Gold surged past the $4,500-an-ounce mark for the first time on Wednesday, while silver and platinum also scaled record highs, as investors piled into precious metals on safe-haven demand and expectations that US interest rates will fall further next year.

Spot gold rose 0.1 per cent to $4,492.51 per ounce by 3:59am GMT (8:59am PKT), after touching a record high of $4,525.19 earlier in the session. US gold futures for February delivery climbed 0.3pc to a record high of $4,520.60.

Silver gained 1.2pc to $72.27 an ounce, after hitting an all-time peak of $72.70 earlier, while platinum jumped 3.3pc to $2,351.05 after rising to a historic high of $2,377.50.

Palladium climbed almost 2pc to $1,897.11, its highest level in three years.

“Precious metals have become more of a speculative narrative around the idea that, with de-globalisation, you need an asset that can act as a neutral go-between, without sovereign risk particularly as tensions between the US and China persist,” said Ilya Spivak, head of global macro at Tastylive.

Thin year-end liquidity exaggerated recent price moves but the broader theme was likely to endure, with gold targeting $5,000 over the next six to twelve months and silver potentially pushing toward $80 as markets respond to key psychological levels, Spivak added.

Gold has surged more than 70pc this year, its biggest annual gain since 1979, driven by safe-haven demand, expectations of US rate cuts, robust central-bank buying, de-dollarisation trends and ETF inflows, with traders pricing in two rate cuts next year.

Silver has jumped more than 150pc over the same period, outpacing gold on strong investment demand, its inclusion on the US critical minerals list and momentum buying.

Gold and silver have “been hitting the accelerator pedal this week” with fresh record highs, reflecting their appeal as stores of value amid expectations of lower US rates and lingering global debt, said Tim Waterer, chief market analyst at KCM Trade.

Platinum and palladium, primarily used in automotive catalytic converters to reduce emissions, have surged this year on tight mine supply, tariff uncertainty, and a rotation from gold investment demand, with platinum up about 160pc and palladium gaining more than 100pc year to date.

“What we’re seeing in platinum and palladium is largely catch-up,” Spivak said adding that the thin nature of those markets leave them vulnerable to sharp swings, even as they broadly track gold, once liquidity returns.

Gold surged past the $4,500-an-ounce mark for the first time on Wednesday, while silver and platinum also scaled record highs, as investors piled into precious metals on safe-haven demand and expectations that US interest rates will fall further next year.

Spot gold rose 0.1 per cent to $4,492.51 per ounce by 3:59am GMT (8:59am PKT), after touching a record high of $4,525.19 earlier in the session. US gold futures for February delivery climbed 0.3pc to a record high of $4,520.60.

Silver gained 1.2pc to $72.27 an ounce, after hitting an all-time peak of $72.70 earlier, while platinum jumped 3.3pc to $2,351.05 after rising to a historic high of $2,377.50.

Palladium climbed almost 2pc to $1,897.11, its highest level in three years.

“Precious metals have become more of a speculative narrative around the idea that, with de-globalisation, you need an asset that can act as a neutral go-between, without sovereign risk particularly as tensions between the US and China persist,” said Ilya Spivak, head of global macro at Tastylive.

Thin year-end liquidity exaggerated recent price moves but the broader theme was likely to endure, with gold targeting $5,000 over the next six to twelve months and silver potentially pushing toward $80 as markets respond to key psychological levels, Spivak added.

Gold has surged more than 70pc this year, its biggest annual gain since 1979, driven by safe-haven demand, expectations of US rate cuts, robust central-bank buying, de-dollarisation trends and ETF inflows, with traders pricing in two rate cuts next year.

Silver has jumped more than 150pc over the same period, outpacing gold on strong investment demand, its inclusion on the US critical minerals list and momentum buying.

Gold and silver have “been hitting the accelerator pedal this week” with fresh record highs, reflecting their appeal as stores of value amid expectations of lower US rates and lingering global debt, said Tim Waterer, chief market analyst at KCM Trade.

Platinum and palladium, primarily used in automotive catalytic converters to reduce emissions, have surged this year on tight mine supply, tariff uncertainty, and a rotation from gold investment demand, with platinum up about 160pc and palladium gaining more than 100pc year to date.

“What we’re seeing in platinum and palladium is largely catch-up,” Spivak said adding that the thin nature of those markets leave them vulnerable to sharp swings, even as they broadly track gold, once liquidity returns.

Finance Minister Muhammad Aurangzeb said on Wednesday that Pakistan had reached a critical turning point, with macroeconomic stability, sustained reforms, and policy continuity restoring confidence and steering the economy toward export-led, long-term growth.

In an interview with USA Today, the minister said this was opening new horizons for domestic and global investors, and positioning the country for sustainable, long-term economic growth.

He said this transition was enabled by macroeconomic stabilisation, easing inflation and improved external balances, with the government driving export-led, productivity-based growth through structural reforms, sustaining reform momentum despite challenges, and actively encouraging global investment in emerging opportunities across agriculture, minerals, technology and climate resilience.

He noted that, for the first time in several years, Pakistan had achieved both a primary fiscal surplus and a current account surplus, signalling a decisive shift away from the cycle of recurring deficits.

He said that strong remittance inflows had played a critical role in supporting this turnaround, while inflation had fallen sharply from a peak of 38 per cent to single-digit levels.

He also noted that foreign exchange reserves had risen to over $14.5 billion, providing import cover of approximately two-and-a-half months, while the exchange rate had remained stable, helping to restore investor confidence.

Aurangzeb emphasised that while macroeconomic stabilisation was an essential foundation, sustainable growth remained the central challenge.

He pointed out that the economic growth of 2.7pc in the previous fiscal year, though positive, was insufficient to absorb the needs of a rapidly growing population.

He underlined that Pakistan was consciously moving away from a consumption and debt-driven growth model toward an export-led strategy.

The current budget, he explained, reflected this shift through structural reforms in taxation, energy pricing, and state-owned enterprises, alongside far-reaching tariff reforms aimed at dismantling decades of protectionism and enhancing global competitiveness.

He highlighted that Pakistan was aligning its economic strategy with changing global demand patterns, identifying information technology services, textiles, and agricultural exports as key areas with strong potential.

He said efforts were also underway to simplify the tax regime for exporters and reduce bureaucratic hurdles in order to foster long-term productivity and competitiveness.

Addressing the broader reform agenda, Aurangzeb ssaid that the privatisation of state-owned enterprises, tariff liberalisation, and restructuring of the energy sector were designed to address deep-rooted inefficiencies that had historically strained public finances.

He said that these reforms were part of a long-term vision, echoing the World Bank’s (WB) assessment of Pakistan’s potential “East Asia moment”.

He referred to the ten-year Country Partnership Framework with the WB, the first of its kind, which placed an emphasis on economic reform alongside climate resilience and population management.

The minister stressed that Pakistan’s future hinged on addressing existential challenges beyond fiscal indicators.

Population growth, climate change, child stunting, learning poverty and the exclusion of girls from education were identified as critical issues that must be tackled to safeguard the country’s long-term productive capacity, he said.

Aurangzeb stressed that increasing women’s participation in education and the workforce was both a social imperative and an economic necessity.

On climate resilience, he highlighted Pakistan’s engagement with multilateral partners to strengthen preparedness against frequent floods and droughts.

Acknowledging the risks that remain, he reaffirmed the government’s commitment to staying the course of reforms despite geopolitical and domestic challenges. He emphasised that discipline, consistency, and international cooperation remained central to safeguarding recent gains.

Highlighting opportunities for investors, the minister pointed to agriculture, minerals and mining, and the emerging digital economy as priority sectors.

He drew attention to Pakistan’s agricultural potential, the strategic importance of the Tethyan Copper Belt in Balochistan amid rising global demand for critical minerals, and the growing focus on data centres, artificial intelligence, and digital services.

He noted that regulatory frameworks were being updated to support innovation and encourage foreign investment, particularly from the United States, describing technological change as a major game-changer for Pakistan.

In conclusion, Aurangzeb invited global investors and partners to engage with Pakistan through trade, investment, and collaboration.

Emphasising the country’s reform momentum, economic potential, and natural beauty, he reiterated that Pakistan was transitioning from a narrative of crisis management to one of opportunity and transformation, offering promising prospects for those willing to engage with a market on the cusp of sustainable growth.

Defence Minister Khawaja Asif on Wednesday said that the government was satisfied with the sale of the Pakistan International Airlines (PIA), adding that it had great “symbolic value”.

He expressed these views on Geo News programme ‘Geo Pakistan’ when asked whether the government was satisfied with the process.

“Yes, the government is satisfied. This is the first biggest transaction of our privatisation process. This transaction has a great symbolic value,“ he said, recalling that previously First Women Bank had also been privatised but that transaction was not as big.

A consortium led by the Arif Habib group won the auction for a controlling stake in Pakistan International Airlines Corporation Ltd (PIACL) on Tuesday with a bid of Rs135 billion after a competitive, televised process, marking the country’s first major privatisation in nearly two decades.

The sale is a central plank of the government’s plan to offload loss-making state-owned enterprises and a key condition under Pakistan’s $7bn International Monetary Fund bailout programme.

Speaking about the matter on ‘Geo Pakistan’, Asif said the PIA sale had “symbolic value because of the history of this transaction“.

Four years ago, he said, the country’s entire aviation sector had suffered following a statement by a then-minister from the PTI.

He was apparently referring to former aviation minister Ghulam Sarwar Khan’s statement in June 2020 during a parliamentary session. Khan had said investigations revealed that more than 262 of the country’s 860 active pilots either held fake licences or had cheated in their exams.

Following the then-minister’s statement, European and UK authorities had ban­ned PIA from their territories, which were the airline’s most profitable routes. A number of foreign airlines had also grounded Pak­istani-origin pilots over concerns about their licences.

The developments followed the crash of a PIA flight from Lahore near Karachi’s Jinnah Inter­national Airport in 2020, killing around 100 people.

Asif said these events had led to PIA going “almost bankrupt”, adding that the government then restructured the company. “The government itself owned a big portion of its liability and only nominal liability remained,“ he said. “Against this backdrop, yesterday’s transaction is a very successful one.”

He also credited the civil aviation department for its considerable contribution in the matter and seeing the transaction through. “We went through a painstaking process,” he said, adding that PIA was now operating flights to Manchester.

The minister further stated that the airline now also had permission to operate flights to Birmingham and London, but it did not have aircraft for those flights. Similarly, he continued, PIA now also had permission to operate flights to New York and around 14-15 destinations in Europe.

The defence minister also appeared to be defending the arrangement under which the government is to receive just 7.5 per cent — around Rs10bn — of the amount from the PIA sale, saying that investing a “bigger portion” back into the airline increased its value.

More to follow

Finance Minister Muhammad Aurangzeb said on Wednesday that Pakistan had reached a critical turning point, with macroeconomic stability, sustained reforms, and policy continuity restoring confidence and steering the economy toward export-led, long-term growth.

In an interview with USA Today, the minister said this was opening new horizons for domestic and global investors, and positioning the country for sustainable, long-term economic growth.

He said this transition was enabled by macroeconomic stabilisation, easing inflation and improved external balances, with the government driving export-led, productivity-based growth through structural reforms, sustaining reform momentum despite challenges, and actively encouraging global investment in emerging opportunities across agriculture, minerals, technology and climate resilience.

He noted that, for the first time in several years, Pakistan had achieved both a primary fiscal surplus and a current account surplus, signalling a decisive shift away from the cycle of recurring deficits.

He said that strong remittance inflows had played a critical role in supporting this turnaround, while inflation had fallen sharply from a peak of 38 per cent to single-digit levels.

He also noted that foreign exchange reserves had risen to over $14.5 billion, providing import cover of approximately two-and-a-half months, while the exchange rate had remained stable, helping to restore investor confidence.

Aurangzeb emphasised that while macroeconomic stabilisation was an essential foundation, sustainable growth remained the central challenge.

He pointed out that the economic growth of 2.7pc in the previous fiscal year, though positive, was insufficient to absorb the needs of a rapidly growing population.

He underlined that Pakistan was consciously moving away from a consumption and debt-driven growth model toward an export-led strategy.

The current budget, he explained, reflected this shift through structural reforms in taxation, energy pricing, and state-owned enterprises, alongside far-reaching tariff reforms aimed at dismantling decades of protectionism and enhancing global competitiveness.

He highlighted that Pakistan was aligning its economic strategy with changing global demand patterns, identifying information technology services, textiles, and agricultural exports as key areas with strong potential.

He said efforts were also underway to simplify the tax regime for exporters and reduce bureaucratic hurdles in order to foster long-term productivity and competitiveness.

Addressing the broader reform agenda, Aurangzeb ssaid that the privatisation of state-owned enterprises, tariff liberalisation, and restructuring of the energy sector were designed to address deep-rooted inefficiencies that had historically strained public finances.

He said that these reforms were part of a long-term vision, echoing the World Bank’s (WB) assessment of Pakistan’s potential “East Asia moment”.

He referred to the ten-year Country Partnership Framework with the WB, the first of its kind, which placed an emphasis on economic reform alongside climate resilience and population management.

The minister stressed that Pakistan’s future hinged on addressing existential challenges beyond fiscal indicators.

Population growth, climate change, child stunting, learning poverty and the exclusion of girls from education were identified as critical issues that must be tackled to safeguard the country’s long-term productive capacity, he said.

Aurangzeb stressed that increasing women’s participation in education and the workforce was both a social imperative and an economic necessity.

On climate resilience, he highlighted Pakistan’s engagement with multilateral partners to strengthen preparedness against frequent floods and droughts.

Acknowledging the risks that remain, he reaffirmed the government’s commitment to staying the course of reforms despite geopolitical and domestic challenges. He emphasised that discipline, consistency, and international cooperation remained central to safeguarding recent gains.

Highlighting opportunities for investors, the minister pointed to agriculture, minerals and mining, and the emerging digital economy as priority sectors.

He drew attention to Pakistan’s agricultural potential, the strategic importance of the Tethyan Copper Belt in Balochistan amid rising global demand for critical minerals, and the growing focus on data centres, artificial intelligence, and digital services.

He noted that regulatory frameworks were being updated to support innovation and encourage foreign investment, particularly from the United States, describing technological change as a major game-changer for Pakistan.

In conclusion, Aurangzeb invited global investors and partners to engage with Pakistan through trade, investment, and collaboration.

Emphasising the country’s reform momentum, economic potential, and natural beauty, he reiterated that Pakistan was transitioning from a narrative of crisis management to one of opportunity and transformation, offering promising prospects for those willing to engage with a market on the cusp of sustainable growth.

Defence Minister Khawaja Asif on Wednesday said that the government was satisfied with the sale of the Pakistan International Airlines (PIA), adding that it had great “symbolic value”.

He expressed these views on Geo News programme ‘Geo Pakistan’ when asked whether the government was satisfied with the process.

“Yes, the government is satisfied. This is the first biggest transaction of our privatisation process. This transaction has a great symbolic value,“ he said, recalling that previously First Women Bank had also been privatised but that transaction was not as big.

A consortium led by the Arif Habib group won the auction for a controlling stake in Pakistan International Airlines Corporation Ltd (PIACL) on Tuesday with a bid of Rs135 billion after a competitive, televised process, marking the country’s first major privatisation in nearly two decades.

The sale is a central plank of the government’s plan to offload loss-making state-owned enterprises and a key condition under Pakistan’s $7bn International Monetary Fund bailout programme.

Speaking about the matter on ‘Geo Pakistan’, Asif said the PIA sale had “symbolic value because of the history of this transaction“.

Four years ago, he said, the country’s entire aviation sector had suffered following a statement by a then-minister from the PTI.

He was apparently referring to former aviation minister Ghulam Sarwar Khan’s statement in June 2020 during a parliamentary session. Khan had said investigations revealed that more than 262 of the country’s 860 active pilots either held fake licences or had cheated in their exams.

Following the then-minister’s statement, European and UK authorities had ban­ned PIA from their territories, which were the airline’s most profitable routes. A number of foreign airlines had also grounded Pak­istani-origin pilots over concerns about their licences.

The developments followed the crash of a PIA flight from Lahore near Karachi’s Jinnah Inter­national Airport in 2020, killing around 100 people.

Asif said these events had led to PIA going “almost bankrupt”, adding that the government then restructured the company. “The government itself owned a big portion of its liability and only nominal liability remained,“ he said. “Against this backdrop, yesterday’s transaction is a very successful one.”

He also credited the civil aviation department for its considerable contribution in the matter and seeing the transaction through. “We went through a painstaking process,” he said, adding that PIA was now operating flights to Manchester.

The minister further stated that the airline now also had permission to operate flights to Birmingham and London, but it did not have aircraft for those flights. Similarly, he continued, PIA now also had permission to operate flights to New York and around 14-15 destinations in Europe.

The defence minister also appeared to be defending the arrangement under which the government is to receive just 7.5 per cent — around Rs10bn — of the amount from the PIA sale, saying that investing a “bigger portion” back into the airline increased its value.

More to follow

ISLAMABAD: A parliamentary committee on Tuesday directed the Federal Board of Revenue (FBR) and Pakistan Telecommunication Authority (PTA) to prepare a report on tax rates for mobile phones, covering policy options, economic impact, international comparisons, and proposed revisions.

The directive came from the National Assembly Standing Committee on Finance and Revenue, chaired by MNA Naveed Qamar, who expressed displeasure over rising taxes on mobile phones, noting that these institutions have wrongly classified mobile phones as luxury items.

The chairman urged both the FBR and Tax Policy Office to review current tax rates on mobile phone imports under the personal baggage and registration schemes. Mr Qamar said the report should be prepared by March 2026, enabling the committee to examine the matter comprehensively ahead of the next budget.

MNA Qasim Gilani criticised the heavy taxes on mobile phones, noting that consumers are forced to pay taxes again if their phones are lost or stolen. He highlighted that smartphones are already very expensive, citing a tax of Rs35,000 on older iPhone 6 models and Rs100,000 on iPhone 12 imports. “People are using smartphones for content creation, video sharing, and e-commerce,” he said, stressing their role in livelihoods.

FBR chairman claims smartphone taxes, prices have declined overall

MNA Sharmila Faruqi pointed out that the latest iPhone costs Rs350,000, with an additional tax burden of Rs190,000. FBR officials clarified that levies are applied on the price of devices rather than on specific models.

MNA Mirza Ikhtiar Baig said that a clear mechanism for taxation is essential, rejecting the notion that smartphones are exclusively for the wealthy.

The PTA chairman informed the committee that only six per cent of high-end phones are imported, while the majority are locally manufactured. He also announced that 5G licences are expected to be issued by February-March next year.

FBR Chairman Rashid Mahmood Langrial said that smartphone prices and taxes have declined overall, except for a few major brands. He reported that Rs82 billion in tax revenue was generated from mobile phones in the last fiscal year.

The committee suggested placing smartphones under the Eighth Schedule to provide relief to consumers. Tax officials explained that the Ninth Schedule currently applies to telecom, while the Eighth Schedule offers concessions. They added that, apart from Apple, most smartphones are now manufactured domestically.

Published in Dawn, December 10th, 2025

• Vehicle import rules tightened; only transfer of residence, gift schemes retained, personal baggage scheme discontinued
• Chloroform imports restricted to Drap-certified companies due to health, environmental risks

ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet has approved an additional Rs2.56 per litre margin for petrol and diesel to boost the profitability of oil marketing companies (OMCs) and their dealers.

A meeting of the ECC, presided over by Finance Minister Muhammad Aurangzeb, also tightened rules for second-hand vehicle imports and restricted the import of chloroform solely to drug companies certified by the regulator.

A senior government official told Dawn that the ECC approved a Rs1.22 per litre increase in profit margins for OMCs and Rs1.34 per litre for petroleum dealers, to be implemented in two equal instalments.

The first increase — 61 paise per litre for OMCs and 67 paise per litre for dealers — will take effect with the upcoming fortnightly price revision. This will immediately raise the OMCs’ margin to Rs8.48 per litre and that of dealers to Rs9.31 per litre.

The second equivalent increase will come into force on June 1, 2026, subject to digitalisation of sales and stock networks and their live connectivity with government bodies, including the Oil and Gas Regulatory Authority, Federal Board of Revenue and Petroleum Division.

After this increase, OMCs will charge Rs9.10 per litre while dealers will receive about Rs9.98 per litre, compared to the current Rs7.87 and Rs8.64, respectively.

An official statement said the ECC had approved revising margins for OMCs and petroleum dealers on petrol and high-speed diesel in line with the National CPI for 2023-24 and 2024-25, with increases capped between 5pc and 10pc.

It added that half of the margin increase would be paid immediately while the remaining half would depend on progress in digitalisation, with the Petroleum Division to report back by June 1, 2026.

Vehicle import procedure

The ECC also approved amendments to the vehicle import procedure, retaining only the Transfer of Residence and Gift Schemes, as proposed by the commerce ministry in consultation with other ministries. The Personal Baggage Scheme has now been discontinued.

Under the revised framework, commercial-import safety and environmental standards will apply to these schemes, the allowed import period will be extended from two to three years, and imported vehicles will remain non-transferable for one year.

The changes follow widespread misuse of the Personal Baggage, Transfer of Residence and Gift Schemes under the Import Policy Order (IPO) 2022 — originally intended for genuine overseas Pakistanis — and pressure from local assemblers facing quality competition and foreign exchange concerns.

The decision includes a one-year non-transferability condition for imported vehicles, though enforcement of such rules has historically been weak.

It also increased the minimum stay abroad requirement to three years with at least 850 cumulative days, and retains the condition that vehicles under the Transfer of Residence Scheme must be exported from the same country where the sender resides.

The ECC also approved restrictions on chloroform imports due to its toxic and carcinogenic nature, deciding that Trichloromethane (chloroform) will only be imported by pharmaceutical companies with a no-objection certificate from the Drug Regulatory Authority of Pakistan (Drap).

The move follows demands from the Pakistan Footwear Manufacturers Association (PFMA) and the Pakistan Chemical Manufacturers Association (PCMA) for a complete ban, arguing that chloroform was being used as an adhesive in the footwear industry and posed serious health and environmental risks.

The ministries of industries and production, climate change, national health services regulations and coordination and FBR supported a complete ban, but Drap argued that chloroform was essential as a laboratory reagent and for quality control testing in pharmaceutical industries.

The ECC also rejected a concessionary gas/RLNG tariff claim by M/s Ghani Glass, saying that such subsidies were no longer permissible and that broader export-support initiatives were already underway.

The meeting approved a Rs1.28bn supplementary grant for the Pakistan Digital Authority to support digital transformation and technological innovation across government departments, and another Rs5bn supplementary grant for the Ministry of Housing and Works.

It also approved, in principle, the release of budgetary allocations for PIA Holding Company Ltd to meet pension and medical expenses of PIACL employees.

Published in Dawn, December 10th, 2025