Friday, July 04 2025

PSX extends record rally on robust buying
The Pakis­tan Stock Exchange (PSX) extended its record-setting rally into the fifth consecutive session on Thursday, with the benchmark KSE-100 index closing at an all-time high, driven by robust buying interest across key sectors. Ahsan Mehanti of Arif Habib Corporation attributed the bullish momentum to the government’s decision to cut rates on National Savings Schemes, prompting a shift of capital into equities. He also cited the State Bank of Pakistan’s (SBP) foreign exchange reserves reaching $14.5bn, lower inflation, reduced industrial power tariffs, and renewed government focus on privatising state-owned enterprises as catalysts behind investor optimism. Topline Securities Ltd reported that the KSE-100 index settled at 130,686.66, up 342.63 points or 0.26 per cent. The session witnessed significant intraday volatility, with the index touching a high of 131,325 and a low of 129,776 as investors engaged in strategic profit-taking.
Related news categories: business economic-indicators psx stock-exchanges

Folly of fixing the exchange rate
IN recent years, Pakistan’s foreign exchange market has presented a strange paradox: the rupee appears ‘stable’, official reserves have grown, and the informal/black market has receded. But behind this illusion of calm lies a hollow economy, ie, exports remain stagnant, competitiveness is deteriorating, and industrial confidence is eroding. Is this the success of prudent macroeconomic stewardship or the triumph of administrative sleight of hand? Despite the painful experience of at least six major currency crises, the state continues to obsessively fix the nominal rate. From 2023 to 2025, the authorities indeed managed to stabilise the currency and rebuild reserves. But at what cost? The apparent stability has been engineered not through market trust or export dynamism, but through an elaborate system of administrative controls and currency rationing.
Related news categories: business economic-indicators misc

Japan plans ‘world first’ deep-sea mineral extraction
Japan will from January attempt to extract rare earth minerals from the ocean floor in the deepest trial of its kind, the director of a government innovation programme said on Thursday. Earlier this week, the country pledged to work with the United States, India and Australia to ensure a stable supply of critical minerals, as concern grows over China’s dominance in resources vital to new technologies. Rare earths — 17 metals difficult to extract from the Earth’s crust — are used in everything from electric vehicles to hard drives, wind turbines and missiles. China accounts for almost two-thirds of rare earth mining production and 92 per cent of global refined output, according to the International Energy Agency.
Related news categories: business misc

Major garment producer Bangladesh eyes US trade deal
Bangladesh, the world’s second-biggest garment manufacturer, aims to strike a trade deal with the United States before President Donald Trump’s punishing tariffs kick in next week, the country’s top commerce official told AFP. Dhaka is proposing to buy Boeing planes and boost imports of US wheat, cotton and oil in a bid to reduce the trade deficit, which Trump used as the reason for imposing painful levies in his “Liberation Day” announcement. “We have finalised a draft reciprocal trade agreement,” Mahbubur Rahman said on Wednesday, adding the government was “hopeful of reaching a win-win agreement”. Rahman said a meeting between officials from both countries was slated for July 8, with the US representing 20 per cent of Bangladesh’s ready-made garments exports.
Related news categories: business misc

Trump tax bill stalled by Republican rebellion in Congress
President Donald Trump’s signature tax and spending bill was in limbo early Thursday as Republican leaders in the US Congress scrambled to win over a group of rebels threatening to torpedo the centrepiece of the president’s domestic agenda. Trump is seeking final approval in the House of Representatives for his Senate-passed “One Big Beautiful Bill” — but faces opposition on all sides of his fractious party over provisions set to balloon the national debt while launching a historic assault on the social safety net. As midnight (9am PKT) struck, House Speaker Mike Johnson was still holding open a key procedural vote — the bill’s last hurdle before it can advance to be considered for final approval — more than two hours after it was first called.
Related news categories: business misc