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Pakistan stocks surge to all-time high as economic gains, US trade deal drive optimism

Pakistan stocks surge to all-time high as economic gains, US trade deal drive optimism
Stockbrokers interact during a trading session at Pakistan Stock Exchange (PSX) in Karachi on May 12, 2025. (AFP/File)
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Updated 9 min 51 sec ago

Pakistan stocks surge to all-time high as economic gains, US trade deal drive optimism

Pakistan stocks surge to all-time high as economic gains, US trade deal drive optimism
  • KSE-100 Index touched intraday high of 146,081.02 before settling at 145,647.13
  • Energy, fertilizer and banking stocks led gains by adding 738 points collectively

ISLAMABAD: Pakistan’s benchmark stock index extended its bullish run and closed at an all-time high on Thursday, with analysts attributing the surge to rising investor confidence over Pakistan’s new tariff deal with the US and economic gains such as surging exports and currency stabilization.

The KSE-100 Index touched an intraday high of 146,081.02 before settling at 145,647.13, up by 558.64 points or 0.39 percent from the previous close of 145,088.49.

Energy, fertilizer and banking stocks led the gains, with Pakistan Petroleum Limited (PPL), Habib Bank Limited (HBL), Engro Fertilizers Limited (EFERT), Oil and Gas Development Company Limited (OGDC) and Systems Limited (SYS) adding 738 points collectively, as per the Pakistan Stock Exchange’s data.

Ahsan Mehanti, chief executive officer of Arif Habib Commodities, said the stocks closed on a new record high as investors weighed the 17 percent year-on-year surge in exports data for July this year, the first month of the new fiscal year.

“Rupee stability, surging global crude oil prices, surging global equities and expected positive outcome of favorable US-Pak tariff deal played catalyst role in bullish close at PSX,” Mehanti told Arab News.

The stock market rally takes place as Pakistan shows signs of macroeconomic recovery following the IMF Executive Board’s approval of a new $7 billion loan program in September 2024. The program, which succeeded a short-term Stand-By Arrangement, focuses on structural reforms, energy sector overhauls, and fiscal consolidation.

Pakistan and the US finalized a trade agreement last week under which a 19 percent tariff was imposed on a wide range of Pakistani goods. The new rate marked a considerable reduction from the initially proposed 29 percent under a sweeping executive order signed by Trump.

The country’s economic outlook has also been bolstered by the rupee rebounding sharply in recent weeks, buoyed by steady remittance inflows and an aggressive crackdown on the dollar black market launched in mid-2024. Foreign exchange reserves have crossed $11.3 billion, according to central bank data, their highest level in nearly three years.

Karachi-based top brokerage firm Topline Securities said the bullish momentum from previous sessions carried through on Thursday, fueled by strong institutional inflows. These inflows came particularly from local mutual funds, it added.

“Market participation remained vibrant, with total traded volume reaching 711 million shares and a robust traded value of Rs55.6 billion,” it continued.

“PPL led the volumes chart, with 33 million shares exchanging hands during the session.”


India vows to protect national interests after Trump threatens Delhi with 50 percent tariff

India vows to protect national interests after Trump threatens Delhi with 50 percent tariff
Updated 37 sec ago

India vows to protect national interests after Trump threatens Delhi with 50 percent tariff

India vows to protect national interests after Trump threatens Delhi with 50 percent tariff
  • The US is India’s top export market, making up around 18 percent exports, 2.2 percent GDP
  • India likely to diversify trade partners, strengthen ties with Middle East, expert says

NEW DELHI: India has vowed to take “all actions necessary” to protect its national interests after President Donald Trump doubled US tariffs on India to 50 percent over Delhi’s purchase of Russian oil. 

Trump signed an executive order on Wednesday to place an additional 25 percent tariff on India on top of a 25 percent tariff that is set to go into effect on Thursday, making the South Asian country one of the most heavily taxed US trading partners in Asia. 

The order finds India is “currently directly or indirectly importing Russian Federation oil,” and says it is “necessary and appropriate” to apply the new 25 percent tariff on Indian goods.

The US is India’s top export market, making up around 18 percent of exports and 2.2 percent of its GDP. 

Foreign Ministry spokesman Randhir Jaiswal said the US decision to impose additional tariffs were “extremely unfortunate,” as Delhi’s imports from Russia “are based on market factors” and done to ensure energy security for the 1.4 billion Indian population. 

“We reiterate that these actions are unfair, unjustified and unreasonable. India will take all actions necessary to protect its national interests,” he said in a statement.

The 50 percent tariff could cut Indian GDP by 0.6 to 0.8 percent, according to Arupam Manur, an economist at the Takshashila Institution in Bangalore. The cut would risk India’s economic growth slipping below 6 percent this year. 

As the combined tariffs will go into effect 21 days after the signing of the order, India still has time to negotiate with the Trump administration. 

“There is speculation that the 25 percent additional tariffs might be a negotiating tactic by the Trump administration, which can be used as a leverage point against India in the upcoming round of trade talks,” Manur said. 

“So, India will continue negotiating with the US, but the room for making concessions to the US is getting smaller due to the bad-faith nature of dealings.”

India will likely look at diversifying trade partners, as Washington becomes increasingly “unreliable trading partner with multiple ad-hoc tariff impositions.” 

“The recently concluded FTAs (free trade agreements) with Australia and the UK have come at a good time. India will hope to sign a trading arrangement with Europe as well. India will also look to strengthen its trading relationship with the Middle East,” Manur said, highlighting how UAE and ֱ are India’s third and fifth largest trading partners, respectively. 

As India exports around $81 billion goods annually to the US, the impact would be felt in India domestically in labor-intensive industries, such as gems and jewelry, apparel, textiles, auto parts, sea food and chemicals. 

Lalit Thukral, president of the Noida Apparel Export Cluster, which employs about one million people, said the 50 percent tariff rate is “too much” for his industry. 

“The 50 percent is out of reach now. We cannot do that. It means you have to close your factories, close your business … Buyers who are in the US are running away … They are placing orders to China, Vietnam or a third country. They will not come to India now,” he told Arab News.

“I have been in this field for the last 45 years and for the first time we have seen this kind of situation. This is a very horrible situation. Had we known that this trouble was coming we could have planned it, but we were not ready for this kind of thing to come.”


Pakistan naval chiefs calls for stronger Azerbaijan ties through joint exercises, training exchanges

Pakistan naval chiefs calls for stronger Azerbaijan ties through joint exercises, training exchanges
Updated 11 min 26 sec ago

Pakistan naval chiefs calls for stronger Azerbaijan ties through joint exercises, training exchanges

Pakistan naval chiefs calls for stronger Azerbaijan ties through joint exercises, training exchanges
  • Pakistan Navy chief holds talks with top Azerbaijan military and naval commanders
  • Talks focus on maritime security, operational readiness and joint exercises

ISLAMABAD: Pakistan Navy Chief Admiral Naveed Ashraf on Thursday said Pakistan and Azerbaijan should strengthen naval cooperation through joint training programs, operational exercises and personnel exchanges. 

Ashraf is on an official visit to Baku, which comes as both countries seek to expand defense collaboration in the maritime domain amid growing regional security challenges and shared strategic interests. Pakistan and Azerbaijan have long-standing ties, and military-to-military cooperation has increasingly become a pillar of the bilateral relationship.

At the Naval Forces Headquarters, Admiral Ashraf met with Commander of the Azerbaijan Naval Forces, First Grade Captain Shahin Mammadov.

The two officials “exchanged views on bilateral naval collaboration and regional maritime security,” the Directorate General Public Relations (Navy) said in the statement.

Admiral Ashraf “underscored the importance of enhancing the interaction between naval forces through exercises and training exchange programs.”

The naval chief was given a detailed briefing on the Azerbaijan Navy’s operational readiness, education and training initiatives, and visited the Special Operations Forces unit, where he witnessed a live demonstration of operational capabilities.

Later, Admiral Ashraf held talks with Chief of the General Staff of the Azerbaijan Army, Col. General Karim Valiyev, to discuss “matters of mutual interests and enhancing bilateral defense cooperations.”

As part of the official itinerary, the Naval Chief also laid a wreath at the Alley of Martyrs in Baku in tribute to fallen Azerbaijani soldiers.

“Pakistan and Azerbaija historically enjoy brotherly relations and the visit of Chief of the Naval Staff will further augment and expand defense ties between Pakistan and Azerbaijan in general and navies in particular,” the Navy’s statement concluded.


Pakistan says over one million consumers using self meter reading mobile app

Pakistan says over one million consumers using self meter reading mobile app
Updated 55 min 35 sec ago

Pakistan says over one million consumers using self meter reading mobile app

Pakistan says over one million consumers using self meter reading mobile app
  • Pakistan’s government launched “Apna Meter, Apni Reading” app on June 29 this year
  • Power consumers accuse meter readers frequently of overbilling, taking incorrect readings

ISLAMABAD: Over one million electricity consumers are actively using a mobile app launched by the government in June that allows people to record and submit their power meter readings themselves for billing, the state-run Associated Press of Pakistan (APP) reported on Thursday. 

Pakistan’s government launched the Power Smart App under the government’s “Apna Meter, Apni Reading” (Your Meter, Your Reading) slogan on June 29. The initiative allows consumers to take pictures of the readings of their power meters on a specified date, upload the image to the app, and based on the picture, their monthly bill will be generated. 

The initiative was taken by the government to address customers’ concerns, who have frequently accused meter readers of overbilling them or taking incorrect readings. 

“The uptake of this digital tool has been remarkable, with more than one million electricity consumers nationwide actively using the Power Smart app,” the APP said.

“This significant adoption demonstrates increasing public trust in digital governance and a strengthened relationship between consumers and utility services.”

As per the energy ministry’s spokesperson, Pakistan’s electricity sector reported losses of Rs591 billion [$2.07 billion] in June 2024. However, due to several reforms, including the self meter reading initiative, these losses have been cut by Rs191 billion [$668.5 million] within the year.

Pakistan’s Power Division said in June that the self meter reading method will prove beneficial for consumers eligible for power subsidies. 

“For example, a consumer using up to 200 units typically receives a bill of around Rs2,330 but crossing just one additional unit results in the loss of subsidy, raising the bill to around Rs8,104,” the Power Division had said.

“Through this app, it will be ensured that eligible consumers can timely submit readings and continue to benefit from subsidies.”

Pakistan has aggressively pursued reforms in its energy sector recently, which has long struggled with financial strain due to circular debt, power theft and transmission losses. These problems have led to blackouts and high electricity costs throughout the country, especially during the summers when demand peaks. 


Influx of Afghan returnees from Pakistan, Iran fuel Kabul housing crisis

Influx of Afghan returnees from Pakistan, Iran fuel Kabul housing crisis
Updated 07 August 2025

Influx of Afghan returnees from Pakistan, Iran fuel Kabul housing crisis

Influx of Afghan returnees from Pakistan, Iran fuel Kabul housing crisis
  • More than 2.1 million Afghans have returned from Pakistan and Iran so far this year
  • Kabul property dealers say rental prices had skyrocketed with the influx of returnees

KABUL: Weeks after he was forced to return from Iran, Mohammad Mohsen Zaryab was still searching for somewhere to live in Kabul, where rental prices have soared along with an influx of Afghans expelled from neighboring countries.

More than 2.1 million Afghans have returned from Pakistan and Iran so far this year, according to the United Nations refugee agency. They join earlier rounds of mass expulsions from the neighboring countries, deported or driven out by fear of arrest.

Many of the returnees, like Zaryab, fled with their meagre belongings to Kabul, expecting the swelling city of eight million to offer the best prospects of finding work in a country where half the population lives below the poverty line.

Zaryab begged landlords to bring down prices for his family of eight, only to be told, “If you can’t pay, someone else will.”

The 47-year-old factory worker said he had expected when he returned in July to find more solidarity for Afghans coming “from far away with no home.”

Multiple Kabul property dealers told AFP that rental prices had skyrocketed with the influx of returnees.

“Since landlords noticed that refugees (from Iran and Pakistan) were returning, they doubled their rents,” said real estate agent Hamed Hassani, calling for the government to “intervene.”

“We have many refugees who come to ask us for an apartment to rent, and most of them cannot afford what’s available,” he said.

A year ago, a three-room house would on average cost 10,000 Afghanis ($145) per month, but renters now pay 20,000, said Nabiullah Quraishi, the head of a property dealership.

The cost amounts to a fortune for the majority of Afghanistan’s 48 million people, 85 percent of whom live on less than one dollar a day, according to the UN.

Two years ago, multiple landlords would come to Quraishi’s business every month seeking help renting their property. Now, demand outstrips supply, he said.

The municipality denies any housing crisis in the city.

Major urban development plans, which include building new roads even if it means bulldozing numerous residences, are further straining housing access.

“Seventy-five percent of the city was developed unplanned,” municipality spokesman Nematullah Barakzai told AFP. “We don’t want this to happen again.”

Zahra Hashimi fears being evicted from the single basement room that has served as her home since she and her family returned from Iran.

Her husband, who works odd jobs, earns about 80 Afghanis per day (a little over a dollar), not enough to pay the rent for the property, which has no electricity or running water.

“We lost everything when we returned to Afghanistan,” said Hashimi, whose eldest daughter can no longer attend school under Taliban rules that deny women and girls schooling and employment.

Her two primary-school-aged daughters could still attend, but the family cannot afford the tuition.
The housing pressures have also affected long-time Kabul residents.

Tamana Hussaini, who teaches sewing in the west of Kabul, where rents are lower, said her landlord wants to raise the 3,000 Afghani rent for their three-bedroom apartment.

The family of eight tried to move out, but “rents are too high,” she told AFP.

“It’s a frustrating situation where you can’t stay, but you can’t leave either.”


Pakistan Refinery to buy its first Nigerian Bonny Light oil from Vitol, sources say

Pakistan Refinery to buy its first Nigerian Bonny Light oil from Vitol, sources say
Updated 07 August 2025

Pakistan Refinery to buy its first Nigerian Bonny Light oil from Vitol, sources say

Pakistan Refinery to buy its first Nigerian Bonny Light oil from Vitol, sources say
  • 500,000-barrel light-sweet crude cargo is expected to arrive in Karachi by late September
  • Oil is Pakistan’s largest import, with crude and petroleum products totaling $11.3 billion in FY 25

KARACHI: Pakistan Refinery Limited will import its first cargo of Nigerian Bonny Light crude from Vitol in September, two sources familiar with the matter said, as Asian refiners shift toward cheaper alternatives to Middle Eastern oil.

The 500,000-barrel, light-sweet crude cargo is expected to load later this month and arrive in Karachi by late September, the sources said, declining to be named as the information is not yet public.

The price was not immediately known.

Vitol and PRL did not immediately respond to a request for comment.

The purchase follows Pakistan’s first deal to import US crude, also supplied by Vitol, by Cnergyico, which is scheduled to arrive in October.

Almost all of Pakistan’s crude imports are sourced from the Middle East, primarily ֱ and the United Arab Emirates.

However, along with other Asian refiners, Pakistan’s industry has shown increased interest in recent months in supplies from elsewhere, including US West Texas Intermediate and Kazakh CPC Blend, after Middle Eastern supplies became more expensive.

As early as 2014, Pakistan imported a Nigerian Yoho crude, according to data from Kpler, but the Bonny Light purchase is the country’s first known purchase of Bonny Light, which is valued for its high yields of gasoline and diesel.

Oil is Pakistan’s largest import item, with crude and petroleum products of $11.3 billion in the fiscal year ended June 30, 2025 representing nearly a fifth of the country’s total import bill.