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                        <title>Latest Business News and Business News Headlines | Business</title>
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                        <description>The Express Tribune keeps you up to date with all the latest happenings from Pakistan and across the world!</description>
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			<title>Buying frenzy powers PSX up 3,353 points</title>
			<link>https://tribune.com.pk/story/2613448/psx-extends-rally-crosses-180000-mark</link>
			<comments>https://tribune.com.pk/story/2613448/psx-extends-rally-crosses-180000-mark#comments</comments>
			<pubDate>Tue, 16 Jun 26 08:39:39 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2613448</guid>
			<description>
				<![CDATA[KSE-100 Index extends winning rally, settles at 180,392.98 as optimism over economic outlook]]>
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				<![CDATA[The Pakistan Stock Exchange (PSX) extended its record-setting rally on Tuesday as investors continued aggressive buying amid growing confidence in the country&#39;s economic outlook and easing geopolitical tensions in the region.

The benchmark KSE-100 Index gained 3,353.15 points, or 1.89%, to close at 180,392.98 points, after touching an intra-day high of 180,503.55 points and a low of 177,039.83 points.

Investor sentiment remained upbeat as market participants responded positively to Pakistan&#39;s diplomatic efforts aimed at supporting regional peace and stability. Expectations of lower global energy prices further strengthened risk appetite, particularly for sectors sensitive to inflation and input costs.

International oil prices stayed under pressure on hopes that the reopening of the Strait of Hormuz would help normalize global supply flows. The prospect of softer energy prices eased inflation concerns and improved the economic outlook for oil-importing countries such as Pakistan, encouraging fresh buying across the market.

The sustained rally reflects growing investor optimism over macroeconomic stability, improving external-sector indicators, and the potential for stronger corporate earnings in a lower inflation and interest-rate environment.

KTrade Securities Ahmed Sheraz wrote that the KSE-100 Index closed at 180,392 points, gaining 3,353 points (+1.89% DoD) as strong buying interest persisted throughout the session. The benchmark remained firmly in positive territory, supported by broad-based participation across key sectors and continued investor optimism following recent macroeconomic and budget-related developments.

Read: In stellar performance, PSX gains 4,640 points

Trading activity remained robust, with KSE-100 volumes reaching 611 million shares. The rally was primarily driven by heavyweight stocks including United Bank, Engro Holdings, Bank Al Habib, National Bank, Pakistan Petroleum and Meezan Bank, which collectively contributed the largest share of Index gains. On a sectoral basis, commercial banks, investment banks, and oil &amp; gas exploration companies were the key contributors to the market&#39;s advance.

On the macro front, investor sentiment remained supported after the State Bank of Pakistan kept the policy rate unchanged in its monetary policy announcement on Monday, a move largely in line with market expectations. Going forward, Sheraz believed that investors are likely to remain focused on inflation trends, energy price trends, economic indicators, and the implementation of FY27 budget measures for further market direction.&nbsp;

Trading volume jumped to 1.22billion from Monday&rsquo;s close of 988million. Value of traded shares stood at Rs70.2billion. Shares of 497 companies were traded.

Of these, 304 stocks rose, 165 fell and 28 remained unchanged. Lotte Chemical emerged as volume leader with trading in 108.2million shares, edging down Rs0.17 to close at Rs28.52.]]>
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			<title>Yum Brands to sell Pizza Hut for $2.7 billion after prolonged demand slump</title>
			<link>https://tribune.com.pk/story/2613474/yum-brands-to-sell-pizza-hut-for-27-billion-after-prolonged-demand-slump</link>
			<comments>https://tribune.com.pk/story/2613474/yum-brands-to-sell-pizza-hut-for-27-billion-after-prolonged-demand-slump#comments</comments>
			<pubDate>Tue, 16 Jun 26 13:09:12 +0500</pubDate>
			<dc:creator>
				<![CDATA[Reuters]]>
			</dc:creator>
			<category><![CDATA[World]]></category>
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			<description>
				<![CDATA[US pizza chains face weak demand as inflation, high costs and GLP-1 drugs push healthier eating]]>
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				<![CDATA[Yum Brands&nbsp;said on Tuesday it would sell its Pizza Hut chain for $2.7 billion, as the ​unit struggles with stiff competition in the fast-food market &zwnj;and cautious consumer spending.

Pizza Hut in Mainland China will be acquired by Yum China for $1.2b, while the rest of the business will go to ​private equity firm LongRange Capital for $1.5b, the company said.

Rising ​inflation and elevated commodity costs have weighed on US pizza giants already ⁠facing sustained demand weakness, as growing adoption of GLP-1 weight-loss ​drugs encourages consumers to choose healthier foods.

Last year, Yum Brands said ​it was exploring strategic options for the chain after several quarters of sales decline. Pizza Hut accounted for about 12% of Yum&#39;s total revenue in 2025.

The sale ​follows Yum entering exclusive talks with LongRange in May, as the unit also ​fell behind Yum&#39;s other fast-casual dining brands, such as Taco Bell.

Read More: US inflation hits 3-year high as Iran war drives energy shock, rattles markets

&quot;These transactions enable Yum! &zwnj;to ⁠be a more focused company,&quot; Yum Brands CEO Chris Turner said.

Pizza Hut was acquired by PepsiCo in 1977 and spun off in 1997 alongside KFC and Taco Bell to form a restaurant ​company that later ​took the ⁠name Yum Brands in 2002.

Shares of Yum, which will now be left with just its Taco ​Bell and KFC chains, were up about 1% in ​premarket ⁠trading.

Yum China Holdings, a Shanghai-based spin-off of Yum Brands, owns and franchises more than 18,000 stores in the country, including roughly 13,000 ⁠locations for ​KFC.

Reuters reported in April that LongRange, ​Sycamore Partners and Apollo Global Management, among others, were vying for Pizza Hut.]]>
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			<title>SBP holds policy rate at 11.5%</title>
			<link>https://tribune.com.pk/story/2613359/sbp-holds-policy-rate-at-115</link>
			<comments>https://tribune.com.pk/story/2613359/sbp-holds-policy-rate-at-115#comments</comments>
			<pubDate>Mon, 15 Jun 26 21:34:30 +0500</pubDate>
			<dc:creator>
				<![CDATA[Usman Hanif]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
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			<description>
				<![CDATA[Inflation hits 11.7% in May; MPC warns of prolonged double-digit price rise]]>
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				<![CDATA[The State Bank of Pakistan (SBP) on Monday kept its benchmark policy rate unchanged at 11.5%, citing persistent inflationary pressures, uncertainty stemming from the US-Iran war and a broadly unchanged macroeconomic outlook.

The decision was announced after a meeting of the Monetary Policy Committee (MPC), which noted that although global oil prices had eased following recent positive geopolitical developments, they remained significantly above pre-conflict levels and continued to pose risks to inflation.

The central bank said inflation had accelerated sharply in recent months, with headline inflation rising from 7.3% in March to 10.9% in April and 11.7% in May. Core inflation also edged higher to 8.7% in May from 8.2% a month earlier, reflecting the broader impact of higher energy and transportation costs on the economy.

&quot;The MPC assessed that the current monetary policy stance remains appropriate to guide inflation towards the target range of 5-7% over the medium term,&quot; the central bank said in its monetary policy statement.

The committee observed that the economic consequences of the prolonged Middle East conflict, which it had anticipated during the previous policy meeting, were now becoming visible in key economic indicators.

According to the SBP, inflation has been driven not only by higher domestic energy prices linked to global oil market disruptions but also by rising production and transportation costs. In addition, an unexpected increase in wheat and wheat-related product prices significantly pushed up food inflation during April and May.

The central bank warned that inflation could remain in double digits over the coming months before gradually easing. However, it highlighted several risks to the outlook, including geopolitical developments, adjustments in fuel, electricity and gas prices, fiscal slippages and weather-related pressures on food supplies.

Despite rising inflation, the MPC noted signs of moderation in economic activity. It said elevated prices, fiscal austerity measures and prevailing uncertainty were weighing on business activity and consumer spending.

The committee pointed to provisional estimates released by the Pakistan Bureau of Statistics (PBS), which showed that the economy grew by 3.7% in FY26 compared with 3.2% in FY25. However, the MPC noted that growth would likely have been stronger had it not been for the impact of the Middle East conflict and ongoing fiscal tightening.

The growth performance was mainly supported by the services and industrial sectors, while agriculture also contributed positively. Large-scale manufacturing expanded by 6.5% during July-March FY26, although the central bank expects growth in the sector to slow in the final quarter of the fiscal year.

Looking ahead, the MPC warned that spillover effects from the regional conflict could continue to dampen industrial and services sector activity. At the same time, subdued agricultural prospects due to challenging weather conditions and uncertainty surrounding Kharif crops may affect growth during FY27.

On the external front, the central bank described pressures as manageable despite a deterioration in the current account during April. The current account posted a deficit of $0.3 billion in April, resulting in a cumulative deficit of $0.2 billion during July-April FY26. The deterioration was largely attributed to a widening trade deficit caused by higher energy imports, although robust workers&#39; remittances continued to provide support.

The MPC said strong remittance inflows in May were expected to help contain the current account deficit for FY26 near the lower end of earlier projections.

Pakistan&#39;s external position also benefited from increased official inflows following the successful completion of reviews under the International Monetary Fund&#39;s Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF). As a result, the SBP&#39;s foreign exchange reserves rose to $17.2 billion as of June 5 and are projected to reach $18 billion by the end of June.

The committee expressed confidence that reserve accumulation would continue in FY27 through ongoing foreign exchange purchases and planned official financing.

On the fiscal side, the MPC observed that the government&#39;s consolidation efforts remained broadly on track, primarily due to expenditure restraint. While revenue growth slowed during July-March FY26, the government revised the Federal Board of Revenue&#39;s (FBR) collection target to around Rs13 trillion and still expects to achieve a primary surplus of 2.5% of GDP this fiscal year.

For FY27, the government has set a primary surplus target of 2% of GDP. The MPC stressed the importance of maintaining fiscal discipline and accelerating structural reforms, particularly measures aimed at broadening the tax base and reforming public sector enterprises.

The committee also highlighted continued growth in private sector credit, which expanded by around 13%, reflecting increased borrowing for working capital, investment and consumer financing.

Reaffirming its commitment to price stability, the central bank said it would continue to closely monitor economic developments and adjust policy as necessary while urging faster implementation of structural reforms to strengthen economic resilience and support sustainable growth.]]>
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			<title>ECC to revisit Engro terminal lease on objections</title>
			<link>https://tribune.com.pk/story/2613362/ecc-to-revisit-engro-terminal-lease-on-objections</link>
			<comments>https://tribune.com.pk/story/2613362/ecc-to-revisit-engro-terminal-lease-on-objections#comments</comments>
			<pubDate>Mon, 15 Jun 26 21:34:30 +0500</pubDate>
			<dc:creator>
				<![CDATA[Shahbaz Rana]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
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			<description>
				<![CDATA[Qaiser Sheikh terms 30-year extension without bidding illegal; cabinet referred matter back]]>
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				<![CDATA[Investment Minister Qaiser Sheikh has termed a 30-year lease extension for the Engro VoPak Terminal a violation of public procurement rules and said it would damage the promotion of petrochemical industries, in a move that could result in a review of the decision by the cabinet.

In a letter to the chairman of the Economic Coordination Committee (ECC) of the cabinet, Sheikh also registered a protest over not &quot;recording&quot; his views against the ECC&#39;s decision to grant a 30-year lease extension without competitive bidding. &quot;I have written a letter, and the matter will be taken up today (Tuesday) by the ECC,&quot; Sheikh told The Express Tribune. He added that the federal cabinet had referred the matter back to the ECC after his objections.

The development surfaces days before the expiry of the current 30-year period, which ends this Thursday. The Port Qasim Authority had signed a build-operate-transfer (BOT) deal with Engro Vopak Terminal Limited (EVTL) in 1996.

The ECC on June 5 approved the 30-year extension as an additional agenda item, which triggered a reaction from within the cabinet. &quot;The ECC further considered a summary submitted by the Ministry of Maritime Affairs regarding operational continuity of EVTL and approved it,&quot; according to a statement issued by the finance ministry 10 days ago.

&quot;My views and comments placed before the ECC meeting held in respect of additional agenda item extension of EVTL Implementation Agreement are not recorded in the subject minutes,&quot; stated the investment minister in a correspondence with ECC Chairman and Finance Minister Muhammad Aurangzeb.

The Cabinet Division, which is responsible for keeping records of all cabinet bodies and holding their meetings, did not respond to requests for comment as to why the minister&#39;s strong objections were not made part of the ECC minutes.

Sheikh stated that &quot;the unsolicited proposal (of EVTL) fails to meet the threshold of unique and innovative under Rule 2(1)(ka) and Rule 37-A of the PPRA Rules, 2004&quot;. He further said that the extension was &quot;against rules and this will create monopoly and damage to the promotion of petrochemical industries in the country&quot;. This extension for a further 30 years without competitive bidding is opposed and unacceptable, Sheikh stated.

The investment minister also said that the Public Procurement Regulatory Authority (PPRA) rules and an in-house assessment committee have categorically held that the EVTL proposal does not qualify under the said provisions.

&quot;The subsequent reopening of negotiations through amendments to Article 3.26 of the Implementation Agreement and Article 3.13 of the Supplemental Implementation Agreement under Article 18.1 of the Implementation Agreement constitutes a circumvention of open competitive bidding, thereby conferring an undue advantage upon the incumbent concessionaire through the grant of a further 30-year term,&quot; said Sheikh. Government officials said that there was a possibility that the ECC&#39;s approval might be reconsidered in light of the objections raised by the investment minister. With the cabinet having referred the matter back to the ECC, that reconsideration is now scheduled for Tuesday. The secretary of the Cabinet Division did not respond to a question whether the matter would again be placed before the ECC after the strong objections raised by Sheikh.

The EVTL terminal handles over 60% of Pakistan&#39;s bulk chemical imports and approximately 55% of its marine liquefied petroleum gas (LPG) imports. Additionally, its operations are credited with saving the national exchequer millions of dollars annually by facilitating downstream petrochemical investments.

The ECC was informed early this month that, as per the original agreement, negotiations for any further extension in the lease had to be started 10 years before the expiry of the first 30-year deal. The cabinet body was further informed that the PQA did start the negotiations but could not reach a consensus, and these discussions remained inconclusive. The PQA Board resolved in 2021 that negotiations were over and no extension could be granted.

The board further directed the initiation of a competitive process through the hiring of a consultant in line with public procurement rules. The official record showed that the company submitted an unsolicited proposal (USP) in 2022, but the PQA in-house committee concluded that EVTL&#39;s proposal was &quot;not unique and innovative; thus, it does not fall within rule 37(A) of the Public Procurement Rules, 2004&quot;.

The investment minister has now reiterated the same position in his correspondence.

Subsequently, the government decided to hold a second round of negotiations with the company and also decided that the bidding process should continue concurrently. As a result, the PQA board approved amendments to the implementation agreements. Afterwards, both parties agreed on a proposal to extend the agreement for a further 30 years with certain conditions. The PQA board has already approved the 30-year extension, which was also stamped by the ECC early this month.]]>
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			<title>Policy risks eat into export revenue</title>
			<link>https://tribune.com.pk/story/2613364/policy-risks-eat-into-export-revenue</link>
			<comments>https://tribune.com.pk/story/2613364/policy-risks-eat-into-export-revenue#comments</comments>
			<pubDate>Mon, 15 Jun 26 21:34:30 +0500</pubDate>
			<dc:creator>
				<![CDATA[SHAHRAM HAQ]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
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			<description>
				<![CDATA[Shielding exporters from year-to-year tax changes can help stave off losses]]>
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				<![CDATA[Pakistan is losing hundreds of millions of dollars in export revenue every month, not because of foreign tariff wars or global trade conflicts, but because of the uncertainty generated by its own policymaking machinery, according to a new study released by economists Azam Chaudhry and Gul Andaman of the Lahore School of Economics (LSE).

The headline finding is striking. When the United States and China fought a bruising tariff war in 2018 and 2019, an episode that reshuffled global supply chains and rattled exporters worldwide, Pakistan&#39;s trade policy uncertainty index peaked at 185, against a baseline of 100. But Pakistan&#39;s own Finance Act of 2024, a routine annual budget law, pushed that same index to 348, nearly twice the level recorded during the biggest trade conflict in a generation. By 2025, the index had reached three and a half times its historical mean.

The study, which constructs the first-ever trade policy uncertainty index for Pakistan using archives of four major English-language newspapers over 2013 to 2026, calls this the central puzzle it sets out to explain. The cost is quantified in precise terms. A shock the size of the US-China trade war costs Pakistan roughly 10% of its monthly goods exports on impact, and about a quarter of monthly exports at the worst point, which arrives eight months after the spike in uncertainty.

At the sample average of $2.2 billion in monthly exports, that immediate hit translates into around $230 million in lost shipments from a single uncertainty episode. The Finance Act 2024 shock was twice that size, implying losses potentially approaching half a billion dollars a month at the trough. The impact elasticity of exports with respect to trade policy uncertainty is measured at minus 0.16, deepening to minus 0.41 at the eight-month trough before a partial recovery by 12 months.

The mechanism the researchers identify is not what standard economic theory would predict. The dominant view in trade economics holds that uncertainty should hit differentiated manufactured goods hardest, because exporting those products requires costly, relationship-specific investments that firms defer when the future looks unstable. Pakistan&#39;s data, drawn from 5.3 million product-level bilateral trade observations across 4,954 products and 228 destinations over 193 consecutive months, tells a different story.

Exporters do not abandon products or markets when uncertainty rises. They do not stop shipping garments or leather goods or home textiles to existing buyers. What falls is the volume of orders flowing through those relationships &ndash; exporters ship fewer kilogrammes at unchanged prices and delay buying the machinery that will expand their capacity.

Capital goods imports, the study&#39;s proxy for equipment investment, fall by nearly half in the months following an uncertainty shock, an elasticity of minus 0.46, roughly three times larger than the drop in exports, and timed one month ahead of the export trough at seven months. Vehicles, the most deferrable capital purchase, show an elasticity of minus 0.50, while electrical machinery falls by minus 0.22. Firms waiting to see how the policy will settle defer the purchase of machines before they defer shipments.

Services exports suffer differently and more lastingly. Software, IT, and other services exports show no immediate reaction to uncertainty but once they fall, roughly three months after a shock, they do not recover within the year studied. The 12-month elasticity for services sits at minus 0.36, equal to the trough value, at a point where goods exports have already partially rebounded to minus 0.16. For a country increasingly staking its growth strategy on services-led export expansion, the study warns these are the most durable losses it documents.

The study also documents what Pakistan failed to capture during the US-China trade war. Countries like Vietnam, Mexico, and Bangladesh absorbed large volumes of US import demand that shifted away from Chinese suppliers. Pakistan, despite having deep textile relationships with American buyers, captured essentially none of that windfall in the broader economy.

The one exception was textiles, where the US textile export differential jumped to plus 0.335 in 2019 on the timing of List-4 tariffs hitting Chinese apparel, and re-emerged at plus 0.258 and plus 0.212 in 2024 and 2025, suggesting some of that reallocation hardened into durable supplier relationships. But outside textiles, no new ground was taken, because in the very window when global trade was being reshuffled, domestic policy uncertainty was suppressing the capital investment needed to compete in new product lines.

The source of this chronic uncertainty is structural. The Federal Board of Revenue issues hundreds of Statutory Regulatory Orders each year, over 300 in 2024 alone, changing tariffs, duties, and customs procedures by executive notification with immediate effect and no parliamentary process. The annual Finance Act rewrites the trade tax structure each June after months of speculation. The IMF programme negotiations, which have covered most of the sample period across multiple arrangements, periodically place the entire trade tax regime on the table. Each of these layers generates the news coverage that feeds the uncertainty index, and each is visible in export data as a quantified loss.

The researchers conclude that policy stability is itself an instrument of export competitiveness, not merely an administrative virtue. Consolidating SRO authority, pre-announcing trade measures before budget, and shielding exporters&#39; tax treatment from year-to-year legislative changes would each remove a documented and measurable source of export loss that no amount of market access negotiation can offset while the home policy environment remains volatile.]]>
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			<title>China vows to deepen capital market ties</title>
			<link>https://tribune.com.pk/story/2613365/china-vows-to-deepen-capital-market-ties</link>
			<comments>https://tribune.com.pk/story/2613365/china-vows-to-deepen-capital-market-ties#comments</comments>
			<pubDate>Mon, 15 Jun 26 21:34:30 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
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				<![CDATA[Cross-border ETFs planned as SECP resolves regulatory issues]]>
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				<![CDATA[Chinese investors have reaffirmed their long-term commitment to Pakistan&#39;s capital markets following the resolution of key regulatory matters by the Securities and Exchange Commission of Pakistan (SECP), paving the way for increased investment and deeper cooperation between the two countries, according to an official statement issued on Monday.

A delegation of the Chinese consortium, led by the China Financial Futures Exchange (CFFEX) and comprising the Shanghai and Shenzhen stock exchanges, met SECP Chairman Dr Kabir Ahmed Sidhu and senior officials to discuss future collaboration and expansion plans.

The consortium welcomed regulatory approvals that enabled it to increase its shareholding in the Central Depository Company (CDC) and the National Clearing Company of Pakistan Limited (NCCPL). The delegation also appreciated SECP&#39;s support for the restructuring of the Pakistan Stock Exchange&#39;s (PSX) property management function, allowing the exchange to focus more effectively on its core business and strategic growth.

You Hang, Chief Representative of CFFEX, expressed confidence in Pakistan&#39;s economic prospects and said the consortium intends to play a larger role in the development of the country&#39;s capital markets. He highlighted plans to launch cross-border exchange traded funds (ETFs), facilitate greater investment flows between Pakistan and China, and strengthen market linkages through a joint task force already established for this purpose.

The delegation also announced plans to introduce advanced trading and settlement technologies, enhance market surveillance, support new financial products, improve liquidity, and contribute to investor education and capacity-building initiatives.

Chairman SECP Dr Kabir Ahmed Sidhu welcomed the consortium&#39;s expansion plans and reaffirmed the commission&#39;s commitment to reforms that enhance market efficiency, attract investment and promote innovation. He noted that stronger international partnerships and technological advancement would contribute significantly to the continued development of Pakistan&#39;s capital markets.

The meeting was also attended by Lou Fengsen and Zhang Xiaofeng of CFFEX, PSX Managing Director and CEO Farrukh Sabzwari, and other senior officials. The meeting concluded with both sides reaffirming their commitment to expanding investment cooperation and strengthening Pakistan&#39;s position as an emerging regional capital market.]]>
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			<title>Service Long March lists at PSX as 11th IPO in FY26</title>
			<link>https://tribune.com.pk/story/2613366/service-long-march-lists-at-psx-as-11th-ipo-in-fy26</link>
			<comments>https://tribune.com.pk/story/2613366/service-long-march-lists-at-psx-as-11th-ipo-in-fy26#comments</comments>
			<pubDate>Mon, 15 Jun 26 21:34:30 +0500</pubDate>
			<dc:creator>
				<![CDATA[APP]]>
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			<category><![CDATA[Business]]></category>
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			<description>
				<![CDATA[Highest number in nearly two decades; Finmin calls US-Iran deal significant for global economy]]>
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				<![CDATA[Service Long March Tyres Limited (SLM) was listed at the Pakistan Stock Exchange (PSX) on Monday, marking the 11th initial public offering (IPO) of the current fiscal year &ndash; the highest number in nearly two decades.

Federal Minister for Finance and Revenue Muhammad Aurangzeb, virtually addressing the &quot;Gong Ceremony&quot; held at the PSX to mark the listing, said the strongest vote of confidence in any economy came when investors committed capital. He added that growing participation at the exchange reflected increasing trust in Pakistan&#39;s economic direction.

The minister recalled his association with the venture from its early stages and described it as a successful example of industrial cooperation and export-oriented investment. He praised the execution of the project during the peak of the Covid-19 pandemic and acknowledged the contribution of Chinese expertise as well as the continued confidence of investors in Pakistan.

Turning to regional developments, Aurangzeb termed the announcement of the US-Iran peace agreement a proud moment for Pakistan and a significant development for the global economy. He said the accord reflected the success of diplomatic efforts aimed at promoting regional peace and stability.

The minister said Prime Minister Shehbaz Sharif and Field Marshal Syed Asim Munir continued to receive recognition for their persistent and dedicated efforts on the mediation front that had helped bring the process to a successful conclusion.

Referring to the prime minister&#39;s announcement regarding the signing of a Memorandum of Understanding later this week, Aurangzeb said the development carried positive implications for Pakistan&#39;s economy and broader regional stability.

Aurangzeb noted that Pakistan had effectively managed the first-order economic impact of the conflict during the past three months and expressed confidence that the agreement would help ease concerns over potential secondary and tertiary economic consequences. While acknowledging that disruptions to energy infrastructure would take time to normalise fully, he said the agreement had improved the outlook for economic activity and created encouraging upside potential for the next fiscal year.

The finance minister also highlighted growing investor participation, particularly young investors entering the market. He reiterated that Pakistan remained committed to creating an enabling environment for investment, strengthening capital markets and expanding international economic partnerships to support sustainable growth and long-term prosperity.

The listing of Service Long March Tyres, he added, marked another important milestone for Pakistan&#39;s financial markets. The country has witnessed 11 IPOs during the current fiscal year, the highest in nearly two decades.]]>
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			<title>In stellar performance, PSX gains 4,640 points</title>
			<link>https://tribune.com.pk/story/2613367/in-stellar-performance-psx-gains-4640-points</link>
			<comments>https://tribune.com.pk/story/2613367/in-stellar-performance-psx-gains-4640-points#comments</comments>
			<pubDate>Mon, 15 Jun 26 21:34:30 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
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			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2613367</guid>
			<description>
				<![CDATA[Positive cues trigger rally as investors welcome budget reforms, easing US-Iran tensions]]>
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				<![CDATA[Pakistan Stock Exchange (PSX) on Monday delivered a stellar performance as investors embraced the government&#39;s reform-oriented budget measures and responded positively to reports of a preliminary peace agreement between the United States and Iran.

The benchmark KSE-100 index opened on a strong footing with investors accumulating stocks across major sectors on expectations of improved economic prospects and regional stability. The index swung between the intra-day high of 177,176.73 and the low of 175,085.79 before closing at 177,039.83, registering robust gains of 4,639.92 points, or 2.69%.

Broad-based buying was observed in key sectors including commercial banks, fertiliser, cement, oil and gas exploration companies, oil marketing companies (OMCs) and refineries, which remained at the forefront of the rally. The momentum was further supported by anticipation that the budget&#39;s reform measures would strengthen macroeconomic stability and improve the corporate earnings&#39; outlook.

However, the State Bank of Pakistan (SBP) kept its policy rate unchanged that caused disappointment among the business community. According to KTrade Securities, investor sentiment remained firmly positive throughout the session. The market witnessed broad-based buying, allowing the benchmark index to maintain its upward momentum and finish the day comfortably in positive territory.

Sector-wise, major strength was observed across commercial banks, cement, oil &amp; gas, power, investment companies, technology and fertiliser. Investor optimism was primarily driven by reports that a peace agreement between the US and Iran had been finalised and was expected to be formally signed later in the week. The development helped ease geopolitical concerns and improved the broader risk environment. Going forward, market sentiment is likely to be influenced by further developments surrounding the peace agreement, global market trends and implementation of the recently announced FY27 budget measures, taken positively by market participants, KTrade added.

Arif Habib Limited (AHL) observed that the PSX finally breached the 175k level via a &quot;strong gap-up&quot; to close higher by 2.69% at 177k. An impressive 87 shares rose while 13 fell with UBL (+5.7%), Hub Power (+4.18%) and Lucky Cement (+4.51%) contributing the most to the index gains. In contrast, TRG Pakistan (-1.33%), Bank AL Habib (-0.16%) and Thal Limited (-0.59%) were the biggest index drags.

Meanwhile, the SBP kept its key interest rate unchanged at 11.5%, becoming the first central bank to respond to the Iran peace deal and betting that the disinflationary impact of lower oil costs would aid its efforts to cool consumer prices. The FY27 budget, which includes lower taxes on sectors like cement and textile, lifted related stocks as the country sought to balance growth with commitments to the IMF.

The multi-month consolidation period has come to an end with the KSE-100 moving through 175k and approaching the upper end of the weekly target of 178k, wrote AHL. Cumulatively, trading volumes increased to 988.1 million shares compared to the previous tally of 890.8 million. The value of traded shares stood at Rs63.5 billion.

In the ready market, shares of 494 companies were traded. Of these, 349 stocks closed higher, 119 fell and 26 remained unchanged.

Kohinoor Spinning was the volume leader with trading in 64.1 million shares, rising Rs0.38 to close at Rs6.26. Foreign investors bought shares worth Rs1.36 billion, the National Clearing Company reported.]]>
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			<title>Gold rallies as global prices hit 1-week high</title>
			<link>https://tribune.com.pk/story/2613368/gold-rallies-as-global-prices-hit-1-week-high</link>
			<comments>https://tribune.com.pk/story/2613368/gold-rallies-as-global-prices-hit-1-week-high#comments</comments>
			<pubDate>Mon, 15 Jun 26 21:34:30 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2613368</guid>
			<description>
				<![CDATA[Surges Rs10,800 to Rs455,136 per tola; rupee inches up]]>
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				<![CDATA[Gold prices in Pakistan recorded a sharp increase on Monday, tracking gains in the international bullion market, with the price of the precious metal rising by Rs10,800 per tola to reach Rs455,136.

According to rates issued by the All-Pakistan Gems and Jewellers Sarafa Association, the price of 10-gram gold surged by Rs9,720 to settle at Rs389,600. The latest increase follows Saturday&#39;s rise of Rs4,370 per tola, reflecting continued volatility in the bullion market.

In the international market, spot gold climbed 3.3% to $4,356.79 per ounce by 1435 GMT after touching its highest level since June 5 during intra-day trading, according to Reuters. US gold futures also advanced 3.3% to $4,378.70 per ounce. Market analysts attributed the rally to investor positioning after Iran and the United States agreed to halt their military conflict, a development that altered expectations regarding the future path of US interest rates and triggered renewed interest in precious metals.

The US dollar index slipped 0.2% during the session, making dollar-denominated commodities such as gold more affordable for buyers using other currencies and adding support to bullion prices. Investors are also awaiting comments from Federal Reserve Chairman Kevin Warsh, whose debut press conference later this week is expected to provide clues about the outlook for the US monetary policy.

Meanwhile, silver prices also moved higher in the domestic market, increasing by Rs230 per tola to reach Rs7,509. Other precious metals recorded strong gains globally, with palladium rising more than 5%, while market participants also monitored developments regarding Singapore&#39;s plans to establish an over-the-counter gold clearing system aimed at strengthening regional bullion trading infrastructure. Meanwhile, the Pakistani rupee posted a marginal rise against the US dollar in the inter-bank market, closing at 278.31 compared to 278.32 on Friday, according to the State Bank data.]]>
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			<title>Oil falls $4 to three-month low</title>
			<link>https://tribune.com.pk/story/2613363/oil-falls-4-to-three-month-low</link>
			<comments>https://tribune.com.pk/story/2613363/oil-falls-4-to-three-month-low#comments</comments>
			<pubDate>Mon, 15 Jun 26 21:34:30 +0500</pubDate>
			<dc:creator>
				<![CDATA[Reuters]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2613363</guid>
			<description>
				<![CDATA[Brent crude futures fell $4.11, or 4.71%, to $83.22 a barrel by 1730 GMT, US WTI was at $80.54, down $4.34, or 5.11%]]>
			</description>
			<content:encoded>
				<![CDATA[Oil prices slumped around $4 a barrel to a three-month low on Monday amid a broad selloff after President Donald Trump said the United States and Iran have signed a memorandum of understanding aiming to end the Iran war and reopen the Strait of Hormuz.

Brent crude futures fell $4.11, or 4.71%, to $83.22 a barrel by 1730 GMT and US WTI was at $80.54, down $4.34, or 5.11%. Both contracts fell to their lowest levels since March 10 on Monday after tumbling more than 3% on Friday. WTI futures fell as much as $5 during the session.

The MoU has been signed by Trump and Vice President JD Vance and Iranian parliament speaker Mohammad Bagher Qalibaf, one US official said. An official signing ceremony for the agreement is due to be held on Friday in Geneva. Iran&#39;s semi-official Mehr news agency said the draft deal called for reopening the Strait of Hormuz within 30 days under Iranian arrangements.]]>
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			<title>Export sector dismayed by govt measures</title>
			<link>https://tribune.com.pk/story/2613022/export-sector-dismayed-by-govt-measures</link>
			<comments>https://tribune.com.pk/story/2613022/export-sector-dismayed-by-govt-measures#comments</comments>
			<pubDate>Sat, 13 Jun 26 21:36:11 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
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			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2613022</guid>
			<description>
				<![CDATA[Businesses say they lack incentives to boost industrial growth, agriculture, employment]]>
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				<![CDATA[The Pakistan Business Forum (PBF) has expressed concern over several key aspects of the federal budget 2026-27, stating that the budget falls short of delivering the bold and transformative measures required to accelerate industrial growth, enhance exports, revive agriculture, and generate employment opportunities.

PBF President Khawaja Mehboobur Rehman noted that the government has set a target of increasing petroleum levy collection by 18%, a move that raises concerns about continued inflationary pressures instead of providing meaningful relief to consumers and businesses. Higher petroleum-related taxation is likely to keep transportation and production costs elevated across the economy.

The forum said that the budget does not offer significant incentives capable of boosting exports and improving Pakistan&#39;s international competitiveness. At a time when export-led growth is essential for economic stability, the absence of strong export-oriented measures represents a missed opportunity.

PBF also highlighted the government&#39;s silence on industrial energy tariffs. According to the forum, the industries operating at nearly half of their production capacity cannot be revived without substantial reductions in energy costs. &quot;While the industry was expecting a more comprehensive package to restore competitiveness and attract investment, the relief measures announced remain limited.&quot;

However, the PBF welcomed the government&#39;s decision to reduce the super tax by 2% and completely abolish the super tax for businesses with an annual turnover of up to Rs500 million. The forum described this measure as a positive and commendable step that will provide relief to a significant segment of the business community, including the real estate and construction sectors.

It also expressed concern over the continued expansion of the undocumented economy. It noted that the size of the cash economy has reportedly increased from Rs9 trillion to Rs12 trillion within a year, describing this trend as a clear indication of policy shortcomings and the failure to adequately document economic activity.

Separately, Ismail Suttar, founder chairman Salt Manufacturers Association of Pakistan has expressed serious reservations about the federal budget 2026-27, arguing that the government has failed to introduce measures capable of delivering a meaningful growth in exports at a time when the country urgently needs foreign exchange earnings.

Suttar said the budget lacked a coherent roadmap for expanding Pakistan&#39;s export base and addressing challenges confronting manufacturers. He noted that despite repeated assurances of support for the productive sectors, the exporters have received little beyond marginal tax adjustments.

According to him, one of the biggest disappointments was the government&#39;s decision not to restore the final tax regime for exporters. He said the export sector had sought a straightforward tax framework that would minimise compliance costs and reduce interaction with tax authorities.

&quot;Reducing the withholding tax rate while keeping exporters within the normal tax regime does not solve the problem,&quot; he observed. &quot;Businesses need predictability and simplicity, not additional paperwork and procedural complications.&quot;

Suttar warned that Pakistan&#39;s regional competitors were aggressively facilitating exporters through tax incentives, lower production costs and simplified regulations, whereas the latest budget offered no comparable relief.]]>
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			<title>Govt refuses to share cost of tax relief with Parliament</title>
			<link>https://tribune.com.pk/story/2613311/govt-refuses-to-share-cost-of-tax-relief-with-parliament</link>
			<comments>https://tribune.com.pk/story/2613311/govt-refuses-to-share-cost-of-tax-relief-with-parliament#comments</comments>
			<pubDate>Mon, 15 Jun 26 14:53:28 +0500</pubDate>
			<dc:creator>
				<![CDATA[Shahbaz Rana]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2613311</guid>
			<description>
				<![CDATA[Finance secretary says 'government is in discussions with the IMF; thus, it cannot disclose these numbers']]>
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				<![CDATA[The government on Monday refused to share the cost of tax relief with the National Assembly (NA) standing finance committee, which will approve the new budget, but the committee chairperson said that the cost was around Rs360 billion.

&ldquo;The government is in discussions with the International Monetary Fund; thus, it cannot disclose these numbers,&rdquo;&nbsp;said Finance Secretary Imdadullah Bosal while responding to a question raised by MNA&nbsp;Jawed Hanif Khan.

Bosal said that any relief had to be offset by an equal amount of additional revenue and enforcement measures, in a statement that was in line with the deal with the IMF. However, Bosal said that the government had privately shared the relief cost with the standing committee&rsquo;s chairman.

When Khan enquired whether the cost of relief was Rs360 billion,&nbsp;Naveed Qamar, the standing committee&#39;s chairman,&nbsp;replied that &ldquo;you were very close&rdquo;. Later, Qamar said that the cost was roughly Rs360b.

The Express Tribune had reported that the government gave Rs360b in tax relief, including Rs115b&nbsp;for the property sector and Rs52b for the salaried class.

The finance ministry had informed the federal cabinet that the cost of reducing the withholding taxes for the property sector was Rs115b.

Read More: Aurangzeb says Budget 2026-27 delivers on promise to move economy from stability to growth

The sources said that the government was still in discussions with the International Monetary Fund, which was not very comfortable about halving the tax rates on the sales and purchase of properties.

It was unprofessional on the part of the government that it was not sharing the relief cost with the legislators, remarked MNA Hina Rabbani Khar, a member of the standing committee.

The cabinet was further told that the impact of reducing the federal excise duty rates on air tickets was Rs24b, and the Rs17b was the cost of lowering the withholding tax rates on debit and credit card international transactions to 0.5%.

Minister of State for Finance Bilal Kayani said that people were circumventing the hefty taxes on business class air tickets by either upgrading their tickets after boarding the flight or by booking from abroad.

About Rs7b&nbsp;was the cost of abolishing the 1% capital value tax on foreign transactions, according to the government&rsquo;s briefing to the cabinet last week.

Hamid Ateeq Sarwar, a member of the strategic transformation Federal Board of Revenue (FBR), said that the capital value tax had to be abolished at the demand of foreign countries and also because Pakistanis were becoming non-resident persons to avoid the tax.

Qamar sought clarity on whether the anticipated revenue losses had been adequately quantified and requested details of the government&rsquo;s strategy to offset any resulting fiscal shortfall.

The committee also deliberated on relief for salaried individuals in the context of persistent inflation and rising living costs, and sought clarification on whether the proposed tax slab revisions would provide meaningful relief to middle-income groups.

Kayani said that the maximum possible relief had been extended to the salaried persons.

The chairman observed that tax relief measures must remain equitable and economically justified, while stressing the need to broaden the tax base and improve compliance. He directed the Ministry of Finance and FBR to submit detailed revenue estimates, fiscal impact assessments, and implementation plans before further consideration of the Finance Bill, 2026.

Also Read: Budget 2026-27: FinMin projects 4% growth as govt unveils fiscal, tax and reform agenda

Sarwar informed the committee that the government has also decided to abolish the requirement of paying advance income tax for exporters. He said that the move would help address the liquidity issues.

To another question, the member strategic transformation added that the government was collecting roughly Rs400b&nbsp;annually from the super tax, which it cannot immediately abolish. The super tax had been introduced as an emergency measure many years ago. The government has proposed in the budget to abolish the super tax on annual incomes of Rs500 million and charge 8% rate on higher incomes.

However, the super tax rate will be 10% for banks, oil and gas exploration companies and the fertiliser firms.

Sarwar said that the banks&rsquo; lending to the government had increased to 80% of their total lending after ending the advance-to-deposit ratio limits. The violation of these limits used to attract additional taxes, which the government ended, and as a result, there is hardly any money available to the private sector borrowers.

The committee was informed that the budget package comprises eleven relief measures, ten rationalisation measures, and five administrative reforms aimed at promoting economic growth, encouraging investment, enhancing documentation of the economy, improving tax compliance, and strengthening revenue collection.

Read This: Govt cuts taxes, ends surcharge for four salaried class income slabs

Kayani said that the government abolished the 18% sales tax on the shipping industry in light of lessons learned from the Middle East conflict. He said that there was a need to develop the local shipping industry.

But Qamar was of the view that the tax had been abolished after the National Logistic Cell took over Pakistan National Shipping Corporation.

The committee was informed that the relief package includes the abolition of taxes on contraceptives and selected women&#39;s products.

&nbsp;]]>
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			<title>PSX soars 2,700 points amid budget buzz</title>
			<link>https://tribune.com.pk/story/2612937/psx-soars-2700-points-amid-budget-buzz</link>
			<comments>https://tribune.com.pk/story/2612937/psx-soars-2700-points-amid-budget-buzz#comments</comments>
			<pubDate>Fri, 12 Jun 26 21:36:41 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
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			<category><![CDATA[Business]]></category>
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			<description>
				<![CDATA[Easing geopolitical tensions, oil plunge fuel market momentum]]>
			</description>
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				<![CDATA[Pakistan Stock Exchange (PSX) on Friday enjoyed a strong bullish momentum amid budget announcement for fiscal year 2026-27, with the benchmark KSE-100 index closing at 172,400 points, gaining around 2,700 points.

The KSE-100 recorded another positive session and closed at 172,399.9, gaining 2,696 points (+1.59% day-on-day). &quot;The positive performance was supported by broad-based buying across key sectors as investor sentiment improved significantly throughout the session,&quot; said Ahmed Sheraz of KTrade Securities.

Trading activity remained robust, with the KSE-100 volumes reaching 320 million shares. Among the major volume contributors, The Bank of Punjab saw trading in 53 million shares, followed by Maple Leaf Cement with 36 million shares and Pakistan International Bulk Terminal with 25 million shares.

The rally was primarily driven by strong positive cues from global markets. Overnight gains in US equities improved the overall risk appetite, while international oil prices declined sharply, providing additional support to investor sentiment.

Brent crude fell by more than 5% during the session and briefly traded below $86 per barrel after US President Donald Trump announced that the planned military strikes had been called off and indicated that a diplomatic understanding had been reached. He also acknowledged the role of regional and strategic partners in helping ease tensions.

The sharp decline in oil prices helped alleviate concerns over inflationary pressures and potential disruptions to global economic activity, encouraging investors to increase exposure to equities. Going forward, market direction is likely to remain dependent on developments in global geopolitics, trends in international oil prices, and the FY27 budget.]]>
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			<title>Govt to broaden tax net through compliance, not new taxes: Aurangzeb</title>
			<link>https://tribune.com.pk/story/2612866/govt-to-broaden-tax-net-through-compliance-not-new-taxes-aurangzeb</link>
			<comments>https://tribune.com.pk/story/2612866/govt-to-broaden-tax-net-through-compliance-not-new-taxes-aurangzeb#comments</comments>
			<pubDate>Fri, 12 Jun 26 18:48:38 +0500</pubDate>
			<dc:creator>
				<![CDATA[Web Desk]]>
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			<category><![CDATA[Pakistan]]></category>
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			<description>
				<![CDATA[Says plugging tax leakages will help boost revenues without imposing additional taxes]]>
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				<![CDATA[Finance Minister Muhammad Aurangzeb on Friday said the government had not imposed any new taxes in the federal budget for FY2026-27 and would instead focus on broadening and deepening the tax net through improved compliance and enforcement measures.

The finance minister unveiled the Rs18.8 trillion budget for FY2026-27 and set an economic growth target of 4% earlier today, while describing the budget as anchored in &ldquo;stabilisation, reform and growth&rdquo;.

Speaking on private television programme&nbsp;Aaj Shahzeb Khanzada Kay Sath, Aurangzeb said the government&#39;s strategy was aimed at curbing tax evasion, leakages, corruption and collusion.

Read: Budget 2026-27: FinMin projects 4% growth as govt unveils fiscal, tax and reform agenda

&ldquo;Deepening means addressing areas where there is tax evasion, leakage, corruption and collusion. We have to stop that, especially in the sales tax regime,&rdquo; he said.

He added that plugging leakages through stronger compliance and enforcement would generate significant additional revenues.

The minister said public debate often focused on revenue shortfalls while overlooking the substantial growth in the country&#39;s revenue base over recent years.

&ldquo;Everybody talks about revenue shortfalls, but nobody notices that in the last few years, the revenue base has increased from Rs7 trillion to Rs13 trillion. It has never happened in the country&#39;s history that the revenue base has doubled,&rdquo; he said.

Thanking the provinces for supporting the federal government, Aurangzeb said the additional fiscal space created through provincial cooperation would not be used for relief measures but for strategic requirements.

&ldquo;The additional fiscal space created through provincial support will not be utilised for relief measures. Given the active borders we currently have and internal security challenges in two provinces, whatever needs to be done for our defence and civilian armed forces will be done. We have primarily discussed this matter for that purpose, and I am grateful to the provinces for agreeing because of these strategic considerations,&rdquo; he said.

Also Check: Budget 2026-27 income tax calculator: find out your new take-home salary

Responding to a question on how the government planned to provide relief without imposing additional taxes, the minister said the objective would largely be achieved through enhanced compliance and enforcement.

Asked about the government&#39;s new scheme relating to exemptions at the point of sale for businesses with annual sales below Rs200 million, Aurangzeb said a disproportionate tax burden had long been borne by a limited number of sectors.

He said the government was now seeking to bring the manufacturing sector, exporters, the information technology industry and the salaried class into the documented economy.

&ldquo;This should not only be viewed as relief but as a change in the direction of travel,&rdquo; he said.

&ldquo;This is only a beginning to bring them into a documented economy,&rdquo; he added, noting that around 3.5-4 million people belonged to small-scale businesses and small and medium-sized enterprises (SMEs), and that the government was seeking to reduce the disproportionate burden on existing taxpayers.

Discussing measures for the private and export sectors, Aurangzeb said the government was significantly expanding the Export Finance Scheme and making additional funding available to exporters.

He added that despite the policy rate standing at 11.5%, Prime Minister Shehbaz Sharif had directed that exporters should be able to access financing at a rate of 4.5%.

On taxation measures for exporters, the minister said the overall rate had been reduced from 2%&nbsp;to 1.25%&nbsp;under the minimum tax regime.

He further said all super tax slabs had been abolished for exporters and traders with income below Rs500 million, while exporters above that threshold would continue to pay super tax at rates ranging from 8-10%.

Read More: Budget 2026-27: Govt cuts taxes, ends surcharge for four salaried class income slabs

&ldquo;We received special directives from the prime minister and the cabinet to completely abolish the super tax on exporters. Now that those directives have been issued, I will work on that with my team,&rdquo; he said.

Rejecting claims of a broader decline in exports, Aurangzeb said only rice and sugar exports had recorded a downturn.

He said exports of higher value-added textiles and sports goods had increased and expressed confidence that information technology exports would reach $4.5 billion during the current fiscal year.

The minister also praised the prime minister and the field marshal for their role in efforts aimed at addressing the ongoing conflict between Iran and United States, expressing hope that tensions would ease soon.

He cautioned that the government should maintain a buffer even if petroleum prices declined following a resolution of the conflict, noting that damage to energy infrastructure could have lasting economic consequences.

&ldquo;This will not be an overnight situation where an agreement is reached tomorrow. God willing, with the efforts being made day and night by Pakistan&#39;s leadership, progress can be achieved, but the effects of this situation will certainly extend into next year, and we have to prepare for that,&rdquo; he said.]]>
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			<title>Budget 2026-27: Govt cuts taxes, ends surcharge for four salaried class income slabs</title>
			<link>https://tribune.com.pk/story/2612818/budget-2026-27-govt-cuts-taxes-ends-surcharge-for-four-salaried-class-income-slabs</link>
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			<pubDate>Fri, 12 Jun 26 13:06:58 +0500</pubDate>
			<dc:creator>
				<![CDATA[Web Desk]]>
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			<category><![CDATA[Business]]></category>
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			<description>
				<![CDATA[Says announcing these measures under the prime minister's directives]]>
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				<![CDATA[Finance Minister Muhammad Aurangzeb on Friday unveiled tax relief measures for four income slabs of salaried employees and announced the removal of the surcharge, following directives from Prime Minister Shehbaz Sharif, while presenting the 2026&ndash;27 Federal Budget in the National Assembly.

Speaking in the National Assembly, Aurangzeb said, &ldquo;I am pleased to announce that under the prime minister&rsquo;s guidance, our government will reduce tax rates for different income groups to ease the burden on employees.&rdquo;

According to the proposal, salaried individuals earning Rs2.2-3.2 million annually will see their tax rate reduced from 23% to 20%.

Those with an income between Rs3.2-4.1m will have their tax rate cut from 30% to 25%.

Employees earning Rs4.1-5.6m annually will face a reduced tax rate of 29%, down from 35%.

Meanwhile, salaried individuals with incomes between Rs5.6-7m will see their tax rate lowered from 35% to 32%.

Aurangzeb said that the surcharge on the salaried class would also be abolished, a long-standing demand.

&quot;Last year, the surcharge had been reduced from 10% to 9%, but the proposal now is for a complete removal,&quot; he added.



تنخواہ دار طبقے پر عائد سرچارج ختم کرنے کا فیصلہ۔#Budget2026 #FederalBudget #BudgetSession #PakistanBudget #عوام_دوست_بجٹ #BudgetForPakistan pic.twitter.com/C3lYURa2Gk
&mdash; APP (@appcsocialmedia) June 12, 2026


While presenting the budget, Aurangzeb said that the budget was being presented at a time when Pakistan, in the eyes of its people and the world, had achieved the status of a country whose voice was heard and whose friendship was desired.

He said Pakistan has responded forcefully to India&#39;s aggression. India was compelled to discuss peace. Our Operation Bunyanum Marsoos was a major success.

Pakistan has achieved a massive diplomatic success in recent months and successfully brought the United States and Iran to the negotiating table to resolve regional conflict, he added.]]>
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			<title>Budget 2026-27: Internet shoppers rejoice as govt proposes 90% cut in withholding tax on overseas card transactions</title>
			<link>https://tribune.com.pk/story/2612821/budget-2026-27-internet-shoppers-rejoice-as-govt-proposes-90-cut-in-WHT-on-overseas-transactions</link>
			<comments>https://tribune.com.pk/story/2612821/budget-2026-27-internet-shoppers-rejoice-as-govt-proposes-90-cut-in-WHT-on-overseas-transactions#comments</comments>
			<pubDate>Fri, 12 Jun 26 13:46:29 +0500</pubDate>
			<dc:creator>
				<![CDATA[Web Desk]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2612821</guid>
			<description>
				<![CDATA[Aurangzeb says lower tax rate will help discourage informal fund transfers and strengthen formal channels]]>
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				<![CDATA[In a move aimed at promoting the documentation of the economy through formal financial channels, the government on Friday&nbsp;proposed a 90 per cent reduction in withholding tax on international credit and debit card transactions in the federal budget for the next fiscal year, lowering the rate from 5% to 0.5%.

Presenting the federal budget for fiscal year 2026-27, Finance Minister Muhammad Aurangzeb announced the proposed cut, which would reduce the withholding tax rate on overseas transactions made through bank-issued credit and debit cards from 5%&nbsp;to 0.5%.

&ldquo;Currently, a 5%&nbsp;withholding tax is levied on every transaction made abroad using credit or debit cards issued by banks in Pakistan,&rdquo; Aurangzeb said while presenting the budget.

Read: Finance Minister Aurangzeb presents Budget 2026-27

He said the existing tax had encouraged the use of informal channels for transferring funds.

To discourage such practices, the minister said, the government had proposed reducing the withholding tax rate to 0.5pc, bringing it in line with the level of a routine financial transaction.

&ldquo;This measure is expected to support the government&#39;s efforts to promote the documentation of the economy and strengthen formal financial channels,&rdquo; he said.

If approved, the proposal would result in a 90pc reduction in the withholding tax on international card transactions, providing significant relief to online consumers.]]>
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			<title>Budget 2026-27 income tax calculator: find out your new take-home salary</title>
			<link>https://tribune.com.pk/story/2612852/budget-2026-27-income-tax-calculator-find-out-your-new-take-home-salary</link>
			<comments>https://tribune.com.pk/story/2612852/budget-2026-27-income-tax-calculator-find-out-your-new-take-home-salary#comments</comments>
			<pubDate>Fri, 12 Jun 26 16:22:42 +0500</pubDate>
			<dc:creator>
				<![CDATA[Web Desk]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2612852</guid>
			<description>
				<![CDATA[Govt cuts taxes, ends surcharge for four salaried class income slabs]]>
			</description>
			<content:encoded>
				<![CDATA[Salaried employees can estimate their revised take-home salary using the Budget 2026-27 income tax calculator. During the budget speech in the National Assembly on Friday, Finance Minister Aurangzeb unveiled tax cuts for four income slabs and announced the abolition of the surcharge.]]>
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			<title>Oil prices climb more than $4 after Israeli strikes on Iran and Lebanon</title>
			<link>https://tribune.com.pk/story/2612043/oil-prices-climb-more-than-4-after-israeli-strikes-on-iran-and-lebanon</link>
			<comments>https://tribune.com.pk/story/2612043/oil-prices-climb-more-than-4-after-israeli-strikes-on-iran-and-lebanon#comments</comments>
			<pubDate>Mon, 08 Jun 26 09:39:58 +0500</pubDate>
			<dc:creator>
				<![CDATA[Reuters]]>
			</dc:creator>
			<category><![CDATA[Business]]></category><category><![CDATA[World]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2612043</guid>
			<description>
				<![CDATA[On Sunday, Iran fired a salvo of missiles ​at Israeli targets in retaliation for the strikes on Lebanon]]>
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				<![CDATA[Oil prices jumped more than $4 on Monday, with investors spooked by Israeli strikes &zwnj;on Iran as well as renewed attacks on Lebanon a day earlier.

Brent crude futures rose $4.42 or 4.47% to $97.15 a barrel as of 0609 GMT, while US crude futures were up $4.07 or 4.50% at $94.61 per barrel.

Israel said on Monday it hit a petrochemical plant in Iran&#39;s southwest, along with strikes elsewhere ​on military targets. That&#39;s despite US President Donald Trump reportedly telling Israeli Prime Minister Benjamin Netanyahu to refrain from ​further attacks.

In the first hit on an energy site inside Iran since the April 8 ceasefire, Israel ⁠said it struck targets at the Mahshahr petrochemical complex. A provincial official told Iran&#39;s semi-official Fars news agency parts of the ​plant were damaged.

Read: Oil shock and the import trap

Hopes are now eroding for an imminent end to the wider war and a restart to crude flows through the ​Strait of Hormuz, through which roughly a fifth of the world&rsquo;s oil and liquefied natural gas is transited.

Monday&#39;s gains erased Friday&#39;s losses, when prices fell on hopes of a de-escalation in the US-Iran conflict. Oil prices have climbed just under 60% since the start of the war in ​late February but remain below highs marked in March when Brent reached nearly $120 per barrel.

On Sunday, Iran fired a salvo of missiles ​at Israeli targets in retaliation for the strikes on Lebanon. Even so, US President Donald Trump insisted that an agreement to end the wider &zwnj;war remains well within reach.

Iran has made a ceasefire with Lebanon a condition for a peace deal with Washington.

Israel invaded Lebanon in March after Iran-backed Hezbollah fired rockets and drones across the border. Lebanon and Israel said on June 3 that they had agreed to a ceasefire following negotiations in Washington.

Tariffs on the Strait

On Monday, Iran&rsquo;s ambassador to Moscow was quoted as saying that the Strait of Hormuz will ​be open but under new conditions ​to be set by ⁠Iran and Oman, including a transit fee.

&quot;Of course, this strait will be open, but with new conditions to be determined by the Iranian and Omani authorities,&quot; Ambassador Kazem Jalali told the Russian newspaper ​Izvestia in an interview published on Monday.

Read more: &#39;Shaky Zionist regime has few days left,&#39; says Iranian supreme leader

Tehran has been blocking most shipping through the Strait ​of Hormuz, while Washington ⁠has imposed its own blockade of Iranian ports.

OPEC+ will increase output

Amid the resulting supply crisis, OPEC+ on Sunday agreed its fourth increase in oil output in four months. But analysts said the decision would have little impact since most OPEC+ members could not meet their output ⁠targets because ​of the Hormuz closure or, in the case of Russia, infrastructure attacks that ​have eroded its production capacity.

&quot;In the current market, the physical impact of such a decision would be close to zero,&quot; Rystad Energy&#39;s head of geopolitical analysis, Jorge ​Leon, said in a note to clients.]]>
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			<title>Cement despatches plunge 21% in May</title>
			<link>https://tribune.com.pk/story/2611144/cement-despatches-plunge-21-in-may</link>
			<comments>https://tribune.com.pk/story/2611144/cement-despatches-plunge-21-in-may#comments</comments>
			<pubDate>Tue, 02 Jun 26 20:07:14 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2611144</guid>
			<description>
				<![CDATA[Exports decline 36%, local sales drop 17% while north-based mills see 22% fall in total despatches]]>
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				<![CDATA[Cement despatches for May 2026 declined 21.02% to 3.837 million tonnes from 4.858 million tonnes during the same month last fiscal year, according to data released by the All Pakistan Cement Manufacturers Association (APCMA).

Local despatches fell 17.17% to 3.205 million tonnes from 3.869 million tonnes in May 2025. Exports also decreased 36.06% to 632,648 tonnes from 989,434 tonnes.

In May 2026, north-based mills despatched 2.657 million tonnes, a decline of 22% from 3.407 million tonnes in May 2025. South-based mills despatched 1.180 million tonnes, down 18.70% from 1.452 million tonnes.

In domestic markets, north-based mills sold 2.657 million tonnes, down 16.05% from 3.165 million tonnes. South-based mills sold 547,528 tonnes, down 22.21% from 703,827 tonnes.

There were no exports from north-based mills during May 2026. Exports from the south decreased 15.41% to 632,648 tonnes from 747,856 tonnes during the same month last year. During the first 11 months of the current fiscal year, total despatches (domestic and exports) were 46.26 million tonnes, up 6.44% from 43.46 million tonnes despatched during the corresponding period of last fiscal year. Domestic despatches during this period were 38.01 million tonnes against 35.11 million tonnes during the same period last year, showing an increase of 8.26%. Export despatches declined 1.21% to 8.24 million tonnes from 8.34 million tonnes.

North-based mills despatched 31.689 million tonnes domestically during July 2025 to May 2026, up 9.49% from 28.943 million tonnes despatched during July 2024 to May 2025. Exports from the north fell 45.98% to 797,431 tonnes from 1.476 million tonnes exported during the same period last year. Total despatches by north-based mills rose 6.80% to 32.487 million tonnes from 30.419 million tonnes.

South-based domestic despatches during July 2025 to May 2026 were 6.323 million tonnes, up 2.47% from 6.170 million tonnes despatched during the same period last fiscal year. Exports from the south increased 8.41% to 7.447 million tonnes from 6.869 million tonnes exported during the same period last year. Total despatches by south-based mills rose 5.60% to 13.770 million tonnes from 13.039 million tonnes.

A spokesperson for APCMA appreciated Pakistan&#39;s continuous and untiring efforts to resolve geopolitical tensions and bring peace to the Middle East. He was also optimistic about the upcoming federal budget and expected good policies from the government to support local industry and resolve bottlenecks in its operations.]]>
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			<title>FTO declares 'voluntary' tax deposits illegal</title>
			<link>https://tribune.com.pk/story/2611142/fto-declares-voluntary-tax-deposits-illegal</link>
			<comments>https://tribune.com.pk/story/2611142/fto-declares-voluntary-tax-deposits-illegal#comments</comments>
			<pubDate>Tue, 02 Jun 26 20:07:14 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2611142</guid>
			<description>
				<![CDATA[Allegtaion that Inland Revenue officials recovered large amount under coercive circumstances without lawful assessment]]>
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				<![CDATA[The Federal Tax Ombudsman (FTO) has ruled that obtaining tax deposits from taxpayers during proceedings under Section 175C of the Income Tax Ordinance, 2001, without subsequently determining liability through the prescribed legal process, constitutes maladministration.

The complaint was filed by the owner of Noor Surgical Hospital in Abbottabad, who alleged that Inland Revenue officials recovered a substantial amount under coercive circumstances without any lawful assessment or determination of tax liability, according to a statement issued on Tuesday. During proceedings before the FTO, the department produced no speaking order, assessment order or other legal determination establishing the alleged default or tax liability.]]>
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			<title>New motorway to cut KKH distance by 120km</title>
			<link>https://tribune.com.pk/story/2611145/new-motorway-to-cut-kkh-distance-by-120km</link>
			<comments>https://tribune.com.pk/story/2611145/new-motorway-to-cut-kkh-distance-by-120km#comments</comments>
			<pubDate>Tue, 02 Jun 26 20:07:14 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2611145</guid>
			<description>
				<![CDATA[13.5km Babusar Tunnel to be part of four-lane project reducing travel distance by 120km]]>
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				<![CDATA[The National Highway Authority (NHA) has approved the construction of a new 172-kilometre motorway from Mansehra to Chilas via Kaghan, Naran and Jhal Khand, according to an official statement issued on Tuesday.

Federal Minister for Communications Abdul Aleem Khan, who chaired the meeting, announced that the new motorway (MNJC) will provide an alternative route to the Karakoram Highway (KKH). Due to this strategic route, travel distance on the KKH will be reduced by up to 120 kilometres.

The project will be completed in two phases. In the first phase, the motorway will be built from Mansehra to Kaghan, Naran and Babusar Top. In the second phase, the project will be completed from Babusar Top to Chilas.

A major highlight of the project is the construction of the 13.5-kilometre Babusar Tunnel, which will become the longest tunnel in Pakistan. Keeping future requirements in mind, this four-lane motorway will have the capacity to be expanded to six lanes.

Modern rest areas will be built every 25 to 30 kilometres for commuters, and specialised trucking terminals for goods transport will be established on both sides of the motorway.

Highlighting the economic significance of the project, Khan said that traditionally, trade from the Arabian Sea to China via existing routes consumes an immense amount of time and leads to a massive wastage of financial resources.

In contrast to this lengthy and costly transit, the new motorway will be directly linked with China, connecting Western China to the ports of Karachi and Gwadar. Khan said this network will serve as the fastest, shortest and most cost-effective route from the Arabian Sea to Western China, drastically reducing transit times and expenditures while proving to be a real game-changer for the sustainable development of Gwadar Port.

At the conclusion of the meeting, the federal minister issued directives to the concerned authorities to finalise all technical aspects of the project within the stipulated time frame. The secretary communications and chairman NHA were also present during the meeting.]]>
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			<title>Imported fuels spark energy security fears</title>
			<link>https://tribune.com.pk/story/2610590/imported-fuels-spark-energy-security-fears</link>
			<comments>https://tribune.com.pk/story/2610590/imported-fuels-spark-energy-security-fears#comments</comments>
			<pubDate>Sat, 30 May 26 21:55:32 +0500</pubDate>
			<dc:creator>
				<![CDATA[SHAHRAM HAQ]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2610590</guid>
			<description>
				<![CDATA[Current policy focuses on structural reforms, greater utilisation of local resources, less reliance on external chains]]>
			</description>
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				<![CDATA[Pakistan&#39;s increasing dependence on imported fossil fuels is exposing the economy to mounting fiscal and energy security risks amid declining domestic gas reserves and rising industrial demand.

A detailed report and SWOT analysis released by the Institute of Cost and Management Accountants of Pakistan (ICMA) highlighted that Pakistan&#39;s energy mix continues to rely heavily on oil, gas and coal, alongside contributions from nuclear and renewable energy sources including hydropower, wind and solar. However, shrinking indigenous reserves and the country&#39;s dependence on imported oil and liquefied natural gas (LNG) are creating significant challenges for sustainable economic growth, industrial productivity and urban expansion.

The report noted that successive governments have attempted to address these concerns through policy initiatives such as Vision 2025 and the Medium-Term Development Framework, aimed at improving energy efficiency, modernising infrastructure, encouraging private sector participation and promoting long-term sustainability in the energy sector. According to the analysis, Pakistan&#39;s energy landscape has undergone major structural changes over the decades, marked by key gas discoveries, regulatory reforms and increased foreign investment between 1947 and 2025. Current policy direction, it said, is focused on structural reforms, greater utilisation of indigenous resources and long-term planning to reduce dependence on external energy supply chains.

The institute observed that Pakistan&#39;s reliance on imported energy has intensified in recent years due to declining domestic gas production and rising industrial consumption. Since LNG imports began in 2015, consumption has fallen from 8.2 million tons in 2021 to an estimated 6.1 million tons by 2025, primarily because of elevated import costs and the rapid expansion of distributed solar energy.

ICMA stated that distributed solar generation in Pakistan reached nearly 34 gigawatts by 2025, while the country imported approximately 50 gigawatts of solar panels between 2017 and 2025, almost equivalent to the national grid&#39;s installed capacity.

The report also cautioned that the import-dependent energy structure has increased vulnerability to global geopolitical tensions, supply chain disruptions and international price volatility. It pointed to structural imbalances in the LNG sector arising from long-term supply contracts signed during periods of higher demand projections, contributing to growing financial pressure and circular debt estimated at Rs1.889 trillion. The analysis identified strengths such as stable fuel supply infrastructure and existing generation capacity, but flagged major weaknesses including excessive import dependence, rising energy costs and financial inefficiencies within the energy chain.

At the same time, it highlighted opportunities in renewable energy expansion and local resource exploration, while warning that global commodity price fluctuations and geopolitical instability continue to pose serious threats to Pakistan&#39;s energy security.

The report noted that Pakistan&#39;s long-term energy transition strategy targets 60% clean electricity generation by 2030, though fossil fuels are expected to remain a critical transitional component of the energy mix for the foreseeable future. It stressed that energy security would require comprehensive structural reforms, improved demand management, modernised infrastructure, flexible fuel procurement mechanisms and accelerated investment in renewable and indigenous energy resources.]]>
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			<title>US, Mexico conclude trade talks</title>
			<link>https://tribune.com.pk/story/2610593/us-mexico-conclude-trade-talks</link>
			<comments>https://tribune.com.pk/story/2610593/us-mexico-conclude-trade-talks#comments</comments>
			<pubDate>Sat, 30 May 26 21:55:32 +0500</pubDate>
			<dc:creator>
				<![CDATA[Reuters]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
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			<description>
				<![CDATA[Trade agency said that the two sides will continue to advance their discussions on June 16-17 in Washington, DC]]>
			</description>
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				<![CDATA[The US and Mexico trade negotiators on Friday concluded their first bilateral negotiating round to revise the US-Mexico-Canada Agreement on trade, discussing automotive rules of origin, steel and aluminum trade and economic security, the US Trade Representative&#39;s office said.

The trade agency said that the two sides will continue to advance their discussions on June 16-17 in Washington, DC, in talks covering agriculture and &quot;a level playing field.&quot; A third round is scheduled for the week of July 20 in Mexico City, but so far the talks exclude USMCA partner Canada.]]>
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			<title>China broadens digital yuan footprint</title>
			<link>https://tribune.com.pk/story/2610595/china-broadens-digital-yuan-footprint</link>
			<comments>https://tribune.com.pk/story/2610595/china-broadens-digital-yuan-footprint#comments</comments>
			<pubDate>Sat, 30 May 26 21:55:32 +0500</pubDate>
			<dc:creator>
				<![CDATA[Reuters]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
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			<description>
				<![CDATA[Pilot salary payments, healthcare disbursements using e-CNY; incentivises banks to boost usage]]>
			</description>
			<content:encoded>
				<![CDATA[China&#39;s central bank is making a broad push to increase the use of digital yuan at home and abroad, several industry sources said, setting Beijing on a different &ndash; and potentially competing &ndash; path from the United States in shaping the future of money.

In a series of measures, many revealed here for the first time, the People&#39;s Bank of China (PBOC) is giving banks policy incentives and behind-the-scenes directives to expand the use of digital yuan, also known as e-CNY, in areas ranging from lottery draws to green electricity charges and fiscal spending.

Banks are also being pressed to grow digital yuan use in cross-border transactions, particularly along Belt and Road Initiative routes, with lenders racing to develop compatible products including loans, letters of credit and bills, the sources said.

All the sources declined to be named as they were not authorised to speak to the media. China&#39;s bet on the digital yuan is in stark contrast with the US, where President Donald Trump has embraced stablecoins while banning domestic circulation of central bank digital currencies.

Some of the industry sources said Beijing&#39;s move is partly driven by a desire to reduce its dependence on a global payments system dominated by Western institutions and anchored to the dollar as the world&#39;s reserve currency. &quot;The war has exposed the risks of dollar weaponisation, highlighting the urgent need for de-dollarisation among Middle East oil producers,&quot; brokerage China Securities Co wrote in a report, saying the Iran conflict is accelerating yuan internationalisation.

As a result, the yuan&#39;s global influence could expand &quot;from trade into the realm of geopolitics,&quot; it wrote.

To be sure, the digital yuan is starting from a low base and faces structural limits on how far it can expand.

Cumulative digital yuan transactions had reached 16.7 trillion yuan ($2.47 trillion) as of November since its 2019 debut, according to the latest official data, compared with 279 trillion yuan in China&#39;s UnionPay card transactions in 2025 alone. In cross-border digital payment, &quot;China and the US are the two engines for the global economy and they&#39;re both pushing their own standards,&quot; said Xin Yan, CEO of Sign, which builds digital infrastructure for governments and institutions.

China&#39;s digital yuan is more compatible with the banking system but &quot;it is not friendly for foreigners,&quot; Xin added.

Pilots include lottery draws, prepaid cards, government fiscal spending and supply chain financing, the industry sources said. Authorities are also testing the digital yuan to curb medical insurance fraud and track green electricity consumption, leveraging its ability to trace money flows with precision, said the sources.

The digital yuan is unlikely to disrupt retail payment behaviour dominated by Alipay and WeChat Pay, with its ultimate purpose focused on international settlement between enterprises, the industry sources said. However, expanding abroad poses even greater challenges.]]>
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			<title>Gold steady despiteglobal slide</title>
			<link>https://tribune.com.pk/story/2609604/gold-steady-despiteglobal-slide</link>
			<comments>https://tribune.com.pk/story/2609604/gold-steady-despiteglobal-slide#comments</comments>
			<pubDate>Fri, 22 May 26 20:10:47 +0500</pubDate>
			<dc:creator>
				<![CDATA[Our Correspondent]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=2609604</guid>
			<description>
				<![CDATA[Stronger dollar weighs on bullion globally; rupee edges up]]>
			</description>
			<content:encoded>
				<![CDATA[Gold prices in Pakistan remained unchanged on Friday despite a decline in international bullion markets, where stronger oil prices and a firmer US dollar weighed on investor sentiment and increased expectations of another US interest rate hike.

In the local market, the price of gold per tola stayed steady at Rs475,362, according to rates issued by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA).

Similarly, the price of 10-gram gold remained unchanged at Rs407,546. On Thursday, the domestic gold market had recorded a sharp increase of Rs5,000 per tola amid earlier global gains and currency-related adjustments.

Internationally, spot gold fell 0.9% to $4,502.59 per ounce by 1457 GMT after touching an intraday low of around 1%, according to Reuters. Bullion was also headed for its second consecutive weekly decline, losing nearly 0.8% during the week.

US gold futures for June delivery also dropped 0.9% to $4,502.70 per ounce, as investors reassessed the outlook for US monetary policy amid persistent inflationary pressures and elevated energy prices.

Market analysts said rising oil prices have intensified concerns that inflation could remain sticky in major economies, particularly in the United States, prompting traders to increase bets on further tightening by the US Federal Reserve. According to market expectations, there is now a 58% chance of at least one US interest rate hike by the end of 2026.

Higher interest rates generally reduce the appeal of non-yielding assets such as gold, while a stronger dollar makes bullion more expensive for overseas buyers.

Meanwhile, silver prices in Pakistan remained unchanged at Rs8,034 per tola.

Commenting on market activity, Adnan Agar, Director at Interactive Commodities, said the bullion market remained sluggish ahead of a US bank holiday on Monday.

&quot;Gold is currently trading around $4,510 to $4,515 per ounce. The market is slow because of the US holiday and investors are also monitoring the final stages of Iran-US developments,&quot; he said.

Agar noted that despite current weakness, gold may find strong support at lower levels. &quot;Even if gold declines further, there is a strong possibility it will not fall below the $4,100-$4,200 range and could rebound from there,&quot; he added.

Analysts said geopolitical developments, particularly negotiations involving Iran and the United States, would remain a key trigger for bullion prices in the coming sessions.

Meanwhile, the Pakistani rupee edged up 0.01% against the US dollar in the inter-bank market on Friday, gaining Rs0.03 to close at 278.52, compared to Thursday&#39;s closing of 278.55, according to State Bank data.

In global markets, the US dollar hovered near a six-week high amid volatile trading triggered by conflicting signals over a potential US-Iran peace deal, though hopes of progress lent some support to sentiment. The dollar index stood at 99.24, slightly below the recent peak of 99.515, its highest level since April 7.]]>
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