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PTCL Swings To Profit In Q2 As Revenue Climbs; Still No Dividend Recommended
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PTCL Swings To Profit In Q2 As Revenue Climbs; Still No Dividend Recommended

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PTCL Returns To Profit In Second Quarter Pakistan Telecommunication Company Limited (PTCL) reported a turnaround in profitability for the quarter and half-year ended 30 June 2026, reversing prior-year losses on both unconsolidated and consolidated bases. The Board of Directors, meeting on 28 July 2026 in Islamabad, recommended no cash dividend, bonus shares, right shares or other entitlement. Unconsolidated Results Revenue for the three months rose 10% to Rs32.24 billion from Rs29.31 billion a year earlier. Gross profit stood at Rs8.67 billion against Rs8.27 billion. Operating profit improved to Rs3.93 billion from Rs3.69 billion. After a much smaller past-service pension cost (Rs355 million versus Rs5.89 billion last year) and higher other income, the company posted a pre-tax profit of Rs2.66 billion compared with a loss of Rs4.82 billion. Net profit for the quarter was Rs2.73 billion (EPS Rs0.53) against a loss of Rs4.44 billion (LPS Rs0.87). For the six months, revenue reached Rs63.75 billion (up from Rs58.91 billion). Net profit was Rs3.63 billion (EPS Rs0.71) versus a loss of Rs3.26 billion (LPS Rs0.64). Consolidated Results Group revenue jumped sharply to Rs103.82 billion in the quarter from Rs62.75 billion, lifting gross profit to Rs37.12 billion from Rs20.81 billion. Operating profit more than doubled to Rs15.90 billion from Rs7.40 billion. Net profit for the three months was Rs1.60 billion (EPS Rs0.31) against a loss of Rs5.93 billion (LPS Rs1.16). For the half-year, consolidated revenue rose to Rs201.67 billion from Rs124.60 billion and net profit stood at Rs4.67 billion (EPS Rs0.92) versus a loss of Rs9.90 billion (LPS Rs1.94). Cash Flow And Financial Position Finance costs remained elevated on both bases. Net cash generated from operating activities strengthened, though investing and financing outflows kept overall cash positions under pressure. Equity on the unconsolidated balance sheet improved to Rs130.73 billion at 30 June 2026 from Rs127.10 billion at year-end 2025. No Dividend Recommended The Board of Directors recommended no cash dividend, bonus shares, right shares or any other entitlement for shareholders. The quarterly report will be transmitted through PUCARS within the prescribed timeframe.

Govt Picks Rs98bn Interest Cost To Push Exports With Cheap 5% Long-Term Loans
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Govt Picks Rs98bn Interest Cost To Push Exports With Cheap 5% Long-Term Loans

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Government Approves Rs98 Billion Export Support Package ISLAMABAD: The government on Monday approved a Rs98 billion subsidy to provide highly cheaper loans to exporters, including 10-year financing at a fixed 5% rate, in a fresh bid to reverse a 6% drop in exports during the last fiscal year. Three Schemes Cleared By ECC Performance Rebate And Long-Term Facility Launched The Economic Coordination Committee, chaired by Finance Minister Muhammad Aurangzeb, endorsed three schemes recommended by the central bank for the current fiscal year and beyond. Under the enhanced Exim-administered Export Finance Scheme, exporters will access six-month working capital loans at 8.5%. The government will pick the remaining 5% interest cost, requiring a Rs58 billion subsidy this year. The scheme’s portfolio has been raised from Rs1 trillion to Rs1.5 trillion to expand access. Some ECC members sought caps on maximum limits to ensure wider distribution of cheaper funds. New Long-Term Financing Facility For Export Growth A new Long-Term Export Growth Financing Facility will offer loans at 2% for the first two years and a fixed 5% for the subsequent eight years. It targets new export-oriented projects and balancing, modernisation and replacement of existing units. Loans of Rs350 billion are projected under the facility, with a total subsidy impact of around Rs196 billion over time as the government absorbs interest costs up to 11.5%. This year’s estimated cost is Rs25 billion. The existing long-term facility with variable rates had drawn limited interest due to rate risk. The fixed-rate structure is designed to remove that uncertainty for businesses planning capacity expansion. Performance-Based Rebates To Reward Export Growth The third measure is a performance-based rebate on incremental exports, effective from July 1, 2026, at an annual cost of Rs15 billion. Exporters achieving up to 10% growth over the previous year will receive a 1% rebate on the incremental value. Those recording growth above 10% will qualify for a 2% rebate. The finance ministry said the total estimated subsidy impact of the export schemes over 10 years stands at Rs270 billion at current interest rates. The government last month withdrew a Rs76 billion subsidy on foreign remittance transfer costs, signalling a clear preference for export promotion. Exports trailed remittances by $11.5 billion in the last fiscal year. The ECC directed that a six-month performance report on the new schemes be presented to assess their impact. Officials noted that earlier incentives had failed to prevent the 6% export decline. Focus Shifts Towards SMEs And Sustainable Export Expansion The package places emphasis on fixed low-rate financing and greater inclusion of small and medium enterprises.

Pakistan Exports to Saudi Arabia, Qatar Decline as Regional Tensions Hurt Trade
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Pakistan Exports to Saudi Arabia, Qatar Decline as Regional Tensions Hurt Trade

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Pakistan’s exports to Middle East countries declined by more than 2 per cent during fiscal year 2025-26 (FY26), reflecting the impact of prolonged geopolitical tensions and conflict in the region on bilateral trade. According to data compiled by the State Bank of Pakistan (SBP), exports to Middle Eastern markets fell to $3.093 billion in FY26 from the previous fiscal year, as shipments to several key destinations weakened amid ongoing instability in the region. The decline highlights the growing challenges facing Pakistani exporters as conflicts in the Middle East continue to disrupt supply chains, trade routes and business activity. Exports Decline Across Major Markets Pakistan recorded lower exports to several important trading partners, including Saudi Arabia, Qatar, Bahrain and Jordan, during FY26. Among the Gulf countries, Saudi Arabia remained one of Pakistan’s largest export destinations despite a decline in trade. Exports to the Kingdom fell 3 per cent to $682.56 million in FY26 compared with $706.04 million recorded in the previous fiscal year. Exports to Qatar, Bahrain and Jordan also registered declines during the year, reflecting weaker regional demand and the impact of ongoing geopolitical uncertainty. However, Kuwait stood out as the only major market in the region where Pakistani exports increased during FY26. Meanwhile, exports to the United Arab Emirates (UAE)—Pakistan’s largest export market in the Middle East—remained largely unchanged, helping limit the overall decline in regional exports. Imports Also Register Decline Pakistan’s imports from the Middle East also contracted during FY26. According to the SBP data, imports declined 4 per cent to $16.413 billion, compared with $17.097 billion in the previous fiscal year. The reduction was primarily driven by lower imports from Bahrain, Qatar and Kuwait, while imports from the UAE, Saudi Arabia and Jordan recorded growth during the same period. The decline in imports reflects changing trade patterns as Pakistan adjusted its purchasing decisions amid volatile global energy prices and regional security concerns. June Marks Fourth Consecutive Monthly Contraction Trade data showed that June became the fourth month of import contraction since March, underlining the continued impact of geopolitical developments on Pakistan’s external trade. The trend suggests that Pakistan’s import flows remain highly sensitive to developments in the Middle East, particularly disruptions affecting regional energy corridors and shipping routes. Rising geopolitical risks have increased uncertainty in international commodity markets, influencing both the availability and cost of imported goods. Pakistan Remains Dependent on Gulf Energy Supplies Despite the decline in overall imports, Pakistan continues to rely heavily on the Gulf region for its energy requirements. The data indicates that approximately 90 per cent of Pakistan’s energy imports originate from the United Arab Emirates and Saudi Arabia, making the two countries the nation’s primary energy suppliers. Other Gulf producers—including Qatar, Kuwait, Oman and Bahrain—continue to play supporting roles in Pakistan’s energy imports despite their significant production and export capacity. The country’s heavy dependence on Middle Eastern oil and petroleum products means that any disruption in regional supply chains can have a direct impact on Pakistan’s economy, inflation and energy security. Trade Deficit Narrows in FY26 Although exports declined, Pakistan’s trade deficit with the Middle East narrowed during FY26 due to the sharper fall in imports. The trade deficit decreased 4.48 per cent to $13.32 billion, compared with $13.94 billion in the previous fiscal year. The improvement follows a challenging FY25, when Pakistan’s trade deficit with the Middle East widened 7.37 per cent to $13.97 billion, up from $13.01 billion recorded in FY24. The narrower deficit suggests that slower import growth helped offset weaker export performance, although Pakistan continues to maintain a substantial trade imbalance with the region. Regional Stability Remains Crucial The latest trade figures underline the importance of stability in the Middle East for Pakistan’s external sector. The Gulf region remains one of Pakistan’s most significant trading partners, supplying the bulk of its energy imports while also serving as an important destination for Pakistani food products, textiles, surgical instruments and other manufactured goods. Analysts believe that sustained geopolitical tensions could continue to affect trade volumes, shipping costs and business confidence in the coming months. Conversely, an improvement in regional stability could support stronger export growth and smoother import flows, particularly in the energy sector. With the UAE and Saudi Arabia remaining Pakistan’s key economic partners in the Middle East, future trade performance will largely depend on global oil market conditions, regional security and the pace of economic activity across Gulf economies.

Rising Scams Force Banks to Embrace Real-Time AI Detection
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Rising Scams Force Banks to Embrace Real-Time AI Detection

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Fraud complaints lodged with Banking Mohtasib Pakistan climbed to 4,615 in 2025, up from 4,171 a year earlier and 3,489 in 2023, underscoring the rising pressure on the country’s banking system amid rapid digital expansion. Rising Cyber Threats Outpace Traditional Defences Phishing attacks surged tenfold between 2019 and 2023, while other cyber threats, including malware and stolen credentials, rose eightfold over the same period, according to cybersecurity firm CTM360. Conventional rule-based monitoring systems are struggling to keep pace with increasingly sophisticated tactics such as fake social media ads, UAN spoofing and identity theft. AI Offers Real-Time Edge Over Rule-Based Systems AI-powered platforms can analyse millions of transactions in real time, flag unusual behavioural patterns and stop suspicious activity before funds leave accounts. Muhammad Waleed, an AI quality engineering expert, said the technology improves both speed and accuracy by combining machine learning, deep learning and big data analytics. Banks, regulators and technology providers must therefore build technical capacity to deploy these systems effectively across commercial banks, branchless banking and fintech platforms. Continuous Innovation Is Essential for Fraud Prevention Abdus Samad Khan, CEO of iPath, called for continuous testing, upgrades and expert feedback so that fraud-management systems evolve as fast as the threats themselves. Pakistan’s financial inclusion index reached 58.1 in 2024, with account ownership at 67 percent, yet the quality sub-index lagged at 43.9, highlighting gaps in service standards and security. The State Bank of Pakistan’s National Financial Inclusion Strategy 2024-28 prioritises consumer protection and stronger cybersecurity frameworks in coordination with PKCERT. A Multi-Layered Approach Is Critical Experts stress that technology alone is not enough. AI must be paired with financial literacy campaigns, customer awareness drives, tighter regulatory oversight and closer cooperation with law-enforcement agencies. Without this multi-layered approach, the same digital channels that expand access risk eroding public trust through higher fraud losses.

China Unveils Hybrid Rice Cloning Technology to Cut Seed Production Costs
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China Unveils Hybrid Rice Cloning Technology to Cut Seed Production Costs

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Chinese researchers have achieved a major scientific breakthrough by developing hybrid rice cloning technology that allows hybrid rice plants to reproduce through cloning rather than traditional fertilisation. The innovation has the potential to revolutionise seed production, significantly reduce farming costs, and improve global food security by preserving the superior characteristics of hybrid rice across multiple generations. The breakthrough was made by a research team led by Wang Kejian from the China National Rice Research Institute. Scientists discovered a naturally occurring rice gene called HUAXU, which enables egg cells in hybrid rice to initiate parthenogenesis, a natural process in which seeds develop without fertilisation. The findings have been published in the scientific journal Vita, highlighting a major advance in crop breeding technology. Hybrid Rice Cloning Technology Preserves Superior Genetic Traits Researchers combined the HUAXU gene with an advanced cloned gamete technique to create several apomictic rice lines capable of producing seeds that are almost genetically identical to the parent plant. Unlike conventional breeding methods, this process allows hybrid rice plants to reproduce without losing their desirable traits, making hybrid rice cloning technology one of the most promising developments in modern agriculture. According to the research team, laboratory experiments and field trials produced remarkable results. The cloning success rate reached nearly 100%, while tests conducted across different rice varieties, environmental conditions, and successive planting generations consistently recorded efficiencies exceeding 99%. Importantly, researchers observed no reduction in crop yields, demonstrating that the technology maintains both productivity and genetic stability. Scientists Aim to Replace Traditional Hybrid Seed Systems The achievement represents a significant step towards developing what scientists describe as a “one-line hybrid rice” production system. Current hybrid rice breeding relies on two-line and three-line systems that require fresh hybrid seed production every planting season. Although hybrid rice delivers higher yields because of hybrid vigour, these genetic advantages gradually disappear in later generations due to natural genetic segregation. As a result, farmers around the world are forced to purchase new hybrid seeds each year to maintain crop performance. This annual process increases production costs for seed companies and creates additional financial burdens for farmers, particularly in developing countries where agriculture remains a primary source of income. Hybrid Rice Cloning Could Reduce Farming Costs The newly developed hybrid rice cloning technology aims to eliminate this long-standing challenge. By enabling hybrid rice plants to produce clonal seeds through apomixis, the technology allows future generations of rice plants to retain the exact genetic characteristics of the original hybrid variety. This means farmers could potentially save seeds from one harvest and replant them without losing the high-yield traits that make hybrid rice so valuable. In principle, researchers say a single hybridisation event could provide seed supplies for continuous cultivation over many generations. Such an approach would dramatically simplify hybrid seed production while lowering costs throughout the agricultural supply chain. It could also make high-performing rice varieties more accessible to farmers in regions where purchasing new seeds every season is financially difficult. Technology Could Strengthen Global Food Security Rice remains the staple food for more than half of the world’s population, making improvements in rice production essential for ensuring long-term food security. As climate change, population growth, and shrinking agricultural land place increasing pressure on global food systems, scientists continue searching for innovative ways to increase crop productivity while reducing production costs. Experts believe this new breeding approach could play an important role in addressing those challenges. Stable hybrid varieties capable of reproducing through cloning would enable farmers to consistently harvest high-yield crops without repeatedly investing in expensive hybrid seeds. The technology may also reduce the complexity of commercial seed production, making agricultural systems more efficient and resilient. Future Applications Extend Beyond Rice According to Wang Kejian, the breakthrough addresses one of the most persistent challenges in crop breeding by making it possible to permanently preserve hybrid vigour through seeds. He said the technology could pave the way for lower seed production costs, greater agricultural efficiency, and stronger long-term food security. Beyond rice cultivation, the discovery could have broader implications for crop science. If similar genetic mechanisms are identified in other staple crops, scientists may eventually apply comparable cloning techniques to improve wheat, maize, and other important food crops. Such advances could help strengthen global food supplies while supporting sustainable agricultural development in the coming decades. Although further research and regulatory evaluations will be required before the technology is adopted on a commercial scale, the discovery marks an important milestone in agricultural biotechnology. Scientists believe hybrid rice cloning technology could fundamentally reshape the future of crop breeding by allowing hybrid crops to maintain their superior performance indefinitely. The Future of Hybrid Rice Cloning Technology As research progresses, this innovation may become one of the most significant advances in modern agriculture, offering farmers a practical solution to improve productivity while contributing to global efforts to ensure a stable and sustainable food supply for future generations.

Govt Cuts Mark-Up on Development Loans to 11.89% for FY2025-26
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Govt Cuts Mark-Up on Development Loans to 11.89% for FY2025-26

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The federal government has reduced the mark-up rate on development loans and advances to provincial governments, public sector entities and other government institutions by nearly six percentage points for the fiscal year 2025-26, following a sharp decline in the State Bank of Pakistan’s policy rate. According to a notification issued by the Ministry of Finance (MoF) on Friday, the mark-up rate has been fixed at 11.89% for the fiscal year ending June 30, 2026, compared with 17.74% in 2024-25 and 17.84% in 2023-24. The reduction comes after the State Bank lowered its benchmark policy rate from a peak of 22% to 11.5%, significantly reducing the government’s borrowing costs. Lower Policy Rate Drives Reduction The revised mark-up reflects the government’s annual adjustment based on its own debt servicing costs, which are linked to yields on Pakistan Investment Bonds (PIBs) and Treasury Bills (T-bills). Although the latest reduction amounts to 5.85 percentage points compared with the previous fiscal year, the current rate remains around 15.4% higher than the 10.30% charged in 2020-21. The notification also confirmed that the same 11.89% annual mark-up will apply to government loans and advances provided for house building and vehicle purchases during FY2025-26. Loans Cover Provinces, SOEs and Public Institutions The mark-up applies to Cash Development Loans (CDLs) extended by the federal government to: Provincial governments.Azad Jammu and Kashmir (AJK).Gilgit-Baltistan.Local government bodies.State-owned enterprises (SOEs).Autonomous organisations.Public sector financial institutions.Non-financial public sector institutions.Commercial departments of the federal government. These loans are provided to finance development projects, infrastructure schemes and social sector programmes across the country. The federal government also extends foreign re-lent loans obtained from international development partners to eligible public sector institutions. Major Source of Federal Revenue Interest earned on these loans has become an increasingly important source of federal government revenue over the past decade. According to official figures, the government collected approximately Rs164 billion in mark-up on development loans and cash advances during 2025-26, when the applicable rate stood at 17.74%. In the previous fiscal year, the federal government earned around Rs245 billion through mark-up charges at a rate of 17.84%. Of that amount: Rs95.45 billion was collected from provincial governments.Approximately Rs155 billion came from state-owned enterprises and other public sector entities. The decline in the mark-up rate is expected to reduce borrowing costs for provinces and public institutions, although it may also lower federal revenue generated from interest income. Rates Have Increased Significantly Over the Decade Despite this year’s reduction, the mark-up charged on federal development loans remains substantially higher than historical levels. The rate stood at 6.54% in 2016-17, meaning it increased by nearly 175% over the following years as Pakistan experienced high inflation and elevated interest rates. It reached more than 17% during the past two fiscal years after the State Bank aggressively tightened monetary policy to curb inflation and stabilise the economy. With inflation easing and interest rates declining, the government has now adjusted lending rates accordingly. Government Borrows Cheaply, Lends at Higher Rates The federal government generally secures long-term development financing from international lenders at relatively low interest rates, often around 2%, before extending those funds to provinces and public sector institutions through cash development loans at significantly higher mark-up rates. The Ministry of Finance said the applicable mark-up is determined under the terms of each loan agreement but is reviewed annually in line with the government’s own borrowing costs in domestic financial markets. The revised rate for FY2025-26 is expected to provide some financial relief to provincial governments, local bodies and state-owned entities undertaking development projects while aligning federal lending rates with the broader easing cycle in Pakistan’s monetary policy.

Pakistan To Establish First Center For Industrial Innovation And AI At NUTECH
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Pakistan To Establish First Center For Industrial Innovation And AI At NUTECH

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Pakistan has taken a major step toward advancing industrial technology and digital transformation with the signing of a Memorandum of Understanding (MoU) to establish the country’s first Center for Industrial Innovation and AI (CIINAI). The initiative aims to integrate artificial intelligence, advanced manufacturing technologies, applied research and technical training under a single platform to improve industrial productivity and strengthen Pakistan’s global competitiveness. Landmark Initiative for Industrial Development Speaking at the signing ceremony, Special Assistant to the Prime Minister Haroon Akhtar Khan described the establishment of the Center for Industrial Innovation and AI as a historic milestone for Pakistan’s industrial sector. He said the government is committed to strengthening partnerships between industry, universities and research organisations to accelerate innovation, enhance manufacturing capabilities and promote sustainable industrial growth. According to the statement, the new centre will serve as a national hub for industrial innovation by bringing together modern technologies, research expertise and workforce development initiatives under one roof. Centre to Be Established at Korangi Creek Industrial Park The Center for Industrial Innovation and AI (CIINAI) will be established by the Pakistan Industrial Development Corporation (PIDC) at its Korangi Creek Industrial Park in Karachi. The facility will function as a common resource centre for industries, offering advanced technological services and specialised training programmes to manufacturers and industrial enterprises. Officials said the centre will support businesses by providing industrial artificial intelligence solutions, advanced manufacturing technologies, research and development (R&D) services, and technical capacity-building programmes. The project is expected to help local industries adopt modern production methods, improve operational efficiency and enhance product quality in line with international standards. Focus on AI and Advanced Manufacturing A key objective of the Center for Industrial Innovation and AI is to promote the integration of artificial intelligence into Pakistan’s manufacturing sector. The centre will facilitate the use of AI-driven technologies to optimise production processes, improve quality control, reduce operational costs and increase industrial efficiency. In addition to AI applications, the facility will support research in advanced manufacturing technologies, helping industries embrace automation, digitalisation and smart manufacturing practices. Experts believe that adopting these technologies can significantly improve productivity while enabling Pakistani manufacturers to compete more effectively in international markets. Strengthening Industry-Academia Collaboration The initiative also seeks to strengthen collaboration between higher education institutions and the industrial sector. Through the partnership, NUTECH and NED University will contribute academic expertise, research capabilities and technical knowledge to develop practical industrial solutions. The collaboration will encourage applied research that directly addresses the technological needs of local industries while providing students and researchers with opportunities to work on real-world industrial challenges. Officials said closer cooperation between universities and industry is essential for developing a skilled workforce capable of supporting Pakistan’s industrial modernisation agenda. Training and Research Opportunities Besides research and technology development, the centre will offer specialised technical training programmes aimed at enhancing workforce skills. These programmes are expected to help engineers, technicians and industrial professionals gain expertise in artificial intelligence, automation, advanced manufacturing systems and other emerging technologies. The centre will also support innovation by providing businesses with access to modern equipment, research facilities and expert guidance to develop new products and improve manufacturing processes. Officials believe these initiatives will contribute to higher productivity, greater innovation and increased industrial competitiveness. MoU Signed by Three Institutions The Memorandum of Understanding was signed by PIDC Chief Executive Officer Rizwan Ahmed Bhatti, NUTECH Registrar Brigadier Salman Zafar (Retired) and NED University Vice Chancellor Professor Dr Muhammad Tufail. The agreement formalises cooperation among the three institutions for the establishment and operation of the Center for Industrial Innovation and AI, which is expected to become a key platform for promoting technological advancement and industrial innovation in Pakistan. The initiative reflects the government’s broader strategy to encourage digital transformation, strengthen research and development, and build a technology-driven industrial ecosystem capable of supporting long-term economic growth. Key Messages from the Report:

SBP Foreign Exchange Reserves Rise To $17.26bn Despite Dip In Pakistan's Total Reserves
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SBP Foreign Exchange Reserves Rise To $17.26bn Despite Dip In Pakistan’s Total Reserves

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SBP Foreign Exchange Reserves Increase While Overall Reserves Edge Lower Pakistan’s SBP Foreign Exchange Reserves posted a modest increase during the week ended July 17, offering some support to the country’s external sector despite a slight decline in overall liquid foreign exchange reserves. According to the State Bank of Pakistan (SBP), its foreign exchange holdings rose by $33 million to $17.26 billion, while reserves held by commercial banks declined, resulting in a small drop in Pakistan’s total reserves. The latest figures show that the SBP’s foreign exchange reserves increased to $17.2586 billion. However, Pakistan’s total liquid foreign exchange reserves slipped by $5.9 million to $22.6696 billion, mainly due to lower foreign currency holdings maintained by commercial banks. Analysts said the data indicates that the central bank continues to maintain a stable reserve position, although the decline in commercial bank reserves outweighed the improvement recorded by the SBP. Commercial Banks’ Foreign Exchange Reserves Decline According to data compiled by brokerage firm Arif Habib Limited, commercial banks’ net foreign exchange reserves fell by $38.7 million during the reporting week, bringing their total holdings down to approximately $5.411 billion. The reduction in commercial bank reserves offset the increase in the SBP’s holdings, leading to the slight decline in Pakistan’s total liquid foreign exchange reserves. Based on the latest figures, Pakistan’s reserves are sufficient to cover around 2.54 months of imports, remaining below the level generally considered comfortable for long-term external stability. The SBP’s breakdown shows that, as of July 17, the central bank held nearly $17.3 billion, while commercial banks accounted for roughly $5.4 billion, taking the country’s total foreign exchange reserves to $22.7 billion. Bangladesh’s Foreign Exchange Reserves Cross $36 Billion The latest regional data also highlighted an improvement in Bangladesh’s external position. According to Bangladesh Bank, the country’s gross foreign exchange reserves increased to $36.10 billion after receiving a $320 million disbursement from a bilateral development partner. The increase marks Bangladesh’s highest reserve level since October 2022 and reflects continued efforts by South Asian economies to strengthen their external buffers amid ongoing global economic uncertainty. Pakistani Rupee Remains Stable Against the US Dollar Meanwhile, the Pakistani rupee remained largely stable in the interbank market. The local currency closed at Rs277.90 per US dollar, improving marginally by one paisa from the previous day’s closing level of Rs277.91. Currency markets remained relatively calm despite renewed geopolitical tensions in the Middle East. Globally, the US Dollar Index eased 0.06% to 101.05, as investors continued to monitor geopolitical developments and expectations surrounding US monetary policy. Gold Prices Decline After Recent Rally Gold prices in Pakistan fell sharply after international bullion markets witnessed a correction. According to the All Pakistan Gems and Jewellers Sarafa Association, the price of gold per tola declined by Rs1,800 to Rs432,036, while the price of 10 grams fell by Rs1,543 to Rs370,401. Silver prices also weakened, with the price per tola dropping Rs33 to Rs6,370. The decline followed a sharp increase in domestic gold prices a day earlier, highlighting continued volatility in global precious metals markets. Rising Oil Prices Weigh on Gold Markets Internationally, spot gold declined by around 2% to approximately $4,047.26 per ounce, while US gold futures for August delivery dropped 2.5% to nearly $4,050 per ounce. Market participants attributed the weakness to rising crude oil prices and expectations that persistent inflation could encourage the US Federal Reserve to maintain a tighter monetary policy stance. Meanwhile, Brent crude oil climbed to around $100 per barrel amid escalating tensions in the Middle East and concerns over disruptions to global energy supplies following attacks on Saudi oil tankers in the Red Sea. Higher oil prices have renewed fears of sustained inflation, prompting investors to reassess expectations for future US interest rate decisions. Analysts Say Oil Prices Remain the Key Risk Interactive Commodities Director Adnan Agar said higher crude oil prices were the primary factor behind the recent decline in gold prices. He noted that international gold briefly touched $4,042 per ounce before recovering slightly to around $4,050, after reaching a recent high near $4,150. According to Agar, if geopolitical tensions continue pushing oil prices higher, gold prices may remain under pressure. He also warned that instability in the Middle East, including developments involving Yemen, could further disrupt global energy markets. Economists believe sustained increases in crude oil prices could raise Pakistan’s import bill, fuel domestic inflation, and place additional pressure on the country’s external account. While SBP Foreign Exchange Reserves recorded a modest weekly increase, analysts expect Pakistan’s external sector to remain closely tied to movements in global oil prices, geopolitical developments, capital flows, and future monetary policy decisions by major central banks.

Brent Oil Prices Stay Above $100 as Middle East Tensions Heighten Global Supply Concerns
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Brent Oil Prices Stay Above $100 as Middle East Tensions Heighten Global Supply Concerns

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Brent Oil Prices Extend Rally Above $100 Per Barrel Brent oil prices remained above the $100-per-barrel mark on Friday, extending a four-week rally as escalating geopolitical tensions in the Middle East continued to fuel concerns over global crude oil supplies. Investors closely monitored developments in the Red Sea, the Strait of Hormuz, and the wider Gulf region, where rising military tensions have increased fears of prolonged disruptions to some of the world’s most critical energy shipping routes. Brent crude futures rose 37 cents (0.37%) to $101.06 per barrel after surging 7% in the previous trading session. The benchmark climbed above the $100 level for the first time since May and was on track for a 14.6% weekly gain, its strongest weekly performance in months. Meanwhile, West Texas Intermediate (WTI) crude traded at $91.20 per barrel, remaining largely unchanged during Friday’s session while heading for an 11.8% weekly gain. Middle East Tensions Continue to Support Brent Oil Prices The latest rise in Brent oil prices followed reports that Yemen’s Iran-backed Houthi movement attacked two Saudi oil tankers in the Red Sea. The incident intensified concerns about the security of global energy shipments through one of the world’s busiest maritime trade routes, raising fears that further escalation could significantly disrupt crude oil exports. Market analysts believe the risks to global supply are now greater than at any point since the regional conflict intensified. According to analysts at ING, simultaneous threats to oil flows through both the Strait of Hormuz and the Red Sea have created an unusually high level of uncertainty for global energy markets. Strait of Hormuz Traffic Falls Sharply The Strait of Hormuz, through which a substantial share of global crude exports passes each day, remains at the center of market attention. Ship-tracking data from Kpler showed that only one oil tanker crossed the strategic waterway on Thursday—the lowest daily traffic recorded since May 7. The sharp decline highlights the growing impact of regional instability on maritime trade and reinforces concerns over tighter global oil supplies. Red Sea Shipping Risks Increase Attention has also shifted to the Bab el-Mandeb Strait, another critical shipping route connecting the Red Sea with the Indian Ocean. As the world’s second-most important oil transit corridor after the Strait of Hormuz, any prolonged disruption to traffic through Bab el-Mandeb could further tighten crude supplies and place additional upward pressure on oil prices. Earlier this week, the Houthis announced a naval blockade targeting Saudi Arabia, stating that vessels linked to Saudi oil exports could face attacks. Saudi Arabia has already begun rerouting part of its crude exports through pipeline networks to reduce dependence on the Strait of Hormuz following earlier restrictions on shipping through the waterway. US-Iran Tensions Add to Market Uncertainty Reports suggest Iran has encouraged Houthi forces to block access to the Bab el-Mandeb Strait if the United States continues military operations targeting Iranian infrastructure. The latest escalation follows the collapse of a temporary truce between Washington and Tehran approximately two weeks ago, increasing concerns that the conflict could spread across the wider region. US President Donald Trump warned that Washington would hold Iran responsible for any future attacks carried out by groups aligned with Tehran, adding another layer of geopolitical uncertainty to energy markets. Kazakhstan Supply Disruptions Add Further Pressure Beyond the Middle East, oil markets are also facing supply concerns from Central Asia. Kazakhstan’s Energy Ministry confirmed that several oil producers temporarily reduced output after suspected Ukrainian drone attacks forced the closure of the country’s primary Black Sea oil export terminal. The Caspian Pipeline Consortium (CPC), which transports approximately 2% of global daily crude production, suspended oil loadings after attacks on tankers operating near the terminal. Industry sources reported that crude deliveries through the pipeline were temporarily halted, while production at Kazakhstan’s largest oil field was reduced by more than half. These disruptions have added further pressure to an already tight global oil market. Outlook for Brent Oil Prices Energy analysts believe the combination of escalating military conflict, shipping disruptions, and production cuts is creating one of the most uncertain environments for global oil markets in recent years. If tensions continue to rise or critical shipping lanes remain disrupted, Brent oil prices could remain above $100 per barrel or move even higher as traders continue to price in increasing risks to global energy supplies.

MG HS Hybrid+ Pakistan Local Production Begins as MG Expands Hybrid Vehicle Manufacturing
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MG HS Hybrid+ Pakistan Local Production Begins as MG Expands Hybrid Vehicle Manufacturing

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MG HS Hybrid+ Pakistan Enters Local Production Pakistan’s automotive industry has reached another significant milestone as MG HS Hybrid+ Pakistan officially enters local production, marking a major step in the country’s transition toward hybrid mobility and advanced vehicle manufacturing. The move reflects MG’s growing confidence in Pakistan’s manufacturing capabilities while providing consumers with greater access to locally assembled hybrid SUVs featuring modern technology, improved fuel efficiency, and premium driving comfort. Since entering the Pakistani market, MG has positioned itself as a premium automotive brand by combining contemporary design, intelligent features, and a strong ownership experience. The local assembly of the MG HS Hybrid+ and MG Super Hybrid models further reinforces that strategy by blending global engineering with domestic manufacturing. Why MG HS Hybrid+ Pakistan Is Important for the Auto Industry The local production of the MG HS Hybrid+ Pakistan is expected to benefit both consumers and Pakistan’s automotive sector. Manufacturing vehicles locally can: With fuel prices remaining unpredictable, hybrid vehicles are becoming an increasingly attractive option for consumers seeking better fuel economy without sacrificing performance, comfort, or modern features. The initiative also reflects the changing preferences of Pakistani buyers, who are increasingly considering hybrid and environmentally friendly vehicles alongside conventional petrol-powered models. Premium Hybrid Technology Meets Everyday Practicality MG has built its reputation by introducing vehicles equipped with advanced technologies that remain practical for daily driving. The locally assembled MG HS Hybrid+ and MG Super Hybrid are designed to deliver: Rather than focusing solely on luxury, MG aims to offer a balanced ownership experience that combines innovation, reliability, and everyday usability. This customer-focused approach has helped the company establish itself as a competitive player in Pakistan’s growing SUV market. Local Manufacturing Supports Pakistan’s Industrial Growth The expansion of local vehicle assembly is expected to contribute significantly to Pakistan’s automotive industry. Industry experts believe increased localization can: MG’s investment demonstrates long-term confidence in Pakistan’s industrial potential while supporting the government’s broader objectives of promoting manufacturing and adopting cleaner transportation technologies. As competition among global automotive brands intensifies, local production is becoming an increasingly important strategy for improving affordability, reducing delivery times, and strengthening after-sales support. MG Continues Its Customer-Focused Strategy Since launching operations in Pakistan, MG has consistently emphasized customer satisfaction through premium products, innovative technology, and reliable after-sales services. The locally assembled MG HS Hybrid+ and MG Super Hybrid further reinforce the company’s commitment to delivering: The company continues to position itself as a future-ready automotive brand focused on innovation, sustainability, and customer trust. Hybrid Vehicles Gain Momentum in Pakistan Growing awareness of fuel efficiency and environmental sustainability is gradually transforming Pakistan’s automotive market. Consumers are increasingly considering hybrid vehicles because they offer: As hybrid adoption accelerates, manufacturers investing in local production are expected to play a leading role in shaping Pakistan’s next generation of mobility. Outlook for MG HS Hybrid+ Pakistan The start of local production for the MG HS Hybrid+ Pakistan marks another important step in the evolution of Pakistan’s automobile industry. By combining local manufacturing with advanced hybrid technology, MG is strengthening its position in the country’s rapidly growing hybrid SUV segment while contributing to industrial development, technology transfer, and sustainable mobility. As consumer demand for fuel-efficient and environmentally conscious vehicles continues to rise, locally assembled hybrid models are expected to play an increasingly important role in Pakistan’s automotive future.

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