कारोबार

  • |

    Rs1.12 trillion tobacco case sparks Senate probe

    ByJustpaste.in

    Islamabad: A Senate subcommittee investigating cigarette smuggling and tax exemption misuse has raised serious questions regarding the possible recovery of Rs 1.12 trillion from the tobacco industry, alleged leakage of Customs data to private media, corruption complaints against officials and incomplete records provided by government departments. The committee ordered strict action, sought bank and asset details, and demanded a full investigation into the possible misuse of tax exemptions and consumption certificates. The committee strongly questioned how confidential Customs data reached private media organisations. Members observed that such information could not have been leaked without the involvement of Customs officials. The committee also questioned the conduct of media organisations regarding professional ethics. Federal Board of Revenue officials told the committee that an investigation into the data leak was already underway. The convener directed the FBR to take strict action against any official involved in leaking Customs data to the media and to submit a complete report. A major part of the meeting focused on the reported recovery of Rs 1.12 trillion linked to the tobacco industry’s consumption certificates. The committee questioned why complete details of consumption certificates issued for goods imported into tax exempt areas had not been provided. Officials informed the committee that the Peshawar High Court had ordered an audit before consumption certificates could be issued and had also stopped Pakistan Customs from cashing security cheques. The convener urged the FBR to challenge the court order before the Federal Constitutional Court and report back to the committee. The committee also reviewed the alleged misuse of tax exemptions by industries operating in tax exempt areas. Senator Talha Mahmood alleged that some industrialists were operating two or more factories, including one in a tax exempt area and another in a settled area. He further alleged that some Customs officials helped such businesses take advantage of the system. The Federal Investigation Agency told the committee that a team had been formed to investigate the matter. Senator Talha Mahmood said the FIA could help improve the process of issuing consumption certificates if the issue was handled seriously. He also recalled that Pakistan Customs had previously installed tracking chips on containers to check their movement and confirm whether goods reached their declared destinations. He called for stronger tracking and monitoring systems to stop smuggling and misuse of tax exemptions. The committee directed authorities to send letters to all factories operating in tax exempt areas, demanding complete details of imported materials, materials used, brand names and taxes paid during the last two years. Members were informed that Pakistan Customs had issued consumption certificates worth around Rs 378 billion. The committee also sought bank and account details of the companies in whose names those certificates were issued. The Chair observed that anyone refusing to provide required records or information could face legal action. The committee also examined serious allegations of corruption and theft involving officials. Three investigating officers identified as Shahzaib Ali, Fakhar Gondal and Christopher were presented before the committee regarding corruption allegations. The committee was informed that 22 people were allegedly involved in theft incidents and that 11 had been arrested. The committee directed authorities to provide details of assets allegedly beyond the known income of the accused officials. It also sought forensic examination reports of their mobile phones. Senator Talha Mahmood recommended that the Senate Standing Committee on Interior also take up the corruption case. The committee further examined tobacco industry consumption data and asked departments to provide records from earlier years in addition to the data already submitted. Officials briefed members about major raw materials imported by tobacco companies. The committee was told that around 20,002 metric tons of acetate tow had been imported. Around 97 percent of this quantity was reportedly used by two major companies, while the remaining 3 percent was linked to other companies. Officials also reported the import of around 15,639 metric tons of tobacco paper. Of this amount, around 10,840 metric tons was imported by Pakistan Tobacco Company, while Philip Morris imported around 3,118 metric tons. Other companies imported the remaining quantity. The committee was also told that around 533 metric tons of filter rods had been imported. Two major companies accounted for around 96 percent of this quantity, while other companies accounted for the remaining 4 percent. According to the briefing, Pakistan Tobacco Company and Philip Morris together accounted for around 94 percent of imported material consumed by the tobacco industry. Local companies accounted for the remaining 6 percent. The Chair expressed concern that government departments had still failed to provide complete and combined information to the committee. Officials informed the committee that Pakistan Tobacco Company and Philip Morris did not fall under the jurisdiction of RTO Peshawar. Pakistan Tobacco Company was under LTU Islamabad, while Philip Morris was under LTU Karachi. The committee directed the concerned tax offices to provide full details of taxes collected and imported material linked to both companies. The committee was also informed that four illegal cigarette manufacturing companies operating in Khyber Pakhtunkhwa had recently been sealed. Authorities were directed to provide full details of all companies operating under RTO Peshawar. The convener also asked officials to provide the formula used to calculate taxes on cigarettes. Senator Bilal raised concerns that Balochistan was still not receiving enough industrial development. He also complained that legal goods were sometimes being treated as smuggled items even when borders in Balochistan were sealed. Another controversy emerged over conflicting figures related to people arrested in theft cases. One briefing told the committee that 22 people were involved and 11 had been arrested. However, the Inspector General of the National Highways and Motorway Police also reported that 11 people had been apprehended. The committee sought clarification over the figures and demanded one accurate and complete position. Members expressed serious concern over what they described as a misleading statement made before the committee. The committee directed that a letter be sent to the Ministry of Communications and ordered that the matter also be referred to the Privileges Committee. The FBR representative told members that the department

  • | | |

    Pakistan receives $3.6 billion in remittances in J…

    ByJustpaste.in

      KARACHI: Pakistan received $3.6 billion in workers’ remittances from overseas Pakistanis during July 2026, marking a significant increase compared with the same period last year, according to data released by the State Bank of Pakistan (SBP). The central bank reported that remittance inflows increased by 13% year-on-year in July and also recorded a 4.5% rise compared with the previous month. The latest figures highlight the continued importance of overseas Pakistanis in supporting the country’s foreign exchange position and overall economic stability. Saudi Arabia remained the largest source of remittances during the month, sending $913.9 million to Pakistan. The United Arab Emirates (UAE) followed with $737.3 million, while overseas Pakistanis in the United Kingdom contributed $555.5 million. The United States also remained an important source, accounting for $317.2 million in remittance inflows. Prime Minister Shehbaz Sharif welcomed the increase and expressed satisfaction over the $3.6 billion received in July. In a statement issued by the Prime Minister’s Office, he said the 13% year-on-year increase in remittances was encouraging and reflected the continued contribution of overseas Pakistanis to the national economy. The prime minister also highlighted the 4.5% month-on-month growth, saying that the consistent financial support provided by overseas Pakistanis was playing an important role in strengthening Pakistan’s economy. He described overseas Pakistanis as a valuable and integral part of the country’s economic mainstream. The latest figures have also generated positive expectations regarding Pakistan’s remittance outlook for the ongoing financial year. Topline Research estimated that remittances could reach around $40.1 billion during FY27 if the current trend continues. Economist Dr Khaqan Najeeb said remittances were becoming increasingly important as a source of foreign exchange, particularly at a time when Pakistan’s export sector continued to face difficulties. According to him, the country’s weak domestic economic conditions, limited employment opportunities and significant differences between local and international wages were encouraging more Pakistanis to seek employment abroad. He noted that the movement of workers overseas was resulting in a corresponding flow of foreign exchange back into Pakistan. The economist said these inflows were helping the country manage its balance of payments and reduce pressure on its external accounts. However, he also warned that the growing dependence on remittances highlighted deeper structural weaknesses within the domestic economy. Dr Najeeb pointed out that Pakistan’s increasing reliance on overseas employment reflected the country’s inability to generate enough productive and well-paying jobs at home. While remittances provide valuable financial support and strengthen foreign exchange reserves, he argued that sustainable economic growth requires stronger domestic employment opportunities and a more competitive export sector. The July figures therefore present both an encouraging development and a broader economic challenge. Rising remittances are providing Pakistan with much-needed foreign exchange, but policymakers also face the task of improving domestic economic conditions so that overseas employment becomes a choice rather than a necessity for a growing number of Pakistanis.

  • |

    Punjab to modernize Civil Defence with Rs500m equipment

    ByJustpaste.in

    Lahore – Under the vision of Punjab Chief Minister Maryam Nawaz Sharif for a “Safe Punjab,” the Civil Defence Resilience Corps is being modernized in line with contemporary requirements to help establish a safer society and respond effectively to emergencies. In this regard, Punjab Home Secretary Dr. Ahmed Javed Qazi visited the Civil Defence Headquarters where a smartly turned-out Civil Defence contingent presented him with a guard of honour. The Home Secretary inspected a display of modern equipment and also inaugurated a renovated block of the headquarters. On the occasion, Director Civil Defence Tasneem Ali Khan and Zigham Nawaz briefed the Punjab Home Secretary on the capacity, modern equipment and rescue capabilities of Civil Defence. The modern equipment displayed by Civil Defence included aerial-lift drones, IED bomb-disposal drones, bomb-disposal robots, anti-drone guns, electric sirens, bomb-disposal suits, bomb blankets, mine detectors, snake cameras, hook-and-line kits, mobile bomb-disposal bikes and advanced firefighting equipment. Speaking on the occasion, Punjab Home Secretary Dr. Ahmed Javed Qazi said that the Civil Defence Resilience Corps is an important step toward a safe, capable and responsible Punjab. He said the Punjab government is taking practical measures to bring Civil Defence in line with the requirements of the modern era. He said that modern equipment worth Rs500 million has been purchased to modernize Civil Defence. He added that the advanced aerial-lift drones are capable of rescuing people trapped in difficult-to-access areas and can carry loads of up to 200 kilograms. Dr. Ahmed Javed Qazi said that Civil Defence is equally important during both peace and wartime and serves as the first line of response for district administrations during any emergency situation. The Punjab Home Secretary said that the Chief Minister has increased the honorarium of Civil Defence volunteers in recognition of their services and performance. He urged citizens to join Civil Defence as volunteers according to their abilities. According to him, more than 350,000 citizens have so far registered as Civil Defence volunteers. The Home Secretary said that all Civil Defence volunteers are being provided with Basic Life Support (BLS) training so that they can provide timely assistance to save lives during natural disasters, accidents and medical emergencies. He appealed to citizens to become part of Civil Defence by registering as volunteers through the online portal VCD.HOME.GOP.PK.

  • | | |

    Aurangzeb, Baker discuss stronger Pak-US economic …

    ByJustpaste.in

    Federal Minister for Finance Muhammad Aurangzeb met US Chargé d’Affaires Natalie Baker on Monday to discuss ways to strengthen Pakistan-US economic relations, trade and investment cooperation. According to the Finance Ministry, Aurangzeb briefed the US diplomat on his recent visit to Washington and meetings with senior American officials, including the US Treasury secretary. He also shared details of discussions with officials from the International Monetary Fund (IMF), US International Development Finance Corporation (DFC) and US Export-Import Bank. The meeting focused on increasing US investment and financing for commercially viable projects in Pakistan. Both sides also discussed improving Pakistan’s access to US markets and expanding Pakistani exports. The two sides agreed to advance a framework aimed at increasing bilateral trade and investment. They also discussed Pakistan’s participation in international capital markets and efforts to diversify the country’s sources of financing. According to the ministry, discussions also covered measures to strengthen foreign exchange reserves and improve Pakistan’s credit profile. Opportunities for greater investment by US financial institutions in Pakistan were reviewed. Cooperation in key sectors, including ports, logistics, energy and telecommunications, also came under discussion. The two sides explored potential collaboration in digital technology and artificial intelligence. Aurangzeb said significant progress had been made in negotiations on a bilateral trade framework between Pakistan and the United States. He said the government was working to create a more favourable environment for private-sector investment. The finance minister welcomed the interest of US companies and investors in Pakistan. He said the government was continuing reforms aimed at improving the business and investment climate. Aurangzeb also briefed the US chargé d’affaires on Pakistan’s new system for daily adjustments in petroleum product prices. He explained that the mechanism was designed to align domestic prices more closely with developments in the international market. He said the government’s priorities included maintaining fiscal discipline, strengthening foreign exchange reserves and increasing exports. He added that reforms were underway to improve economic stability and attract investment. Natalie Baker appreciated Pakistan’s efforts to manage its economic situation during a period of regional tensions. She also praised the country for maintaining economic and financial stability despite rising energy prices.

  • |

    Wheat, flour prices surge in Hyderabad

    ByJustpaste.in

    HYDERABAD: The prices of wheat and flour have witnessed a fresh increase in Hyderabad, putting additional pressure on household budgets and raising concerns among consumers already struggling with rising food costs. According to market sources, flour is currently being sold at prices ranging between Rs135 and Rs145 per kilogram in different parts of the city. The increase has triggered concern among citizens, particularly low- and middle-income families, who rely on flour as a staple food item. Flour mill owners said the price of a 10-kilogram flour bag has risen from Rs1,350 to Rs1,450, marking an increase of Rs100. They attributed the latest rise primarily to higher wheat prices in the open market. The price of wheat has also recorded a significant increase. According to grain market traders, the price of a 100-kilogram wheat sack has climbed from Rs10,800 to Rs11,800, reflecting an increase of around Rs1,000. Traders said fluctuations in wheat prices in the open market were directly affecting flour prices, leaving millers with little option but to revise their rates. Citizens have expressed frustration over the continued increase in the prices of essential food items. They urged the authorities to monitor wheat and flour markets and take effective measures to prevent unnecessary price hikes. Consumers also called for stronger market oversight and action against profiteering so that essential food commodities remain available at affordable prices.

  • | | | | | |

    Ramon Ang buys his way into Lopez Inc., which owns what he already builds

    ByJustpaste.in

    So far, what has actually changed hands is one family branch’s stake in the private company at the very top of the Lopez empire. Whether it leads to a direct ABS-CBN rescue is a question about what Ang, and the Lopez family, do next.

  • | | |

    Rising fuel taxes add to motorists’ burden

    ByJustpaste.in

    Consumers are facing a growing burden of taxes and other charges on petrol and high-speed diesel. Official documents show that the difference between the basic cost and retail price of petrol is Rs139.93 per litre. For high-speed diesel, the difference stands at Rs116.10 per litre. The documents show that the basic cost of one litre of petrol is Rs197.69. However, consumers are currently paying Rs327.62 per litre. Several taxes, levies and margins are included in the retail price. These charges significantly increase the amount paid by consumers at fuel stations. Petrol carries a petroleum levy of Rs80 per litre. A climate support levy of Rs5 is also imposed. The price also includes Rs21.24 in customs duty. An Inland Freight Equalisation Margin of Rs7.48 is charged per litre. Oil marketing companies receive a margin of Rs7.87 per litre. Dealers are paid a margin of Rs8.64 per litre. As a result, consumers pay Rs130.23 per litre in combined levies, taxes and margins on petrol. The situation is similar for high-speed diesel. Its basic cost is Rs264.76 per litre. However, its retail price has been fixed at Rs380.86 per litre. According to the documents, consumers pay around Rs116 per litre in levies, taxes and different margins on high-speed diesel. The petroleum levy on high-speed diesel is Rs74.28 per litre. The fuel also carries a climate support levy of Rs5 per litre. Customs duty accounts for another Rs15.68 per litre. The Inland Freight Equalisation Margin stands at Rs4.63. Oil marketing companies receive a margin of Rs7.87 per litre. Dealers receive Rs8.64 per litre as their margin. The figures show that taxes, levies and various margins form a significant portion of the final prices of both fuels. The additional charges directly affect motorists and consumers. They also increase transportation and operating costs for businesses that depend heavily on fuel. The rising cost of petrol and diesel can also put pressure on the prices of goods and services. Transport operators, traders and other businesses often pass higher fuel costs on to consumers.

  • |

    PSX rallies over 400 points in early trading as investor sentiment improves

    ByJustpaste.in

    KARACHI: Buying activity returned to the Pakistan Stock Exchange (PSX) on Monday, with the benchmark KSE-100 Index gaining more than 400 points during the opening phase of trading as investors showed renewed interest in major sectors. At around 9:50am, the benchmark index was trading at 181,880.56 points, recording an increase of 450.54 points, or 0.25%, compared with the previous close. The positive momentum was supported by buying across several key sectors, including automobile assemblers, cement companies, commercial banks, oil and gas exploration firms, oil marketing companies (OMCs) and refineries. Several heavyweight stocks also contributed to the upward movement. HUBCO, ARL, OGDC, POL, PPL, PSO, HBL, MCB, MEBL and NBP were among the prominent index constituents trading in positive territory during the early session. The latest gains came after the stock market delivered a strong performance last week, when easing geopolitical concerns helped improve investor confidence. Developments surrounding diplomatic efforts between Iran and Oman regarding shipping activity through the strategically important Strait of Hormuz, coupled with expectations of a possible wider understanding between the United States and Iran, provided some relief to financial markets. The KSE-100 Index had climbed 5,335.89 points, or around 3%, during the previous week, closing at 181,430.02 points. Global markets provide additional support The positive trend at the PSX was also in line with broader gains across Asian equity markets. Regional stocks moved higher on Monday after Wall Street ended the previous session at record levels, supported by weaker-than-expected US employment data. The softer US jobs figures reduced expectations of an immediate increase in borrowing costs, encouraging investors to take on more risk. However, uncertainty surrounding diplomatic developments in the Gulf continued to influence energy markets. Oil prices edged higher as concerns persisted over the movement of ships through the Strait of Hormuz, one of the world’s most important routes for global energy supplies. Iran said on Sunday that discussions with Oman over arrangements for new shipping lanes through the Strait of Hormuz were nearing completion. However, Tehran maintained that the waterway would not fully return to normal operations until the United States met additional conditions. The uncertainty contributed to a rise in international crude prices. Brent crude futures increased 0.9% to $84.32 per barrel, while US West Texas Intermediate crude gained 0.7% to $78.74 per barrel. US inflation data in focus Investors are also closely watching the upcoming US consumer inflation data, which could influence expectations regarding the Federal Reserve’s monetary policy. The US July consumer price report, due on Wednesday, is expected to show a 0.1% increase in headline inflation and a 0.2% rise in core inflation, according to market expectations. A stronger-than-anticipated inflation reading could revive concerns that the Federal Reserve may consider raising interest rates in the coming months. Conversely, a softer reading could strengthen expectations of a more accommodative monetary policy. Market pricing currently indicates that expectations for a September rate move have weakened. The probability of such a move has fallen to roughly 44%, compared with about 67% a week earlier. The decline in expectations for higher interest rates supported US Treasury bonds on Friday and helped major Wall Street indices finish at record levels. Asian equities follow Wall Street Asian markets broadly followed the positive lead from the United States on Monday. Japan’s Nikkei 225 advanced around 0.6%, while South Korea’s benchmark index gained approximately 0.5%. Meanwhile, MSCI’s broadest index of Asia-Pacific shares excluding Japan rose about 0.3%. For Pakistan’s equity market, the combination of stronger global sentiment, improved geopolitical expectations and renewed buying in heavyweight stocks provided support at the start of Monday’s session.

  • |

    Asian markets rise after Wall Street rally as oil prices edge higher

    ByJustpaste.in

    Asian stock markets opened higher on Monday, taking cues from Wall Street’s latest gains after weaker-than-expected US employment data reduced expectations of an immediate increase in borrowing costs. However, rising oil prices and uncertainty surrounding developments in the Gulf limited the overall optimism in financial markets. Investors were also closely monitoring the situation around the Strait of Hormuz, a crucial route for global energy supplies, after Iran said discussions over the reopening of the strategic waterway were nearing an agreement. Iran announced on Sunday that negotiations with Oman on establishing new shipping routes through the Strait of Hormuz had reached their final stages. Tehran, however, maintained that normal traffic through the waterway would resume only after the United States fulfilled additional conditions. The uncertainty surrounding the route kept pressure on crude markets. Brent crude futures increased 0.9% to $84.32 a barrel, while US West Texas Intermediate crude gained 0.7% to $78.74 per barrel. The latest increase in energy prices has added another layer of uncertainty for investors ahead of the release of US inflation figures. US Inflation Data in Focus Market participants are now turning their attention to the US consumer price index report scheduled for Wednesday. Economists are expecting headline consumer inflation to rise by 0.1%, while core inflation, which excludes food and energy costs, is projected to increase by 0.2%. A stronger-than-expected inflation reading could revive concerns that the Federal Reserve may be forced to keep interest rates higher for longer and potentially consider another rate increase at its September meeting. Michael Feroli, chief US economist at JPMorgan, said his forecast for core inflation at 0.22% would probably not be sufficient on its own to trigger a rate increase in September. However, he cautioned that repeated monthly increases close to 0.3% could change the outlook. Feroli also highlighted the possibility of a rebound in prices of core goods after they declined for two consecutive months, saying this would be an important factor for markets to monitor. Expectations for a September rate increase have weakened significantly in recent days. Futures markets now indicate roughly a 44% probability of a rate move in September, compared with about 67% a week earlier. Asian Equities Follow Wall Street Higher The decline in expectations for an immediate increase in US interest rates helped US Treasury bonds rally on Friday and supported a strong performance by Wall Street equities. The positive momentum carried into Asian trading on Monday. Japan’s Nikkei index climbed 0.6%, while South Korea’s benchmark market gained 0.5%. MSCI’s broad index of Asia-Pacific shares excluding Japan also advanced 0.3%, reflecting improved investor sentiment across regional markets. The gains came as traders continued to assess the impact of softer US employment data on the Federal Reserve’s monetary policy outlook. Lower expectations for interest-rate increases generally support equities because cheaper financing conditions can encourage investment and improve corporate earnings prospects. European Markets Show Caution European markets were less enthusiastic, with futures pointing to modest declines at the start of trading. EUROSTOXX 50 futures and Germany’s DAX futures each slipped 0.1%, while FTSE futures were down 0.4%. In the United States, S&P 500 futures declined 0.1%, while Nasdaq futures remained largely unchanged. The subdued futures performance followed a particularly strong week for US technology stocks, with the Nasdaq gaining around 5% amid a series of encouraging corporate earnings reports. Strong Corporate Earnings Support US Stocks Corporate earnings have remained a major source of support for US equities. According to analysts at Bank of America, nearly 90% of companies in the S&P 500 had reported their results, with earnings per share rising approximately 30% year-on-year after excluding investment gains recorded by Alphabet and Amazon. The proportion of companies exceeding earnings expectations also remained unusually strong. Around 76% of reporting companies beat analysts’ earnings-per-share estimates, matching the highest level recorded since 2021. Artificial intelligence-related businesses continued to stand out among the strongest performers. Bank of America analysts said companies linked to AI had recorded median earnings-per-share growth of around 28%, compared with approximately 12% for businesses without a direct AI connection. However, analysts expect the pace of AI-related earnings growth to moderate in the coming quarter, with consensus forecasts pointing to growth of around 16%. Investors will have fewer major earnings releases to digest this week, although several important technology companies are scheduled to report results. These include semiconductor manufacturer Applied Materials, networking equipment company Cisco and cloud infrastructure provider CoreWeave. Bond Yields and Dollar Remain in Focus In the bond market, the yield on the benchmark 10-year US Treasury note edged slightly higher to 4.673%. Investors are also preparing for approximately $125 billion in new US government debt issuance during the week, which could influence Treasury yields and broader financial-market conditions. The recent decline in bond yields, combined with improving appetite for riskier assets, has placed pressure on the US dollar. The euro remained close to a seven-week high at around $1.1557. Meanwhile, the dollar was little changed against the Japanese yen at approximately 157.85. Currency traders remain cautious about the possibility of intervention by Japanese authorities if the yen weakens further. Japan has previously expressed concern over sharp and rapid movements in its currency, particularly when excessive weakness threatens to increase import costs. Gold Holds Near Record Levels Gold also remained firmly supported as lower bond yields improved the appeal of the non-interest-bearing precious metal. Spot gold was trading around $4,342 an ounce after recording a gain of more than 7% during the previous week. The metal continues to benefit from a combination of factors, including expectations surrounding US monetary policy, movements in Treasury yields, currency fluctuations and geopolitical uncertainty. With investors awaiting US inflation data and closely watching developments around the Strait of Hormuz, markets are likely to remain sensitive to changes in energy prices and interest-rate expectations in the days ahead.