Business News

Pakistan International Airlines (PIA) has recorded a loss of Rs2.2 billion in March due to suspension of flights from different routes because of the spreading coronavirus, a source said. This came despite the fact that many air travellers were seeking to fly through PIA, which achieved 100% seat occupancy. Flights have been suspended on several routes including the most important ones such as China, Kuwait, Qatar, Italy, Japan and Saudi Arabia. Riyadh has suspended flights for only sevevty two hours ending at 3pm on Sunday. The Saudi Arabian government also told Umrah pilgrims to leave the country, prompting them to immediately book airline seats. PIA was one of the few airlines offering its services to them. There were around 40,000 Umrah pilgrims. About 18,000 came through PIA and Airblue while others reached home with the help of other airlines. ‘Mothers advised not to bring children’ as PIA shuts baby daycare centre in Karachi On the other hand, Riyadh has allowed the holde...

With the economy reeling, US President Donald Trump on Friday declared a national emergency to stem the damage from the coronavirus, unlocking $50 billion in federal spending while also unveiling plans to stockpile oil and waive interest payments on student loans. Hours later, House Democratic leader Nancy Pelosi announced she reached agreement with the White House on stimulus legislation to help people impacted by the outbreak, something economists say is critical to prevent an economic downturn. Trump’s speech cheered Wall Street and sent the Dow up 9.3 percent, much needed good news after a week that saw the index suffer its worst day of trading since 1987 and the Federal Reserve inject $1.5 trillion into money markets to keep the financial system running. “The action I am taking will open up access to up to $50 billion… for states and territories and localities in our shared fight against this disease,” Trump said. With oil prices hammered by the outbreak, Trump said the US...

Pakistan Refinery Limited (PRL) has warned the government of possible closure following refusal of oil marketing companies (OMCs) – which are giving preference to imports – to lift the locally produced petroleum products. PRL management warned that the refinery was surviving on an hour-to-hour basis and it may not only lead to the closure of refinery but it was also going to face a major hit due to inventory losses in the wake of OMCs’ reluctance to lift high-speed diesel and petrol. Sources told that Pakistan State Oil (PSO), being a major oil importer, had continued to import high-speed diesel and petrol and refused to lift locally produced petroleum products from the refineries, especially PRL. Other OMCs were also hesitant to lift petroleum products from the refineries. Officials said PSO and some other OMCs imported 320,978 tons of high-speed diesel and 576,113 tons of petrol in February 2020. PRL had declared the availability of 40,000 tons of high-speed diesel in the last m...

Oil prices will likely remain at current depressed levels for months amid a price war and the fight for market share while the coronavirus outbreak batters oil demand, a Reuters poll of analysts showed on Friday. According to the 21 experts surveyed by Reuters, WTI Crude prices are set to average $30.37 a barrel in the second quarter this year and $37 for the full year. Early on Friday, WTI Crude was trading at $33 a barrel, up on the day but down by a massive 25 percent on the week for what is shaping up to be the worst week for oil prices since the financial crisis in 2008. Brent Crude prices are seen averaging $34.87 per barrel in Q2 and $39.05 in Q3, according to the Reuters poll. In Q4, Brent Crude is expected to climb to $44.08. The average Brent Crude price forecast in the latest poll for full-year 2020 is $42 a barrel, down from $60.63 expected in a poll in February. Early on Friday, Brent Crude was up 5 percent at $36.92. After the collapse of the OPEC+ production cut ...