Account Opening Form | Tariq Vohra Securities (Private) Limited

News

Business Recorder - Markets
Business Recorder - Business & Finance
Business Recorder - Latest News
Error
Error
Error
Error
Error
MarketWatch.com - Top Stories
MarketWatch.com - MarketWatch Breaking News Bulletins
MarketWatch.com - MarketPulse

Dollar steady as traders await progress on Middle East peace talks

June 2, 2026 2:59

TOKYO: The U.S. dollar steadied on Tuesday as markets took a wait-and-see approach to Middle East peace talks, with Lebanon ‌announcing a limited ceasefire between Hezbollah and Israel, although broader geopolitical uncertainties kept traders on edge. Investors have treated any progress toward ending the Iran conflict with caution, given the fragility of a U.S.–Iran ceasefire struck in early April. The dollar index, which measures the currency against six peers, eased from earlier gains after the Lebanon announcement on Monday. While the agreement signalled a degree of de-escalation, it remains limited against the backdrop of a wider regional conflict that has disrupted oil flows through the Strait of Hormuz. “We expect the U.S. and Iran to agree ⁠to gradually re-open the Strait of Hormuz and a 60-day extension of the ceasefire to negotiate Iran’s uranium enrichment sometime this week,” Kristina Clifton, a senior currency strategist at the Commonwealth Bank of Australia, wrote in a note. “Good news about the war ending will weigh on the USD because it is a safe haven currency.” The dollar index was flat at 99.17, while the euro was 0.03% higher at $1.1634 and sterling gained 0.07% to $1.346. The greenback had rallied at the onset of the conflict, which began on February 28, buoyed by safe-haven demand and the U.S. economy’s relatively limited exposure to energy-driven inflation. However, it has given back some of those gains due to uncertainty surrounding the conflict’s trajectory. In Japan, Finance Minister Satsuki Katayama said on Tuesday the authorities stood ready to respond in the currency market as needed and refrained from commenting on recent exchange-rate moves. The Japanese ‌yen was ⁠0.02% lower against the greenback at 159.66 per dollar following Katayama’s remarks, with the 160 level widely seen by markets as a trigger for intervention. “If dollar/yen breaks above 160, the risk of surpassing the April 30 high would increase markedly, raising the likelihood of stronger verbal warnings and a renewed round of rate checks or actual intervention,” said Mizuho Securities chief currency strategist Masafumi Yamamoto. Markets are also anxiously awaiting a speech by Bank of Japan Governor Kazuo Ueda on Wednesday ⁠for possible signals as to whether the central bank will proceed with a rate increase the following week. Later in the day, the U.S. Labor Department will release job openings data ahead of Friday’s closely watched monthly employment report, while the euro zone’s May consumer price index will also be announced. Markets are betting the U.S. ⁠central bank’s next move will be to raise its benchmark interest rate, compared with expectations for a cut before the start of the Iran war, given rising energy prices and the impact they will have on inflation. The release on Friday of the monthly U.S. employment report could help ⁠sway the Fed’s policy path in the near term. The data are expected to show a gain of 85,000 jobs in May and no change in the current 4.3% unemployment rate, according to a Reuters poll of economists. The Australian dollar added 0.1% to $0.7162 versus the greenback, while New Zealand’s kiwi gained 0.07% to $0.5933. In cryptocurrencies, bitcoin fell 0.13% to $71,277.59. Ethereum declined 0.04% to $2,001.94. [...]

Oil steadies as uncertainty over US-Iran talks keeps markets on edge

June 2, 2026 2:55

Oil prices held on to most of the previous session’s sharp gains in early trade on Tuesday on uncertainty over the status of ceasefire talks between the United States and Iran and the potential reopening of the Strait of Hormuz. U.S. President Donald Trump said on Monday talks with Iran were ongoing, while Tasnim news agency reported ‌that Tehran had suspended indirect negotiations with Washington. Brent crude futures inched up 6 cents, or 0.06%, to $95.04 a barrel at 0001 GMT, while U.S. West Texas Intermediate fell 17 cents, or 0.18%, to $91.99 a barrel. Both benchmarks rose more than 5% in the previous session but pared gains after U.S. President Trump said he had not been told that Iran was suspending talks with Washington and that Israel had agreed to pull back any troops that were preparing to attack southern Lebanon. In a separate ⁠interview with CNBC on Monday, Trump had said he did not mind if the talks were over. Shortly after, Trump issued a social media post saying talks with Iran were continuing and told ABC News on Monday that he expects a deal to extend the ceasefire and reopen the Strait of Hormuz “over the next week”, according to a post by the outlet on X. “The market is currently focused on whether there’s any concrete progress or setbacks in U.S.-Iran negotiations, the tone and substance of statements from both sides (particularly Iran’s threats regarding the Strait of Hormuz), and actual physical tanker movements through the waterway,” said Tim Waterer, chief market analyst at KCM Trade. The status of the U.S.-Iran negotiations at any given point will ultimately determine whether the current risk premium stays embedded in oil prices ‌or ⁠starts to unwind, Waterer added. Lebanon on Monday announced a partial ceasefire between Hezbollah and Israel, in what would amount to a limited de-escalation of a conflict that has inflamed the broader war with Iran. “With headlines continuing to fly out of the Middle East, oil prices are set to remain volatile until clearer evidence of progress towards a peace deal emerges,” said Tony Sycamore, market analyst at IG. Iran has effectively halted nearly all non-Iranian shipping ⁠into and out of the Gulf since the war began, choking off about a fifth of global oil and liquefied natural gas flows and driving prices up by 50% or more. U.S. crude exports climbed to a record 5.6 million barrels per day in May as the Middle East crisis ⁠pushed up demand for the country’s oil from Asian and European refiners, ship tracking estimates showed on Monday. According to a preliminary Reuters poll released on Monday, U.S. crude stockpiles are expected to have fallen by about 3.6 million barrels in the week ended May ⁠29, extending the prior week’s draw, while distillates and gasoline inventories also are likely to have declined. Shipping executives meeting in Athens on Monday said that any peace deal worked out between the U.S. and Iran would need to offer clear rules allowing vessels to resume normal business via the Strait of Hormuz. [...]

Anthropic confidentially files for US IPO, beating OpenAI

June 1, 2026 6:11

AI giant Anthropic has confidentially filed for a U.S. initial public offering, the company said on Monday, taking an early lead over rival OpenAI in a race that will define the future business shape of artificial intelligence. The move sets up a high-stakes test of whether investor appetite for the AI revolution that has reshaped white-collar work around the world can match the sky-high expectations surrounding the booming sector. Anthropic, which makes agentic coding assistant Claude Code, did not disclose the size or the terms of the offering. It last raised $65 billion at a post-money valuation of $965 billion in late May, putting it ahead of OpenAI. Confidential submissions let companies advance IPO preparations while shielding sensitive financial details from rivals and the public. The crucial step toward a listing comes on the heels of SpaceX’s mega-IPO, which is on course to rewrite the record books as the Elon Musk-led company pursues a $75 billion offering at a $1.75 trillion valuation and could begin trading within two weeks. AI boom OpenAI and Anthropic have become the face of the AI boom that has redrawn corporate strategies, sparked a global arms race for computing power and talent, and turned AI-linked companies into some of the market’s most richly valued firms. “OpenAI and Anthropic are in a race to go public before capital runs out,” D.A. Davidson analyst Gil Luria said. Also read: Pentagon reaches agreements with top AI companies, but not Anthropic “The other reason for Anthropic to try to beat OpenAI out to the public market is that they will get to set the agenda for how a frontier model reports financials and do so in a way that is favorable to their financial model.” OpenAI is also preparing to confidentially file for a U.S. IPO in the coming weeks, a source familiar with the matter told Reuters in late May, adding to a wave of blockbuster listings anticipated in the year ahead. Anthropic’s valuation has more than doubled from $380 billion in February, when it raised $30 billion in a funding round. The company’s rapid rise in early 2026 rattled markets, triggering sharp selloffs in software and IT stocks as investors worried its increasingly autonomous AI tools could upend traditional business models and accelerate disruption across industries. Its latest funding round drew backing from a mix of Silicon Valley and Wall Street investors, including Blackstone, Brookfield, D1 Capital Partners, GIC, General Catalyst and Insight Partners. A market milestone As a slew of blockbuster listings races toward public markets, companies from SpaceX to AI giants are competing for a finite pool of investor capital. “The combined demand for capital from SpaceX, OpenAI and Anthropic will be so considerable that it is likely to create disruptions in the capital markets, so going early will be a great advantage,” Luria said. The listing would represent one of the most consequential stock market debuts in years, potentially reshaping benchmark indexes, investor flows and the broader narrative driving U.S. equities. Also read: OpenAI hardware leader resigns after deal with Pentagon At a valuation of close to $1 trillion, Anthropic would vault to the top tier of the S&P 500, alongside a handful of elite companies that dominate global equity markets. An Anthropic debut would be a major boost for the long-sluggish IPO market, though experts and bankers warn an offering of such scale could drain liquidity and investor attention from smaller listings. Still, the U.S. IPO market has regained momentum in recent weeks, with companies raising $87.5 billion through May 26, the highest year-to-date total since 2021, according to Dealogic data. Several sizable IPOs are also set to hit the market later this week, including Honeywell-backed quantum computing firm Quantinuum, Blackstone-backed Liftoff and gas engine manufacturer Innio. [...]

US stocks down on Iran war concerns as oil prices surge

June 1, 2026 4:44

NEW YORK: Wall Street stocks opened lower on Monday as optimism over a possible peace deal in the Middle East dissipated, with the United States and Iran trading strikes and oil prices surging. The Dow Jones Industrial Average fell 0.4 percent to 50,805.68 points shortly after trading started, while the broad-based S&P 500 Index was down 0.1 percent at 7,569.80. The tech-focused Nasdaq Composite Index edged lower by 0.1 percent to 26,960.19. Oil surged on Monday, in line with a recent trend seen when prospects for peace in the Iran war have appeared clouded. Art Hogan, from B. Riley Wealth Management, told AFP the recent boom in equities – despite a clouded economic outlook due to the war – stems from several factors, including heavy investment in AI technology. “Even though the AI revolution is moving and it’s being four years old, we still underestimate the revenue and earnings growth that it’s driving,” he said. Markets have also backed away from recently rising US bond yields, stabilizing some investors’ outlook, he said. [...]

Rupee registers gain against US dollar

June 1, 2026 3:49

The Pakistani rupee appreciated 0.01% against the US dollar in the inter-bank market on Monday. At close, the local currency settled at 278.47, a gain of Re0.03 against the greenback. On Friday, the local unit closed at 278.50. Pakistan’s headline inflation clocked in at 11.7% on a year-on-year (YoY) basis in May 2026, Pakistan Bureau of Statistics (PBS) data showed. The consumer price index (CPI) was recorded at 10.9% in April 2026. The CPI stood at 3.5% in May 2025. Pakistan aims for an economic growth rate to 4% in the upcoming fiscal year, up from an estimated 3.7% in FY26, even as the country manages crude price shock from the ongoing conflict in the Middle East and remains under the International Monetary Fund (IMF) programme. The GDP growth projected is driven by stronger performance in the agriculture, industry, and services sectors, according to projections shared by Topline Research. Meanwhile, the US dollar held steady on Monday after a weekly loss. The dollar index of the greenback against a basket of currencies including the yen and the euro, was flat at 99.00, after last week’s drop of 0.4%. The euro fell 0.08% to$1.165. The yen weakened 0.08% to 159.41 per dollar. Sterling slipped 0.07% to $1.3449. Oil prices rose more than 3% on Monday after Iran and the US traded strikes and Israel ordered troops to move further into Lebanon in its battle with Hezbollah. Brent futures were up $2.68 or 3% at $93.80 a barrel at 1121 GMT. U.S. crude futures rose $3.03 or 3.5% to $90.39 a barrel. Over May, Brent and WTI lost around 19% and 17%, respectively. It was both contracts’ biggest monthly fall in absolute terms since March 2020 when the coronavirus pandemic slashed energy demand. The fighting in the Middle East, after Washington hosted Israel-Lebanon peace talks on Friday, dimmed hopes that the US and Iran could soon announce an extension to their ceasefire. Inter-bank market rates for dollar on Monday BID Rs 278.47 OFFER Rs 278.67 Open-market movement In the open market, the PKR gained 9 paise for buying and 4 paise for selling against USD, closing at 278.64 and 279.52, respectively. Against Euro, the PKR lost 31 paise for buying and 34 paise for selling, closing at 322.77 and 326.08, respectively. Against UAE Dirham, the PKR gained 3 paise for buying and 4 paise for selling, closing at 75.65 and 76.48, respectively. Against Saudi Riyal, the PKR remained unchanged for buying and gained 3 paise for selling, closing at 73.85 and 74.67, respectively. Open-market rates for dollar on Monday BID Rs 278.64 OFFER Rs 279.52 [...]

Most Gulf markets slip after Iran and US exchange strikes

June 1, 2026 2:18

Most Gulf stock markets ended lower on Monday after Iran and the U.S. exchanged strikes, while Israel ordered troops to push further into Lebanon in its battle with Tehran-backed Hezbollah. The U.S. said it struck Iranian military sites over the weekend, and Iran’s Revolutionary Guards said on Monday they had targeted a U.S. base in response, marking the latest exchange amid negotiations to end the three-month-old war. The fighting, which followed Israel-Lebanon peace talks hosted by Washington on Friday, dampened hopes that the U.S. and Iran could soon announce an extension of their ceasefire. Saudi Arabia’s benchmark index dropped 0.6%, hit by a 0.8% fall in Al Rajhi Bank and a 0.6% decrease in oil major Saudi Aramco. The Qatari index retreated 1.1%, as most of its constituents were in negative territory, including Qatar Islamic Bank , which declined 2.8%. Renewed uncertainty over the Iran war is weighing on sentiment. Daniel Takieddine, co-founder and CEO of Sky Links Capital Group, said markets are likely to remain cautious, with limited risk appetite until there is clearer progress toward a resolution and the Strait of Hormuz reopens. In Abu Dhabi, the index was down 0.5%, with the country’s biggest lender First Abu Dhabi Bank falling 2.6%, as the lender has exposure to the insolvencies of properties linked to mortgage lender Market Financial Solutions, according to the Financial Times. The lender did not immediately respond to a Reuters request for comment. Dubai’s main share index bucked the trend to close 0.3% higher, helped by a 2.8% rise in toll operator Salik . U.S. President Donald Trump said on Friday he would soon decide on a proposed deal to extend the ceasefire with Iran, though the two countries still appear to differ on significant issues that have been central to the conflict. Oil prices rose more than 2% in early trading on Monday, stoking concerns around inflation and interest rate hikes. Outside the Gulf, Egypt’s blue-chip index rose 0.4%. Saudi Arabia fell 0.6% to 11,010 Abu Dhabi down 0.5% to 9,651 Dubai added 0.3% to 5,775 Qatar dropped 1.1% to 10,439 Egypt rose 0.4% to 52,854 Bahrain finished flat at 1,980 Oman was up 0.9% to 7,795 Kuwait lost 0.8% to 9,231 [...]

Gold price per tola drops by Rs4,400 in Pakistan

June 1, 2026 1:34

Gold prices in Pakistan decreased on Monday in line with their loss in the international market. In the local market, gold price per tola reached Rs471,762 after a decline of Rs4,400 during the day. Similarly, 10-gram gold was sold at Rs404,459 after it fell by Rs3,773, according to rates shared by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). On Saturday, gold price per tola reached Rs476,162 after a jump of Rs1,300 during the day. The international rate of gold declined by $44 to reach $4,494 per ounce (with a premium of $20). Meanwhile, the price of silver increased by Rs46 to reach Rs8,059 per tola. [...]

Sri Lankan shares slide on broad-based sectoral losses

June 1, 2026 1:24

Sri Lankan shares closed lower on Monday, weighed down by losses in health care, industrials, energy sectors. The CSE All Share index settled down 0.21% at 22,265.04. Renuka Agri Foods PLC and Renuka Foods PLC were the top percentage losers on the index, falling 8.4% and 7.7%, respectively. Trading volume on the CSE All Share index fell to 71 million shares from 516 million in the previous session, according to exchange data. The equity market’s turnover fell to 1.67 billion Sri Lankan rupees ($5.1 million) from 7.38 billion rupees in the previous session. Foreign investors were net sellers, offloading stocks worth 37.4 million rupees, while domestic investors were net buyers, purchasing shares worth 1.64 billion rupees, the data showed. [...]

Saudi Aramco raises LPG OSPs by up to 3% for June, Sonatrach cuts prices by 18% and 31%

June 1, 2026 11:35

MOSCOW: Saudi Arabia’s state oil producer Saudi Aramco has raised official selling prices for liquefied petroleum gas by between 1% and 3% in June, while Algeria’s Sonatrach has cut them by between 18% and 31% due to higher supply in the Mediterranean market, traders said on Monday. Saudi Aramco’s June OSPs increased by $10 per metric ton to $760 a ton for propane and by $20 a ton to $820 per ton for butane. Propane and butane are types of LPG with different boiling points. LPG is mainly used as fuel for cars, heating and as a feedstock for other petrochemicals. Sonatrach decreased its June propane OSP by $125 a ton to $575 and for butane by $270 a ton to $610. Saudi Aramco offers oil in rare tenders as Iran war disrupts exports, traders say Saudi Aramco’s OSPs are used as a reference for contracts to supply LPG rom the Middle East to the Asia-Pacific region. Sonatrach’s OSPs are used as benchmarks for the Mediterranean and Black Sea region, including Turkey. [...]

Aluminium hits four-year high on renewed Middle East supply risks

June 1, 2026 11:28

LONDON: Aluminium prices soared to their highest point in more than four years as Middle East supply risks escalated after the U.S. and Iran traded military strikes, traders said. Benchmark aluminium on the London Metal Exchange was up 0.6% at $3,690 a metric ton at 0916 GMT. Earlier, it hit $3,707.50 to match a level hit on May 26 for its highest point since March 2022. The Middle East houses 9% of global smelting capacity for aluminium. The closure of the Strait of Hormuz has restricted aluminium exports from the region and limited imports of the raw materials needed to smelt the metal used to manufacture cars, aeroplanes, beer cans and building materials. Analysts expect a large aluminium market deficit this year, with some floating numbers above 2 million tons. “Aluminium remains the standout story,” Britannia Global Markets said in a note. “The extreme backwardation highlights the severity of the squeeze.” Copper slips after strong month as lack of news on Iran deal curbs upswing Backwardation refers to the premium for nearby LME aluminium contracts against those along the maturity curve. The premium for the cash aluminium contract over a three-month forward surged to 19-year highs above $100 a ton on Friday. Elsewhere, copper prices are ticking up as markets price in tight markets outside the U.S., which has over the last year sucked in vast amounts of copper due to expectations for tariffs on imports. The U.S. is expected to decide by late June whether to impose tariffs on copper metal imports. Total copper stocks in warehouses registered with Comex HG-STX-COMEX at 640,181 short tons or 580,762 metric tons are up more than 550% since U.S. President Donald Trump in February last year ordered an investigation of copper import tariffs. Expectations of weak mine supply growth have also helped reinforce elevated copper prices. Supporting industrial metals overall was expanding manufacturing activity in top consumer China for the sixth consecutive month. Copper was up 1.1% at $13,792 a ton, zinc gained 0.9% to $3,571, lead firmed 0.1% to $2,018, tin advanced 2% to $56,500 and nickel climbed 1.1% to $19,280. [...]

Coinbase offers trading using Indian rupee

June 1, 2026 11:10

NEW DELHI: U.S.-listed cryptocurrency exchange Coinbase is allowing users in India to make trades using the rupee, marking a key expansion of its services in Asia’s third-largest economy. Customers can deposit and withdraw rupees through the so-called immediate payment service channel, the company said on Monday. They will also have access to spot trading across a range of assets, alongside perpetual futures contracts covering major crypto assets, the company said. Coinbase, which had discontinued its services in India in 2023, resumed crypto trading last year after registering with the Financial Intelligence Unit. Indian rupee ends little changed on two-way foreign portfolio flows, merchant hedging “India has long been one of the most important markets in crypto: in terms of developer talent, trading activity, and the broader adoption of blockchain technology,” said John O’Loghlen, Coinbase’s regional managing director for Asia Pacific. India requires crypto exchanges to comply with its anti-money laundering rules. The country levies a 30% tax on crypto trading gains, among the highest globally, but has yet to outline regulations for the asset class. [...]

Pakistan inflation hits 11.7% in May 2026, highest since June 2024

June 1, 2026 11:06

Headline Inflation YoY Headline Inflation YoY Chart.register(ChartDataLabels); var ctx = document.getElementById('inflationChart').getContext('2d'); var inflationChart = new Chart(ctx, { type: 'bar', data: { labels: ["Jan-24", "Feb-24", "Mar-24", "Apr-24", "May-24", "Jun-24", "Jul-24", "Aug-24", "Sep-24", "Oct-24", "Nov-24", "Dec-24", "Jan-25", "Feb-25", "Mar-25", "Apr-25", "May-25", "Jun-25", "Jul-25", "Aug-25", "Sep-25", "Oct-25", "Nov-25", "Dec-25", "Jan-26", "Feb-26", "Mar-26", "Apr-26", "May-26"], datasets: [{ data: [28.3, 23.1, 20.7, 17.3, 11.8, 12.6, 11.1, 9.6, 6.9, 7.2, 4.9, 4.1, 2.4, 1.5, 0.7, 0.3, 3.5, 3.2, 4.1, 3.0, 5.6, 6.2, 6.1, 5.6, 5.8, 7.0, 7.3, 10.9, 11.7], backgroundColor: 'orange', borderWidth: 1 }] }, options: { responsive: true, plugins: { legend: { display: false }, datalabels: { anchor: 'end', align: 'top', formatter: function(value) { return value + '%'; }, font: { weight: 'bold' } } }, scales: { y: { beginAtZero: true } } } }); Pakistan’s headline inflation clocked in at 11.7% on a year-on-year (YoY) basis in May 2026, as shown by Pakistan Bureau of Statistics (PBS) data on Monday. This is the highest reading since June 2024, said Arif Habib Limited (AHL). The consumer price index (CPI) was recorded at 10.9% in April 2026. The CPI stood at 3.5% in May 2025. On a month-on-month basis, it increased by 0.5% in May 2026 as compared to an increase of 2.5% in the previous month and a decrease of 0.2% in May 2025. During the first eleven months of the fiscal year, inflation stood at 6.69% against 4.61% recorded in the same period last year. CPI inflation urban increased by 11.8% on a year-on-year basis in May 2026, as compared to an increase of 11.1% in the previous month and an increase of 3.5% in May 2025. On a month-on-month basis, it increased by 0.7% in May 2026 as compared to an increase of 2.7% in the previous month and an increase of 0.1% in May 2025. CPI inflation rural increased by 11.5% on a year-on-year basis in May 2026 as compared to an increase of 10.6% in the previous month and an increase of 3.4% observed in May 2025. On a month-on-month basis, it increased by 0.3% in May 2026 as compared to an increase of 2.1% in the previous month and a decrease of 0.5% in May 2025. SPI inflation on a YoY basis increased by 12.0% in May 2026 as compared to an increase of 10.1% in the previous month and a decrease of 0.6% in May 2025. On a MoM basis, it increased by 0.7% in May 2026 as compared to an increase of 2.0% in the previous month and a decrease of 1.0% in May 2025. The State Bank of Pakistan (SBP) increased its policy rate by 100 basis points (bps) to 11.50% in April. This was the first increase in almost three years. [...]

Indian rupee ends little changed on two-way foreign portfolio flows, merchant hedging

June 1, 2026 10:58

MUMBAI: The Indian rupee ended nearly flat on Monday as modest gains spurred by flows connected toMSCI’s equity index rebalancing were eroded by persistent hedging demand from corporates, while traders kept their focus firmly on the upcoming monetary policy decision. The Indian rupee closed at 94.99 per dollar, almost unchanged from its close at 95.00 on Friday. The currency gained in early trading on the back of concurrent dollar sales from foreign and state-run banks, but activity faded in the latter half of the session, a private sector bank trader said. In the near-term, the rupee is likely to be rangebound between 94.50-96 with intra-day flows dictating price action, a trader at a state-run bank said. The flow impulses subdued the impact of higher crude oil prices on the rupee, traders said. Brent crude oil futures rose about 3% to $93.8 per barrel. The U.S. said it struck Iranian military sites at the weekend and Iran’s Revolutionary Guards said on Monday it had targeted a U.S. base in response, the latest in a series of exchanges amid negotiations to end the three-month-old war. The U.S. and Iran have sporadically exchanged strikes since their ceasefire took effect in early April, as negotiations aimed at a more durable agreement drag on. Amid the challenging backdrop for net energy importers like India, traders are keeping their focus on the central bank’s monetary policy decision and commentary due Friday. “Markets continue to challenge RBI’s slightly dovish policy guidance. RBI is focused heavily on domestic factors currently, primarily inflation outlook while keeping an eye on growth risks,” analysts at BofA Global Research said in a note. “However, the market prices larger and faster pace of rate hikes based on assumption of a shift in RBI’s reaction function towards FX stability.” The firm recommends receiving 1-year INR non-deliverable overnight index swaps to fade extreme market pricing of rate-hikes in the front-end, against the possibility of a delayed hiking cycle as RBI awaits additional data unreactive with its policy repo rate tool to FX market pressures. [...]

Indian shares drop again on outflows, weak monsoon woes

June 1, 2026 10:55

Indian equity benchmarks extended their falling streak on Monday, on concerns over a foreign selloff, expectations of a weak monsoon, and renewed tensions in the Middle East. The U.S. struck Iranian military sites and Iran’s Revolutionary Guards said they had targeted a U.S. base in response, in the latest exchange of attacks amid negotiations to end the three-month-old war. India’s Nifty 50 fell 0.7% to 23,382.6 and the Sensex lost 0.68% to 74,267.34. The indexes have fallen 2.7% and 2.9%, respectively, over four sessions. Fourteen of the 16 major sectors fell while the broader small-caps and mid-caps dropped 0.9% and 1.5%, respectively. Overseas investors sold a record $2.22 billion of shares on Friday when index provider MSCI’s May rebalancing came into effect. Heavyweight financials, which make up a large portion of foreign portfolio investors’ holdings of Indian shares, slipped 1.4%. Consumer goods and automobile shares shed 1.7% and 2.3%, respectively, as the forecast of the weakest monsoon showers in 11 years fueled concerns over crops, food prices and economic growth. On the flip side, IT shares rose 2.7% after strong earnings from U.S.-based tech firm Snowflake lifted global software-as-a-service, cloud and IT service firms. “Nifty 50 companies have recorded eight consecutive quarters of single-digit earnings growth. If there is no resolution to Iran war in the near term and crude prices sustain between $90 to $100 per barrel, FY27 earnings estimates could be downgraded as well,” said Sunny Agrawal, head of fundamental equity research at SBICAPS Securities. Investors await the Reserve Bank of India’s policy decision on Friday. The central bank is expected to keep rates unchanged, although a majority of economists polled by Reuters expect at least one increase by year-end due to risks from high oil prices and pressure on the rupee from weak capital inflows. [...]

European shares dip as renewed Middle East tensions cloud peace prospects

June 1, 2026 8:44

European shares opened lower on Monday as heightened tensions in the Middle East tempered hopes for an imminent end to the conflict, while investors also focused on dealmaking news involving the UK’s easyJet and Amsterdam-listed Universal Music Group. The pan-European STOXX 600 index edged 0.1% lower by 0709 GMT, after having a subdued close to the previous week. Prices of crude oil, a key resource for energy-deficient Europe, climbed more than 2% as the US and Iran said they traded fire through the weekend, even as negotiations continued to resolve the three-month-old war. Geopolitical tensions were also high between Israel and Lebanon’s Hezbollah. Most sectors traded in the red, with airlines Lufthansa and Air France marginally lower, while energy stocks gained 1.1%. Despite the uncertainty, analysts said corporate earnings and forecasts have held up better than expected this reporting season, with Goldman Sachs raising its 12-month target for the benchmark STOXX to 660. In M&A news, easyJet jumped 11% after the British budget airline said it had not received any takeover interest from US-based investment firm Castlelake, though it would consider any proposal if made. The investment firm said it was in the early stages of considering a possible offer for the carrier. Shares of Universal Music Group slipped 1.5% after the company rejected an unsolicited takeover proposal from Bill Ackman’s Pershing Square Capital Management. [...]

Dollar steady as traders await progress on Middle East peace talks

June 2, 2026 2:59

Oil steadies as uncertainty over US-Iran talks keeps markets on edge

June 2, 2026 2:55

CPI inflation surges to 23-month high

June 2, 2026 1:45

ISLAMABAD: The Consumer Price Index-based inflation surged to 11.7 percent year-on-year (YoY) in May 2026, the highest in 23 months, amid worsening Middle East tensions that have intensified energy-related pressures. According to the Monthly Review on Price Indices released here on Monday by the Pakistan Bureau of Statistics (PBS), this marks a steady escalation from the 10.9 percent reported in April 2026, pushing inflation further away from the State Bank of Pakistan’s target range of 5–7 percent. READ ALSO: Pakistan inflation hits 11.7% in May 2026, highest since June 2024 The PBS data said that CPI inflation (general) increased by 11.7 percent on a year-on-year (YoY) basis in May 2026, as compared to an increase of 10.9percent the previous month and 3.5percent in May 2025. On month-on-month (MoM) basis, it increased by 0.5percent in May 2026 as compared to an increase of 2.5percent in the previous month and a decrease of 0.2percent in May 2025. CPI inflation (Urban) witnessed an increase of 11.8percent on a YoY basis in May 2026 as compared to an increase of 11.1percent in the previous month and an increase of 3.5percent in May 2025. On a monthly basis, it increased by 0.7percent in May 2026 as compared to an increase of 2.7percent in the previous month and an increase of 0.1percent in May 2025. CPI inflation (Rural) increased by 11.5percent on an annual basis in May 2026, as compared to an increase of 10.6percent the previous month and an increase of 3.4percent observed in May 2025. On a monthly basis, it increased by 0.3percent in May 2026 as compared to an increase of 2.1percent in the previous month and a decrease of 0.5percent in May 2025. The SPI-based inflation on an annual basis increased by 12percent in May 2026 as compared to an increase of 10.1percent in the previous month and a decrease of 0.6percent in May 2025. On MoM basis, it increased by 0.7percent in May 2026 as compared to an increase of 2percent in the previous month and a decrease of 1percentin May 2025. Wholesale Price Index (WPI) based inflation on a YoY basis increased by 12.7percent in May 2026 as compared to an increase of 13.6percent the previous month and an increase of 0.4percent in May 2025. On a monthly basis, it decreased by 0.8percent in May 2026 as compared to an increase of 5.1percent in the previous month and no change observed in May 2025. Measured by non-food non-energy (Urban), the inflation increased by 9percent on a YoY basis in May 2026 as compared to an increase of 8percent in the previous month and an increase of 7.3percent in May 2025. On MoM basis, it increased by 1.3percent in May 2026 as compared to 1.9percent in the previous month and an increase of 0.4percent in the corresponding month of last year, i.e., May 2025. Measured by non-food non-energy Rural increased by 8.4percent on a YoY basis in May 2026 as compared to an increase of 8.5percent in the previous month and an increase of 8.8percent in May 2025. On a MoM basis, it increased by 0.2percent in May 2026 as compared to an increase of 1.1percent in the previous month and an increase of 0.4percent in the corresponding month of last year, ie, May 2025. Measured by a 20percent weighted trimmed mean (Urban), the inflation increased by 9.8percent on a YoY basis in May 2026 as compared to an increase of 9.2percent in the previous month and 4.9percent in May 2025. On a MoM basis, it increased by 0.6percent in May 2026 as compared to an increase of 1.1percent a month earlier and an increase of 0.1percent in the corresponding month of last year, i.e., May 2025. Measured by a 20percent weighted trimmed mean (Rural), the inflation increased by 9.6percent on a YoY basis in May 2026 as compared to an increase of 8.9 percent in the previous month and 4.7 percent in May 2025. On MoM basis, it increased by 0.8percent in May 2026 as compared to an increase of 1percent in the previous month and a decrease of 0.2percent in the corresponding month of last year. On account of Urban CPI, the monthly prices of the following food items increased: Wheat Flour (11.21percent), wheat (7.78percent), Ice Cream (5.49percent), potatoes (4.01percent), bakery and confectionary (2.40percent), meat (2.25percent), dessert preparation (1.84percent), milk products (1.46percent), milk fresh (1.41percent), sweetmeat (1.37percent), cooking oil (0.91percent) and vegetable ghee (0.88percent). On MoM basis, prices of following food items witnessed a reduction: Tomatoes (43.18percent), fresh vegetables (24.93percent), eggs (5.99percent), onions (5.23percent), pulse gram (1.65percent), pulse mash (1.62percent), chicken (1.59percent), fresh fruits (1.37percent), fish (0.98percent), pulse moong (0.44percent), besan (0.34percent), beans (0.33percent), mustard oil (0.23percent), gur (0.20percent), honey (0.15percent), sugar (0.12percent), gram whole (0.11percent) and pulse masoor (0.06percent). Copyright Business Recorder, 2026 [...]

Oil up about USD5 a barrel

June 2, 2026 12:10

NEW YORK: Oil prices were up about USD5 a barrel on Monday after Iran’s Tasnim news agency reported that Tehran is halting indirect negotiations with the US and plans are being made for Iranian forces and their allies to completely block the Strait of Hormuz and take action elsewhere, including another key shipping route. Iran and the US traded strikes in recent days and Israel ordered troops to move further into Lebanon in its battle with the Tehran-backed Hezbollah militant group. Brent crude futures were up USD4.80, or 5.2 percent to USD95.92 a barrel at 1:17 p.m. EDT (1717 GMT) while US crude futures rose USD5.46, or 6.2 percent, to USD92.82 a barrel. READ MORE: Oil jumps over $6 on Iran report of halted U.S.-Tehran exchanges, Hormuz blockade risk Both benchmarks pared gains after US President Donald Trump shrugged off the suspension of indirect talks with Iran in an interview with CNBC on Monday, saying he did not care if they were over. Brent and WTI fell around 19 percent and 17 percent, respectively, last month, marking both contracts’ biggest monthly drops in absolute terms since March 2020, when the COVID-19 pandemic slashed energy demand. Iranian state TV said separately on Monday that a ceasefire agreed between Iran and the US in early April is very likely to end if Israel continues to attack Hezbollah. Esmaeil Baghaei, spokesperson for Iran’s foreign ministry, said the delay in the diplomatic process to end the war can be explained by a lack of trust, Washington’s contradictory positions and Israel’s attacks on Lebanon. “It just seems that both sides are in different worlds,” said Andrew Lipow, president of Lipow Oil Associates. [...]

‘Next budget may create more difficulties for traders’

June 1, 2026 11:58

KARACHI: Former Vice President of FPCCI, Tariq Haleem has said that the upcoming federal budget, being formulated under the stringent conditions of the IMF, may create further difficulties for the business community, industries, and the general public. He urged the government to avoid measures that could slow down economic activity and negatively affect the investment climate. Tariq Haleem stated that the persistent shortfall in revenue collection targets calls for a review of the Federal Board of Revenue’s (FBR) aggressive policies. Instead of placing additional tax burdens on existing taxpayers, efforts should be focused on broadening the tax net so that more individuals and sectors contribute to the national exchequer. READ MORE: Budget FY2026-27: Traders assured of simplified tax scheme He further demanded that the General Sales Tax (GST) rate be gradually reduced and brought down to a single-digit level. He also called for special incentives and facilities for ship agents and the maritime trade sector in the federal budget to strengthen national trade, port operations, and exports. Tariq Haleem emphasized that Pakistan should reduce its dependence on external borrowing and take practical steps toward economic self-reliance. He noted that the slowdown in economic growth and business activity is a matter of serious concern, making it essential to adopt policies that promote productive sectors and create employment opportunities. Copyright Business Recorder, 2026 [...]

Business community concerned federal budget

June 1, 2026 11:58

KARACHI: Mian Zahid Hussain, President Pakistan Businessmen and Intellectuals Forum & All Karachi Industrial Alliance, Chairman National Business Group Pakistan and Chairman Policy Advisory Board of FPCCI, has expressed deep concern over the emerging news regarding the upcoming federal budget for the fiscal year 2026-27. He urged the government that after achieving economic stability, the national economy must now be steered toward a sustainable, growth-oriented path rather than running it on the traditional mechanism of merely increasing taxes and revenue. He noted that under strict IMF conditions, proposing a federal revenue target of 17.1 trillion rupees (17.145 trillion) for FY 2026-27, a one percent increase in the sales tax rate, and a heavy increase of up to 20 percent in the FBR tax targets reflects that preparations are being made to place the entire burden of the budget onto existing taxpayers and industries once again. Mian Zahid Hussain warned that if the direction of economic policies is not shifted toward productivity, exports, and industrial growth, business activities in the country will become completely paralyzed. Comparing economic data, he pointed out that although inflation has decreased and come down to single digits, the continuous stagnation of GDP growth targets remains alarming. The government’s decision to set the GDP growth target between 3.5 to 4.2 percent for the next fiscal year clearly indicates that Pakistan will not be able to achieve a five and a half or six percent growth rate next year either. Economic growth targets can never become a reality until relief is provided on import duties on raw materials, high energy prices, and heavy bank markup rates. He stated that the expected increase in the petroleum levy under IMF pressure will lead to a rise in inflation and an unbearable increase in the cost of doing business. He emphasized that Pakistan is currently in dire need of a growth-oriented policy instead of a revenue-driven economy because the indiscriminate increase in tax rates and new taxes is halting the industrial wheel, which in the long run is reducing the government’s own revenue compared to the actual size of the economy. Mian Zahid Hussain advised the government that instead of restricting the 1.1 trillion rupee Public Sector Development Programme (PSDP) solely to infrastructure, it should link it with incentives for the IT, agriculture, and manufacturing sectors to generate real employment. He added that economic stability is only possible when the tax net is widened to bring untaxed sectors like agriculture and retail into the fold, and the burden on the manufacturing sector is reduced; otherwise, Pakistani exports will be completely knocked out of the competition compared to other countries in the region. He further stated that in today’s civilized world, the formula of ending tax evasion and bringing undocumented sectors into the tax net through crackdowns, raids, registration blocking, blacklisting, and harassment under tax laws has completely abandoned. For the improvement of the economy, growth, investment climate, and increase in FDI, it is essential to make tax laws simple, soft, and business-friendly, while the economy must be digitalized end-to-end to increase tax revenue and prevent tax evasion, which could potentially increase the Tax-to-GDP ratio from the current 10 percent to 15 percent. Copyright Business Recorder, 2026 [...]

Budget proposals submitted: Govt should reduce GST rate up to 15pc: UBG

June 1, 2026 11:58

KARACHI: President of the United Business Group (UBG), Zubair Tufail, in his recommendations submitted to the government for the Federal Budget 2026-27, stated that in order to strengthen economic confidence, attract investment, increase production, and expand business activities, the government should reduce the General Sales Tax (GST) rate from 18 percent to 15 percent. He further proposed that Pakistan’s GDP growth target should be raised to 8.5 percent, while the maximum income tax rate on the salaried class should be reduced from 35 percent to 20 percen. Zubair Tufail said that UBG Patron-in-Chief S M Tanveer and FPCCI President Atif Ikram Sheikh have presented a comprehensive Shadow Budget, which recommends increasing Pakistan’s exports from USD 30 billion to USD 80 billion, expanding the tax base from 3 million taxpayers to 100 million people, and raising per capita income from USD 1,900 to USD 2,900. As head of the country’s largest business community group, he expressed his full support for the Shadow Budget proposals. He suggested that the government introduce a new fixed tax scheme for the retail sector in consultation with traders. He also emphasised that industries should be provided energy at competitive rates. A simple and transparent tax system, he said, would encourage fresh investment, promote the establishment of new industries, generate employment opportunities, and increase government revenues without the need for higher tax rates. Zubair Tufail urged the government to immediately restore the Final Tax Regime (FTR) for exporters and reinstate the Export Facilitation Scheme in its original form. He also called for making export financing facilities easier, cheaper, and more effective. Among his other recommendations were: Rationalisation of Customs duties to promote industrial development and local manufacturing, formulation of policies to ensure a uniform and fair business environment across the country, introduction of a National Industrial Policy, digital tax filing system, and faceless Customs clearance mechanism, providing relief to the salaried class and increasing the taxable income threshold, taking strict action against non-filers, launching digital applications to facilitate tax filing, reducing discretionary powers of tax officials, offering special incentives for key sectors including textiles, IT, and agriculture. He further urged the government to reduce the burden of heavy taxation in the Federal Budget 2026-27. He called for lowering levies on petroleum products and captive power plants so that Pakistani exporters can compete effectively with their counterparts in Asian markets. Zubair Tufail also proposed a special package for the development of small, medium, and cottage industries. He recommended reducing taxes imposed on gas and electricity tariffs to stimulate production activities. He advised the government to avoid imposing approximately Rs 500 billion in new taxes in the upcoming budget. According to him, the Super Tax has become a major obstacle to industrial growth and should be abolished in the new budget. He concluded by stating that in order to achieve the annual targets of the Federal Board of Revenue (FBR) and increase exports, Pakistan’s tax regime must be comprehensively restructured. Copyright Business Recorder, 2026 [...]

Minister pledges record development budget

June 1, 2026 11:58

LAHORE: Punjab Housing and Urban Development Minister Bilal Yasin announced on Monday that the provincial government is preparing a historic development budget for the upcoming fiscal year, focusing on public welfare and infrastructure growth. Speaking during an open court (‘khuli katcheri’) held in his constituency, the Minister stated that all available resources are being utilised to address public grievances and upgrade civic facilities as directed by Punjab Chief Minister Maryam Nawaz Sharif. Yasin emphasised that resolving citizens’ issues promptly and effectively is a top priority for the chief minister. He added that these open courts serve to regularly address public concerns. He highlighted the responsibility of public representatives to maintain consistent communication with the people and to respond to their needs swiftly. Additionally, he mentioned that, following instructions from former Prime Minister and PML-N Quaid Mian Muhammad Nawaz Sharif, all available resources will be used for the development of the constituency and the welfare of its residents. He expressed hope that the changing regional conflict situation would soon lead to lower petroleum prices and a reduction in inflation. On this occasion, the Minister listened to public complaints, accepted applications, and directed the relevant authorities to take immediate action. The complaints addressed included issues related to development projects, sewerage, sanitation, road repairs, and other civic facilities. Copyright Business Recorder, 2026 [...]

Freelancers demand retaining 0.25pc tax on foreign earnings

June 1, 2026 11:58

KARACHI: The Pakistan Freelancers Association (PAFLA) has called on the Federal Board of Revenue (FBR) and the Ministry of Finance to continue supporting Pakistan’s growing freelancing and digital workforce in the Federal Budget 2026-27. PAFLA has recommended retaining the reduced tax rate of 0.25 percent on foreign exchange earnings for the next ten years, alongside allocating funds for capacity-building programs, establishing freelancing hubs in multiple cities, and providing subsidies for internationally recognised certifications. PAFLA Chairman Ibrahim Amin emphasised that extending the 0.25 percent tax regime would encourage freelancers to channel their earnings through local banks and inspire students, young professionals, and women to adopt freelancing as a sustainable career path. He noted that freelancers registered with Pakistan Software Export Board (PSEB) currently benefit from the 0.25 percent rate, and PAFLA is eager to work closely with PSEB to simplify the registration process so more freelancers can access these incentives. “A stable, simple tax regime benefits the entire digital economy, freelancers, software houses, and the broader IT industry alike,” he said. Citing the ILO’s recognition of Pakistan as one of the world’s largest providers of digital labour, Chairman Amin added that this reflects the collective strength of Pakistan’s tech and digital ecosystem. According to the State Bank of Pakistan, freelancing export receipts surged to USD 959 million during July-April FY2025-26, up 49 percent from the same period last year. Dr. Imran Batada, President and CEO of PAFLA, said the government should also refrain from imposing additional taxes on content creators producing knowledge-based content, including skills training, news and analysis, educational content, and infotainment. He cautioned that complex tax classification mechanisms could push digital workers toward informal channels, reducing documented remittances and weakening Pakistan’s foreign exchange position, an outcome that would affect the entire industry. He also urged the government to invest in improving payment infrastructure, including a globally integrated national payment gateway, a step that would benefit all digital service providers across Pakistan. “Pakistan’s freelancers have contributed nearly USD 1 billion in foreign exchange this fiscal year. These are young Pakistanis from every corner of the country, competing globally and bringing dollars home. Together with the broader IT industry, they represent Pakistan’s greatest economic opportunity,” Dr. Batada concluded. Copyright Business Recorder, 2026 [...]

Huge state subsidies give China unfair edge over foreign rivals: OECD

June 1, 2026 11:58

PARIS: Chinese companies in 15 key industrial sectors received vastly more state support than their international competitors between 2005 and 2024, according to an OECD report released on Monday. The 15 sectors received $108 billion in 2024 alone, according to data compiled by the Organisation for Economic Cooperation and Development in its Manufacturing Groups and Industrial Corporations (MAGIC) database. Between 2005 and 2024, it added, “Chinese firms received on average three to eight times more government support than firms based in the OECD, a conservative estimate.” “These subsidies were also considerably higher than the support received by firms based in non-OECD economies such as Brazil, India and Indonesia.” The Paris-based organisation of 38 member countries said its “conservative” estimate was based on disclosures by the biggest companies in the 15 sectors, which underpin entire segments of the global economy. It considers direct subsidies, tax breaks and favourable loans from banks and public financial institutions — at times below their base lending rates — to be public support. “For Chinese firms, almost 60 percent of their global market share gains can be explained by the subsidies they received,” the OECD said. Chinese firms have carved out huge market shares over 20 years in sectors such as solar panels, shipbuilding and steel, not because they are better than their US or European competitors but because of their unparallelled state support, it added. With subsidies, they have more financial leeway to invest in new production sites, more time to reach profitability and greater support against economic headwinds, according to the report. This has led to overcapacity in some sectors, pushing down global prices to the detriment of other international players. “Just like doping in sports, the risk is that subsidies help less productive players win unfairly at the expense of better, more innovative and more efficient ones,” the OECD’s Secretary-General Mathias Cormann told a press conference. “Subsidies increased market share but that did not lead to significant gains in productivity or profitability,” Cormann added. “Firms won market share not by being more efficient or more innovative but by being more heavily subsidised.” The OECD looked at aerospace and defence; aluminium; car manufacturing; cement; chemicals; fertilisers; glass and ceramics; heavy machinery; semiconductors; shipbuilding; photovoltaic panels; steel; telecommunications equipment; rolling stock; and wind turbines. [...]

Industry, agri, technology: Expanded cooperation with China to help boost exports: PM

June 1, 2026 11:58

ISLAMABAD: Prime Minister Shehbaz Sharif said on Monday that expanded cooperation with China in industry, agriculture and technology would help boost Pakistan’s exports and create employment, as he reviewed follow-up measures from a recent business forum held in China. Chairing a meeting to assess follow-up actions from the Pakistan-China Business-to-Business (B2B) Conference held during his recent visit to China, the prime minister said strengthened private-sector linkages between the two countries marked the beginning of a new phase in economic partnership. He directed that memoranda of understanding (MoUs) signed at the Hangzhou conference be promptly converted into formal agreements and joint ventures, stressing the need for timely implementation. He also said he would personally chair monthly review meetings to monitor progress on initiatives emerging from the B2B conference. Sharif directed officials to implement cooperation between the Chinese Academy of Agricultural Sciences and the Pakistan Agricultural Research Council (PARC), saying collaboration in agricultural research and modern technology would transform Pakistan’s farming sector and improve productivity through joint ventures and innovation. A briefing at the meeting said 123 Pakistani and 436 Chinese companies had participated in the B2B conference held in Hangzhou on 24th May, where 207 MoUs worth approximately USD 7.54 billion were signed across multiple sectors, including energy storage systems, artificial intelligence, mobile phones and handheld devices. The agreements also covered agriculture-related fields such as fertilisers, seeds, irrigation equipment, fisheries and food processing, as well as advanced industries including biotechnology and vaccine production, officials said. The third Pakistan-China B2B investment conference was held in Hangzhou, in eastern China’s Zhejiang province, last month, attracting more than 500 enterprises from both countries. As part of Prime Minister Sharif’s visit, the event focused on expanding cooperation in information technology, telecoms and other emerging sectors. Sharif, who attended the conference and delivered a keynote address, expressed hopes for deeper cooperation in the digital economy and information technology. The forum highlighted three main sectors – IT and telecoms, battery energy storage systems and agriculture – and provided a platform for direct engagement between companies, which exchanged contacts, discussed potential areas of cooperation and signed multiple agreements during matchmaking sessions. The meeting was attended by Minister for National Food Security and Research Rana Tanveer Hussain, Minister for Planning and Development Ahsan Iqbal, Minister for Economic Affairs Ahad Cheema, Minister for Information Technology Shaza Fatima Khawaja and other senior officials. Copyright Business Recorder, 2026 [...]

Auto policy without localisation meaningless: PAAPAM

June 1, 2026 11:58

LAHORE: The Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) has warned the government that ignoring localisation in the Auto Policy will badly hit the steel melting industry. In a statement on Monday, Chairman PAAPAM Usman Aslam Malik said the PAAPAM has been in continuous dialogue with the government over the past year on the forthcoming Auto Policy 2026-31. “PAAPAM’s stance is clear that without protection of the job-creating local auto parts industry, the policy loses all rationale.” If localisation is ignored, it would be better to abandon the policy, allow imports of completely built up vehicles, and accept the collapse of the domestic industry rather than wait for it to happen gradually. He stated that the auto policy must be anchored in a competitive local parts industry, warning that without strong tariff safeguard and enforcement, Pakistan’s vendors cannot survive against a 34 percent cost disadvantage to produce in Pakistan, a country with high energy cost, high interest rates and high taxation. He emphasised that customs duties of 50–60 percent on CBU imports and a minimum 45 percent duty on localised parts are essential safeguards, while raw materials must remain duty free to reduce vendor costs. Senior Vice Chairman Shehyar Qadir added that uniform CKD tariffs across ICE and NEV categories are critical to ensure fairness, and that NEV definitions must be tightened to exclude plug in hybrids and range extended vehicles from reduced tax regimes, since they are not zero emission and are equipped with up to 1,500cc engines, fuel tanks and exhaust systems. He stressed that any concessionary sales tax must extend across the entire localised manufacturing chain, including vendor inputs (local or imported), to prevent erosion of domestic value addition. Both leaders underscored the importance of strengthening SRO 693 with a unified parts registry, bi-annual reviews, and inclusion of engine and transmission assemblies to deepen localisation. They further called for strict CKD definitions, value caps on EV components to avoid cost-transfer, and consistent enforcement to block loopholes and provide long term certainty for vendors. They called upon the government to adopt these measures to secure Pakistan’s industrial base, protect jobs, and preserve national self reliance. If localisation is abandoned, the auto policy itself must be abandoned too because without local industry, Pakistan’s auto sector has no future, they remarked. Copyright Business Recorder, 2026 [...]

OPEC+ likely to raise July oil output target

June 1, 2026 11:58

VIENNA: OPEC+ oil-producing countries will likely agree a further hike in their output target for July when they meet on Sunday, three sources said, though the Iran war has so far prevented several from delivering previous increases. Another quota increase would show the group is approaching business as usual despite the disruption caused by the Strait of Hormuz closure and the unexpected exit in May of the United Arab Emirates, a member of the Organization of the Petroleum Exporting Countries for almost 60 years. Seven core members of OPEC+, which groups OPEC and allied producers including Russia, have increased their output quotas from April to June by almost 600,000 barrels per day. In reality, the group’s production has collapsed due to export cuts by Gulf members, averaging 33.19 million bpd in April versus 42.77 million in February, according to OPEC figures. The monthly target set by the seven is expected to increase by about 188,000 bpd for July, the sources said. This is the same as the hike agreed for June, which was adjusted down from 206,000 bpd to take into account the UAE exit. All sources spoke on condition of anonymity and said a final decision had not been made. OPEC, Saudi and Russian officials did not immediately reply to Reuters requests for comment. The seven OPEC+ countries are increasing production as part of the gradual unwinding of a 1.65 million bpd production cut that the then eight members agreed in 2023. [...]

Poultry farmers exempt from payment of sales tax under relevant law: FCC

June 1, 2026 11:58

ISLAMABAD: The Federal Constitutional Court (FCC) held that poultry farmers are exempt from the payment of sales tax under the relevant law and, therefore, are not required to obtain sales tax registration. A two-judge bench comprising Justice Aamer Farooq and Justice Muhammad Karim Khan Agha heard the appeals against the LHC judgment on whether additional tax is liable to be paid by the petitioners (Shahzor Feeds (Pvt.) Ltd and others, either in their capacity as poultry farmers or poultry feed manufacturers, set aside the LHC’s judgment dated December 4, 2025. The judgment said, “In the present case, poultry farmers are exempted from payment of sale tax on account of exemption under the law; thus, they are not required to be registered.” “Since the requirement of non-registration is mandated by law (section 14 of the Act), no penal consequences would fall upon either of the categories of petitioners before us by way of payment of additional tax,” it added. The petitioners are aggrieved by the order dated September 11, 2024, passed by the Commissioner (Inland) Revenue, Large Taxpayers Office (LTO), Lahore, whereby it was held that manufacturers of the poultry feed supplying products to the farmers were liable to pay additional tax under section 3(1A) of the Sales Tax Act, 1990, since the recipients of the supply were not registered. The petitioners then approached the Lahore High Court by way of petitions under Article 199 of the Constitution, but the same were dismissed through the consolidated impugned judgment on December 4, 2025. The judgment said that the law does not require the exempted person from registration of the sales tax. Therefore, the petitioners, who are poultry farmers, are not required to be registered, but to make poultry feed manufacturers liable to payment of further tax (which eventually would be passed on to poultry farmers), would not only be unjust but also against the system of payment of sales tax under the Act. It maintained that there is no cavil or dispute of any kind that the poultry farmers are exempted from payment of sales tax under the Act; however, factually, it is also correct that poultry feed manufacturers are making supplies to the non-registered persons. It noted that the plain reading of section 14(1) shows that every person who is engaged in making taxable supplies in Pakistan, including zero-rated supplies, in the course or in furtherance of any taxable activity carried on by him, falling in any of the categories mentioned in the section, is required to be registered if not already registered. Section 14, read with section 2(41) of the Act, makes it abundantly clear that a person who is exempted from payment of sales tax, or in other words, making taxable supplies, is not required to pay sales tax and even register himself. Copyright Business Recorder, 2026 [...]

Taxpayer harassment: ‘FBR officials systematically misuse powers’

June 1, 2026 11:58

ISLAMABAD: The Federal Board of Revenue (FBR) officials are systematically misusing the powers available under Section 175C of the Income Tax Ordinance, 2001 to harass taxpayers and extort money under the guise of monitoring proceedings,” said Waheed Shahzad Butt, Chairman of the Lahore Tax Bar Association (LTBA) Public Interest Litigation Committee, while commenting on the landmark FTO order recently issued by FTO Zafar Hijazi. Details of the case revealed that the case involved the owner of a Surgical Hospital, Haripur. RTO Abbottabad officials visited his business premises armed with a notice signed by the Chief Commissioner invoking Section 175C. The taxpayer, under evident pressure, deposited Rs. 1500000.00 into the government treasury on 26 December 2025, whereupon the department abruptly discontinued all monitoring proceedings without issuing any speaking order or determining any actual tax liability. Waheed further added that Section 175C is investigative in character and does not independently authorize coercive recovery or collection of tax without prior statutory determination of liability. The order categorically states that no departmental record explains how the figure of tax was computed and that the department’s conduct, taking money and walking away without any adjudicatory conclusion, constitutes gross administrative impropriety and maladministration under Section 2(3)(i)(b) and (ii) of the Federal Tax Ombudsman Ordinance, 2000. Waheed Butt further observed that the case is far from an isolated incident. “Tax collection is a sovereign function regulated strictly by law. What is happening under the pretext of Section 175C across the country is not tax collection, it is sponsored tax robbery. Officers descend on business premises, create an atmosphere of intimidation and pocket whatever amount the terrified taxpayer agrees to pay. There is no assessment, no order, and no accountability. The FTO’s ruling must serve as a wake-up call for FBR’s leadership to put an immediate end to this racket,” Waheed added. Copyright Business Recorder, 2026 [...]

Oil steadies as uncertainty over US-Iran talks keeps markets on edge

June 2, 2026 2:55

Inflation: The Core heats up

June 2, 2026 2:07

Headline CPI inflation rose11.66 percent year-on-year in May, the highest in 24 months. Headline inflation stayed lower than market expectations, largely due to a bigger fall than anticipated in personal effects, detergents, footwearand fresh vegetables. The real story of May inflation rests with the sharp spike in core inflation – that rose to 9 percent in urban settings, highest since September 2024. The fiscal year to date inflation at 6.7 percent is now inching closer to the upper band of the central bank’s medium-term inflation target. Perishables nearly wiped all the increase in non-perishable on a month-on-month basis, led by a sharp decline in tomato and fresh vegetables prices that slid 43 percent and 25 percent, month-on-month. While tomatoes’ decrease was still in line with historical directional change, fresh vegetables recorded the sharpest month-on-month fall in 42 months. Combined with over 2 percent weight in overall CPI basket, the impact was felt across. Housing and transport indices were well in line with expectations, as lower adjustment for the month led to a moderate decline in electricity charges, whereas motor fuel increase was contained especially towards the latter half of the month. Electricity tariffs were up 36 percent year-on-year, and the average national domestic tariff now stands close toRs27/unit.With higher fuel price adjustment lined up for June, an increase close to 5 percent month-on-month is on the cards in lieu of electricity tariffs.transport sub-index, is subject to greater risks given the geopolitical uncertainty. But given the recent encouraging signs on the war front, the month-on-month price change has more chances of being on the lower side. Given that much of the headline inflation has been moved by transport fuel prices, this should keep transport inflation checked, all things constant. That being said, the real story is slowly building around core inflation, where prices of non—food non-energy essential household items have started to firm up. The signs were evident in the last two WPI readings, and readings for May, may well just be the start of what is in store in terms of core inflation. Footwear in urban settings rose an unprecedented 29 percent month-on-month – comfortably the highest monthly increase ever recorded. With a considerable weight of 1.48 percent, the impact was significant. Surprisingly, footwear prices in rural settings barely changed from a month ago, but it may well play catch up soon, at least directionally if not in terms of magnitude. Similarly, detergents registered a 33-month high, as sings were emerging in the WPI a month earlier. Household equipment have also become pricier at a much faster pace month-on-month, as soaring transportation costs are trickling to second round of inflation, via pass through. Construction wage rates, too, increased at the highest month-on-month rate in three years. All these point towards stickier prices going forward, even if energy related inflation cools off sooner. Core inflation is now well clear of the central bank’s medium-term target and that would make for an interesting input in the upcoming MPS. More economic data has to arrive before the next MPS, but core inflation alone warrants a deeper look as to how entrenched and how anchored the prices are for the near future. With the news cycle warning of higher standard sales tax in the upcoming budget and an even bigger in electricity tariff structure, in case of cross subsidy becoming more targeted, the impact on inflation could keep the MPS decision makers on their toes. [...]

Loads Limited

June 2, 2026 2:03

Loads Limited (PSX: LOADS) was incorporated in Pakistan as a private limited company in 1979 and was later converted into a public limited company in 1994. The company is engaged in the manufacturing and sale of radiators, exhaust system, sheet metal components and other parts for automobile industry. Pattern of Shareholding As of June 30, 2025, LOADS have a total of 251.250 million shares outstanding which are held by 8273 shareholders. Local general public has the majority stake of around 38.33 percent in the company followed by Directors, CEO, their spouse and minor children holding around 37.80 percent shares. Associated companies, undertakings and related parties account for 12.55 percent of the outstanding shares of LOADS. The remaining shares are held by other categories of shareholders. Historical Performance (2019-25) The topline of LOADS slid thrice during the period under consideration i.e. in 2020, 2023 and 2024. Its bottomline dropped until 2020 to record net loss during the year. In 2021 and 2022, LOADS’s bottomline recovered from net loss and registered growth. LOADS posted net loss yet again in 2023 followed by net profit in 2024. In 2025, net profit thinned down. The gross margin of the company hit its lowest level in 2020 and maxed out in 2025. Conversely, its operating and net margins touched their lowest level in 2023 and then peaked in 2024. In 2025, LOADS’s operating margin stayed intact while its net margin plunged (see the graph of profitability ratios). The detailed performance review of the period under consideration is given below. In 2019, LOADs’s topline recorded year-on-year growth of 16.77 percent to clock in at Rs.5709.74 million. This came on the back of upward price revision to justify depreciation of Pak Rupee. Moreover, the topline growth was also the result of addition of converters in Suzuki products and hefty growth in Toyota Corolla sales. Gross profit jumped up by 39 percent year-on-year in 2019 with GP margin clocking in at 9.1 percent versus GP margin of 7.64 percent recorded in 2018. Operating expense rose by 5.43 percent year-on-year in 2019 due to inflationary pressure. Conversely, other expense gave a breather and plunged by 22.67 percent year-on-year in 2019 due to high-base effect as the company recorded loss on sale of investment in Pakistan Investment Bonds in 2018. Other income almost remained intact in 2019. Operating profit boasted a stunning year-on-year growth of 60.47 percent in 2019 with OP margin clocking in at 6.66 percent versus OP margin of 4.85 percent posted in 2018. Finance cost mounted by 124.43 percent year-on-year in 2019 on account of higher discount rate coupled with increase in short-term financing facilities availed during the year. This coupled with minimum tax on turnover culminated into bottomline plunge of 48.70 percent year-on-year to clock in at Rs.41.22 million in 2019. This translated into EPS of Rs.0.27 in 2019 versus EPS of Rs.0.53 recorded in the previous year. NP margin also narrowed down to 0.72 percent in 2019 versus NP margin of 1.64 percent recorded in 2018. In 2020, COVID-19 struck and the automobile sales crashed by 53 percent year-on-year. This produced a direct impact on the sales of LOADS which tapered off by 51.34 percent year-on-year to clock in at Rs.2778.63 million in 2020. Low off-take across the categories also produced a downward effect on the cost of sales. Gross profit thinned down by 61.85 percent year-on-year in 2020 with GP margin clocking in at 7.13 percent. Low outward freight, vehicle running and travelling cost, advertising and sales promotion as well as employee benefits squeezed the operating expense by 4.4 percent year-on-year in 2020. Other expense posted a drastic 87.57 percent year-on-year drop as the company didn’t book any provision for WWF and WPPF during the year. Other income multiplied by 126.67 percent during the year as the company recognized markup income on loans to its subsidiaries. Despite cost curtailment and a check on operating expense, operating profit shrank by 56.47 percent year-on-year in 2020 with OP margin of 5.96 percent. To top it off, finance cost grew by 45.70 percent year-on-year in 2020 due to discount rate hike in the first three quarters of 2020 coupled with long-term loans facilities availed by the company from commercial banks and ORIX leasing Pakistan Limited to manage its cash flow and working capital requirements. LOADS also availed SBP refinance scheme in 2020 for the payment of wages and salaries. This put further dent on the bottomline which posted net loss of Rs.137.33 million in 2020. Loss per share clocked in at Rs.0.91 in 2020. In 2021, the signs of COVID-19 began to melt away with a significant reduction in discount rate which spurred auto financing. The automobile sector registered a boom of 62 percent year-on-year in 2021. This resulted in growth of 69.77 percent year-on-year in the topline of LOADS which clocked in at Rs.4717.23 million in 2021. Pak Rupee depreciation took its toll on the cost of raw materials consumed during the year. Moreover, toll manufacturing, utility charges, salaries and wages etc also soared which drove the cost of sales up by 67.40 percent year-on-year in 2021. Gross profit grew by 100.62 percent in 2021 which resulted in GP margin ticking up to 8.42 percent. Rise in advertisement and promotion budget as well as outward freight raised the operating expense by 4 percent year-on-year. The impairment loss on trade receivables booked by LOADS in 2020 was reversed in 2021 due to recovery of outstanding receivables as the economy began to show signs of recovery. Other expense recorded a hefty rise of 297.34 percent in 2021 on the back of higher provisioning done for WWF and WPPF. Other income also recorded a rise of 15.49 percent in 2021 on the back of exchange gain, gain on disposal of fixed assets and reversal of provisions against inventory. Operating profit posted a staggering year-on-year rise of 140.45 percent in 2021 with OP margin clocking in at 8.4 percent – almost the same as GP margin for the year. Finance cost contracted by 37.94 percent year-on-year in 2021 due to downward revision in discount rate coupled with a drop in the outstanding loan portfolio of LOADS. The bottomline recorded net profit of Rs.123.88 million in 2021 with EPS of Rs.0.62. NP margin stood at 2.63 percent in 2021. In 2022, the boom of automobile industry continued whereby it registered a volumetric growth of 53 percent over previous year. This also provided impetus to the sales of LOADS which posted growth of 65.18 percent year-on-year to clock in at Rs.7791.96 million in 2022. Soaring inflation as well as Pak Rupee depreciation pumped up the cost of sales by 61.60 percent in 2022. Moreover, high toll manufacturing charges, salaries and wages as well as other employee benefits also played their part in escalating the cost of sales. However, upward price revisions and handsome volumes drove gross profit up by 104.11 percent in 2022 with GP margin clocking in at 10.41 percent. While operating expense posted a momentous growth of 40.82 percent in 2022, it was counterbalanced by a stunning growth in other income on account of markup earned on loans to subsidiaries. Operating profit boasted a growth of 114.15 percent in 2022 with OP margin of 10.94 percent, even higher than the GP margin recorded during the year – thanks to other income. Finance cost mounted by 70.51 percent in 2022 on the back of higher discount rate coupled with increased borrowings during the year. Bottomline grew by 115.67 percent in 2022 to clock in at Rs.267.17 million in 2022 with EPS of Rs.1.06. NP margin stood at 3.43 percent in 2022. In 2023, LOADs’s topline shrank by 42.33 percent to clock in at Rs.4493.83 million. This was the result of slowdown in the auto industry on the back of high financing rates, low purchasing power of consumers and import restrictions imposed by the Central Bank. Cost of sales slid by 46.13 percent in 2023, resulting in 9.62 percent plunge in gross profit in absolute terms. However, GP margin greatly improved during the year to clock in at 16.31 percent. Operating expense remained intact at the last year’s level owing to cost control measures put in place by the company. One such measure was the downsizing of its workforce from 733 employees in 2022 to 382 employees in 2023 which greatly curtailed the payroll expense. No profit related provisioning done during the year resulted in 82.94 percent decline in other expense in 2023. Other income strengthened by 68.42 percent in 2023 due to higher mark-up income recognized on loans to subsidiaries and greater gain recorded on the disposal of property, plant and equipment during the year. The major downbeat factor which resulted in operating loss in 2023 was the booking of provision for impairment in equity investment and mark-up recoverable from its associated company, Hi-Tech Alloy Wheels Limited (HAWL) to the tune of Rs.859 million and ECL against loan to HAWL to the tune of Rs.1345 million respectively. This was due to delay in the commissioning of its operations due to downturn of the auto industry. As a consequence, LOADS posted operating loss of Rs.1173.85 million in 2023. Finance cost also surged by 56.91 percent in 2023 due to high discount rate. Net loss clocked in at Rs.1255.67 million in 2023 with loss per share of Rs.5. In 2024, LOADS’s topline remained intact at the last year level of Rs.4.49 billion. The slump in auto industry sales continued to take its toll the volumes of LOADS in 2024. On the positive note, the appreciation in the value of local currency reduced the cost of sales by 3.96 percent in 2024, resulting in 19.87 percent improvement in gross profit in absolute terms. GP margin also attained an unprecedented level of 19.56 percent in 2024. The company kept a check on its operating expense which dipped by 1.20 percent in 2024. ECL against loan to subsidiary company, HAWL also increased by 12.98 percent in 2024. Other expense mounted by 456.82 percent in 2024 due to higher provisioning booked for WWF and WPPF. However, operating expense and other expense were offset by a staggering 221.69 percent rise in other income recorded during the year. This was primarily the result of gain on disposal of Korangi land and building coupled with mark-up income recorded on loans to subsidiaries. LOADS posted operating profit of Rs.884.28 million in 2024 with OP margin of 19.69 percent. Finance cost ticked up by 4.89 percent in 2024. The outstanding liabilities of LOADS greatly reduced during the year resulting in gearing ratio of 29 percent in 2024 versus gearing ratio of 44 percent recorded in the previous year. The company posted net profit of Rs.826.59 million in 2024 with EPS of Rs.3.29 and NP margin of 18.41 percent. In 2025, LOADS’s net sales strengthened by 34.35 percent to clock in at Rs.6032.90 million. This came on the back of robust demand from OEM which is reflective of the recovery of automobile sector during the year. Exhaust systems make up the biggest chunk of LOADS’s sales and posted year-on-year growth of 40 percent to clock in at Rs.3705 million in 2025. This was followed by sheet metal component sales which grew by 22 percent to clock in at Rs.2096 million and radiator sales which grew by 78 percent to clock in at Rs.231 million in 2025. Cost of sales grew by 30 percent in 2025. Stronger exchange rate and lower inflation enabled the company to control in cost and recorded 52.27 percent stronger gross profit in 2025. GP margin attained its optimum level of 22.17 percent in 2025. Operating expense surged by 32 percent in 2025 mainly on the back of higher payroll expense, outward freight expense, legal & professional charges as well as advertising & sales promotion expense incurred during the year. ECL against loan to subsidiary (HAWL) dipped by 64.73 percent in 2025. Increased profit related provisioning resulted in 83.63 percent surge in other expense in 2025. Other income deteriorated by 56.54 percent in 2025, however was huge enough to counterbalance operating and other expense entirely. The deterioration in other income was the result of lower mark-up income on loans to subsidiaries. LOADS recorded 34.61 percent higher operating profit in 2025 with OP margin staying largely intact at the last year level of 19.70 percent. Finance cost slid by 37.32 percent in 2025 due to monetary easing and lesser outstanding borrowings. Despite all these factors, LOADS’s net profit deteriorated by 40 percent to clock in at Rs.495.22 million in 2025. This was not due to operational inefficiency but due to high-base effect as the company recognized deferred tax asset on a higher amount of ECL on principal amount of loan recoverable from HAWL as per the requirements of IFRS. EPS was recorded at Rs.1.97 while NP margin tumbled to 8.21 percent in 2025. Recent Performance (9MFY26) During the nine-month period of the ongoing fiscal year, LOADS recorded 30.17 percent year-on-year improvement in its topline which clocked in at Rs.5657.66 million. While local sales were the main growth propeller, the company also registered export sales to the tune of Rs.6.02 million in 9MFY26. Robust local sales came on the back of increased demand from OEMs due to the revival of automobile sector. Sale of exhaust systems, sheet metal components and radiators grew by 29 percent, 30 percent and 54 percent respectively in 9MFY26. Sales mix optimization, stable exchange rate and higher absorption of fixed cost due to superior capacity utilization resulted in 27.82 percent improvement in gross profit in 9MFY26 with GP margin staying largely intact at around 21 percent. Augmented production operations and sales volume pushed up operating expense by 42.27 percent in 9MFY26. ECL against mark-up receivable from HAWK dipped by 30.70 percent in 9MFY26. Other expense escalated by 24.57 percent in 9MFY26 likely due to increased provisioning done for WWF and WPPF. Other expense was completely offset by other income of Rs.345.15 million recognized in 9MFY26, resulting in net other income of Rs.298.14 million, down 40.55 percent year-on-year. The decline in net other income in 9MFY26 was due to massive decline in gain on sale of property, plant and equipment, lesser mark-up income on loan to subsidiaries and lesser unrealized gain on the re-measurement of investments in 9MFY26. LOADS’s operating profit ticked up by 11.37 percent in 9MFY26 with OP margin clocking in at 15.24 percent versus OP margin of 17.81 percent recorded in 9MFY25. Finance cost ticked down by 11.86 percent in 9MFY26 due to monetary easing. This was despite massive increase in external short-term borrowings during the period. Net profit multiplied by 33.33 percent to clock in at Rs.380.945 million in 9MFY26. This translated into EPS of Rs.1.40 and NP margin of 6.73 percent in 9MFY26 versus EPS of Rs.1.06 and NP margin of 6.57 percent registered in 9MFY25. Future Outlook Enrichment of auto industry on the back of improvement in investor sentiment, introduction of new models and variants and growing vehicle base augur well for LOADS’s volumes. Lately, stability of Pak Rupee, declining interest rate as well as downtick in inflation also provided considerable support to the local industry and buttressed LOADS’s volumes. On the flipside, the permission for the commercial import of up to five year old vehicles tends to hurt the local automobile industry as well as ancillary industries which have endured a sustained period of thin volumes and under-utilization of their capacities. Moreover, regional tensions may suppress the local currency by inflating the energy import bill, driving up inflation and reversing the monetary easing cycle. This may also hurt the local automobile industry. To counter this risk, LOADS in efficiently building its room in after market and strengthening its foothold in the export market. [...]

Federal budget FY2026–27: Govt to slash power sector subsidies by around 20pc

June 1, 2026 11:58

ISLAMABAD: The government is set to slash power sector subsidies by around 20 percent to Rs 830 billion in the federal budget for 2026–27, compared to an allocation of Rs 1.036 trillion in 2025–26 and 7 percent from revised allocation of Rs 893 billion, sources told Business Recorder. However, the cumulative allocation under certain heads is expected to remain largely unchanged, with Rs 248 billion projected for FY2026–27 against Rs 249.136 billion in FY2025–26, reflecting a marginal reduction of 0.5 percent. According to sources, the Tariff Differential Subsidy (TDS) for distribution companies (Discos) and K-Electric (KE) is projected to decline to Rs 374.136 billion in FY2026–27 from Rs 411 billion in FY2025–26, marking a reduction of about 9 percent. READ MORE: Protected consumers: Leghari says power subsidies not being withdrawn In contrast, TDS for K-Electric alone is expected to increase significantly to Rs 163 billion in FY2026–27, compared to Rs 126 billion in FY2025–26, showing a rise of over 26 percent. Out of the total projected subsidy of Rs 830 billion, around Rs 419 billion is expected to be allocated for merged districts of Khyber Pakhtunkhwa (erstwhile FATA), TDS for Azad Jammu and Kashmir, and the Pakistan Energy Revolving Account (PERA) established to facilitate payments to Chinese independent power producers (IPPs) under the China-Pakistan Economic Corridor (CPEC). Additionally, funds will be earmarked to settle outstanding receivables of Chinese IPPs, estimated at around Rs 550 billion. The International Monetary Fund (IMF) has reduced the power subsidy ceiling from 0.7 percent to 0.6 percent of GDP for FY2026–27, citing a decline in the flow of circular debt due to improvements in operational efficiency and sector performance. According to the IMF’s staff report released on May 15, 2026, following the circular debt stock reduction operation in FY2025–26, the FY2026–27 budget will limit power subsidies to a maximum of Rs 830 billion, equivalent to 0.6 percent of GDP. The subsidy will cover: (i) tariff differential for Discos and KE; (ii) current and arrears payments for FATA; (iii) agricultural tube-wells; and (iv) circular debt stock payments to offset anticipated flows. The IMF is also pushing for a shift from untargeted cross-subsidies to direct, targeted cash transfers for low-income consumers through the Benazir Income Support Programme (BISP). On May 31, 2026, Minister for Power Sardar Awais Ahmad Khan Leghari stated at a press conference that the government has reduced power subsidies by Rs 475 billion—from Rs 1.287 trillion in FY2024–25 to Rs 830 billion projected for FY2026–27. Under its agreement with the IMF, the government is required to cap circular debt at Rs 1.614 trillion by June 2026, with zero growth in its flow. Currently, circular debt stands at over Rs 1.7 trillion, implying that substantial allocations will be required in the upcoming budget to meet these commitments. An official said the government has already removed a financial burden of Rs 250 billion from industrial consumers. However, industries are now pressing for the elimination of the remaining cross-subsidy of around Rs 100 billion, which would need to be absorbed by other consumer segments. Copyright Business Recorder, 2026 [...]

Special meeting of KATI team with PM to be arranged: Mashood

June 1, 2026 11:58

KARACHI: Chairman Prime Minister’s Youth Programme Rana Mashood has said that a special meeting will be arranged between a delegation of industrialists from the Korangi Association of Trade and Industry (KATI) and the Prime Minister, enabling them to directly present their proposals for industrial development. Efforts would also be made to release pending federal funding of Rs250 million for infrastructure improvement, he said while addressing industrialists at KATI. The event was attended by KATI President Muhammad Ikram Rajput, Deputy Patron-in-Chief Zubair Chhaya, Chairman KITE Limited Zahid Saeed, Senior Vice President Zahid Hamid, Vice President Muhammad Talha Ali, CEO KITE Ltd Saleem-uz-Zaman, Former Presidents and Chairmen Junaid Naqi and Masood Naqi, UBG President Zubair Tufail, Sindh Youth Programme Coordinator Dr Fahad Shafiq, Pakistan Muslim League-N Business Forum President Ishtiaq Baig, and other senior officials. Rana Mashood said that more than 900,000 skilled workers were sent abroad for employment last year, while the target for the current year has been set at 2.1 million. He added that agreements are being finalised with countries including Australia, New Zealand, Japan, the United States, and Middle Eastern states to facilitate overseas employment. He said young people will be provided modern professional training including soft skills, social ethics, and vocational competencies. He noted that in the next three years, Japan alone will require over 700,000 skilled workers, while Saudi Arabia and Gulf countries will need more than 100,000 healthcare professionals and nurses. He further stated that a Digital Youth Portal has been launched, registering over 800,000 young people, exceeding its operational capacity. The portal includes more than 4,000 organisations and has already facilitated over 100,000 job opportunities. Rana Mashood announced that an internship programme is also being launched under which educated youth will be placed in industries for six months. During this period, the government will cover all expenses, and successful candidates may be offered permanent employment within the same organisations. He added that beneficiaries of the Prime Minister’s laptop scheme have successfully utilized e-commerce platforms to generate self-employment opportunities and are now productively engaged in economy. Earlier, KATI President Muhammad Ikram Rajput said that initiatives under the Prime Minister’s Youth Programme related to education, skill development, digital training, business support, easy loan schemes, and employment opportunities are laying the foundation for Pakistan’s bright future. He emphasised that Pakistan’s large youth population is its most valuable asset, and with access to quality education, technical training, modern skills, and employment opportunities, they can become key drivers of economic growth and prosperity. He added that KATI has always played a positive role in promoting industry, trade, employment, and human resource development, and believes that strong linkage between industry and youth is essential to align graduates with market needs. Deputy Patron-in-Chief Zubair Chhaya said that Pakistan’s global standing has improved after May 2025 and that the country has emerged as a peaceful mediator in recent international tensions. He warned; however, that Pakistan risks missing a critical opportunity to strengthen its economy. He noted that the Korangi Industrial Area contributes around 10 percent of Pakistan’s total exports and that this share could be increased with improved policies. He stressed that youth make up around 60 percent of Pakistan’s population, yet adequate employment opportunities remain limited. He urged the government to urgently pursue industrialization policies, warning that Pakistan risks shifting from an industrial to a trading-based economy, which he termed concerning. He added that both the public and private sectors must work together to create opportunities for youth. Chairman KITE Limited Zahid Saeed highlighted Pakistan’s strategic geographic position, ports, and airports as key advantages. He said Karachi’s exports stand at around USD16 billion and remittances from overseas Pakistanis remain a lifeline for the economy. He added that vocational training for youth could increase remittances by USD4 billion annually, potentially reaching USD84 billion over the next decade. He also pointed out that a promised federal grant of Rs250 million to KITE Limited has yet to be released, although the Sindh government has provided Rs2 billion for development projects in the industrial area. He said federal funding would significantly improve Karachi’s infrastructure and increase government revenue. Senior Vice President KATI Zahid Hamid and Pakistan Muslim League-N Business Forum President Ishtiaq Baig also addressed the gathering. Copyright Business Recorder, 2026 [...]

SC requested to withdraw order in Mazari, Chattha case

June 1, 2026 11:58

ISLAMABAD: The Supreme Court has been requested to recall/withdraw its May 12 order directing the Islamabad High Court (IHC) to decide human rights lawyers – Imaan Zainab Mazari and Hadi Ali Chattha – applications for suspension of their sentences in two weeks. The National Cyber Crime Investigation Agency (NCCIA) on Monday filed an application before the apex court, requesting it to recall and withdraw the order to help preserve the “sanctity and independence of the judiciary, maintaining equality among citizens and avoiding discriminatory treatment towards the couple merely on account of being members of the bar”. Justice Muhammad Azam Khan, a judge of the IHC, on Monday, on the request of the prosecution, adjourned the hearing of Imaan and Hadi’s pleas seeking suspension of their sentences until Thursday (June 4). The prosecutor who attended the hearing informed the court that one of his team members was travelling from Lahore while another was engaged in proceedings before the IHC chief justice. At that, Justice Azam remarked that he was specifically at the court for the hearing of Imaan’s and Hadi’s pleas despite being nominated for mediation training. The couple was in jail since their arrest in January in a case registered against the two for protesting outside the IHC and allegedly manhandling the IHC Bar Association (IHCBA) president. The sessions court, in January, sentenced the duo to 10 years’ imprisonment under Section 10 (cyber terrorism), five years’ imprisonment under Section 9 (glorification of an offence), and two years’ imprisonment under Section 26-A (false and fake information) of the Prevention of Electronic Crimes Act, 2016 (Peca). In December 2025, Imaan and her husband had moved the apex court to set aside IHC’s decision that denied interim relief in the controversial social media post case. The Supreme Court on May 12 had ordered the IHC to decide the couple’s suspension of sentence applications within two weeks. The NCCIA, in its petition, contended that the couple had invoked the jurisdiction of the SC under Article 185(3) of the Constitution under the pretext of an “order” in which IHC had issued notices to the respondents with an observation that the contentions raised need consideration. “The issuance of ‘notice’ does not fall in the ambit of Article 185(3) as the appeal can only lie to the Supreme Court from a ‘judgment’, ‘decree’, ‘order’, or ‘sentence of a high court. Hence their appeal was not maintainable,” the petition argued. NCCIA underscored SC’s consistent and long-standing practice of not interfering in matters pending before high courts on the initial/interlocutory stage, except in extraordinary or highly exceptional circumstances. It said the couple had approached the SC with the grievance that their applications for early hearing were not fixed or heard. Normally, the superior courts avoid intervention in such matters unless there is a situation where grave illegality is committed, or to foster justice, or the matter is of an urgent nature, the petition argued. The NCCIA contended that the couple seemed not interested in the fixation of their criminal appeals; rather, they were insistent on getting a decision on their application filed under Section 426 of the CrPC. For that purpose, they filed two applications for early hearing, a fact which was evident from their petition filed before the SC. The NCCIA argued that the main grievance of the couple before the SC was that they had been denied a fair trial under Article 10-A of the Constitution, as their two applications for early hearing of applications for suspension of sentence were not fixed. But the SC’s binding order to the IHC seemed to give “special treatment” to Imaan and Hadi for being members of the Bar, the petition feared. The same treatment was accorded to them by the trial court when they remained hostile and derogatory, as the trial court showed “restraint” from passing any adverse order against them, the NCCIA asserted. It further said that before passing any direction to the IHC, the SC should have called for a report of pending appeals and applications for the suspension of the sentences before the high court, so that principles of fairness, equality, and impartiality were maintained, and to avoid an impression of extraordinary treatment to the petitioners. The NCCIA highlighted that the lawyers had also filed petitions against the IHC chief justice, alleging harassment. It said after the SC hearing, Imaan’s mother had categorically said that by issuing the May 12 order, the SC had “accepted” the IHC’s bias against her daughter. “Her statement is clearly creating doubts on the independence of the judiciary,” the petition said. Copyright Business Recorder, 2026 [...]

Digital filing platform: Public offices directed to transition entirely by July 1

June 1, 2026 11:58

LAHORE Public offices across the province have been directed by the Punjab government to transition entirely to a digital filing platform by July 1, marking a government-led structural overhaul intended to eliminate physical paperwork and reduce administrative spending. The expansion of the E-Filing and Office Automation System (e-FOAS)—which is already active across central provincial departments and attached bodies—means all regional and district field offices will be legally barred from using manual paper correspondence starting next month. Official estimates suggest the phase-out of traditional files will prevent billions of rupees in annual administrative overhead. The directive was issued by the Punjab Chief Secretary Punjab during a Secretaries Conference at the Civil Secretariat here on Monday. The high-level session was attended in person by the Additional Chief Secretary, Senior Member of the Board of Revenue, and provincial administrative secretaries, while divisional commissioners and deputy commissioners participated via video link. According to the Chief Secretary, the digital system is being deployed to standardize transparency, decrease processing delays, and accelerate the resolution of public grievances. The Punjab Information Technology Board (PITB) was credited with managing the technical transition away from manual record-keeping. During the meeting, the Chief Secretary also acknowledged the performance of administrative officers, local government institutions, and field teams during Eid-ul-Azha, noting that solid waste management targets were met despite extreme summer temperatures. Copyright Business Recorder, 2026 [...]

Minister pledges record development budget

June 1, 2026 11:58

KP to launch agri uplift schemes in merged districts

June 1, 2026 11:58

PESHAWAR: The government of Khyber Pakhtunkhwa has decided to launch 16 agricultural sector development schemes under the Accelerated Implementation Programme (AIP) for the uplift of erstwhile Federal Administered Tribal Area (Fata) in merged districts. It was stated during a review meeting on Agriculture Department’s Annual Development Programme (ADP) for the upcoming financial year 2026-27 with Advisor to KP CM on Agriculture on Mian Muhammad Umar Kakakhel in the chair here on Monday. The advisor was given a detailed briefing on ongoing and proposed development projects under Annual Development Programme for 2026-27. The proposed initiatives include promotion of innovate farming through advanced agricultural machinery, installation of solarised tube-wells and efficient groundwater management systems to enhance agricultural production, promotion of biological pest control and feasibility studies for cold chain infrastructure to reduce post-harvest losses, expansion of olive cultivation, strengthening of virus-free seed potato production systems, establishment of a tissue culture laboratory for Dhakki dates and upgradation of germplasm resource centers. To empower youth and develop human resources in agricultural sector, the government is also introducing interest-free loans for agriculture graduates, educational scholarships in agricultural sciences and internship programmes. Other important initiatives include the establishment of a Mountain Agricultural Research Centre in Lower Dir, promotion of temperate horticultural crops, estimation of greenhouse gas emissions from agricultural sector, improvement of crop estimation systems, development of command areas of small dams, enhancement of irrigation infrastructure and expansion of smart irrigation projects. Agriculture Department has also proposed a major project titled “Protection of Vulnerable Agricultural Land through Land Stabilisation Structures in Khyber Pakhtunkhwa” to address the challenges posed by climate change and land erosion. Under this project, 1,150 agricultural land stabilisation structures will be constructed across the province, including merged districts, to protect farmland from erosion, rainwater runoff and declining soil fertility. Similarly, proposed programme includes projects aimed at supporting women farmers in the merged districts, promoting small businesses, encouraging cultivation of high-value crops and seasonal vegetables in Tirah Valley, establishing a Tribal Agricultural Research Centre, promoting honey production and ensuring sustainable management of water resources. Speaking on the occasion, Advisor Mian Muhammad Umar said that several new development projects have been proposed under Annual Development Programme (ADP) 2026-27 to promote agricultural growth, modern technology, efficient utilisation of water resources, climate change adaptation and farmers welfare. He stated that proposed initiatives aim to increase agricultural productivity, strengthen rural economy, and create new opportunities for agricultural development across the province, particularly in the merged districts. Copyright Business Recorder, 2026 [...]

KP CM approves provincial youth policy 2026

June 1, 2026 11:58

PESHAWAR: Chief Minister Khyber Pakhtunkhwa, Muhammad Sohail Afridi, has accorded in-principles approval to the Khyber Pakhtunkhwa Youth Policy 2026. The policy will be submitted to the Provincial Cabinet for final approval. Chairing a meeting of the Sports and Youth Affairs Department at the Chief Minister’s House, Peshawar, the Chief Minister directed the relevant authorities to undertake comprehensive legislation for the protection and promotion of youth interests. He emphasized that with young people constituting a significant proportion of the province’s population, safeguarding their interests and investing in their development is both a strategic necessity and a moral imperative. “The next provincial budget will be a youth-focused budget,” the Chief Minister stated, adding that the Khyber Pakhtunkhwa Government is investing in human capital. The Chief Minister directed the quarters concerned to ensure the establishment of Jawan Markaz facilities in every district of the province and instructed that empowered local governing bodies be constituted to ensure their effective management and sustainability. He further emphasized the need to prioritize the provision of digital skills training to equip young people for emerging economic opportunities. The meeting was informed that more than Rs. 7 billion would be invested in youth development initiatives over the next two years under the proposed youth policy framework. The policy is built around four core pillars: education, employment, environment, and youth engagement in social and civic affairs. Participants were briefed that key policy objectives include universalizing secondary education, particularly for females, and expanding access to higher education. The policy also envisages scholarships and training opportunities for females, the establishment of Jawan Markaz facilities, and mobile outreach services in rural and newly merged districts. The meeting was further informed that the policy incorporates measures to promote inclusion and equitable access to opportunities. These include assistive facilities for young persons with disabilities, livelihood support for transgender youth, and dedicated quotas for minority youth across various programmes. In addition, the policy seeks to align technical education curricula with market requirements while expanding access to digital skills training and future-ready competencies. The proposed framework also includes interventions aimed at creating employment opportunities across multiple sectors, introducing youth internship programmes in both the public and private sectors, and providing entrepreneurship support to aspiring young people. Furthermore, the policy envisages the establishment of youth councils at both provincial and district levels, as well as volunteer groups to promote community service and civic engagement among young people. The meeting was informed that digital transformation, youth-friendly governance, youth health, and social well-being constitute important components of the policy framework. Participants were also briefed on proposals to activate the Khyber Pakhtunkhwa Youth Development Commission and establish a dedicated Youth Development Fund to support the implementation of youth-focused initiatives across the province. Copyright Business Recorder, 2026 [...]

Budget proposals submitted: Govt should reduce GST rate up to 15pc: UBG

June 1, 2026 11:58

Freelancers demand retaining 0.25pc tax on foreign earnings

June 1, 2026 11:58

Tobacco taxation regime: FED collection in FY2025-26 triggers fresh debate: WHO policy

June 1, 2026 11:58

ISLAMABAD: The World Health Organisation’s (WHO) recently released policy brief reviewing that Federal Excise Duty (FED) revenue collection from cigarettes in FY2025-26 has triggered fresh debate on Pakistan’s tobacco taxation regime, with policy experts arguing that the report does not adequately reflect the country’s growing illegal cigarette market and its implications for tax revenues. Responding to the issued brief, Mubashar Akram, Country Director of ACT Alliance Pakistan, said Pakistan’s tobacco taxation debate must be based on actual market dynamics rather than assumptions that treat the entire cigarette market as tax-compliant. “The key challenge facing Pakistan is not simply the level of taxation. The real issue is the shrinking tax-paid market caused by the rapid expansion of illegal cigarette trade, which continues to erode the government’s revenue base,” Akram said. According to Akram, WHO’s argument that the absence of inflation-adjusted FED increases has reduced the real value of cigarette taxes fails to account for the structural composition of Pakistan’s cigarette market. Citing findings from the Pakistan Cigarette Market Assessment conducted by Ipsos, he said illegal cigarettes now account for approximately 54 percent of total cigarette consumption in Pakistan. Complementary estimates based on Oxford Economics analysis indicate that over 40 billion illegal cigarette sticks are consumed annually in a market estimated at around 80 billion sticks. “These figures suggest that more than half of cigarette consumption is occurring outside the tax net. Under such circumstances, any increase in statutory tax rates applies only to the compliant segment of the market, limiting its overall impact on revenue collection,” he stated. Akram argued that available evidence points to a strong correlation between higher legal cigarette prices and the growth of illegal trade. “When the price gap between tax-paid and untaxed cigarettes widens, consumers increasingly shift toward cheaper illegal products. As a result, higher taxes may not necessarily translate into higher revenues and can instead accelerate the migration of consumers to the illegal market,” he said. Referring to production data from the Pakistan Bureau of Statistics (PBS), Akram highlighted historical trends that demonstrate the relationship between excise increases and declines in legal cigarette production. According to PBS data, tax-paid cigarette volumes fell from approximately 67 billion sticks to 37 billion sticks following successive excise increases between FY2013 and FY2017. After subsequent tax reforms and a period of relative fiscal stability, legal volumes recovered to nearly 60 billion sticks. However, following substantial tax increases implemented during FY2022 to FY2024, legal production once again declined sharply to approximately 33 billion sticks, before showing signs of recovery in recent months. “This recurring pattern suggests that sharp tax increases often shift production and consumption from formal channels to illegal ones rather than sustainably expanding the tax base,” Akram noted. WHO’s policy brief also argues that maintaining current tax rates has contributed to increased cigarette consumption and limited revenue growth. However, Akram said available evidence paints a different picture. “Following significant FED increases during 2022 and 2023, legal cigarette sales volumes declined sharply while overall consumption remained broadly stable. This indicates substitution from taxed products to untaxed products rather than a meaningful reduction in demand,” he explained. He added that revenue gains from higher tax rates have been relatively modest compared with the magnitude of the increases because the taxable base itself contracted. “This effect was particularly evident in the premium segment, where rising prices coincided with falling volumes and a shrinking tax base,” he said. Akram noted that the phenomenon is consistent with established economic theory. “As tax rates increase beyond a certain threshold, marginal revenue gains begin to decline because consumers switch to lower-taxed or untaxed alternatives. This is consistent with the principles of the Laffer Curve, where excessively high rates can weaken the effective tax base and reduce revenue efficiency,” he explained. Addressing WHO’s suggestion that stable tax rates have reduced real cigarette prices and contributed to increased consumption, Akram said there is little evidence to support claims of sustained growth in aggregate demand. “Long-term market estimates indicate that Pakistan’s annual cigarette consumption has remained broadly stable at approximately 80 billion sticks. The major change has been the movement of volumes between the legal and illegal sectors rather than an overall increase in smoking,” he said. According to Akram, recent increases in recorded legal production should therefore be interpreted cautiously. “Improved enforcement measures can lead to the recapture of illegal volumes into the formal economy. Consequently, higher legal production figures do not necessarily mean overall cigarette consumption has increased,” he stated. The WHO brief also attributes the growing share of economy cigarette brands to industry efforts aimed at reducing tax liabilities. However, ACT Alliance Pakistan maintains that the trend is primarily consumer-driven. “Pakistan is an extremely price-sensitive market, particularly among lower-income consumers. Affordability pressures naturally encourage smokers to switch to lower-priced products,” Akram said. He cited findings from IPOR and Ipsos market studies, which indicate that more than 50 percent of cigarette brands on the market are sold below the legally mandated minimum retail price. Many of these products, he added, are also sold without mandatory graphic health warnings and other regulatory requirements. “These findings highlight the scale of market non-compliance. Consumers are not only shifting from premium to economy brands within the legal market but also moving toward illegal products that are significantly cheaper and widely available,” he said. Akram argued that illegal trade undermines both fiscal and public health objectives. “When illegal products dominate a substantial portion of the market, governments lose tax revenue while tobacco-control measures such as minimum pricing regulations, health warnings and TAPS restrictions become less effective,” he noted. While reaffirming support for evidence-based tobacco control policies, Akram emphasized that enforcement must precede any further tax increases. “Sustainable revenue growth depends on expanding the compliant tax base rather than repeatedly increasing rates on a shrinking formal sector,” he said. He called for stronger implementation of track-and-trace systems, tighter control over tobacco inputs and raw materials, enhanced market surveillance, and coordinated action against illegal supply chains. “Without meaningful improvements in enforcement and compliance, further excise increases or automatic tax indexation are unlikely to deliver the intended revenue outcomes. The priority should be to bring the untaxed market into the formal economy before imposing additional burdens on compliant taxpayers,” Akram concluded. Copyright Business Recorder, 2026 [...]

Dar, Egypt’s FM discuss developments in region

June 1, 2026 11:58

ISLAMABAD: Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar on Monday received a telephone call from Egypt’s Foreign Minister, Badr Abdelatty. The two leaders discussed the latest developments in the region. They emphasized the need for sustained diplomatic engagement to promote peace and stability, particularly at this stage. Both sides agreed to remain in close contact. Copyright Business Recorder, 2026 [...]

Business community concerned federal budget

June 1, 2026 11:58

RSS Error: A feed could not be found at `https://www.thenews.com.pk/rss/1/1`; the status code is `403` and content-type is `text/html; charset=UTF-8`

RSS Error: A feed could not be found at `https://www.thenews.com.pk/rss/1/2`; the status code is `403` and content-type is `text/html; charset=UTF-8`

RSS Error: A feed could not be found at `https://jang.com.pk/rss/1/1`; the status code is `403` and content-type is `text/html; charset=UTF-8`

RSS Error: A feed could not be found at `https://jang.com.pk/rss/1/2`; the status code is `403` and content-type is `text/html; charset=UTF-8`

RSS Error: A feed could not be found at `https://jang.com.pk/rss/1/3`; the status code is `403` and content-type is `text/html; charset=UTF-8`

Job seekers are using ‘AI role-play’ to negotiate salary. Here’s how to do it.

June 2, 2026 12:38

These AI prompts can help make you a master salary negotiator at your next job interview. [...]

HPE’s stock soars toward record gain as earnings show a networking bonanza

June 2, 2026 12:21

The artificial-intelligence buildout is driving intense demand for networking and servers, and Hewlett Packard Enterprise is reaping the rewards. [...]

Alphabet asks shareholders to foot an $80 billion bill for AI expansion

June 2, 2026 12:19