Pakistan

Real interest rate turns positive | The Express Tribune

Published

6 مہینے ago

اپریل 2, 2024

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KARACHI:

Pakistan’s real interest rate – the current interest rate minus the inflation reading – has entered positive territory on a spot basis after a gap of 37 months on Monday, increasing the probability that the central bank will make the first cut in its policy rate in the next monetary policy scheduled for late April 2024.

The real interest rate turned positive by 1.32% after the inflation reading slowed down to 20.68% in March, falling below the interest rate that stood at 22% since late June 2023.

The last time the real interest rate was positive was in January 2021 when it stood at 1.35%, Arif Habib Limited (AHL) reported on Monday.

With inflation showing a downward trend, the likelihood of a widening real positive interest rate in the future increases, “prompting calls for interest rate cuts,” the research house said.

Earlier, the central bank jacked up its benchmark policy rate (interest rate) cumulatively by 15% straightaway in the past three years (September 2021 to June 2023), taking it to the current high level at 22% from the then-low at 7% by September 2021.

The financial markets are expecting the State Bank of Pakistan (SBP) to make the first rate cut for the past couple of months, which is a must to provide bank financing at an affordable price to the private sector to gear up industrial output and ramp up economic activities.

The central bank, however, took moves against market expectations despite the real interest rate having turned positive on a 12-month forward-looking basis for the past few months, standing at a positive 5-6%, as the market views the inflation reading decelerating to 16-17% by December 2024.

The market viewed the bank maintaining the rate at a record high on the guidelines provided by the International Monetary Fund (IMF) for maintaining tight monetary policy under the ongoing $3 billion loan programme.

It would be interesting to note whether the bank cuts the interest rate on April 29, 2024, considering Pakistan has initiated negotiations to acquire a new loan programme by the end of June 2024.

SBP Governor Jameel Ahmad said in late January 2024 that the government’s decision to increase gas prices for the first time in November 2023 spiked inflation readings beyond the central bank’s expectations. This prompted it to maintain the status quo on the interest rate to tame inflation, going forward.

Later, in February 2024, the government further increased gas prices for the second time in the ongoing fiscal year 2024, leading the central bank to leave the interest rate unchanged until inflation falls to a level under control.

Finance Minister Muhammad Aurangzeb, however, remarked late last week that inflation is showing a downward trend. This should be followed by an interest rate cut soon.

Alpha Beta Core CEO Khurrm Schehzad said in the commentary that as far as the policy rate easing goes, though inflation is gradually receding (but largely due to the high base-effect of last year), not at the pace as expected earlier and rural core inflation as well as general CPI still hovering in the 20s, “it will take some more months before one should expect monetary easing from monetary authorities.”

Apart from inflation figures, many factors would matter in any significant rate change decision by the monetary authorities at home, including the currency parity and outlook, dollar flows, global interest rate scenario, IMF’s new programme, and the detailed action plan by the fiscal authorities in this regard. However, with March 24 figures, monthly inflation is now contained within the policy rate range, with real rates turning positive in the 2% range. “If sustained ahead, this should reignite hopes for gradual easing in the quarters to come.”

Published in The Express Tribune, April 2^nd, 2024.

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Related Topics:Express interest interest rate Pakistan Positive rate Real SBP Tribune turns

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Pakistan

Honda CD70 Dream Latest Price, Installment Plans – Sep 2024 Update – Pakistan Observer

Published

2 گھنٹے ago

ستمبر 20, 2024

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Honda remains leader in bikes market, with its top-selling units like CD 70, and that’s without making any major changes as the entry-level bikes look almost same for a long time. As the CD-70 remains its most selling model, bikes like the CD-70 Dream and Pridor are considered a niche products.

Despite failing to achieve top sales, CD 70 Dream is still in the market, featuring air-cooled, 4-stroke engine that delivers smooth performance and impressive fuel economy, often averaging around 60-70 km/l, making it ideal for daily commuting.

The bike looks better with stylish and modern design with attractive graphics, as compared to simple CD70. People also like its comfort as built quality remains optimum, comparing to other players.

Its pricing makes it accessible to a wide audience, including students and working professionals, solidifying its status as a favorite among motorcycle enthusiasts in Pakistan.

As bikes prices remain out of hands, people are having hard time to upgrade their ride while companies also face low sales.

Honda CD 70 Dream Price

The price of Honda CD70 Dream is Rs168,900 in September 2024.

Honda CD 70 Dream Installments

Installment Plans	Monthly Payments
3 months	Rs56,300
6 months	Rs28,300
9 months	Rs21,890
12 months	Rs17,200
24 months	Rs10,170
36 months	Rs7,800

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Check Property Ownership in Lahore, other Punjab cities Online – Pakistan Observer

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3 گھنٹے ago

ستمبر 20, 2024

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If you live in Lahore or any other city in Punjab; you might have faced difficulties in getting land record in previous years, but now the government made the land verification process smooth with digitization.

To curb the menace of land mafia and to help residents of Punjab, the government rolled out a systematic process and also eased the process of property transfers and real estate transactions.

A new verification system is Live by provincial authorities to check the legitimacy of properties available for purchase or investment across the region of 110 million people.

The relevant authority in this regard is Punjab Land Record Authority which oversees management and maintenance of land records. You can get different services, including ability to search for and view land records, as well as request copies of documents.

Check Property Ownership Online 2024

Here’s Step by Step Guide To Check property ownership

Step 1: Please visit PLRA portal at Punjab-zameen.gov.pk.

Step 2: Find ‘Property Registration,’ on home and click on https://rodportal.punjab-zameen.gov.pk/.

Step 3: It will ask you to select your district and service center.

Step 4: You can search by different options including Bahi number, ID card, registration number, or by person name.

Step 5: After entering details, please advance to ‘Search’ to get the land ownership.

With latest updates, you can check data on number of property transfers in last 36 months.

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Pakistan

Suzuki Bolan discontinued in Pakistan after 36 years; Here’s replacement for ‘Carry Dabba’ – Pakistan Observer

Published

4 گھنٹے ago

ستمبر 20, 2024

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LAHORE – Finally, it’s time to say goodbye to the iconic Suzuki Bolan as Pak Suzuki pulled plugs to replace the minivan with another model. Over the last 3.5 decades, Suzuki Bolan enjoyed decent sales and was valued for its flexibility, serving a multi-passenger vehicle and for commercial purposes.

Amid shift in auto landscape in Pakistan, Bolan becomes latest drive to be discontinued after Suzuki Mehran, which you can still spot.

Pictures of Suzuki Bolan’s last batch surfaced online, and Pakistanis hit nostalgia as many grew up in this vehicle. The final chassis number marked as 01151691. The country’s oldest automaker and maker of Bolan also confirmed discontinuation of the 800cc Carry Dabba.

The company decided to replace Bolan for its outdated design and lack of safety features. Amid its low sales, consumer demand for a modern replacement like Changan Karvaan increased.

Suzuki Every to Replace Bolan

Suzuki earlier mentioned that Every will replace Bolan, and one of its recent model was unveiled at a recent auto show.

The launch of Every models faced delays due to import challenges and it is expected to launch in mid October.

Suzuki Bolan Price in Pakistan

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Gold prices reach historic high in Pakistan – Pakistan Observer

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