Gold glittered in 2020 with the best return among investment avenues.
The price of a tola of yellow metal at the start of 2020 was Rs88,100. It climbed to Rs113,700 per tola by the last day of the year, providing a return of 29 per cent. It beat the best return of 15.8pc produced in 2019. The price of gold followed the price of the precious metal in the world market where it increased 25pc to $1,894 an ounce, from $1,561, during the year. It was spurred by the massive buying by investors who had fears about the fallout of Covid-19 on the economy. Investors thus ran for cover towards the safe haven of gold. Gold is also the investment of choice for it continues to remain out of the reach of the Federal Board of Revenue (FBR).
Govt offers Rs450b to IPPS to clear circular debt
Proposes to make payment to 47 companies over a period of one year
ISLAMABAD:
The federal government has offered a package to the independent power producers (IPPs) in a bid to clear Rs450 billion circular debt, which has plagued the entire energy chain.
The circular debt in the power sector stood at Rs2.3 trillion by end June 2020 against Rs1.6 trillion during the same period in 2019. The circular debt in the oil and gas sector stands at Rs1.6 trillion.
The IPPs are also facing circular debt which overdue receivables had increased to around Rs700 billion.
Rupee likely to stay stable, gold may fall
Currency may lose 2-4% over the year; with availability of vaccines gold unlikely to hit new highs
Pakistan’s currency is expected to gradually depreciate in the range of 2-4% to around Rs164-66 to a dollar over the next one year as the gap between demand and supply of foreign currency will remain narrow during the year of economic revival, ie 2021.
The expected receipt of International Monetary Fund (IMF) loan tranches, launch of Eurobond and Sukuk to raise financing in international markets, new financing from other global financial institutions, improvement in workers’ remittances and a nominal deficit in the current account balance altogether will support the rupee to stay firm during 2021.