate of silver decreased by Rs80 per tola and Rs68.58 per 10 grams to settle at Rs2,870 and Rs2,460.56, respectively.

Pakistan’s economy is in turmoil amid financial woes and the delay in an agreement with the International Monetary Fund (IMF) that would release much-needed funding crucial to avoid the risk of default.

Earlier in the day, it was reported that the International Monetary Fund (IMF) still showing a lack of confidence and asking Islamabad to ‘do more’ to unlock loan programme despite the assurances from friendly countries about external funds to Pakistan.

According to sources, Pakistan has been asked to present a repayment plan for a $3.7 billion loan to the IMF in June as well as need to demonstrate stronger support from friendly nations in order to meet the commitment.

However, the IMF has reportedly not agreed to a proposal to exchange reserves equal to two months’ revenues, which would be valued between $11 to $12 billion.

Sources within Ministry of Finance revealed that the government has imposed Rs. 170 billion in taxes through the mini-budget in a bid to secure a staff-level agreement with the IMF, which was originally scheduled for February 9.

READ: MINI BUDGET ON THE CARDS, IMF DEMANDS HIKE IN TAX ON LUXURY ITEMS

It is pertinent to mention here that the IMF issued the schedule of board meetings in which Pakistan is not included in any agenda until May 17.

Funding will also not be available from international financial institutions as the staff-level agreement is not reached, moreover, the budget-making process can be affected if transactions with the IMF are not concluded.