Chiang Rai Railway Station Makes Steady Progress: Massive Rail Project Hits 66% Completion

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.

Pakistan has built one of the world’s fastest-growing distributed solar markets. According to recent research by Ember and Renewables First, it is estimated that Pakistan has approximately 38GW of distributed solar capacity across residential, commercial, industrial and agricultural sectors. As this installed solar base grows, the next challenge is making that energy more flexible and available when businesses need it most. Trina Storage, Trinasolar’s global battery energy storage business, says Pakistan’s expanding solar base is increasing interest in solar-plus-storage, particularly for utility-scale and microgrids for commercial & industrial (C&I). A Renewables First report estimates that Pakistan imported 4.6 GWh of BESS in 2025, representing 220% year-on-year growth. Rather than replacing existing solar assets, well-designed solar-plus-storage systems can help businesses optimize renewable energy use, improve operational flexibility and support more resilient energy management strategies, depending on each site’s design and operating requirements. However, adding BESS to an existing solar installation is not a simple plug-and-play exercise. Projects require careful assessment of the site’s electrical architecture, inverter configuration, demand profile, equipment compatibility, energy management system, safety requirements and commercial objectives. For many retrofit projects, an AC-coupled approach provides a practical solution by allowing battery storage to operate alongside an existing PV system through its own Power Conversion System (PCS), helping retain much of the original solar infrastructure. Compatibility must still be assessed at system level, including electrical interfaces, communications, controls and compliance with the applicable IEC and UL standards. Designed for utility-scale and C&I applications, Trina Storage’s Elementa Series is compatible and is designed for integration within solar-plus-storage systems using Trina or third-party equipment, with compatibility assessed according to the project architecture. Beyond supplying technology, Trinasolar can work with customers and EPC partners to assess system compatibility, determine the most suitable BESS configuration and develop an operating strategy aligned with each site’s technical and commercial requirements. Trinasolar’s energy storage expertise builds on its long-established presence in Pakistan’s solar market, where the company has supplied more than 500MW of 700W+ modules across commercial, industrial and residential applications and recently introduced the Vertex N G3 760W series. Globally, Trina Storage, established in 2015, has achieved BloombergNEF Tier 1 Energy Storage Manufacturer status for 10 consecutive quarters and is expected to surpass 30 GWh of cumulative shipments by the first half of 2026. Its latest 6.25MWh Elementa 3 platform combines advanced battery technology, intelligent thermal management and integrated safety features for large-scale energy storage applications. “Pakistan has already built a strong solar foundation. The next phase is to consider how battery storage can be integrated with those assets to make renewable electricity available across a wider range of operating conditions. That requires careful assessment of the existing equipment, the site’s load profile and the role the battery is expected to perform. Trinasolar’s PV experience and Trina Storage’s global BESS capabilities give us a useful perspective across both sides of that system,” said Edison Zhou, Head of Pakistan, Trinasolar.

ISLAMABAD: The European Union (EU) is set to introduce a revised mechanism for extending its Generalised Scheme of Preferences Plus (GSP+) trade facility from January 2027, under which beneficiary countries will no longer receive an automatic extension. The Commerce Ministry informed the National Assembly Standing Committee on Commerce on Wednesday that Pakistan would have to formally seek continuation of the GSP+ facility and submit an action plan covering its commitments under 32 United Nations conventions. Commerce Secretary Jawad Paul briefed the committee that the new GSP+ framework would come into force in January 2027, followed by a two-year transition period. During this period, countries benefiting from the scheme will be required to prepare and submit their respective plans, which will subsequently be assessed by the European Union. According to the secretary, the EU’s assessment of Pakistan contains both positive observations and areas of concern. Among the issues highlighted by the European bloc is the human rights situation in Pakistan, along with security and climate-related challenges. The briefing was given during a meeting of the National Assembly Standing Committee on Commerce chaired by Jawad Hanif. Members including Asad Alam Khan Niazi, Khurshid Ahmed Junejo, Shaista Pervaiz, Dr Ramesh Kumar Vankwani, Tahira Aurangzeb, Mir Amir Magsi, Dr Mirza Ikhtiar Baig and Kiran Haider attended the meeting. EU concerns discussed The committee asked the Commerce Ministry to explain the concerns raised by the European Union in its latest assessment of Pakistan and their possible implications for the country’s trade interests. Jawad Paul said the EU report had acknowledged the difficult circumstances Pakistan was facing, particularly in terms of security challenges, economic pressures and climate-related disasters, including floods. These factors, he said, had affected the country’s capacity to fully implement various commitments. He urged members of parliament to present Pakistan’s perspective during their engagements with European Parliamentarians and other EU representatives. The secretary maintained that Pakistan’s circumstances should be taken into account while evaluating the country’s performance under the GSP+ framework. He said the government needed to undertake fundamental measures to address the challenges identified by the EU while also ensuring that Pakistan’s position was effectively communicated to European stakeholders. The committee also expressed concern over the repeated absence of the Commerce Minister from its meetings and conveyed its displeasure over the matter. Tariff reforms aimed at boosting exports The meeting also reviewed the government’s tariff reforms and their impact on industrial competitiveness and exports. Committee members questioned whether exporters would be required to commit to specific export targets in return for government support. The committee chairman clarified that the measures being introduced should not be viewed simply as incentives for exporters, arguing that reductions in duties and taxes were intended to lower production costs and improve Pakistan’s competitiveness in international markets. Officials from the Commerce Ministry said the government had been pursuing a policy of reducing tariff protection and lowering the cost of imported raw materials. The objective, they said, was to enable domestic industries to become more competitive and increase their presence in international markets. As part of the reforms, tariffs on around 2,000 tariff lines were reduced last year to make raw materials and other industrial inputs available at lower prices. The secretary said tariff reforms were being implemented under the National Tariff Policy and that the government had provided an estimated Rs160 billion benefit to industry and exporters during the previous year. For fiscal year 2026-27, another Rs120 billion has been earmarked under the relevant support measures. According to the Commerce Ministry, the previous Rs120 billion package was associated with a $1.27 billion increase in exports during 2025-26. Jawad Paul acknowledged that the tariff changes could initially result in higher imports as industries gained access to cheaper inputs and machinery. However, he argued that the trade imbalance could gradually improve as increased industrial production translated into stronger exports. Committee seeks review of Pakistan-China trade agreement The standing committee also raised concerns over Pakistan’s trade deficit with China and identified the China-Pakistan Free Trade Agreement (CPFTA) as an issue requiring closer examination. Members asked the Commerce Ministry to provide a detailed presentation on the agreement’s impact on Pakistan’s exports, imports and overall trade balance. The committee also sought an update on the latest trade discussions between Pakistan and the United States. The Commerce Secretary assured members that a detailed briefing on the matter would be provided in an in-camera session. Export Development Fund restructuring reviewed The committee separately examined the restructuring of the Export Development Fund (EDF). Officials told the meeting that the management and decision-making structure of the fund had been moved towards greater private-sector participation, with leading exporters being given a more significant role in determining spending priorities. The committee welcomed the shift towards projects that have a direct and measurable connection with export growth rather than conventional infrastructure-focused initiatives. Members also reviewed the allocation of 40% of the Export Finance Scheme (EFS) portfolio for small and medium-sized enterprises (SMEs). They stressed that smaller businesses should have fair and sufficient access to export financing so that they can participate more effectively in international trade. Pakistan Reinsurance Company performance discussed The committee also reviewed the performance and investment strategy of Pakistan Reinsurance Company Limited (PRCL). Members were informed that the company retained nearly 30% of its risk domestically, while approximately 70% was placed in international reinsurance markets, including London, Dubai and Singapore. The committee chairman called for careful management of the company’s financial resources and urged officials to explore opportunities to improve returns without compromising risk-management standards. Proposed amendments for Karachi Chamber examined The committee considered the Trade Organizations (Third Amendment) Bill, 2026, a Private Member’s Bill seeking amendments to the Trade Organizations Act in relation to the Karachi Chamber of Commerce and Industry (KCCI). During the discussion, members examined the special status of KCCI and proposed exemptions from certain district-related provisions. The chairman directed that the proposed amendments be drafted in appropriate legal language in consultation with the Ministry of Commerce and the Ministry of Law and Justice

Pakistan’s state-owned gas utility, Sui Northern Gas Pipelines Limited (SNGPL), has incurred losses worth billions of rupees after a major liquefied petroleum gas (LPG) air-mix project was shelved despite substantial investments in land, equipment, and infrastructure. The issue surfaced during a recent meeting of the Economic Coordination Committee (ECC), where the Ministry of Energy (Petroleum Division) presented a detailed briefing on the fate of the long-delayed project and proposed options for utilising the idle assets. The LPG air-mix initiative was originally approved between 2016 and 2018 under the Pakistan Muslim League-Nawaz (PML-N) government to provide gas to remote and mountainous regions where extending conventional natural gas pipelines was either technically challenging or financially unviable. The project envisioned the installation of 16 LPG air-mix plants, backed by an estimated government subsidy of around Rs16 billion. However, after the Pakistan Tehreek-e-Insaf (PTI) government assumed office, concerns over the project’s financial sustainability prompted a review. In March 2020, the Petroleum Division informed the ECC that the scheme required substantial government support and would place an additional financial burden on already struggling gas companies. The committee was presented with two options: continue the project with government subsidies or abandon it altogether. On March 25, 2020, the ECC decided to halt the installation of all LPG air-mix plants where construction had not yet commenced. Despite this decision, SNGPL had already acquired land, imported specialised equipment, and completed procurement for several planned facilities, resulting in significant sunk costs. The Petroleum Division later sought clarification regarding three proposed plants in Drosh, Ayun, and Chitral, where procurement activities had already been completed. In December 2020, the ECC directed SNGPL to discontinue these projects as well and dispose of the purchased land and equipment through an open and transparent process while minimising financial losses. According to officials, SNGPL subsequently issued tenders on three separate occasions to sell the unused assets. However, the company failed to receive any serious offers. As a result, the equipment remains stored in Lahore, while the sale of land is still awaiting approval from the Board of Revenue, Khyber Pakhtunkhwa. The Petroleum Division informed the ECC that SNGPL now estimates approximately Rs60 million will be required merely to conduct an operational health assessment of the idle machinery before any future use can be considered. The original project was estimated to cost Rs2.775 billion over a 15-year period. Of this amount, Rs943 million was allocated for plant installation, land acquisition, and civil works, while another Rs1.832 billion was earmarked for developing a gas distribution network capable of serving around 12,000 consumers in Chitral. Financial projections prepared at the time painted a challenging picture. SNGPL estimated an annual revenue shortfall of Rs419 million in the first year, increasing to approximately Rs815 million by the sixth year. In addition, the cost of producing synthetic natural gas through the LPG air-mix system was projected at nearly Rs25,000 per million British thermal units (mmBtu) during the initial year of operations. Despite these concerns, the Petroleum Division has now proposed a revised and more cost-effective plan. Officials told the ECC that by redesigning the project, optimising engineering specifications, and utilising existing company resources, the overall capital requirement could be reduced significantly to Rs1.779 billion. The revised proposal includes cutting civil construction costs and using surplus pipeline materials already available in SNGPL’s inventory. The company also believes operational expenses can be lowered by reducing unaccounted-for-gas (UFG) losses based on operational experience from similar facilities in Gilgit, while also improving fuel and power efficiency. Under the updated estimates, the annual revenue deficit could decline to Rs119 million in the first year, rising to Rs432 million by the sixth year. Likewise, the cost of producing synthetic natural gas could be brought down to around Rs7,229 per mmBtu, assuming an initial consumer base of approximately 2,000 households. To avoid further financial losses and make productive use of equipment already purchased, the Petroleum Division has recommended that one LPG air-mix plant be established in Chitral, subject to a technical health assessment of the stored equipment and approval from the original equipment vendor.

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.