कारोबार

LAHORE: The Board of Directors of The Bank of Punjab (BOP) has approved a proposal for an equity injection of up to Rs30 billion by the Government of Punjab, a move aimed at strengthening the bank’s capital position and supporting its next phase of expansion. The decision was taken at a board meeting held on August 7, 2026. Under the proposal, the Punjab government will subscribe to ordinary shares to be issued by the bank through a mechanism other than a rights issue. The proposed transaction will not take effect immediately and remains conditional on obtaining all required statutory, corporate, shareholder and regulatory approvals. According to the bank, the planned capital injection is an important step in its broader transformation strategy and will provide additional financial capacity to support sustainable growth across its key business segments. Share issuance price The ordinary shares will initially be issued at Rs38.20 per share. However, if the market price of BOP shares is higher than this amount at the time of issuance, the shares will be issued at the prevailing market price plus a premium of 5 percent. As a result, Rs38.20 will serve as the minimum or floor price for the proposed share issuance. The transaction is expected to reinforce the bank’s capital base and provide greater flexibility to manage balance-sheet expansion while maintaining prudent financial and risk-management standards. BOP expands its market presence The Bank of Punjab has undergone significant changes in recent years, with the institution expanding its balance sheet, improving financial performance and strengthening its position across several sectors of Pakistan’s economy. The bank has developed a strong presence in areas including small and medium-sized enterprise (SME) financing, agricultural lending, affordable housing, digital banking and credit cards. It has also increased its focus on women’s participation and leadership in banking and financial services. BOP is further expanding its activities in commercial and corporate banking, particularly in areas linked to export-oriented businesses. The bank said these business segments have positioned it as an important participant in supporting economic activity, employment creation and financial inclusion across the country. Capital requirements rise with expansion Despite the bank’s growth, the rapid expansion of its operations has increased pressure on its existing capital base. BOP said its capital position has historically remained relatively limited compared with the size of its operations and the growth opportunities available to the institution. The proposed Rs30 billion injection is therefore expected to provide the bank with additional capacity to expand its core businesses while maintaining financial resilience. The additional capital could also enable BOP to increase its low-cost deposit base and grow lending operations without facing the same level of capital constraints. The bank said strengthening its capital position would allow it to pursue growth while maintaining a balanced and prudent approach to balance-sheet management. Strong financial performance The proposed capital injection comes as BOP continues to report strong underlying financial performance. During 2025, the bank recorded revenue growth of around 29 percent, while its earnings increased by more than 40 percent year on year. The bank also witnessed significant appreciation in the value of its shares during the period. According to the bank, the proposed capital raise should therefore be viewed primarily as growth capital rather than a measure aimed at addressing immediate financial weakness. The additional equity is expected to provide the financial foundation required for BOP to continue expanding its operations and investing in new business opportunities. International expansion in focus Another important component of the bank’s future strategy is its international expansion. The capital injection is expected to support the next phase of BOP’s growth, including an international venture that has recently received approval from the State Bank of Pakistan. The move could provide the bank with an opportunity to broaden its geographical footprint and develop new sources of business and revenue. With the proposed equity injection, BOP aims to strengthen its financial position, support expansion in priority sectors and improve its ability to serve businesses, consumers and other customers as demand for banking and financial services continues to grow.

KARACHI: Selling pressure intensified at the Pakistan Stock Exchange (PSX) on Tuesday as investor sentiment weakened amid growing uncertainty over the prospects of a peace agreement between the United States and Iran and the reopening of the strategically important Strait of Hormuz. The benchmark KSE-100 Index came under pressure during the trading session, losing more than 1,300 points as investors remained cautious and reduced exposure to major stocks across several sectors. At around 2pm, the KSE-100 Index stood at 179,996.62 points, showing a decline of 1,313.66 points, or 0.72%, from the previous close. The market witnessed broad-based selling, with several major sectors contributing to the decline. Automobile assemblers, cement companies, commercial banks, fertiliser manufacturers, oil and gas exploration firms and oil marketing companies (OMCs) remained under pressure. Several index-heavy stocks also traded in negative territory. Prominent companies including HUBCO, Mari Petroleum (MARI), Oil and Gas Development Company (OGDC), Fauji Fertilizer Company (FFC), Habib Bank Limited (HBL), MCB Bank, Meezan Bank (MEBL) and United Bank Limited (UBL) were among the stocks weighing on the benchmark index. Previous session also ends lower The latest decline follows a weak close in the previous trading session. On Monday, the PSX initially moved higher but lost momentum during the second half of the session as investors opted to book profits in heavyweight shares. The KSE-100 Index eventually closed at 181,310.28 points, down 119.74 points, or 0.07%. The continued weakness suggests that investors are closely monitoring developments in international markets, particularly the situation surrounding oil supplies and the Strait of Hormuz. US-Iran tensions keep markets on edge Global financial markets remained unsettled on Tuesday as hopes for an agreement between Washington and Tehran appeared to fade. Negotiations aimed at ending the conflict and restoring normal shipping through the Strait of Hormuz have encountered fresh difficulties. US President Donald Trump on Monday responded to Iran’s conditions for a possible peace agreement by putting forward his own demands, including calls for compensation related to deaths and losses associated with wars, attacks and protests. The tougher rhetoric has raised concerns that diplomatic efforts could take longer, potentially prolonging disruptions around the crucial maritime route. The Strait of Hormuz is one of the world’s most important energy corridors, and prolonged disruption to shipping through the waterway could have significant consequences for crude oil supplies and global energy prices. Oil prices climb to highest level since July 31 The uncertainty surrounding the situation was reflected in international oil markets. Brent crude futures climbed to around $88 per barrel, while US West Texas Intermediate crude futures rose to approximately $82.45 per barrel. Both benchmarks reached their highest levels since July 31 after recording gains of roughly 5% during Monday’s trading session. Higher oil prices are a major concern for economies that depend heavily on imported energy. For Pakistan, sustained increases in global crude prices could increase the country’s import bill and place additional pressure on external accounts, inflation and domestic fuel prices. The rise in energy prices is also being closely watched by investors because higher input costs can affect corporate profitability and influence monetary policy expectations. Asian markets remain cautious The uncertainty was not limited to Pakistan. Asian equity markets moved within a narrow range as investors assessed the potential impact of rising energy prices on inflation and economic growth. MSCI’s broadest index of Asia-Pacific shares outside Japan moved between gains and losses before trading modestly higher. South Korea’s Kospi also recorded a slight increase. However, the escalation in tensions around the Gulf kept overall market sentiment fragile, with investors remaining wary of further developments that could affect energy supplies and global trade. US stock futures were also slightly positive on Tuesday. Nasdaq futures rose around 0.28%, while S&P 500 futures gained approximately 0.1%, following a weaker session on Wall Street on Monday. Inflation data in focus Investors are also awaiting the latest US consumer price data, which could provide further clues about the direction of interest rates and inflationary pressures in the world’s largest economy. The increase in crude oil prices has added another element of uncertainty ahead of the inflation report. A sustained rise in fuel and energy costs could complicate efforts to bring inflation closer to central-bank targets. For Pakistani investors, the combination of geopolitical uncertainty, higher global oil prices and pressure on heavyweight shares is likely to remain a key factor influencing trading sentiment in the near term.

Gold prices extended their upward momentum on Tuesday, climbing for a third consecutive session as investors turned their attention to key US inflation figures that could influence expectations for the Federal Reserve’s next interest-rate decision. The precious metal continued to attract buying interest amid renewed safe-haven demand and growing expectations that US monetary policy could become less restrictive if economic data point to a cooling economy. Spot gold gained around 1% to reach $4,432.74 per ounce by 0217 GMT, its highest level since June 5. US gold futures also advanced, rising 1.7% to $4,492.60 per ounce. Market analysts said several factors were contributing to the latest rally, including investors who had stayed on the sidelines during gold’s earlier decline and are now returning to the market as prices recover. IG market analyst Tony Sycamore said the move was partly being driven by a fear of missing out among investors who had failed to take advantage of the previous decline toward the $4,000 level. He also pointed to short-covering by speculative traders and renewed demand for gold as a safe-haven asset. Sycamore added that gold could have further room to advance over the medium term, potentially opening the way for a stronger recovery toward the $5,000-per-ounce mark. US inflation data in focus Investors are now closely watching the latest US inflation figures, with the consumer price index (CPI) scheduled for release on Wednesday and producer price data due on Thursday. The reports are expected to provide important clues about the future direction of US interest rates. Markets have already reduced expectations for further monetary tightening following weaker-than-expected US employment data released last week. The latest jobs figures raised concerns about the strength of the US economy and encouraged traders to reassess expectations for the Federal Reserve’s policy path. At its July meeting, the Federal Reserve left interest rates unchanged, although three policymakers dissented and supported an increase. The split among officials highlighted uncertainty over the appropriate direction of monetary policy as the central bank continues to balance inflation risks against signs of economic weakness. Gold generally benefits from a lower-interest-rate environment because the metal does not provide interest or other regular income. When bond yields and interest rates decline, the opportunity cost of holding non-yielding bullion becomes less significant, potentially increasing its appeal among investors. Fawad Razaqzada said that if incoming economic data continue to indicate a slowing US economy without a significant acceleration in inflation, financial markets could further reduce expectations for tighter monetary policy. Such a development could weigh on the US dollar while creating a more supportive environment for gold, he said. Geopolitical tensions add to safe-haven demand Geopolitical developments also remained an important factor in precious-metals markets. US President Donald Trump responded to Iran’s conditions for a potential peace agreement with demands of his own, including calls for compensation over people killed during wars, attacks and protests. The exchange has added uncertainty to diplomatic efforts aimed at resolving the conflict and reopening the Strait of Hormuz, a strategically important waterway for global energy shipments. Any prolonged disruption or renewed tensions around the Strait could increase concerns over global energy supplies and economic stability. Such uncertainty often encourages investors to seek traditional safe-haven assets, including gold. Analysts are therefore watching both economic indicators and geopolitical developments for signs that could influence bullion prices in the coming sessions. Other precious metals also gain Gold was not the only precious metal to advance during Tuesday’s trading. Spot silver increased by 0.9% to $66.30 per ounce, maintaining its recent strength. Platinum also moved higher, gaining 0.7% to $1,765.26 per ounce. Meanwhile, palladium rose 0.8% to $1,394.00 per ounce. With US inflation figures due later in the week, traders are expected to remain cautious while assessing whether the latest economic data will reinforce expectations for a shift toward easier monetary policy. For gold, a combination of softer US economic indicators, a potentially weaker dollar, lower interest-rate expectations and continued geopolitical uncertainty could provide additional support to prices in the near term.

ISLAMABAD: The governments of Pakistan and Japan have signed a grant agreement worth JPY 350 million, equivalent to around $2.2 million, to support the Human Resource Development Scholarship Programme (JDS) for 2026. The agreement was signed during a ceremony held at the Ministry of Economic Affairs on Tuesday, August 11, as both countries reaffirmed their commitment to strengthening cooperation in human resource development and institutional capacity building. Secretary of the Ministry of Economic Affairs Muhammad Humair Karim and Japanese Ambassador to Pakistan Akamatsu Shuichi signed the Record of Discussions and Exchange of Notes during the ceremony. The grant agreement was separately signed by Miran Mohiyuddin Soomro, Senior Joint Secretary at the Ministry of Economic Affairs, and Yusuke Shinozaki, Chief Representative of the Japan International Cooperation Agency (JICA) in Pakistan. Senior representatives from the Embassy of Japan, JICA and Pakistan’s Ministry of Economic Affairs also attended the signing ceremony. 17 scholarships to be offered Under the latest phase of the JDS programme, 17 Pakistani government officials will receive scholarships to pursue higher education at leading Japanese universities. The 2026 programme will offer 16 scholarships for master’s degree programmes and one scholarship for a doctoral programme. The initiative is primarily aimed at young officers serving in Pakistan’s Federal Civil Service and Ex-Cadre services. The scholarship programme is designed to enhance the professional expertise of government officials by providing them with opportunities to acquire advanced academic knowledge and specialized skills in Japan. Officials who benefit from the programme are expected to contribute to policymaking, public administration and Pakistan’s broader socio-economic development after completing their studies. Ninth phase since 2018 The latest grant marks the ninth instalment of Japan’s JDS programme in Pakistan since its launch in 2018. Over the past eight batches, approximately 17 to 18 Pakistani officials per batch have benefited from the scholarship initiative. The programme has consequently created a growing network of Pakistani officials with exposure to Japanese academic institutions, public-sector practices and professional training. The JDS initiative is part of Japan’s broader development cooperation with Pakistan, with a particular focus on strengthening human resources and improving the capacity of government institutions. In addition to the long-term JDS scholarships, Japan also facilitates short-term training opportunities for Pakistani government officials in various fields. These programmes provide participants with exposure to international practices and technical expertise that can be applied to their respective departments in Pakistan. Focus on bilateral cooperation Speaking at the ceremony, Japanese Ambassador Akamatsu Shuichi reiterated Japan’s commitment to working with Pakistan on human resource development and other areas of mutual interest. JICA Chief Representative Yusuke Shinozaki also expressed the agency’s willingness to continue cooperating with the Government of Pakistan to strengthen institutional capacity and promote sustainable development. The Japanese side said such initiatives also contribute to closer people-to-people links and reinforce the longstanding friendly relations between Pakistan and Japan. The two countries have maintained development and economic cooperation for decades, with Japan supporting Pakistan through grants, technical assistance, training programmes and other capacity-building initiatives. The continuation of the JDS programme is expected to further deepen bilateral cooperation while equipping Pakistani public-sector officials with knowledge and skills that can support more effective governance and economic development.