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Pakistan’s crackdown on black market dollar trade pushes deals online

Pakistan’s crackdown on black market dollar trade pushes deals online
The black market operates outside official channels and includes unlicensed dealers, personal networks, and digital peer-to-peer exchanges. (FILE/AFP)
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Updated 26 sec ago

Pakistan’s crackdown on black market dollar trade pushes deals online

Pakistan’s crackdown on black market dollar trade pushes deals online
  • Pakistan’s crackdown on black market dollar trading has strengthened the rupee, but traders say under-the-counter deals have swiftly shifted to smartphones and home deliveries instead

KARACHI: Pakistan’s crackdown on black market dollar trading has strengthened the rupee, but traders say under-the-counter deals have swiftly shifted to smartphones and home deliveries instead.
Many unlicensed exchange shops have been shut since July 22, when the military spy agency summoned representatives of the sector to explain the US dollar’s rising cost in the open market. Soon after, raids were carried out by the Federal Investigation Agency, which tackles financial crime and smuggling.
Since the crackdown began, the rupee has rebounded from a sharp fall against the dollar earlier in July. In the open market, it firmed from 288.6 per dollar on July 19 to about 286 in recent sessions.
But traders and bankers say the trade continues, suggesting the crackdown’s effects could be short-lived.
The black market operates outside official channels and includes unlicensed dealers, personal networks, and digital peer-to-peer exchanges, with customers seeking to skip tax declarations, avoid burdensome paperwork and bypass limits on official currency purchases.
In Peshawar, a city near the Afghan border long known for black market currency deals, many shops in the historic Chowk Yadgar district remain shuttered, though some traders were still operating discreetly in back-alley booths.
“The trade didn’t stop. It just moved,” said Ahmad, a dealer whose family has been in the business for generations. “Now it’s on WhatsApp. If you know someone, the dollars come to your house.”
“The big players have shifted to safer locations and kept going,” said another trader, Gul. Both traders asked not to give their full names.
Even retail buyers are bypassing the formal foreign exchange market. Hassan, a manager at a multinational firm in Karachi, said stricter documentation drove him to an informal forex chat.
“Everyone there is a buyer or seller. No middleman, no commission. Sometimes it’s physical cash, sometimes bank transfers, sometimes crypto,” he said.
STRICTER FX DISCIPLINE
On Monday, Pakistan’s central bank called in bank treasury heads to address pressure on the rupee. Two bankers said they were told to stop buying dollars from exchange companies at above-official rates on the grounds it was skewing the market.
Banks were asked to rely on their own inflows from exports and remittances, but both sources have slowed. Exporters are delaying bringing money home, betting the rupee will weaken. Remittances are also tapering off as banks reduce incentives once offered to attract overseas inflows.
Authorities also pressed banks to keep the gap between the interbank rate and the open market rate narrow, a condition of Pakistan’s $7 billion IMF deal meant to discourage speculation.
“These meetings have been happening for years, but this one was more pointed,” one banker said, speaking on condition of anonymity.
The central bank is expected to cut rates on Wednesday, easing inflation but risking pressure on the rupee.​


Indonesia to cut Middle East oil imports to meet Trump’s tariff deal

Indonesia to cut Middle East oil imports to meet Trump’s tariff deal
Updated 34 sec ago

Indonesia to cut Middle East oil imports to meet Trump’s tariff deal

Indonesia to cut Middle East oil imports to meet Trump’s tariff deal
  • ֱ is among Indonesia’s top oil suppliers
  • US to impose 19% import tariff under new deal

JAKARTA: Indonesia will reduce oil and gas imports from Middle Eastern and Asian countries, Energy and Mineral Resources Minister Bahlil Lahadalia said, as Jakarta moves to implement its $15 billion energy deal with the US under the latest tariff agreement.

Indonesia is among three Southeast Asian countries that have struck deals with Washington so far, following negotiations with US President Donald Trump to lower tariff rates.

Jakarta has agreed to increase its imports from the US by more than $22 billion — including energy products — under the framework trade deal, while US tariffs on Indonesian imports would be set at 19 percent.

“We have agreed to buy $15 billion worth of gasoline, crude oil and LPG (liquefied petroleum gas), which we will do in steps by considering its economic viability. The prices must be competitive, and now we’re designing a framework for it,” Lahadalia told reporters in Jakarta on Monday.

“We will reduce (imports) from other countries (in) the Middle East and Asia.”

Southeast Asia’s biggest economy’s oil imports were valued at about $36 billion last year.

While the US is among Indonesia’s top oil suppliers, Washington still ranks behind Singapore, Malaysia and ֱ.

The US deal, which is expected to be finalized in the coming weeks, allows Indonesia to avoid the higher tariff rate of 32 percent threatened earlier by the Trump administration.

“We know that 32 percent (tariff rate) means no trade, which basically means a trade embargo, and that means around 1 million workers in labor-intensive sectors can be impacted,” Coordinating Minister for Economic Affairs Airlangga Hartarto said in a statement.

“What the government is doing through this cooperation with the US is to keep the internal and external balance so that we can maintain our trade balance, keep our economic momentum and ensure job creation.”

The US is Indonesia’s second-largest market after China, with exports valued at over $26 billion in 2024, according to Indonesia’s statistics agency.

Indonesia has consistently posted trade surpluses with the US in the past decade, including $16.8 billion last year.

Under the tariff agreement, Jakarta agreed to drop its tariff on nearly all American imports to zero and scrap all non-tariff barriers facing American firms, while also committing to purchase $4.5 billion worth of agricultural products from the US, including soybeans, wheat and cotton, as well as Boeing aircraft valued at $3.2 billion.


Uber loses UK Supreme Court appeal over tax on rival apps

Uber loses UK Supreme Court appeal over tax on rival apps
Updated 7 min 47 sec ago

Uber loses UK Supreme Court appeal over tax on rival apps

Uber loses UK Supreme Court appeal over tax on rival apps
  • Uber sought to have the same terms applied to rival operators and the High Court ruled in its favor last year
  • The ruling applied to rides in England and Wales outside London

LONDON: Uber’s rival taxi operators in England and Wales will not face a 20 percent VAT charge on their profit margins outside of London after the ride-hailing firm lost its appeal on Tuesday against a previous ruling.

Uber had sought a declaration that rival private-hire taxi operators enter into a contract with passengers, meaning operators must charge 20 percent value added tax (VAT) outside London as Uber is required to do.

It brought the case after a 2021 Supreme Court ruling that Uber drivers were workers, making them eligible for the minimum wage and holiday pay, and making Uber subject to VAT for rides.

Uber sought to have the same terms applied to rival operators and the High Court ruled in its favor last year. The ruling applied to rides in England and Wales outside London, which has a different regulatory regime.

However, that ruling was reversed by the Court of Appeal in July 2024 following a challenge by private hire operators Delta Taxis and platform Veezu.

Uber then brought an appeal to the Supreme Court, which on Tuesday unanimously dismissed the appeal, ruling that operators are not required to enter into a contract with passengers.

An Uber spokesperson said the ruling “confirms that different contractual protections apply for people booking trips in London compared to the rest of England and Wales,” but has “no impact on Uber’s application of VAT.”

Delta Taxis’ lawyer Layla Barke Jones, from Aaron & Partners, said a victory for Uber would have badly affected many private hire operators, adding: “A crisis has been averted.”

In a separate case, Estonian ride-hailing and food delivery startup Bolt this year defeated an appeal by Britain’s tax authority HMRC on what it has to charge VAT at 20 percent.

HMRC has since been granted permission to challenge the ruling that Bolt is only liable for VAT on its margin, rather than the full cost of the trip, at the Court of Appeal.

Kimberly Hurd, Bolt’s senior general manager for the UK, welcomed the Supreme Court’s decision on Uber’s appeal, but said a new regulatory framework was needed so that rules were consistent across the UK.


Democrats press Trump officials for ‘large-scale’ effort to address Gaza starvation

Democrats press Trump officials for ‘large-scale’ effort to address Gaza starvation
Updated 29 July 2025

Democrats press Trump officials for ‘large-scale’ effort to address Gaza starvation

Democrats press Trump officials for ‘large-scale’ effort to address Gaza starvation
  • Nearly three dozen senators are signing onto a letter Tuesday urging the resumption of ceasefire talks and criticizing an Israeli-backed American organization created to distribute food
  • Trump on Monday expressed concern about the worsening humanitarian situation and broke with Israel’s claim people are not starving in the Gaza Strip

WASHINGTON: Senate Democrats are imploring President Donald Trump’s administration to step up its role in addressing suffering and starvation in Gaza, with more than three dozen senators signing onto a letter Tuesday urging the resumption of ceasefire talks and sharply criticizing an Israeli-backed American organization that had been created to distribute food aid.
In a letter to Secretary of State Marco Rubio and the Republican president’s special envoy, Steve Witkoff, the senators said the Gaza Humanitarian Foundation, created in February with backing from the Trump administration, has “failed to address the deepening humanitarian crisis and contributed to an unacceptable and mounting civilian death toll around the organization’s sites.”
It marked a mostly united plea from Senate Democrats — who are locked out of power in Washington — for the Trump administration to recalibrate its approach after the collapse of ceasefire talks last week. Trump on Monday expressed concern about the worsening humanitarian situation and broke with Israeli Prime Minister Benjamin Netanyahu’s claim that people are not starving in the Gaza Strip. But it is unclear how Trump will proceed.
Democratic Sen. Brian Schatz of Hawaii said it was “not at all credible” to think the Israeli military — one of the most advanced in the world — is incapable of distributing food aid or performing crowd control.
“They made a choice to establish a new way of doing food distribution,” he said. “And it’s not working at all.”
The letter, obtained by The Associated Press, calls for a “large-scale expansion” of aid into Gaza channeled through organizations experienced working in the area. It also says efforts for a ceasefire agreement are “as critical and urgent as ever.”
The message was led by four Jewish members of the Democratic Caucus — Sens. Adam Schiff of California, Chuck Schumer of New York, Jacky Rosen of Nevada and Schatz — and calls for the return of the roughly 50 hostages, 20 still believed to be alive, held by Hamas since its Oct. 7, 2023, attack.
The 39 signatures on the letter show the extent to which Democrats have achieved some unity on a foreign policy issue that deeply divided them while they held the White House last year. They called for an end to the war that sees Hamas no longer in control of Gaza and a long-term goal of both an Israeli and a Palestinian state and opposed any permanent displacement of the Palestinian people.
Meanwhile, Republicans are backing Trump’s handling of the situation and supporting Israel. Sen. John Cornyn, a Texas Republican who sits on the Senate Foreign Relations Committee, said he was satisfied with Trump trying “to referee that, but the Israelis need to get their hostages back.”
Still, images of the worsening hunger crisis in Gaza seemed to be reaching some Republican members of Congress.
Over the weekend, far-right Rep. Marjorie Taylor Greene of Georgia, who routinely calls for an end to foreign aid, said on social media “what has been happening to innocent people and children in Gaza is horrific. This war and humanitarian crisis must end!”
For Schatz, it was a sign many Americans do care about suffering in other parts of the world, even after Trump won the election with “America First” foreign policy goals and kickstarted his administration by demolishing US aid programs.
“They are seeing images of chaos, images of suffering that are either caused by the United States or at least could have been prevented by the United States,” Schatz said. “And it is redounding negatively to the president.”


Kremlin says ‘committed’ to peace in Ukraine after Trump’s new deadline

Kremlin says ‘committed’ to peace in Ukraine after Trump’s new deadline
Updated 29 July 2025

Kremlin says ‘committed’ to peace in Ukraine after Trump’s new deadline

Kremlin says ‘committed’ to peace in Ukraine after Trump’s new deadline
  • US President Donald Trump cut his deadline for Moscow to cease fire in the conflict
  • US leader is not interested in talking to Russian President Vladimir Putin anymore

MOSCOW: Russia is still committed to achieving peace in Ukraine, the Kremlin said Tuesday, in the first reaction to US President Donald Trump cutting his deadline for Moscow to cease fire in the conflict.

The US president earlier said he would slash his initial 50-day deadline to “about 10 or 12 days” and that he was not interested in talking to Russian President Vladimir Putin anymore.

“We have taken note of President Trump’s statement yesterday. The SVO (special military operation) continues,” spokesman Dmitry Peskov said, using Russia’s term for its offensive.

He also noted a slowdown in attempts to restore ties with the United States after Trump’s comments.

“We would like to see more dynamics. We are interested in this. In order to move forward, we need impulses from both sides.”

Multiple Russian strikes killed over two dozen people across Ukraine on Tuesday, including a 23-year-old pregnant woman and at least 16 inmates who died in a single strike on a prison.

But Peskov said Moscow still remained “committed to the peace process to resolve the conflict around Ukraine and secure our interests.”

The latest round of talks between Moscow and Kyiv held last week yet did not yield a breakthrough, but only provided for the exchange of prisoners.


Syrian charged over Berlin Holocaust memorial stabbing

Syrian charged over Berlin Holocaust memorial stabbing
Updated 29 July 2025

Syrian charged over Berlin Holocaust memorial stabbing

Syrian charged over Berlin Holocaust memorial stabbing
  • The suspect, who was arrested shortly after the attack and is in pre trial detention, has also been charged with causing serious bodily harm and attempted membership of a foreign terrorist organization

FRANKFURT: A Syrian man who allegedly supports the Daesh group has been charged with attempted murder over the stabbing of a Spanish tourist at Berlin’s Holocaust Memorial, prosecutors said Tuesday.
The suspect, a refugee partially identified as Wassim Al M., is said to have seriously injured the 30-year-old man at the landmark in the German capital in February.
It was one of a series of attacks blamed on foreign nationals that fueled a bitter debate about immigration in the run-up to Germany’s general election.
The suspect “shares the ideology of the foreign terrorist organization Islamic State (IS)” and has “radical Islamist and antisemitic views,” federal prosecutors said in a statement.
He had traveled from the eastern city of Leipzig, where he had been living, to Berlin to target “alleged infidels, whom he regarded as representatives of a Western form of society that he rejected,” prosecutors said.
Shortly before the stabbing, the suspect, who was 19 at the time, sent a photo of himself to IS members so the group could claim responsibility for the attack, they said.
The tourist, from the Basque Country in northern Spain, was wounded in the neck during the attack at Berlin’s Memorial to the Murdered Jews of Europe, a somber grid of concrete steles located near the Brandenburg Gate and the US embassy.
The suspect, who was arrested shortly after the attack and is in pre-trial detention, has also been charged with causing serious bodily harm and attempted membership of a foreign terrorist organization.
Officials said previously he had arrived in Germany in 2023.
The attack was one of several which shocked Germany ahead of the general election, which saw a doubling in the vote-share for the far-right, anti-immigration Alternative for Germany (AfD).
The election was won by the center-right CDU/CSU, which has since taken power at the head of a coalition and moved swiftly to introduce stricter curbs on immigration.
The new government under Chancellor Friedrich Merz has signalled it is trying to resume deportations to Syria, which have been suspended since 2012.