Thailand’s Foreign Tourist Arrivals Drop 3.2% Year-on-Year

The federal government has increased the prices of petrol and high-speed diesel, while petrol pump owners have announced a nationwide strike after failing to reach an agreement with the government over the newly introduced daily fuel pricing system. Under the latest notification, the price of high-speed diesel (HSD) has increased by Rs7.15 per litre, rising from Rs360.06 to Rs367.21. The price of petrol has also been increased by Rs4.93 per litre, taking it from Rs315.80 to Rs320.73. The revised prices came into effect on July 22. The increase follows the government’s decision to replace the previous fortnightly fuel price adjustment system with a daily pricing mechanism. Under the new policy, petroleum prices can now change every day depending on international oil prices and fluctuations in the exchange rate. The new pricing mechanism has been strongly opposed by petrol pump owners and fuel dealers. They argue that daily price revisions are difficult to implement and create financial uncertainty for retailers across the country. After negotiations with government officials failed, the All Pakistan Petrol Pumps Owners Association (APPPOA) announced an indefinite nationwide strike beginning at midnight on Wednesday. The association said petrol pumps across Pakistan would remain closed until the government accepts its demands. Association leaders said discussions with the Petroleum Ministry failed to resolve major issues, including dealer profit margins and the implementation of daily fuel pricing. They insisted that the current system is not practical for petrol station operators and would create serious operational challenges. The Petroleum Retailers Association has also expressed support for the strike, raising concerns about possible disruptions in fuel supplies if the dispute continues. Meanwhile, the All Pakistan Petroleum Dealers Association (PPDA) is expected to decide whether it will formally join the protest. The association has called a meeting of its executive committee to discuss the situation and determine its future course of action. PPDA officials said they had already shared their concerns with the Oil and Gas Regulatory Authority (OGRA). According to the association, the regulator requested additional time to present the dealers’ concerns to the government before any final decision is made. Fuel dealers believe daily price changes make it difficult to manage inventories, update fuel prices, and maintain smooth business operations. They argue that the previous fortnightly pricing system provided greater stability and reduced uncertainty for both retailers and consumers. The government, however, maintains that the daily pricing mechanism will ensure that domestic fuel prices more closely reflect changes in global oil markets. Officials believe the new system will improve transparency and allow quicker adjustments to international price movements.

Global oil prices continued their sharp upward trend on Friday as escalating conflict in the Gulf region raised fresh concerns about energy supplies and the outlook for the world economy. The sustained rise in crude prices has increased fears of renewed inflation, unsettled financial markets and strengthened expectations that central banks may keep interest rates higher for a longer period. Brent crude was trading at around $100 per barrel after briefly crossing $102, its highest level in nearly two months. Oil prices have climbed by almost 40% during the month, driven by growing concerns that the conflict could disrupt major shipping routes used for transporting crude oil. The latest increase comes as military tensions involving the United States, Iran and the Iran-backed Houthi movement continue to intensify. Attacks on commercial vessels in the Red Sea have heightened concerns about the safety of one of the world’s busiest maritime trade routes. At the same time, uncertainty surrounding shipping through the Strait of Hormuz has added to worries over global oil supplies. Analysts say the combination of risks to both the Red Sea and the Strait of Hormuz has significantly increased market uncertainty. Any prolonged disruption in these waterways could reduce oil exports from the Middle East and place additional pressure on global energy markets. The rise in crude prices has also revived concerns about inflation. Higher oil prices generally increase transportation, manufacturing and production costs, which can eventually lead to higher prices for goods and services. Economists warn that this could slow progress in reducing inflation across many countries. Global financial markets reacted cautiously to the latest developments. Major Asian stock markets recorded notable losses as investors worried about the combined impact of geopolitical tensions, rising energy costs and uncertainty over future economic growth. Investors increasingly shifted towards safer assets amid concerns that market volatility could continue. The outlook for monetary policy has also changed. Financial markets now expect that major central banks, including the US Federal Reserve, could delay planned interest rate cuts or even consider further rate increases if higher energy prices continue to fuel inflation.

Prime Minister Shehbaz Sharif on Wednesday called for expanding Pakistan’s cooperation with the Japan International Cooperation Agency (JICA), identifying skills development, mineral exploration and support for small and medium-sized enterprises (SMEs) as key areas for future collaboration. The prime minister made the remarks during a meeting in Islamabad with a nine-member JICA delegation led by its President, Dr Tanaka Akihiko. He said Pakistan deeply values its decades-long partnership with Japan and expressed confidence that the latest engagement would further strengthen bilateral development ties. Highlighting the government’s economic agenda, Shehbaz said Pakistan had emerged from a challenging economic period through coordinated reforms and was now focused on achieving sustainable and inclusive growth. He noted that fiscal reforms had significantly improved revenue collection over the past three years, creating greater capacity for national development. The premier stressed that equipping young people with modern skills, expanding technical and vocational education, creating employment opportunities and empowering women remain among the government’s highest priorities. He said Pakistan is keen to benefit from JICA’s expertise in these sectors. Shehbaz also identified the country’s vast mineral resources as a major area of economic potential and invited JICA to provide technical assistance to help develop the sector and attract greater investment. Discussing support for businesses, the prime minister said reforms at the Small and Medium Enterprises Development Authority (SMEDA) had strengthened the institution. He expressed hope that enhanced cooperation with JICA would help improve SME productivity, encourage entrepreneurship and boost Pakistan’s exports. During the meeting, Shehbaz also conveyed condolences over the recent earthquake in Japan. Dr Tanaka thanked the prime minister for his message of sympathy and appreciated the warm hospitality extended to the Japanese delegation during its visit. The JICA president reaffirmed the agency’s commitment to expanding cooperation with Pakistan in healthcare, education, urban and rural development, industrial growth and technical training. He said future projects would be designed in line with the development priorities of both the federal and provincial governments. Dr Tanaka also acknowledged Pakistan’s efforts to promote peace and stability in the Middle East. Separately, Federal Minister for Economic Affairs Ahad Cheema met the JICA delegation to discuss future development initiatives. He invited the agency to participate in financing the Main Line-1 (ML-1) railway project alongside the Asian Development Bank and other development partners, describing the railway upgrade as vital for improving trade, transportation and industrial connectivity across the country. Cheema also sought JICA’s support for expanding internet connectivity in rural areas to promote freelancing and digital commerce. He requested technical assistance for feasibility studies of major infrastructure projects, an area in which JICA expressed readiness to cooperate.