Tuesday, September 02 2025

Heads of state at Tianjin — let the talks begin
The Shanghai Cooperation Organisation (SCO) heads of state summit underway in the northern Chinese city of Tianjin (Aug 31–Sept 1) showcases the group’s ambition to anchor what analysts describe as an ‘alternative model’ of multilateral cooperation within the rules-based World Trade Organisation (WTO) framework at a time of heightened global economic and geopolitical uncertainty. The bloc has showcased itself at Tianjin as a ‘pillar of multipolarity’ rooted in the ‘Shanghai Spirit’ characterised by “mutual trust, equality, benefit and respect for diversity”. The timing of the summit is crucial as the world is torn by recent wars, rising US-led trade protectionism and climate emergencies. The meeting is expected to push deeper economic and security cooperation among member states and signal the emergence of an alternative to a global order dominated by the US-led West.
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Blueprint for regenerative urbanism
Karachi’s population has crossed 20 million people, indicating the economic promise and perilous byproducts of the ambition to cash it. However, in these trials of the city’s resilience lies the immense potential for Karachi to become a model of regenerative urbanism. Regenerative infrastructure design Metropolitan cities must actively regenerate ecosystems disturbed through infrastructure design for long-term sustainability. For Karachi, this could mean adapting the urban environment to restore biodiversity, manage heat, and mitigate floods. Examples include the treatment of industrial runoff and the construction of wetlands in Malir and Korangi, due to their proximity to waterways. Green corridors can be connected to urban public spaces, such as Karachi University, Safari Park, and the Malir River, to form a biodiversity belt. Using permeable paving in all public spaces could help restore aquifers and groundwater.
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Dollarised returns for oil transport approved
Despite strong reservations from the ministries of finance and power, the government has approved a dollar-based guaranteed return on the transportation of petroleum products through the 477-kilometre Machike-Thallian-Tarujabba White Oil Pipeline, estimated to cost $300 million. The project will be executed on a government-to-government basis by a joint venture comprising Azerbaijan’s state-owned oil company SOCAR, Pakistan State Oil (PSO), and the Frontier Works Organisation (FWO). Positioned as a strategic investment from Azerbaijan, the project had long been advocated by the FWO using local resources. At a recent meeting, the Economic Coordination Committee (ECC) of the Cabinet approved the terms and conditions proposed by the Petroleum Division to launch the project, citing its potential to enhance bilateral ties with Azerbaijan and attract future investment.
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Flour prices climb as supply concerns mount
Wheat and flour prices have surged sharply in Karachi’s wholesale market, raising fresh concerns about food inflation and market supply, despite government assurances of sufficient national stocks. Wholesale wheat now sells for Rs90 per kg, up from Rs72 in mid-August and Rs62 in July. This increase has pushed the price of flour no. 2.5 to Rs97 per kg and fine flour to Rs103, compared with Rs81 and Rs85, respectively. In early August, these prices were Rs74 and Rs79 per kg. Chakki flour varieties are now available at wholesale rates between Rs110 and Rs135 per kg, marking an average rise of Rs20 per kg. According to the Sensitive Price Index (SPI) for the week ending Aug 28, the price of a 10kg wheat bag climbed to Rs794 from Rs640.
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Govt to raise Rs4.8tr via T-bills, bonds auction
The government plans to borrow app­roximately Rs4.8 trillion through banks and capital markets during the Sept­e­mber-November period to meet its financing needs, amid rising fiscal pressures and the economic impact of recent floods. According to data relea­sed by the State Bank, the borrowing includes Rs2.875tr through Trea­su­­ry Bills and Rs2tr through Pakistan Investment Bonds (PIBs). Of the PIB target, Rs1.2tr will be raised through fixed-rate bonds and Rs750bn via floating-rate instruments. The T-bill auction sche­dule indicates the government aims to raise Rs900bn through 12-month bills and Rs750bn each from six- and three-month papers. An additional Rs475bn will be generated through one-month T-bills. In addition to bank borrowing, the government has increasingly tapped the ca­­pital market. On August 17, it raised Rs119bn by aucti­o­ning one- to five-year sukuk through the PSX. Earlier, it raised Rs2tr through Sukuk and Rs1.4tr via PIBs at the PSX on December 5, 2024.
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