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Friday, 17 July, 2026 | 2 Safar, 1448

Rs 20.00 | Vol XVII No 112 | 8 Pages | Lahore Edition

EU CAUTIONS PAKISTAN TO ADDRESS RIGHTS CONCERNS OR RISK GSP+ TRADE BENEFITS AFTER 2027 g

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EUROPEAN COMMISSION SAYS ISLAMABAD HAS REGRESSED IN SEVERAL AREAS DESPITE ‘LIMITED PROGRESS’ REPORT VOICES CONCERN OVER CURBS ON FREE EXPRESSION, JUDICIAL INDEPENDENCE AND TREATMENT OF OPPOSITION

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BRUSSELS LINKS FUTURE GSP+ ELIGIBILITY TO REFORMS ON HUMAN RIGHTS, RULE OF LAW, TORTURE AND ENFORCED DISAPPEARANCES ACKNOWLEDGES PROGRESS ON MINORITY RIGHTS, ANTI-TORTURE MEASURES, PRISON REFORMS AND GENDER-BASED VIOLENCE LEGISLATION

STAFF REPORT

HE European Union has cautioned that Pakistan must address persistent shortcomings in implementing its commitments under the Generalised Scheme of Preferences Plus (GSP+) if it is to retain preferential access to the European market under a revised trade framework that comes into force on January 1, 2027. In its latest report on the implementation of the GSP covering the 20232025 period, released on Thursday, the European Commission said Pakistan had "been facing compliance issues with its GSP+ obligations" and had "regressed in a number of areas while positive change was limited." The report warned that Pakistan's continued eligibility for the EU's preferential trade regime would depend on demonstrable progress in addressing longstanding concerns, particularly in the areas of human rights, rule of law and governance, ahead of the implementation of the revised GSP framework. "To ensure further GSP+ eligibility and compliance with international commitments, including in view of the revised GSP rules as of 2027, key priorities for future engagement include: ensuring accountability for human rights violations; increased efforts against torture; prison and capital punishment reforms; reversing negative developments in relation to enforced disappearances and vio-

lations of freedom of expression," the report emphasised. Under the revised preferential trade framework, which will take effect on January 1, 2027, all existing GSP+ beneficiaries will be required to reapply for the status under more stringent sustainability, governance and human rights requirements. The report, jointly published by the European Commission and the EU High Representative for Foreign and Security Policy, is the final monitoring assessment under the existing GSP regulation and reviews Pakistan's performance during the 2023-2025 reporting period. The Commission's detailed assessment of Pakistan, contained in an accom-

panying Staff Working Document, was dominated by concerns over the country's human rights record, although it also acknowledged several important legislative and institutional reforms introduced during the review period. Among the positive developments highlighted were legislation establishing a National Commission for Minorities, measures narrowing the scope of the death penalty, the continuation of the de facto moratorium on executions, implementing rules under the Anti-Torture Act, the enactment of the Domestic Violence Bill for Islamabad Capital Territory, and Pakistan's first conviction for marital rape. The report also praised the National

pakistan urges uS, iran to revive Mou talks as regional conflict deepens ISLAMABAD STAFF REPORT

Pakistan on Thursday renewed its call for “an immediate end to hostilities between the United States and Iran,” urging both sides to return to technical-level negotiations under the Islamabad Memorandum of Understanding (MoU), while acknowledging that implementation of the peace framework brokered by Pakistan and Qatar was facing mounting challenges amid renewed military escalation in the region. Addressing the weekly media briefing, Foreign Office spokesperson Tahir Andrabi said Pakistan remained committed to encouraging dialogue and diplomacy, stressing that the Islamabad MoU signed between Washington and Tehran last month continued to provide an enduring framework for resolving the conflict peacefully. "Pakistan will continue to encourage all sides to end violence and resume technical-level talks in accordance with the MoU and the joint statement issued by mediators Pakistan and Qatar on June 20 following the direct talks in Switzerland," Andrabi said. "We hope all parties will remain committed to the path of dialogue and diplomacy in resolving their outstanding issues," he added. The spokesperson noted that the implementation of the Islamabad MoU was currently "facing challenges" as hostilities had intensified over the past week. "As hostilities have continued over the past week, Pakistan reiterates its call on all parties to exercise maximum restraint and refrain from any actions that would further undermine peace and stability," he said. His remarks came as the United States and Iran continued to exchange attacks on Thursday, with Washington striking Iran's coastal defence

and missile sites, while Tehran responded by targeting American military installations in neighbouring Gulf countries. "Pakistan firmly believes that there is no alternative to sustained engagement, dialogue and diplomacy in pursuit of the shared objectives of lasting peace, stability and progress," Andrabi said. He stressed that all conflicts and disputes are ultimately resolved through negotiations, describing the Islamabad MoU as an "enduring framework for promoting peace, mutual respect and shared prosperity." The Foreign Office also underlined the importance of ensuring the continued safety, security and freedom of maritime navigation through the Strait of Hormuz. "Many countries, particularly those in the Global South, are being adversely affected by the situation in the Strait of Hormuz," Andrabi observed. "Pakistan recognises the urgent need to address the impact of the current situation on global energy supplies and other economic commodities, including trade and food security," he said, expressing hope for an early normalisation of the situation in the strategically important waterway. Regional tensions have intensified since Iran announced on Sunday that it had closed the Strait of Hormuz, prompting the United States to reimpose its naval blockade of Iranian ports. Ongoing military operations have also disrupted commercial shipping through the vital maritime corridor, which carried around one-fifth of global oil and gas shipments before the conflict. The disruption has pushed global oil prices sharply higher and fuelled concerns about rising inflation worldwide. Pakistan increased petrol and high-speed diesel prices by more than Rs13 on July 10, while global crude prices climbed to a four-week high on Tuesday.

Commission for Human Rights, describing it as an increasingly important institution in advancing Pakistan's human rights obligations. However, the Commission observed that "most progress is of legislative and administrative nature and needs to be translated into real improvements on the ground." It said significant concerns remained, particularly regarding the rule of law and civic space, adding that reports of enforced disappearances and extrajudicial killings had increased without accountability for those responsible. The Commission also expressed concern over what it described as a deterioration in freedom of expression, arguing that amendments to cybercrime, anti-terrorism and blasphemy laws had introduced broadly worded provisions that could be used against dissidents, journalists, human rights defenders, minorities and ordinary citizens. According to the report, media freedom continued to deteriorate despite the introduction of legislation aimed at protecting journalists, with media professionals continuing to face intimidation, harassment, violence and strategic litigation while reporting on sensitive issues. The report specifically noted that "targeted litigation (strategic lawsuits against public participation, SLAPPs) is sometimes employed to prevent journalists and lawyers from doing their work."

PM orders ‘nationwide readiness’ as regional tensions put economy on alert ISLAMABAD

SALEEM JADOON

Prime Minister Muhammad Shehbaz Sharif on Thursday directed all relevant authorities to remain fully prepared to deal with any potential challenges arising from the prevailing regional uncertainty, while praising the public for its wholehearted support of the government's austerity measures and fuel conservation campaign aimed at safeguarding the national economy. Chairing a high-level meeting to review the impact of regional tensions on the country's economy, the prime minister said that, by the grace of Allah, Pakistan's economy remained stable despite the evolving regional situation. However, he stressed the need to formulate a comprehensive strategy to ensure timely and effective responses to any emerging challenges. The meeting was informed that the country currently possessed sufficient petroleum reserves to meet domestic requirements and that measures had already been put in place to ensure an uninterrupted supply of petroleum products in the coming months. Prime Minister Shehbaz commended the government's timely and effective strategy, saying it had ensured the smooth management of the country's fuel supply situation despite regional uncertainty. He noted that the government had protected the interests of the common man, including motorcyclists, rickshaw drivers and transporters, adding that state subsidies had helped cushion the impact of any increase in fuel prices.

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Pakistan joins China-backed global AI body as founding member

SHANGHAI STAFF REPORT

Pakistan on Thursday became a founding member of the World Artificial Intelligence Cooperation Organisation (WAICO) after Deputy Prime Minister and Foreign Minister Ishaq Dar signed the agreement establishing the China-backed global AI forum in Shanghai, reaffirming Islamabad's commitment to promoting inclusive international cooperation and equitable access to artificial intelligence, particularly for the Global South. "Deputy Prime Minister and Foreign Minister Ishaq Dar signed the agreement on the establishment of the WAICO on behalf of Pakistan at the signing ceremony held today in Shanghai, China," the Foreign Office (FO) said in a post on X. The FO said Pakistan, as a founding member of WAICO, had reaffirmed its commitment to strengthening international cooperation in the field of artificial intelligence, particularly from the

perspective of developing countries. "Pakistan looks forward to working closely with fellow WAICO member states in efforts to help bridge the global AI divide and to promote equitable access to AI to advance development for all," it added. Earlier in the day, Dar arrived in Shanghai to sign the agreement on Pakistan's behalf. China had first proposed the establishment of WAICO last year as part of its initiative to promote international cooperation on AI governance. In an earlier statement, the FO said Dar would also participate in the World Artificial Intelligence Conference (WAIC) 2026, where he would engage with world leaders and policymakers to advance international AI cooperation and promote inclusive and equitable AI governance. During the visit, the deputy prime minister is also scheduled to hold a bilateral meeting with his Chinese counterpart, along with separate meetings with senior officials to discuss matters of mutual interest.

Meeting with Chinese Foreign Minister On the sidelines of the World Artificial Intelligence Conference, Dar held a bilateral meeting with Chinese Foreign Minister Wang Yi, during which the two leaders reviewed the full spectrum of Pakistan-China relations and reaffirmed their shared commitment to further strengthening the All-Weather Strategic Cooperative Partnership, the FO said. According to the Foreign Office, the two sides underscored the importance of advancing high-quality development under CPEC 2.0 while expanding cooperation in trade, investment, science and technology, the digital economy and artificial intelligence. The ministers also exchanged views on the latest regional and global developments and reaffirmed their resolve to maintain close coordination on issues of mutual interest. The FO said the meeting further reinforced Pakistan-China strategic cooperation and reflected the two countries' shared commitment to innovation-driven development and emerging technologies. Dar arrives in Shanghai Earlier, Deputy Prime Minister and Foreign Minister Ishaq Dar arrived in Shanghai on a two-day visit to formally join WAICO as a founding member, according to the Foreign Office. Upon his arrival, Dar was received by Shanghai Vice Mayor Wu Wei, Pakistan's Charge d'Affaires to China Aizaz Khan, and Pakistan's Consul General in Shanghai Shahzad Ahmad Khan, the FO said in another post on X.

uS pounds iran with fresh strikes as tehran retaliates, accusing Washington of 'war crimes' TEHRAN/WASHINGTON

STAFF REPORT/AGENCIES

The US on Thursday launched a second wave of strikes on Iran's coastal defence systems and missile sites within 24 hours of reimposing a naval blockade on Iranian ports, prompting Tehran to retaliate by targeting US military facilities in neighbouring Gulf countries as Iranian Foreign Minister Abbas Araghchi accused Washington of committing "war crimes" through attacks on the country's "vital infrastructure." The latest escalation comes days after the collapse of a fragile ceasefire, raising fears of a return to full-scale conflict. Iran has also renewed its threat to further disrupt regional energy exports after blocking the strategic Strait of Hormuz. Araghchi accuses US of war crimes Iranian Foreign Minister Abbas

Araghchi, in a statement posted on Telegram, said the US attacks constituted "undoubtedly a flagrant violation of the United Nations Charter and the fundamental principles of international law." He said the strikes amounted to "serious international crimes" under international criminal law, including the four Geneva Conventions of 1949, adding that "all governments are obligated to prosecute and punish those who commit such crimes." Araghchi also accused US officials of using "absurd rhetoric and diabolical threats," saying the hostility was directed against the Iranian people "for insisting on their independence, legitimate rights, and human dignity." He warned that those responsible "cannot evade legal responsibility ... by claiming to be acting on the orders of their superiors." Hostilities have intensified since Iran an-

nounced late on Saturday that it had closed the Strait of Hormuz. Ongoing military operations have also prevented commercial shipping from transiting the vital waterway, which carried around one-fifth of global oil and gas shipments before the US-Israeli war on Iran. Reflecting growing market concerns, Brent crude oil, the international benchmark, closed at a one-month high of $84.95 per barrel on Wednesday. Fresh US strikes The US Central Command (CENTCOM) said American forces launched strikes on Iran's coastal defence systems and cruise missile storage and launch facilities on Greater Tunb Island beginning at around 6am EDT, followed by a second wave of attacks approximately nine hours later against targets in multiple Iranian cities.

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02 NEWS

Friday, 17 July, 2026 | LAHORE

POWER SECTOR CIRCULAR DEBT EXCEEDS IMF TARGET BY RS221B, REACHES RS1.835TR

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MONITORING REPORT

AKISTAN’s power sector circular debt stood at Rs1.835 trillion at the end of June 2026, exceeding the Rs1.614 trillion ceiling agreed with the International Monetary Fund (IMF) by Rs221 billion, Business Recorder reported. Officials attributed the missed target mainly to around Rs200 billion in unpaid power purchase dues from K-Electric and weaker-than-expected financial performance by several distribution companies. One official said the sector faced an overall cash shortfall of about Rs300 billion by June 30 because expected payments from K-Electric and some DISCOs did not materialise. The June-end debt figure remained above target despite cabinet-approved adjustments against K-Electric’s subsidy claims. The IMF had projected that lower international fuel prices, improved bill recoveries, reduced technical losses and declining interest rates would generate subsidy savings and cut circular debt by Rs779 billion to Rs1.614 trillion, equivalent to 1.4% of GDP, by June 30. However, the Power Division had al-

ready warned the Economic Coordination Committee that circular debt had reached Rs1.924 trillion by May 31, including Rs873 billion owed to banks under circular debt financing. The Division said Rs893 billion had been allocated for power sector subsidies. Of this, Rs257 billion was earmarked under Finance Division Demand No. 45 for payments to government power plants and independent power producers as government equity. Only Rs105 billion had been released, leaving Rs152 billion to be trans-

ferred to the Central Power Purchasing Agency-Guaranteed before the fiscal year ended. The Power Division sought a Technical Supplementary Grant rather than additional fiscal support, arguing that the funds were needed to bring the debt stock closer to targets under the Circular Debt Management Plan and commitments made to the IMF. It also proposed diverting Rs97.649 billion left under K-Electric’s Tariff Differential Subsidy head to the Inter-DISCO Tariff Differential

account. CPPA-G and the Pakistan Power Management Company supported the proposal and called for all budgeted subsidies to be released before June 30. Two options were presented to the ECC. The first involved releasing the full Rs97.649 billion as an advance against future tariff differential claims and adjusting Tribal Areas Electric Supply Company arrears of Rs44.198 billion against outstanding subsidy advances. The second proposed releasing Rs53.451 billion as an advance subsidy and allocating Rs44.198 billion separately for TESCO arrears. The ECC partially approved the Power Division’s June 16 summary on the release of the Rs152 billion grant and budget reappropriation. It allowed Rs54.451 billion after adjusting Rs97.549 billion from the total amount. During the meeting, the ECC was told that K-Electric’s unpaid dues had materially added to circular debt. It directed the Power Division to pursue the legal case after the High Court’s decision in consultation with the Ministry of Law and Justice and the Attorney General. Sources said the Power Division was actively pursuing the matter and expected a court ruling during July.

Pakistan’s textile exports remain stagnant at around $17b in FY26 PROFIT

NEWS DESK

Sugar mills seek approval to export 600,000 tonnes of surplus stock PROFIT

MONITORING REPORT

The Pakistan Sugar Mills Association (PSMA) has asked the federal government to immediately allow the export of 600,000 metric tonnes of surplus sugar, saying domestic stocks are sufficient to meet local demand. In a letter to the Federal Minister for National Food Security, the association said total sugar stocks at the end of the current season stood at 7.967 million metric tonnes. After accounting for domestic consumption, it estimated the available surplus at 1.181 million metric tonnes. PSMA also sought permission to export the remaining 550,000 tonnes at the start of the next crushing season. The association said the proposed exports could generate around $575 million in foreign exchange. It added that the government had not yet implemented its earlier commitment to permit exports of surplus sugar from the previous year. PSMA said better payments to sugarcane growers had encouraged cultivation of improved varieties, raising expectations of a strong crop in the next crushing season. Sugar production is projected at around 8 million metric tonnes. The association also argued that prevailing sugar prices were below production costs and urged the government to issue export approval without delay.

Stylers International raises daily production capacity by 14% PROFIT

NEWS DESK

Stylers International Limited has increased its operational production capacity by 5,000 pieces per day, marking an approximately 14% rise over its existing capacity. The expansion was achieved through the continued ramp-up of the company’s Sunshine Manufacturing Facility, according to a notice submitted to the Pakistan Stock Exchange on July 16, 2026. Following the increase, the facility is operating at about 75% of its planned Phase-I production capacity. The expansion forms part of a capacity enhancement plan approved by the company’s board on February 26, 2026. Stylers International said the additional output would help it meet higher customer demand, improve operational efficiency and support growth in revenue and profitability.

Pakistan’s textile exports rose slightly by 0.26% to $17.93 billion in FY2025-26, compared with $17.88 billion a year earlier, provisional data from the Pakistan Bureau of Statistics showed. The increase was led by readymade garments, which grew 3.87% to $4.288 billion from $4.13 billion. Cotton yarn exports climbed 12.40% to $765 million from $680.7 million, while exports of other textile materials increased 8.67% to $790.86 million from $727.7 million. Raw cotton exports rose 199.20% to $2.6 million from $0.871 million, although the category remained small in value terms. Several major textile products recorded declines during the year. Knitwear exports fell 0.88% to $4.966 billion from $5.01 billion, while bedwear exports edged down 0.01% to $3.112 billion from $3.113 billion. Towel exports declined 1.93% to $1.06 billion from $1.082 billion,

while cotton cloth exports dropped 7.55% to $1.672 billion from $1.808 billion. Exports of made-up articles, excluding towels and bedwear, decreased 0.71% to $770.3 million from $775.8 million. Tents, canvas and tarpaulin exports fell 3.81% to $120.11 million from $124.8 million. In June 2026, textile exports fell 16.71% year-on-year to $1.267 billion from $1.521 billion. Pakistan’s overall exports stood

at $2.252 billion in June, down 16.25% from $2.689 billion in May and 9.08% lower than $2.477 billion in June 2025. For the full fiscal year, total exports declined 5.93% to $30.139 billion from $32.040 billion. Imports, meanwhile, increased 8.14% to $69.761 billion from $64.507 billion. The country recorded a trade deficit of $4.679 billion in June, while the cumulative deficit for FY2025-26 reached $39.622 billion.

Punjab launches interest-free loans of up to Rs50m for pink salt processing and exports PROFIT

NEWS DESK

Punjab Chief Minister Maryam Nawaz Sharif on Wednesday launched an interest-free financing scheme for investors seeking to process and export value-added pink salt products. Under the scheme, new investors will be able to obtain loans ranging from Rs5 million to Rs50 million for salt processing, grinding, refining, cleaning, packaging, machinery and exportstandard technology. The loans will be repayable in instalments over five years. The chief minister also announced a 110-acre Pink Salt Mineral Processing Zone near Quaidabad. Officials said more than 200 processing units would be established in the zone, attracting Rs150 million in investment and creating 10,000 direct jobs. A business facilitation centre and model retail outlet will also be set up to support investors. The provincial government expects value addition and higher exports of processed pink salt to generate up to $300 million in annual foreign exchange earnings. The chief minister was informed that bids worth Rs471 million had been received in the first phase of lease and licence auctions and Rs2.5 billion in the second phase. Officials said the Mines and Minerals Department’s digitalisation of lease and licence auctions had increased government revenue. Maryam Nawaz said the scheme was aimed at expanding industrial activity, creating employment and increasing exports of processed, packaged and decorative pink salt products carrying the Made in Pakistan label.

Wahdat Poultry plans new egg powder plant, 14,000-tonne grain storage expansion

Pakistan’s factory activity grows 5.77% in 11MFY26 as automobile output jumps nearly 59%

PROFIT SADDAM HUSSAIN

Pakistan’s Large Scale Manufacturing (LSM) sector expanded 5.77% during the first 11 months of FY2025-26, driven by strong growth in automobiles, sugar, petroleum products and garments, although output declined on a year-on-year basis in May, according to provisional data released by the Pakistan Bureau of Statistics (PBS). The Quantum Index of Manufacturing (QIM) stood at 121.65 during July-May FY2025-26, compared with 115.02 in the corresponding period last year. For May 2026 alone, the QIM was recorded at 116.10. Manufacturing output declined 0.98% com-

pared with May 2025 but increased 1.21% from April 2026. The automobile sector remained the biggest contributor to overall industrial growth, with production rising 58.82% during the 11-month period and 20.81% in May alone. Sugar production increased 31.54% during July-May and 23.25% in May, while petroleum products recorded growth of 10.56% during the period and 15.75% in May. Garments production rose 7.31% during the first 11 months of the fiscal year and 7.05% in May, while cement output increased 7.16% during July-May despite falling 9.36% in May. Electrical equipment produc-

tion expanded 13.50% during the period, while other transport equipment rose 41.63%. Furniture output increased 26.96% and fabricated metal products 9.70%. Despite the overall improvement, several industries continued to contract. Iron and steel products declined 7.49% during July-May and 12.57% in May. Pharmaceutical production fell 8.07% during the 11-month period and 23.34% in May. Chemical products contracted 2.64%, fertiliser production declined 2.25%, while leather products fell 2.25% during the period. Textiles, the largest manufacturing segment, remained largely stagnant, posting a marginal decline of 0.09% during July-May, although cotton yarn output increased 1.26% and cotton cloth production edged up 0.17%. According to the Pakistan Bureau of Statistics, the largest positive contributions to overall LSM growth came from food, garments, automobiles, petroleum products, cement, electrical equipment, beverages, furniture and other transport equipment. The biggest drags on manufacturing growth were pharmaceuticals, iron and steel products, chemicals and fertilisers.

PROFIT Wahdat Poultry Farm Limited has approved plans to add a powdered-egg processing line and install storage silos with a capacity of about 14,000 tonnes, according to a disclosure by the company to the PSX on Thursday. The company’s board approved the proposals at a meeting held on July 15, 2026, along with its annual budget and business plan for the period from July 1, 2026, to June 30, 2027. The proposed egg powder plant will be located alongside the company’s existing liquid pasteurised egg facility and will use the same building, utilities and infrastructure. Wahdat Poultry said the shared setup was expected to lower costs, while egg powder would offer higher margins and a longer shelf life than liquid products. The additional capital cost for the processing facility is expected to be financed through bank borrowing, subject to further board approval of the final terms. The board also approved procurement and installation of storage silos that would raise the company’s grain storage capacity by around 14,000 tonnes. The silos will be able to store different grains and are expected to reduce operational costs, limit wastage and require relatively low maintenance. The company said it would need additional funding for the egg powder plant, silos, replacement of its existing flock and associated working capital. Management has been directed to assess financing options from financial institutions and submit final proposals to the board for approval.

PSX rally continues as KSE-100 surges over 2,800 points PROFIT

NEWS DESK

Bulls extended their advance at the Pakistan Stock Exchange (PSX) on Thursday, lifting the benchmark KSE-100 Index by more than 2,800 points at close. According to the PSX website, the market opened on a positive note, with the index gaining over 1,500 points within the first few minutes. Buying continued as the session progressed, taking the KSE-100 to an intraday high of 178,431.73 by noon, up more than 3,100 points. Major sectors including automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil market-

ing companies, power generation and refineries witnessed broad-based buying. The index settled at 178,123.53, with an increase of 2,837.78 points, or 1.60% from the previous close. The market had also recovered on Wednesday after Tuesday's sell-off, with bargain hunters returning despite continued geopolitical tensions in the Middle East. The KSE-100 Index closed Wednesday at 175,285.78, up 1,766.97 points, or 1.02%. Asian shares fell on Thursday as a selloff in chipmakers overshadowed stellar earnings from industry bellwether TSMC, while bonds benefited from another benign reading on U.S. inflation that lessened the risk of an imminent rate hike.

Oil prices turned lower as the U.S. completed its latest strikes on Iran. Hostilities have been heating up in the Middle East in recent days, with Washington launching attacks on Iran and Tehran targeting U.S. bases in Kuwait and Jordan. Brent crude futures were last 0.5% lower to $84.5 a barrel but were up 11% this week. MSCI’s broadest index of Asia-Pacific shares outside Japan slid 1% as South Korea's KOSPI slumped 6.2% on weakness from Samsung, down 6.6%, and SK Hynix down 9%. Japan’s Nikkei dropped 3%. China's Hang Seng Index bucked the trend with a 1.8% gain.

NEWS DESK

03 News 17th July 2026_Layout 1 7/17/2026 1:55 AM Page 1

PAKISTAN SEEKS $6.7 BILLION SAUDI OIL FACILITY AT 1% INTEREST FOR 15 YEARS

Friday, 17 July, 2026 | LAHORE

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PROPOSED FINANCING INCLUDES A FIVE-YEAR GRACE PERIOD AS HIGHER MIDDLE EAST RISKS THREATEN FUEL COSTS AND FOREIGN EXCHANGE RESERVES PROFIT

Monitoring report

AKISTAN has requested a $6.7 billion concessional oil financing facility from Saudi Arabia at an interest rate of 1% for 15 years to limit the impact of higher global energy prices on its foreign exchange reserves. The Express Tribune reported, citing a spokeswoman for the Ministry of Economic Affairs, that the proposal was under consideration by the two governments. The request includes a five-year grace period before repayments begin. The matter has also been discussed at

Gadani shipbreaking resumes after eight years as seven vessels arrive for dismantling Nine of 16 yards upgraded to global standards; sector could meet 30% of Pakistan’s steel scrap demand at full capacity PROFIT

Ship recycling has resumed at the Gadani Ship Breaking Yard after an eight-year pause, with seven vessels arriving for dismantling. The revival has been supported by the National Logistics Corporation, a member of the Maritime Task Force, along with other government agencies. The government has granted formal industrial status to the sector and is upgrading facilities to meet International Maritime Organisation standards and the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships. Of Gadani’s 16 ship recycling yards, nine have already been upgraded in line with the convention. The remaining seven are under inspection and approval. Authorities also plan to establish a Treatment, Storage and Disposal facility at Gadani for the safe handling of hazardous waste generated during dismantling operations. Officials said the facility would help protect the coastal environment and marine life. Each recycled ship is expected to contribute around $25 million to the economy. At full capacity, Gadani could meet nearly 30% of Pakistan’s steel scrap requirement, reducing dependence on imported scrap. The resumption of operations is also expected to create thousands of jobs and support activity in the steel, maritime and manufacturing sectors.

PM orders ‘nationwide readiness’ as regional tensions put economy on alert

The prime minister directed the relevant authorities, in close coordination with provincial governments, to take strict action against elements involved in creating an artificial shortage of petroleum products in the market. Recalling the government's earlier austerity drive, Prime Minister Shehbaz expressed heartfelt gratitude to the people for their active participation in making the campaign a success and urged the nation to continue embracing the same spirit of simplicity and responsible consumption. "Just as the people extended full support during the previous simplicity campaign, austerity must now be embraced at the national level," he said. He also appreciated the public's cooperation in the nationwide campaign for the conservation of petroleum products and energy, describing it as a valuable contribution towards strengthening the country's economic resilience. Warning that any further escalation in regional tensions could adversely affect Pakistan's economic outlook, the prime minister underscored the importance of vigilance, preparedness and close coordination among all relevant institutions to effectively respond to any unforeseen situation. The meeting was attended by Federal Ministers Ahad Khan Cheema, Muhammad Aurangzeb, Ali Pervaiz Malik and Awais Khan Leghari, Minister of State Bilal Azhar Kayani, Special Assistant to the Prime Minister Tariq Bajwa, State Bank Governor Jameel Ahmed, and senior government officials.

nancing deal could offset part of the additional import burden if oil prices remain elevated. The IMF has not included such a facility in its projected inflows for Pakistan for FY2026-27 and FY2027-28. Pakistan imported petroleum products worth $14 billion during July-May of the previous fiscal year, broadly unchanged from the corresponding period a year earlier. Liquefied natural gas imports, however, were lower by $1.2 billion. Sustained increases in oil prices could add pressure to reserves at a time when Pakistan’s exports stood at $30.1 billion in the last fiscal year. Saudi Arabia has extended oil financing to Pakistan on one-year de-

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RANI AND AMIL SWITCH DESTINATION SIGNALS TO PAKISTAN, THOUGH ANALYSTS SAY THEY MAY WAIT OFFSHORE OR TRANSFER CARGO RATHER THAN UNLOAD PROFIT

Two US-sanctioned tankers carrying a combined 1 million barrels of Iranian crude have changed their destination signals to Karachi, raising the possibility that they may use Pakistani waters as a temporary holding area while the US naval blockade remains in force, according to Bloomberg. Ship-tracking data showed that the Rani and the Amil switched their stated destinations to Karachi on Tuesday. Both

vessels were already outside the Persian Gulf when Washington reinstated restrictions on Iranian shipping. The tankers are unlikely to discharge their cargoes in Pakistan because doing so could expose the country to US sanctions. Pakistan has not imported Iranian crude for at least a decade, according to data intelligence firm Kpler. Instead, the vessels may remain offshore or transfer their cargoes to other tankers. Iranian oil carriers have previously waited near Karachi during periods of tighter US enforcement.

Charlie Brown, an adviser to United Against Nuclear Iran, said the shift could indicate that operators view waters near Pakistan as a relatively secure location to monitor developments, rather than evidence of plans to deliver Iranian oil to the country. Xavier Tang, senior market analyst at Vortexa, said the vessels may be travelling closer to Pakistan to avoid US naval patrols and could be using Karachi as a waypoint. Many other tankers carrying Iranian crude have recently listed Singapore as their next destination. Waters off eastern Malaysia are also frequently used by Iran-

US pounds Iran with fresh strikes as Tehran retaliates, accusing Washington of 'war crimes' CONTINUED FROM PAGE 01

"US forces struck Iranian command centres, air defence sites, missile and drone capabilities, and coastal surveillance facilities," CENTCOM said in a statement. It added that American forces also targeted facilities in Bandar Abbas, home to Iran's largest commercial port and key naval installations, including bases operated by the Islamic Revolutionary Guard Corps (IRGC) overlooking the Strait of Hormuz. "Earlier this morning, American forces struck coastal defence and cruise missile sites on Greater Tunb Island during a 90-minute wave," the statement added. The US military also said it disabled an unladen oil tanker attempting to sail toward Kharg Island after it ignored repeated warnings, firing Hellfire missiles into the vessel's smokestack. Since reimposing its naval blockade on Tuesday, the US military said it had redirected two ships and disabled another attempting to approach Iranian waters.

IRAN RESPONDS WITH REGIONAL STRIKES: Iranian media reported multiple explosions in coastal areas, particularly around Bandar Abbas, while additional blasts or projectile strikes were reported near Ahvaz, Konarak, Sirik and Qeshm. State broadcaster Press TV also reported at least two explosions in Khondab, approximately 250 kilometres southwest of Tehran, while Mehr News Agency said Iranian air defence systems had been activated in the capital to counter what it described as "hostile threats." Iran's state broadcaster IRIB reported that US strikes landed near a hospital in Ahvaz housing a paediatric cancer centre, forcing its temporary evacuation. According to the broadcaster, families were seen caring for their children outside the hospital following the attack. In retaliation, the Islamic Revolutionary Guard Corps (IRGC) announced strikes on US military facilities across the region, including installations in Bahrain, Kuwait and Jordan. The Guards said they targeted "communication systems and fuel storage facilities of the US military" in Jordan. Separately, IRIB reported that Iranian forces struck "radar systems, a Patriot air defence system, and fuel storage facilities at Ali Al Salem Air Base" in

Kuwait, as well as US military facilities at Sheikh Isa Air Base in Bahrain. The conflict has killed thousands of people and displaced millions, primarily in Iran and Lebanon, where fighting between Israel and Hezbollah has also resumed. Following the first wave of US attacks, Iran's top negotiator and Parliament Speaker Mohammad Bagher Ghalibaf declared that the country's security depended on maintaining what he described as "Iranian arrangements" in the Strait of Hormuz. "We are in an essential and existential war with America," Ghalibaf said.

TRUMP SAYS IRAN WANTS A DEAL: US President Donald Trump again expressed confidence that Iran would eventually seek an agreement with Washington. Speaking at the Pennsylvania Defence and Innovation Summit, Trump said: "We'll have Iran defeated soon. They'll be defeated very soon." Claiming Tehran was eager to negotiate, he added: "They don't like what we're doing, and they do want to settle. We'll find out whether or not we settle with them, or we just finish it off." On Tuesday, Trump said US negotiators had informed their Iranian counterparts that "you better make a deal." Iran's military spokesperson, however, said the only path to reopening the Strait of Hormuz was for Washington to fully comply with the 14-point memorandum of understanding signed between the two countries in June and to recognise what Tehran called "Iranian regulations" governing ship traffic through the strategic waterway. Despite the continuing hostilities, a possible humanitarian gesture emerged after Trump announced that Iran had allowed an American citizen detained since 2024 to leave the country. "The United States of America appreciates this gesture of Goodwill by Iran," Trump wrote on Truth Social. Human rights lawyer Jared Genser identified the released American as Dena Karari, who had been prevented from leaving Iran since December 2024. "Dena is now safe and traveling back to the United States," Genser wrote on X, thanking Trump for his efforts. GHALIBAF: IRAN MUST RELY ON ITS OWN STRENGTH: Sepa-

rately, Parliament Speaker Mohammad Bagher Ghalibaf said Iran had "no choice but to rely on our own strength and become stronger," arguing that the United States "seeks to hit Iran and advance its interests whenever it can." "This is not limited to war, negotiations, or just this current US president," he said in a statement shared on social media. "So our view of war or negotiations must be based on national interests and security, realistic and long-term; therefore, we have no choice but to rely on our own strength and become stronger."

WHITE HOUSE DEFENDS STRIKES: White House Press Secretary Karoline Leavitt said President Trump remained open to diplomacy despite the latest escalation. "The president is always open and willing to diplomacy," she told reporters. "After Operation Epic Fury ... we did move forward into a diplomatic phase, if you will, but unfortunately, Iran has violated that." Leavitt also defended the latest US strikes, saying they were launched after Iran violated the memorandum of understanding by firing on commercial vessels transiting the Strait of Hormuz. "I've spoken with the president about this ... Iran very much continues to talk to the United States of America and express that they want to make a deal with us because they are suffering devastating blows on behalf of our United States military," she said. "The reason for the recent strikes over the course of the last several days is because Iran violated the memorandum of understanding that we struck with them," she added. "Specifically ... they were not to fire on commercial vessels moving through the Strait of Hormuz, and unfortunately, they have made the tragic decisions for them to do that." Leavitt said President Trump "is not going to sit by and allow these active acts of terrorism to take place in the strait without ensuring Iran pays consequences for that." Responding to questions about the Minab school strike, which reportedly killed 168 people at the start of the conflict, Leavitt said the incident remained under investigation. "All I can speak to is what the president has said, as I speak on his behalf. The investigation continues and we would defer you to the Department of War for further questions," she said.

EU cautions Pakistan to address rights concerns or risk GSP+ trade benefits after 2027 CONTINUED FROM PAGE 01

It further stated that legislation including the Pakistan Electronic Crimes Act (PECA), criminal defamation, blasphemy, sedition and counter-terrorism laws contained vague definitions relating to hate speech, terrorism, defamation and false news. According to the Commission, these provisions had created "a significant chilling effect on dissidents, journalists, human rights defenders and individuals belonging to ethnic or religious minorities." The report also voiced concern over recent constitutional amendments, saying they had attracted criticism for potentially

after the current arrangement expires in September next year. Saudi Arabia has also become one of Pakistan’s largest bilateral lenders after China. It recently provided a $3 billion short-term deposit through the Saudi Fund for Development to help Pakistan meet debt repayments to the United Arab Emirates. Saudi cash deposits with Pakistan had reached $8 billion by early July, while the Kingdom has continued to provide financing assurances to the IMF. Saudi Arabia was also Pakistan’s largest source of workers’ remittances in the last fiscal year, with inflows of $9.8 billion, accounting for 24% of the total.

ferred payment terms since 2019. Through the Saudi Fund for Development, the Kingdom has provided around $6.7 billion for oil derivatives over this period. The latest request comes as renewed fighting between Iran and the United States has pushed Brent crude prices up by about $15 per barrel, increasing energy and food security risks across the region. The government is also exploring options to ease external debt repayments due over the next few years, including obligations linked to Chinese energy projects. Officials believe restructuring some of these payments could reduce the likelihood of Pakistan requiring another IMF programme

Two sanctioned tankers carrying 1 million barrels of Iranian oil head towards Karachi waters Monitoring report

Monitoring report

CONTINUED FROM PAGE 01

the ministerial level. The proposed arrangement would be significantly cheaper and longer-term than Saudi Arabia’s previous oil financing support. The last facility, signed in February 2025 and expired in April, provided $1.2 billion for imports of oil derivatives at an interest rate of 6%. Finance Minister Muhammad Aurangzeb and Minister for Power Sardar Awais Leghari met Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan on Sunday to discuss economic and energy cooperation. Both sides agreed to expand collaboration in the energy sector and strengthen bilateral economic ties. Government officials said a Saudi fi-

undermining judicial independence and adding to existing concerns regarding fair trial guarantees and access to justice. "Latest constitutional amendments have, however, raised concerns about the impact of such reforms on the independence of the judiciary, accountability of the military, and respect for the rule of law," it said. Referring to Pakistan's political environment, the Commission said the assessment had been shaped by persistent complaints regarding the integrity of the 2024 general elections, harsh measures against opposition leaders and supporters, and what it described as increased military influence. It stated that political rights

were adversely affected by abusive judicial proceedings and the detention of opposition leaders and supporters, including a former prime minister, while expressing concerns regarding fair trial guarantees, detention conditions and access to legal representation, visitors and medical care. The report further maintained that military trials did not meet the fair trial standards required under Article 14 of the International Covenant on Civil and Political Rights (ICCPR). A significant portion of the assessment focused on enforced disappearances, with the Commission stating that reports continued to indicate a high and increasing number of cases, particu-

larly in Balochistan and Khyber Pakhtunkhwa, while observing that the Commission of Inquiry on Enforced Disappearances had failed to establish accountability for perpetrators. It also criticised the continued absence of legislation specifically criminalising enforced disappearances. The Commission additionally highlighted continuing discrimination against religious minorities, particularly Ahmadis, violence against women and children, high numbers of outof-school children, child marriages, child labour, prison overcrowding and concerns over the treatment of Afghan refugees repatriated under Pakistan's return programme.

linked vessels for ship-to-ship transfers, particularly for cargoes bound for China. Such transfers are sometimes carried out with vessel transponders switched off or during periods of limited visibility to avoid detection. The Rani is a suezmax tanker, while the Amil is a medium-range vessel. Both are part of the network commonly described as Iran’s dark fleet. Maritime database Equasis identifies Panama-based Starboard Shipping Inc-Pan as the owner and manager of the Rani. The Amil is owned by Malaysia-based Amelie Ltd and managed by Hong Kongbased Espoir Shipping Ltd. Equasis lists no contact details for Starboard or Espoir, while the telephone number provided for Amelie was not operational.

IMF sees Pakistan inflation rising to 8.4% in FY2026-27 PROFIT

Monitoring report

The International Monetary Fund (IMF) has projected Pakistan’s average inflation at 8.4% for FY2026-27, above the government’s target and the level recorded in the previous fiscal year. The estimate is contained in the IMF’s latest country report on Pakistan. The Fund expects inflation to ease over the following four fiscal years after rising in the current year. According to the report, Pakistan is likely to keep average inflation in single digits for five consecutive fiscal years. Average inflation had also remained below 10% during the previous two fiscal years.

National Savings announces results of Rs750 prize bond draw PROFIT

saDDaM Hussain

The National Savings Centre in Lahore has announced the results of the Rs750 prize bond draw for July 2026, with bond number 976106 winning the first prize of Rs1.5 million. The three second prizes of Rs500,000 each were awarded to bond numbers 350211, 604285 and 607262. A further 1,696 bondholders won third prizes of Rs9,300 each. After tax deductions, a filer will receive Rs1.275 million from the first prize, Rs425,000 from the second prize and Rs7,905 from the third prize. For non-filers, the take-home amounts will be Rs1.05 million for the first prize, Rs350,000 for a second prize and Rs6,510 for a third prize. The applicable withholding tax is 15% for filers and 30% for non-filers.

Intermarket Securities signs biowaste to energy ESG partnership PROFIT

news Desk

Intermarket Securities Limited has signed a memorandum of understanding (MoU) with Biowaste Energy Ventures (Private) Limited to work on an environmental, social and governance initiative focused on converting agricultural and livestock waste into clean energy. The collaboration will support the development of designated waste-collection infrastructure to collect and process livestock and agricultural waste. The waste will be converted into clean energy and organic byproducts, supporting Intermarket Securities’ environmental sustainability and ESG objectives. The company said the agreement was approved by its board and aligned with its ESG strategy and the Securities and Exchange Commission of Pakistan’s ESG Disclosure Guidelines. Intermarket Securities clarified that the MoU only provides a framework for cooperation. It does not constitute an acquisition, joint venture, equity investment or any other binding commercial partnership.

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The ground beneath our feet is shifting

Friday, 17 July, 2026

Circular debt problem

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The government’s failure to meet target has got the IMF upset

Transport and power generation are inextricably linked

HE failure of the government to meet the IMF’s target on circular debt has upset the IMF, though it is still not clear whether it has been upset enough to terminate the current IMF programme prematurely. However, considering that the power sector has been one of the IMF’s main concerns, this deficiency is a serious shortfall. Quite apart from the IMF’s concern, the debt has Rs 300 billion. According to the Power Division, the failure of K-Electric to make payments for electricity purchase and of certain distribution companies to make profits had resulted in this situation. One of the possible consequences is the possibility of DISCO privatization not being so great a financial boon as the IMF cracks it up to be. The IMF is particularly keen on the privatization of the DISCOs, three of which go on the block at the end of the year, but the possibility of them imitating the already privatized KE, by not making payments, will throw the plan to eliminate circular debt further off course. There is also the somewhat frightening possibility of the plan itself not being adequate. It was prepared, after all, more to satisfy the IMF than anyone else. In fact, that is one of the problems with being on an IMF programme. Whether the power sector, or wider economic policy, major steps are being taken more to satisfy the IMF than because they are good for the country. The only debates with the IMF take place only when they step on someone’s toes. The biggest problem with the plan being a bad one is that the taxpayer will carry the can, not the IMF. The true solution lies in renewables, especially solarization. One major reason for circular debt is the import of oil or gas for generation. Increasing the use of indigenous renewables would not only save foreign exchange, but create the fiscal space for a debt elimination plan. Hydel and wind would enable the government to lower tariffs, which is the main reason for solarization. It should be remembered that freedom from imports is needed in the energy sector. Circular debt should not degenerate into a stick for the IMF with which to beat the government over the head. It must be seen as an evil to be eliminated.

At Penpoint M A NIAZI

RIME MINISTER Shehbaz Sharif declared that the promotion of clean, affordable and sustainable energy was a cornerstone of Pakistan’s national energy strategy. He was speaking about a 100 MW solar project for Gilgit-Baltistan, and may have missed the multiple ironies involved. First of all, to praise a solar power project in Gilgit-Baltistan, is an admission of failure, for it meant that the immense hydroelectric power potential has been overlooked. While the Diamer-Bhasha Dam is being built, which is a 8.1 MAF water storage project, with a 4500 MW electricity generation capacity. There is also a plan to build a run-of-the-river generation plant at Bunji, which has a potential of 7100 MW. The 11800 MW potential of these two projects alone is 118 times the power of the solar plant. These are the projects on which more attention is needed. This should not divert attention from the rest of the hydel potential of the area, which comprises many swiftly flowing streams and rivers. One estimate is of between 40,000 MW and 50,000 MW. Of that, only 285 MW has been installed, and even that leads to power shortages in winter, when the glacier melt stops. That is the problem with hydel. It depends on river flows, which are seasonal. This is even more the case with the Indus and its tributaries, where all the country’s hydel projects are located. The Indus is an exotic river, and its flows increase and decrease with the season, meaning that in winter, when flows are low, electricity cannot be generated. Another problem with the hydel potential of Gilgit-Baltistan is that the river flows depend on snow melt. As glaciers are shrinking because of global warming, if present trends continue, flows will come to an end. In a strange way, then, solar power does make a certain kind of sense. After all, global warming may make the hydel power plants useless. It should not be forgotten that the annual rising and flooding of the exotic rivers depends on sufficient snow falling in the highlands during winter. Hydel generation also depends on this cycle. With increasing global warming, sunlight will be more plentiful, and it will be a matter of harnessing that sun power. Another irony is that the government is erecting this plant in Gilgit-Baltistan, but has left the rest of the country to solarize on its own, and has left it to the individual consumer. Perhaps inadvertently, the distribution companies have let the consumer get into generation. The DISCOs may have escaped the cost of installing the generation equipment, but the only hold they have is the ability to provide back-up power, because solar power can only be generated when the sun is shining, wind power when the wind is blowing and hydel when the water is flowing. As a matter of fact, all three renewables generate much more than is sued, but so far there are insufficient storages available. The DISCOs must explore the possibility of storing not just excess solar power,

Dedicated to the legacy of late Hameed Nizami

Arif Nizami (Late) Founding Editor

The strategic importance of global straits M. A. Niazi

Babar Nizami

Editor Pakistan Today

Editor Profit

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From Hormuz to Malacca AMNA NAZ

HE blockade of the Strait of Hormuz has demonstrated the strategic importance of narrow maritime chokepoints. Since the USA and Israel launched a war against Iran on February 28, Tehran has waged a sustained campaign to close the strait, mining its waters, boarding or striking merchant vessels, reducing tanker traffic through one of the world’s most important energy corridors to a trickle. The disruption sent oil prices soaring, with Brent crude touching as high as $126 a barrel at the height of the crisis, compared with roughly $65 before the war began. Although the USA and Iran signed a memorandum in June to reopen the strait toll-free for at least 60 days, sporadic attacks and disputes over transit fees have continued to unsettle shipping since. The episode is a powerful illustration of a broader truth: a narrow strip of water, if closed, can shake the entire global economy. Straits are narrow waterways that connect two larger bodies of water and serve as critical passages for international shipping. While they may appear small on a map, their economic and strategic importance is enormous. Geographers and shipping analysts do not agree on an exact count, but widely cited estimates put the number of navigationally significant straits somewhere between 100 and 150 worldwide. Only a handful, however, dominate global commerce and energy flows. Among the most consequential are the Strait of Hormuz, the Strait of Malacca, the Bab elMandeb Strait, the Bosporus, and the Strait of Gibraltar. Each of which carries a disproportionate share of world trade and energy shipments and is examined in more detail below. Others, such as the Bering Strait, the Danish Straits, the Sunda and Torres Straits, and the Florida Strait, matter mainly for regional shipping and specific bilateral trade rather than for the flow of global commerce as a whole. What unites all of them is that a large volume of traffic is forced through a very narrow corridor, a concentration that makes them both vital and vulnerable. The importance of straits can best be understood through their role in global trade. Roughly 80 percent of world trade by volume is transported by sea. Within this network, straits function as essential shortcuts that reduce travel time, fuel costs, and logistical complexity. Without them, ships would have to take much longer routes, significantly increasing the cost of goods worldwide. The Strait of Hormuz is perhaps the most critical energy chokepoint in the world. In ordinary times, roughly a fifth of global oil and gas consumption passes through it daily. Any disruption, whether from conflict, piracy, or political tensions, can immediately affect fuel prices across continents. The current crisis illustrates

just how dependent the global economy remains on uninterrupted access to this single passage. The Strait of Malacca, located between Malaysia and Indonesia, is one of the busiest shipping lanes in the world, carrying an estimated 22 to 30 percent of global maritime trade. A significant share of the oil shipments bound for East Asia, including China, Japan, and South Korea. If the strait were blocked, ships would most likely divert through the nearby Sunda or Lombok Straits, a costly detour that adds days to a voyage. Only in the extreme scenario in which all three Indonesian passages were closed simultaneously would vessels need to sail around the southern coast of Australia. The Bab el-Mandeb Strait, connecting the Red Sea to the Gulf of Aden, is another crucial passage. It forms the southern gateway to the Suez Canal, and together the two chokepoints carry roughly 10 to 12 percent of global trade. Any disruption here affects trade between Europe and Asia, making it a persistent strategic hotspot in global geopolitics.This is the one that has grown more sensitive as Houthi forces in Yemen have periodically threatened shipping in the same waters. The Bosporus Strait, located in Turkey, is vital for transporting oil and grain from the Black Sea region to international markets. Meanwhile, the Strait of Gibraltar connects the Atlantic Ocean to the Mediterranean Sea, acting as a major entry and exit point for European trade. Straits are not only economic lifelines but also geopolitical flashpoints. Because they are

but also wind power and hydel. Indeed, they are ideally suited to developing such battery storage, because they are too expensive for the consumer. The government must realize that the oil era is coming to a close. While it is far from over, the end is in sight. Electricity generation is moving to renewables, and the coming of electric vehicles has meant that transport is also moving in the direction of converting to renewables. The reason for the transport revolution will be the same as the generation revolution: the price of oil. It should be noted that electricity generation was a new phenomenon in the 19th century, with fire having preceded it throughout human history. On the other hand, transport had been drawn by animal power, mostly horses and donkeys. Transport animals require care and feeding. With the decline of animal draught, the stabling and fodder industries were dealt fatal blows. A similar transformation is likely to take place, as new requirements create new opportunities. Oil is polluting, and the gases resulting from its combustion, the notorious greenhouse gases, are causing global warming. Oil is highly convenient, but it is also highly polluting. The only way out is for the world to adopt renewables. True, Pakistan does not produce much of the problem. However, if it industrialises the traditional way, by burning fossil fuels, it will become part of the problem. In fact, using new methods will help the West change over to less polluting methods of power generation and transport. However, there is one bottleneck that will not allow the natural link required to develop between the national grid and the transport sector. EVs depend on the grid for charging, even if it means that charging is one at home, not at the petrol pump. The mind does boggle at the idea of ramping up oil- and coalfired generation to power transport, not so much from the economic point of view, as because it does not make environmental sense to have electric vehicles being powered by fossil fuels. It is possible that EVs will ultimately be charged directly using their roofs, bonnets and boots, but it is unlikely that this will do more than supplement grid charging. The real challenge, and the one the government is uniquely positioned for, involves improving the grid’s distribution system, which is simply unable to handle the burden of EVs. Indeed, the problem has become visible in the experience of two firms, offering different charging solutions, one in Lahore, the other in Karachi. The one in Lahore offers e-bikes charged batteries, which it

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Karachi – Ph: 021-32640318 I

The writer is a member of staff

Perhaps the biggest hurdle is the mental one. There is the natural inertia against change, especially when it has to be executed by those who have risen to the top of their institution or department through the same system that is in need of change.

so narrow and heavily used, they are easy to control or disrupt, which makes them strategically important for military and political purposes. Countries that control key waterways often hold significant influence over global trade routes: Egypt’s control of the Suez Canal, which the Bab el-Mandeb feeds into, and Turkey’s control of the Bosporus each give their governments considerable geopolitical leverage. Security is another important dimension. Straits are vulnerable to piracy, terrorism, and naval blockades. The Strait of Malacca, for instance, has historically been a hotspot for piracy. While the Strait of Hormuz has now shown how quickly tensions there can escalate into direct military conflict. These risks force countries to invest heavily in naval security and international cooperation to keep sea lanes open. The importance of straits will only grow in the years ahead. As global trade continues to expand and energy demand rises, dependence on these narrow waterways will deepen. The Hormuz crisis and the parallel disruption of Red Sea shipping show how quickly geopolitical tensions can put that dependence at risk. This makes it essential for the international community to cooperate in keeping sea lanes open and secure. The ongoing standoff over the Strait of Hormuz is a stark reminder of how critical straits remain to the global system. Though small in size, they carry massive economic weight. From facilitating the majority of global trade to shaping international politics, straits are indispensable to modern civilization. Protecting them should be a shared global priority, because when a strait is blocked, the whole world feels the impact.

The author, Amna Naz, is a research intern at the Institute of Strategic Studies Islamabad (ISSI), focusing on South Asian security and geopolitics. She can be reached at amnanaz03846@gmail.com.

The ongoing standoff over the Strait of Hormuz is a stark reminder of how critical straits remain to the global system. Though small in size, they carry massive economic weight. From facilitating the majority of global trade to shaping international politics, straits are indispensable to modern civilization.

Lahore – Ph: 042-36300938, 042-36375965

changes for exhausted batteries. The one in Karachi offers chargers on rent, choosing as locations existing businesses. A recent report in this newspaper’s Profit magazine revealed that both had come up against the distribution problem. (The one in Lahore found problems with regular supply at its centralized charging station, where it changed all the batteries handed in all over the city, the one in Karachi was a problem of DC current versus AC supplies). The whole profession of electrical engineering will have to adapt to the new demands of the changing reality. At the moment, there is little intersection between automotive engineering and electrical engineering. That will have to change, which means the government may have to amend the Pakistan Engineering Council Act, as well as revise the curricula, even the structure, of engineering universities under its control (which is the vast majority). The real test of Pakistani commitment to meeting its commitments under the Paris Accords will come when it attempts to inject renewable sources of generation into the national grid on the one hand, and attempt the more difficult, but equally essential, task of making the transport economy transit. The switch in the transport economy is heralded by the Punja committing to purchase only EVs or hybrid vehicles. However, none of the other governments have followed suit. And no government has committed to solarize, which would be a major development (it would probably destroy the DISCOs financially, and thus the federal government, but that is another story). Perhaps the biggest hurdle is the mental one. There is the natural inertia against change, especially when it has to be executed by those who have risen to the top of their institution or department through the same system that is in need of change. Surprisingly, technical organisations have proved the strongest opponents of the changes they are best positioned to execute.

Islamabad – Ph: 051-2204545

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Healing family ties

FAMILY conflicts often start with a small misunderstanding, a harsh word, or an unmet expectation. But when ignored, these little issues can grow into a silent poison that slowly destroys love, peace and trust at home. Psychologists say that most problems come from poor communication, lack of patience and unrealistic expectations. When family members stop listening to each other and try only to prove themselves right, emotional distance grows. This leads to feelings of loneliness and mental stress even within a house full of people. The good news is: this can be prevented. Start by talking and listening regularly, even about small things. Be patient during disagreements, and accept that everyone has strengths and weaknesses. Use kind words like “I understand” or “I’m sorry” to build bridges, not walls. Also, make time for fun and togetherness. Shared moments bring hearts closer and reduce negativity. Disagreements are natural but solving them with love, respect and understanding is the real strength of a happy family. Don’t let silence ruin what love has built. ARONA SAGHIR KARACHI

Nuclear past repeats

FOR more than 30 years, the world has avoided slipping back into the dangerous cycle of escalation that defined the Cold War era. After the superpowers realised how close they had come to nuclear catastrophe, they slowly built a system of restraint. Arms-control treaties, verification mechanisms, and a shared understanding of mutual destruction pushed nuclear testing into history. This long period of relative calm makes today’s renewed talk of testing all the more worrying. Against this backdrop, United States President Donald Trump’s recent directive to Pentagon to explore new nuclear test possibilities appears historically tone-deaf and strategically short-sighted. It overlooks the hardearned lessons of the Cold War. At the time, both the United States and the erstwhile Soviet Union believed that strength came from building bigger and more destructive weapons. But each new test only provoked another response, pushing both sides closer to the edge. It was a dangerous game where one misstep could have meant annihilation. The world eventually stepped back from the brink, not because of luck, but because leaders finally recognised that nuclear one-upmanship had no winners. Today’s world is far more complex than the bipolar Cold War order. Instead of two major powers, there is now a multipolar rivalry involving the US, China, Russia and several emerging nuclear states. Reintroducing nuclear tests in such an environment is like lighting a match in a room full of fuel barrels. There are more players, more tensions, and fewer rules. The old armscontrol framework — the one that helped stabilise the Cold War — has weakened over the years. Key treaties have collapsed, verification has eroded, and trust among major powers is at its lowest point in decades. In essence, bringing back a Cold War-era practice now risks replaying the darkest chapters of the 20th century, but this time without the safety nets that once kept competition in check. A single test by one country could trigger a chain reaction, pushing others to respond with tests of their own. Such a spiral would make diplomatic restraint harder, and strategic miscalculations more likely. Supporters of new testing argue that it strengthens deterrence, but this argument ignores the fact that modern nuclear technology does not require explosive testing to remain credible. Instead, political signalling becomes the real motive — and that is precisely what makes the situation so dangerous. Using nuclear tests as symbols of power invites others to do the same. The world cannot afford to treat nuclear weapons as tools of political theatre. The lessons of history are clear: once the cycle of testing begins, it becomes difficult to stop. What kept the world safe for three decades was not louder threats, but quieter diplomacy and strong global norms. Reviving nuclear testing would not make any nation safer. It would simply drag the world back towards an era of fear — an era we worked so hard to leave behind. SANAULLAH MIRANI DAHARKI

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The America of our youth

Friday, 17 July, 2026

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A generation came to study in America. It left understanding the world

azHar dogar

here are moments in history when a country becomes more than a nation. It becomes an idea. For my generation of international students, America in the late 1980s was such a place. I arrived at the University of Pennsylvania in the autumn of 1987 carrying a suitcase, a scholarship, and the quiet hopes of parents who believed education could change the trajectory of a life. Like thousands of young people from across the world, I came seeking an academic qualification from a top university. I left with something much larger, an education in democracy, rule of law, diversity, friendship and the remarkable confidence of a nation at the height of its influence. Nearly four decades later, what I remember most is not the classrooms, although they were exceptional, nor the libraries, which seemed to contain the accumulated knowledge of our civilization. What I remember most is the people. My first year roommate was an ItalianAmerican from the East Coast. We could hardly have come from more different worlds. We spoke with different accents, had grown up with different traditions and carried different assumptions about each other’s countries. Yet within weeks we became close friends. Nearly 40 years later, we remain so. Our friendship eventually travelled across continents. He later visited Pakistan, not as a tourist seeking familiar destinations but as a curious traveller eager to discover a country almost entirely absent from the Western imagination. Together we travelled through Pakistan’s magnificent northern mountains, where the towering peaks of the Karakoram and the hospitality of local communities left a lasting impression on him. He even experienced wild boar hunting in rural Pakistan, an adventure few Americans could claim. The journey changed his understanding of my country just as America had changed mine. Looking back, I realize that friendship captured something essential about the America of that era. It was confident enough to welcome strangers, curious enough to learn from them and secure enough not to fear difference. The America I encountered was living through one of the most extraordinary moments in modern history. Ronald Reagan occupied the White House. The Cold War was approaching its peaceful conclusion. Within two years the Berlin Wall would fall, and soon afterwards the USSR itself would

disappear. Francis Fukuyama would famously write about “the end of history,” reflecting the widespread belief that liberal democracy and market economics had ultimately prevailed. Whether or not that judgment proved premature, there was an unmistakable optimism in the air. The future seemed open, globalization promised unprecedented prosperity, and American universities stood at the centre of that confidence. They attracted students from every continent because they represented something larger than academic excellence. They embodied meritocracy, openness and the belief that ideas mattered more than identities. What struck me most was not that everyone agreed with one another. Quite the opposite. Campuses were places of vigorous disagreement, but disagreement was viewed as an essential feature of education rather than a threat to it. Three experiences from those years remain vivid in my memory because they revealed different dimensions of that intellectual culture.The first was participating in a protest outside the Israeli Consulate in Philadelphia in support of Palestinian rights around the time of the first Intifada. Students from many backgrounds gathered peacefully to express their convictions. There were passionate arguments and opposing views, but the legitimacy of peaceful protest itself was never questioned. It was my first close encounter with the practical meaning of the First Amendment. Democracy was not merely taught in political science classrooms, it was lived on the streets. The second was attending a speech by Louis Farrakhan, the controversial leader of the Nation of Islam, on the University of Pennsylvania campus. Many profoundly disagreed with his views. Others defended his right to speak. The significance of the event was not the speaker himself but the principle it represented. Universities believed that difficult ideas should be confronted rather than suppressed. Exposure to controversial opinions was considered part of intellectual maturity. The third came during the global controversy surrounding Salman Rushdie’s The Satanic Verses. As debates erupted across the Muslim world, I was interviewed by The Daily Pennsylvanian, the university’s student newspaper, about the issue. It was a moment that forced many international students to explain complex religious, cultural and political perspectives to audiences unfamiliar with them. Once again, what stayed with me was not that consensus emerged. It rarely did. What mattered was the willingness to ask difficult questions without assuming that conversation itself was dangerous. Looking back today, I realize I was witnessing more than campus life. I was wit-

nessing America at the height of its confidence. It was a country secure enough to believe that open debate strengthened society rather than weakened it, that universities existed to challenge assumptions rather than confirm them, and that diversity meant more than demographics, it meant the free exchange of ideas. History, however, has a habit of humbling every generation. The America that shaped us would soon confront events that transformed not only the United States but the international order itself. The fall of the Berlin Wall in 1989 and the dissolution of the USSR two years later ushered in what many called the “unipolar moment.” For a brief period, history appeared to have chosen its direction. Liberal democracy was expanding. Global trade accelerated at an unprecedented pace. The internet connected societies in ways unimaginable only a decade earlier. China’s economic opening promised prosperity through integration rather than confrontation. American universities, corporations and financial markets became magnets for global talent. It was an era defined as much by confidence as by capability. Looking back, it is remarkable how much optimism existed. The prevailing assumption was that greater trade would reduce conflict, that technological progress would naturally strengthen democracy and that globalization would gradually narrow the divide between nations. America stood at the centre of this world, not merely because of its military or economic strength, but because its universities, research institutions and culture represented aspiration for millions beyond its borders. Then history accelerated. The terrorist attacks of 11 September 2001 fundamentally altered America’s sense of itself. A country that had long felt insulated by geography suddenly confronted vulnerability on its own soil. The wars in Afghanistan and Iraq followed, reshaping American foreign policy for two decades while consuming enormous human, financial and political resources. The confidence that had characterized the America of my student years gradually gave way to a greater preoccupation with security. The world changed alongside it. China emerged as an economic superpower, lifting hundreds of millions out of poverty while becoming America’s principal strategic competitor. The 2008 global financial crisis shook confidence in Western economic models and exposed deep structural weaknesses within the international financial system. Social media, initially celebrated for democratizing information, began fragmenting public discourse, rewarding outrage over reflection and speed over accuracy. Political

Why the US security umbrella no longer protects the Gulf?

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MIDDLE EAST MONITOR dr mustafa fetouri

N Kuwait alone—less than 150 kilometres across the Gulf from Iran—the United States maintains a major military hub of approximately 13,500 personnel spread across installations such as Camp Arifjan and Ali Al Salem Air Base. To its south, Saudi Arabia hosts roughly 2,700 U.S. troops, centered at Prince Sultan Air Base in Al Kharj. Elsewhere in the Gulf, every state hosts either a US military presence or provides access and defence cooperation under bilateral agreements: Qatar houses more than 10,000 personnel at CENTCOM’s sprawling forward headquarters at Al Udeid; Bahrain hosts around 9,000 personnel at the headquarters of the US Fifth Fleet; the UAE accommodates approximately 3,500 personnel at Al Dhafra while providing deep-water naval access at Jebel Ali; and Oman offers strategic port and airfield access under bilateral agreements, despite having no large permanent US troop presence. Beyond the Gulf monarchies, Washington maintains approximately 2,500 troops in Iraq and around 900 in northeastern Syria under Operation Inherent Resolve. To Iran’s northwest, the US operates from Incirlik Air Base in Türkiye— a NATO logistics and intelligence hub too. Until its withdrawal from Afghanistan in 2021, American forces also maintained a major military presence along Iran’s eastern frontier, supported for two decades by extensive supply routes and intelligence cooperation through Pakistan. Although the US lies nearly 10,000 kilometres from Iran, it has constructed an unparalleled regional military architecture of permanent bases, rotational deployments, naval facilities, pre-positioned equipment, access agreements, and security partnerships that stretches from the Eastern Mediterranean across the Gulf to the western Indian Ocean. Combined with the military capabilities of close allies—including Britain, France, and Türkiye—this network almost literally surrounding Iran from all sides. The common thread underpinning this posture has long been the protection of regional partners, the safeguarding of global energy routes, and the defence of US strategic interests. Yet, this foundational premise has collapsed under the weight of the US-Israeli war on Iran, which has fundamentally transformed the entire regional security landscape. This “war of choice” has exposed how a security arrangement

once marketed as an ironclad insurance policy has devolved into a primary strategic liability. Rather than serving as an effective deterrent, large and static American military installations now act as strategic liability—drawing Iranian retaliatory strikes while denying host states true autonomy or the promised protective shield. The Gulf states have discovered, at a heavy price, that they are trapped in an impossible paradox: their sovereign territory serves as a staging ground for military operations they were never consulted about—at least that is what they say publically –instantly transforming their critical infrastructure, oil facilities, and urban centers into high-priority targets. Compounding this vulnerability is the stark geopolitical reality that while Washington may eventually pivot away or withdraw—much as it did from Afghanistan—Iran is a permanent neighbour that is going nowhere. Beyond the immediate threat of missile strikes, the presence of these US installations directly undermines the core national strategies of the Gulf monarchies. Mega-development projects and economic diversification plans—from Saudi Arabia’s Vision 2030 to Dubai’s global trade hubs—rely entirely on an image of absolute regional stability, investor confidence, and open maritime transit. By hosting forward US bases, host nations inadvertently tie their economic futures to Washington’s military posture, creating an environment of perpetual crisis. Furthermore, defending these expansive American footprints forces host militaries to consume their own finite air-defense interceptors and defense budgets to guard US assets rather than securing their own national borders. At the same time, while almost all Gulf States have, at least publicly, refrained from taking direct offensive action against Iran to avoid total escalation, they recognise that they are already viewed as passive participants in the wider conflict. Maintaining this precarious balancing act is becoming increasingly difficult against rising domestic anti-war sentiment, as public anger over regional devastation steadily erodes the host governments’ domestic credibility. For Washington, this massive network of forward-deployed bases has produced a profound strategic paradox. What was designed to project uninhibited American power now ties US freedom of action to the political consent of cautious host nations. When host governments impose strict sovereignty restrictions—refusing permission for US forces to launch offensive sorties or intelligence missions

against regional adversaries from their soil—the Pentagon finds its multi-billiondollar installations functionally sidelined during critical military surges. Instead of providing seamless operational flexibility, these fixed, highly vulnerable outposts transform into costly “imperial entrapment” liabilities: requiring thousands of US troops, high-end missile defense batteries, and constant naval escort deployments simply to protect the bases themselves, rather than executing broader strategic objectives or enabling Washington’s long-sought pivot to the Indo-Pacific. With the conflict between the US and Iran reigniting, Trump is demanding that the Gulf states pay once again to protect the Strait of Hormuz—a vital transit route that never closed until the war was started by Trump, not Iran. This strategic calculus becomes infinitely more complex when factoring in Israel’s role in the regional security outlook. In recent years, certain Gulf states—most notably the UAE—operated under the premise that normalization and closer security alignment with Israel via the Abraham Accords would yield a net security dividend. Yet, this belief was never shared across the Gulf; nations like Kuwait, Oman, and Saudi Arabia maintained a far more cautious, sceptical stance toward Tel Aviv. The outbreak of the US-Israeli war on Tehran on February 28 utterly shattered any illusion that an Israeli-linked security architecture could bring regional stability. Instead, it exposed deep internal fault lines among the entire region. Reaching a collective, longterm security understanding with Iran was already a formidable challenge; doing so now, in the wake of a devastating conflict that forced Gulf States into the crossfire, is immensely more complicated. Moving forward, no regional framework can hold if it relies on an antiTehran pact anchored in Washington and Tel Aviv while ignoring the permanent reality of Iranian geographic power. Ultimately, the fallout from the USIsraeli war on Iran exposes a fundamental reality that Washington and its regional allies can no longer ignore: the entire Middle Eastern security architecture must be fundamentally re-evaluated. The core dilemma facing the region is that no collective security arrangement can ever be viable or effective if it seeks to exclude Iran—an indispensable, geographically permanent power armed with increasingly sophisticated offensive, defensive, and asymmetric capabilities. Moving forward, any stable regional order must not only account for Tehran’s military leverage, but also accommodate its non-negotiable strategic demands.

polarization intensified across many democracies, including the United States, making compromise appear increasingly elusive. Today, artificial intelligence promises another transformation whose consequences may prove as profound as the Industrial Revolution or the internet itself. At the same time, the world is becoming unmistakably multipolar, with economic and geopolitical influence distributed among several major powers rather than concentrated in one. America, too, has evolved. The country remains home to many of the world’s finest universities, most innovative companies and leading research institutions. It continues to attract ambitious students, entrepreneurs and scientists from every corner of the globe. Its capacity for reinvention remains extraordinary. Yet the atmosphere feels different from the one I encountered as a student. The America of my youth was unquestionably liberal, but it was not defined by the cultural anxieties that dominate many contemporary debates. People disagreed passionately about politics, foreign policy, religion and race, yet there remained a widespread confidence that disagreement itself was healthy. Universities encouraged students to test ideas rather than avoid them. Intellectual resilience was valued as highly as intellectual achievement. That confidence appears less certain today. Across much of the democratic world, public debate has become more polarized, trust in institutions has declined and identity has too often replaced dialogue. Social media has compressed complex arguments into slogans, while algorithms increasingly shape what citizens see, read and believe. The challenge is no longer simply protecting freedom of speech, it is preserving a culture that values listening as much as speaking. Yet it would be a mistake to romanticize the past or suggest that America has somehow lost its essence. Every generation tends to remember the country of its youth with particular affection. Nostalgia has a way of smoothing rough edges and overlooking imperfections. The America of the late 1980s was hardly free of social tensions, political divisions or international controversies. But it possessed something that remains deeply attractive, an underlying confidence in openness, meritocracy and the transformative power of education. That confidence changed lives including mine. The education I received extended far beyond economics, politics or development studies. It taught me how to engage with people whose experiences differed profoundly from my own, how to question my assumptions without abandoning my principles and how democratic societies derive

strength not from uniformity but from the disciplined exchange of ideas. Those lessons proved invaluable throughout a career that later took me across the Middle East, Europe and Asia, working with people of different cultures, faiths and nationalities. Perhaps that is America’s greatest contribution to the world. Its most important export has never been Hollywood, Silicon Valley or even the dollar. It has been the belief that talent can come from anywhere, that ideas deserve to compete freely and that strangers can become lifelong friends. My Italian-American roommate remains one of my closest friends after nearly four decades. Our friendship has outlasted presidents, geopolitical crises, financial upheavals and profound changes in the international order. In many ways, it symbolizes the America I first encountered, open enough to welcome difference, confident enough to embrace debate and generous enough to allow friendships to flourish across cultures. The world of 2026 is unquestionably more complex than the world of 1987. Great power competition has returned. Artificial intelligence is reshaping economies and societies. Climate change, cyber conflict and technological rivalry present challenges unimaginable to my generation of students. The certainties of the post Cold War era have given way to a far less predictable international landscape. Yet the values that attracted millions of young people to America remain as relevant as ever. Openness, intellectual curiosity, meritocracy, tolerance and confidence in free inquiry are not relics of a bygone era. They are enduring strengths that every successful society must continually renew. The America of our youth may never fully return, because neither America nor the world stands still. But the ideals that inspired a generation of international students remain worth preserving. They remind us that a nation’s greatest influence does not arise solely from its military power, economic size or technological leadership. It comes from the example it sets, the opportunities it creates and the confidence it inspires in those who arrive as strangers and leave forever changed. For us, the greatest lessons America taught were never found only in lecture halls or textbooks. They were found in dormitory rooms where unlikely friendships began, in classrooms where difficult ideas could be debated without fear, and in a society that believed curiosity was stronger than prejudice and openness more enduring than fear. That America shaped a generation. In a world searching for confidence amid uncertainty, it still has much to teach us. The author is a senior international banker, with degrees in economics and political science from University of Pennsylvania and Brown University

AI godfathers converge on regulations

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Jim vandeHei and mike allen

HE three men racing hardest to build superhuman AI — Demis Hassabis, Sam Altman and Dario Amodei — all agree the frontier needs to be regulated ASAP. Why it matters: For the first time, the CEOs of Google DeepMind, OpenAI and Anthropic are on the record, in writing, converging on the same diagnosis and remarkably similar prescriptions. The three rivals each published a detailed distillation of their views in the past five weeks — the same extraordinary stretch in which Washington twice intervened to restrict or delay access to frontier models. We hear Meta’s Mark Zuckerberg is working on his own memo, too. Driving the news: Hassabis’ proposal, published Tuesday, drew rare public praise across the bitterly competitive AI industry, including from Altman, Microsoft CEO Satya Nadella and even longtime rival Elon Musk. Anthropic co-founder Jack Clark called the framework “excellent,” writing: “At this point, everyone at the frontier of AI agrees that third parties should test out AI systems and use these to develop standards to feed into policy.” The Trump administration itself is torn: Publicly, it has championed deregulation and resisted anything resembling “an FDA for AI,” determined not to choke off U.S. innovation in the race against China. Privately, officials admit a total hands-off approach is untenable: Cyber fears have already forced them into improvised regulation twice this summer — first over Anthropic’s Fable and Mythos models, then over OpenAI’s GPT-5.6. The big picture: Amodei, Altman and Hassabis (plus countless CEOs and investors) basically agree on a rough regulatory framework. Independent testing: All three want frontier models subject to outside scrutiny before reaching the public — a break from the industry’s old self-reporting standard.

One governing system: All three cite legacy regulatory models, proposing bodies that set standards, certify compliance and can limit access to frontier systems deemed too dangerous. America First: All three want the U.S. — not a fragmented patchwork of states or rival national regimes — setting the terms for a body with international reach. Threat awareness: All three cite imminent national security vulnerabilities, including dangerous cyber and bioweapon capabilities. Innovation protection: None of them is calling for a broad crackdown on AI. The shared target is the small class of frontier models powerful enough to create catastrophic or strategic risk. Where they disagree: The AI godfathers part ways on whether the government itself should be the sole final referee. Amodei wants an FAA for AI: a federal agency with the power to block a model’s release immediately, from Day 1. Hassabis wants a FINRA for AI: an industry-funded, federally overseen standards body that starts with voluntary pre-release reviews and could harden into mandatory market-access rules. Altman, writing in the Financial Times, pushes an IAEA for AI: a U.S.-led international forum that certifies countries, companies and safety standards, using access to frontier models and markets as leverage for compliance. Between the lines: OpenAI, Google and Anthropic already have the lawyers, security teams, government relationships and technical staff to navigate a complex certification process. Startups and open-source developers would face a much steeper climb. Critics fear this could lead to regulatory capture: rules written to make AI safer may wind up entrenching the biggest AI companies. The bottom line: The Wild West era of AI development is officially over. The people with the most money, the most compute and the most to lose from an AI slowdown are the ones lobbying hardest for regulation. Axios’ Zachary Basu contributed reporting.

BRILLIANT ENGLAND WERE RUBBISH ALL ALONG

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COURTESY NEWS BISCUIT cliveoseman

V pundits and armchair experts alike have all suddenly realised that actually England were shit all along and with a clueless German manager they were never going to bring it home. Cheerleader Micah Richards, who of course never played at a world cup, screamed even louder than usual into his BBC microphone that England had not played well at all in the tournament, and everyone nodded sagely as the verbal diarrhoea spewed from his

mouth at ever increasing decibels. Fans around the country pointed out that if only Cole Palmer or Phil Foden had been there with an English manager (though not Southgate of course) they would never have succumbed to pressure and would be raring to go for Sunday. Said Dave Potter of Rowley Regis ‘I said all along Tuchel would be trying to get England knocked out, and it showed tonight. Taking the lead, and then relying on the same tactics that worked in the previous games, proved my point. Sack Tuchel, appoint a good English manager like, err..... err.... errr..... OK, appoint anything but a German or a woman, and it’ll come home at the Euros.’

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06 NEWS HOUTHI LEADER CALLS US, ISRAEL ‘SOURCE OF EVIL, INSTABILITY IN WORLD’

Friday, 17 July, 2026 | LAHORE

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HE leader of Yemen’s Houthi rebels, Sayyed Abdul-Malik Al Houthi, has accused the US and Israel of fueling global instability, while blaming the Saudi leadership for advancing US and Israeli objectives in the region in a televised address. According to a report by Al Jazeera, alHouthi said that “the United States and Israel are the source of evil and instability in the world.” He added that the US, Israel and their allies “fuel instability through warmongering and the plundering of the wealth of nations, from Palestine to other regions”. Al Houthi also said that Israel’s aim of changing the map of the Middle East to create a “Greater Israel” is the “driving force behind all the wars in the region”.

Bangladesh measles toll rises as eight more children die

“This axis has no respect for international agreements and United Nations resolutions, but also boasts of genocide against nations and the destruction of civilisations,” Al Houthi added. He alleged that Saudi Arabia’s attacks on Yemen were ongoing for years, had no legal justification, and were “carried out within the framework of alignment and loyalty to the United States and Israel”.

US VP VANCE SLAMS ISRAELI EFFORT TO THWART PEACE TALKS WITH IRAN: US Vice President JD Vance said some members of the Israeli government had tried to influence US public opinion to oppose a deal by the US to end the war with Iran, in a podcast episode with host Joe Rogan posted on Wednesday. The comments echoed earlier criticism of Israeli government policy by Vance,

DHAKA

Bangladesh reported eight more child deaths linked to measles-like symptoms on Thursday, taking the overall toll since mid-March to 779, according to the Health Ministry’s daily bulletin. The ministry said 95 of the total deaths were medically confirmed as measles infections. In the last 24 hours, health authorities also recorded 197 confirmed measles cases and 974 suspected infections. With those additions, confirmed cases have climbed past 14,000, while suspected cases have exceeded 115,000. Three of the latest deaths were reported from the capital, Dhaka. Bangladesh, a country of 175 million people, has been struggling to contain the outbreak as infections continue to put pressure on the health system. Dr Zahid Raihan, a senior health official, told Anadolu that many patients reach hospitals 10 to 15 days after becoming infected, making it difficult to confirm every case through medical testing. He said many children died with pneumonia and malnutrition, meaning measles was not the sole cause in all cases but had worsened their condition.

CLICK AND DRAG TO MOVE: The vice president said that, while he has "good relationships" with some members of the Is-

raeli government, "there are some people within their system that we know beyond a shadow of a doubt that are manipulating and trying to change American public opinion to keep the war going on indefinitely". He said that many countries, allies and adversaries try to influence American policy and that "it doesn't bother me that Israel tries to do this, it frankly doesn't even bother me that Russia or some of these other countries do it". He said it was "just the nature of being a political leader in 2026". "What does bother me is when those operations, those influence campaigns, actually affect American political judgment," said the vice president. Vance lashed out at Israeli critics of the Iran deal in June, saying President Donald Trump is Israel's only ally, in a sharp rebuke that referenced the billions in US defence aid the country receives.

Beyond the classroom: How PPG course can shape future leaders MAQBOOL MALICK ROFESSIONAL learning is often measured by certificates earned, but its true value lies in the transformation it brings to one’s thinking, leadership, and public service. My two-and-a-half-month journey at the Management and Professional Development Department (MPDD), Govt of the Punjab, Lahore, as a participant in the 29th Public Policy and Governance (PPG) Course, was one such transformative experience. It reshaped my perspective on governance, leadership, technology, and the future of public administration in Pakistan. I must admit that I began this training course with a degree of skepticism. Like many civil servants, I wondered whether it would simply be another routine government training programme centred on lectures and presentations. However, within the first few days, those doubts gradually disappeared. What unfolded instead was an intellectually stimulating, professionally enriching, and personally rewarding learning experience. The cohort comprised 34 officers representing diverse departments, including the Provincial Management Service (PMS), Prisons, Finance, Minerals and Mines, Directorate-General Public Relations (DGPR), and other government departments. The diversity of backgrounds proved to be one of the programme’s greatest strengths. Every participant brought unique experiences, administrative challenges, and innovative ideas, creating an environment where learning extended far beyond the classroom. One of the defining features of the course was its emphasis on preparing civil servants for a rapidly changing governance landscape. In an era where governments increasingly rely on data, technology, and evidencebased policymaking, the curriculum appropriately included sessions on Artificial Intelligence and Governance, Prompt Engineering, Generative AI, Google Analytics, Digital Governance, Human Resource Management Information Systems (HRMIS), Data Analytics, Geographic Information Systems (GIS), Health Reforms, Constitutional Amendments, Economic Intelligence, Political Economy, Pakistan Crypto Council, Block Chain & Cryptocurrency, Role of Public Representatives in Public Policy, Environment and Climate Change, Media Handling and Communication Strate-

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whom many view as a potential future presidential candidate, in a widening public rift between the two countries. "You have seen this very discreet, extremely well-funded campaign to try to derail the negotiation and try to derail the deal,” he said. “A bunch of people who have quite literally been paid by a former Trump cam-

paign person who was himself paid by certain elements within the Israeli government. And those people are attacking me viciously,” he added. Vance defended a deal reached last month to end the war with Iran, which critics in the US and Israel have slammed for failing to curb Iran's missile program and providing no clear path to dismantling its nuclear facilities, while constraining Israel in its war with Hezbollah militants in Lebanon. "I know beyond a shadow of a doubt that there have been people within the Israeli government who are trying to, like, actually shift us away from that policy because they want to continue the military campaign," Vance said.

gies to Improve Public perception, These sessions highlighted a simple but profound reality: future governments will not merely be digital; they will be intelligent. Civil servants who understand artificial intelligence, predictive analytics, and digital governance will be better equipped to design citizen-centric public policies and improve service delivery. Another significant component of the course focused on strategic communication. Sessions on Social Media Management and Navigating Propaganda were particularly relevant in an age where misinformation spreads faster than facts. Governments can no longer rely solely on conventional communication channels; they must engage citizens proactively, transparently, and digitally. Equally valuable were the leadership development modules covering Emotional Intelligence, Anger Management, Innovative Thinking, Stress Management, Team Building, and Conflict Resolution. These sessions reinforced an often-overlooked principle: governance is ultimately about people. Technical competence alone does not make an effective public servant. Empathy, emotional resilience, communication, and collaborative leadership are equally indispensable. The programme also strengthened participants’ analytical and research capabilities through modules on Research Methodology, Case Study Writing, Institutional Development Exercise (IDE), and Effective Presentations using the PREP Model. These practical assignments encouraged participants to move beyond theoretical discussions and propose implementable policy solutions based on evidence and structured analysis. Equally comprehensive was the exposure to key public policy sectors. Experts delivered lectures on Agricultural Development, Industrial Growth, Political Economy, Local Government Systems, Water Security, Pakistan’s Power Sector, Healthcare Reforms, Livestock Development, Poverty Alleviation, Housing Initiatives, Public Procurement, Financial Management, Supply Chain Management, And Institutional Governance. The legal and regulatory framework governing public administration was also extensively covered, including PERA Act 2024, PPRA Rules, Companies Rules, PEEDA Act, E-FOAS, Punjab Delegation of Financial Powers Rules 2016, NFC Award, Budget Utilisation, and E-Procurement Systems. These sessions strengthened participants’ understanding of administrative accountability and financial governance. Learning at MPDD, however, extended well beyond lecture halls. Sports competitions, team-building activities, a memorable Cultural Night, and numerous informal interactions fostered camaraderie among participants from different departments. These engagements demonstrated that effective governance is built not only on institutional knowledge but also on trust, collaboration, and interpersonal relationships. The four-day study tour to Karachi was another highlight of the programme. Exposure to major public institutions, infrastructure projects, Unilever, Karachi Stock Exchange, State Bank Of Pakistan and

Naval Base provided valuable practical insights into Pakistan’s development challenges and opportunities. Such experiential learning bridges the gap between theory and practice far more effectively than classroom instruction alone. As the programme concluded with the certificate distribution ceremony, participants departed not only with enhanced knowledge but also with renewed confidence, broader professional networks, and lasting friendships. Looking Ahead: From Training Institute to Global Centre of Excellence While MPDD has established itself as one of Punjab’s premier civil service training institutions, its future potential is far greater. With strategic reforms, the institute can evolve into a globally recognised centre for public policy research, executive leadership, and governance innovation.

1. ESTABLISH A PUBLIC POLICY RESEARCH CENTRE MPDD should create a permanent multidisciplinary research centre dedicated to evidence-based policymaking. Faculty members, serving civil servants, academics, and international researchers should jointly undertake applied policy research addressing Punjab’s governance challenges.

2. DEVELOP AN AI AND DIGITAL GOVERNANCE LAB Artificial Intelligence is transforming governance worldwide. MPDD should establish Pakistan’s first dedicated AI Governance Laboratory where officers receive practical training in predictive analytics, policy simulation, generative AI, data visualisation, and digital decision-support systems.

3. BUILD INTERNATIONAL AC ADEMIC PARTNERSHIPS Strategic collaborations with globally renowned institutions such as the Harvard Kennedy School, Lee Kuan Yew School of Public Policy, Oxford’s Blavatnik School of Government, the Civil Service College Singapore, and leading UN agencies would significantly enhance MPDD’s academic standards, faculty exchange, and research output.

4. INTRODUCE EXECUTIVE FELLOWSHIPS Senior civil servants should periodically undertake six-to-twelve-month research fellowships focusing on governance reforms, institutional innovation, and public policy implementation, with findings published as policy papers.

5. LAUNCH A PUNJAB GOVERNANCE JOURNAL A peer-reviewed international journal dedicated to governance, leadership, public administration, digital transformation, and policy innovation would position MPDD as a recognised contributor to academic and policy discourse.

6. CREATE LEADERSHIP SIMULATION CENTRES Modern governance requires practical decision-making under pressure. Simulation laboratories replicating crises such as floods, cyberattacks, pandemics, fiscal

emergencies, and media crises would significantly improve executive preparedness.

7. INSTITUTIONALISE CONTINUOUS LEARNING Civil servants should have access to lifelong learning through online courses, digital libraries, podcasts, webinars, and executive masterclasses, enabling continuous professional development throughout their careers.

8. PROMOTE INTERNATIONAL STUDY VISITS Regular exposure visits to countries recognised for governance excellence—including Singapore, South Korea, Estonia, Finland, Malaysia, and the United Kingdom—would broaden participants’ understanding of global best practices.

9. STRENGTHEN INNOVATION AND POLICY INCUBATION MPDD should establish a Governance Innovation Lab where officers design, test, and pilot practical administrative reforms before recommending their wider implementation across government departments.

TRAINING 10. MEASURE OUTCOMES Training effectiveness should not end with certificate distribution. A structured post-training evaluation system should measure how participants apply acquired knowledge in their respective organisations, linking learning outcomes to institutional performance improvements. Investing in Leadership is Investing in the State. The future of governance depends less on buildings and more on people capable of making informed, ethical, and innovative decisions. Institutions such as MPDD occupy a strategic position in shaping those leaders. The challenges confronting Pakistan— digital transformation, climate change, rapid urbanisation, economic uncertainty, misinformation, and increasing citizen expectations—require a new generation of public servants who combine technical competence with strategic vision, emotional intelligence, and ethical leadership. The 29th Public Policy and Governance Course demonstrated that such transformation is possible. It was not merely a training programme; it was a journey of intellectual curiosity, collaborative learning, professional growth, and personal reflection. As participants return to their respective departments, they carry more than certificates. They carry new perspectives, stronger professional networks, renewed confidence, and a shared commitment to improving public service. If MPDD continues to innovate, embrace international standards, invest in research, and cultivate future-ready leadership, it has every potential to emerge not merely as Punjab’s leading civil service academy but as one of South Asia’s most respected centres for public policy, governance research, and executive leadership. That would not simply be an institutional achievement—it would be an investment in the future of governance itself. The writer is a Director Public Relations

NEWS 07 CM MAryAM voWs To buILd PAkIsTAn's LArgEsT PubLIC TrAnsPorT sysTEM AT E-bus LAunCH

Friday, 17 July 2026 | LAHORE

CORPORATE CORNER

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KARACHI: Former Test cricketer Jalal-ud-Din, the chief guest, in a group photo with players and guests at the opening ceremony of the inaugural Ali Asghar Valika All-Pakistan Snooker Championship in Naya Nazimabad. Also prominent on the occasion are Naya Nazimabad Gymkhana President Syed Muhammad Talha, World Home Snooker founder Waqar Alam, and others. PR

south Air announces launch of domestic flight operations KARACHI

STAFF REPORT

A significant development has emerged in Pakistan’s private aviation industry as the new private airline South Air announced the formal launch of its scheduled domestic flight operations on Thursday. The airline says the initiative aims to strengthen air connectivity across different regions of the country, promote regional development, and provide passengers with safe, high-quality, and reliable travel services. In the initial phase, South Air will begin regular flights between Karachi, Islamabad, and Bahawalpur, while new scheduled services are also being introduced from Karachi to Gwadar, Sukkur, and Rahim Yar Khan. The launch of these routes is expected to give a new boost to business activity, tourism, education, and regional connectivity. The airline is launching its services with modern ATR 72-600 aircraft, which are widely used around the world for short- and medium-haul flights due to their fuel efficiency, operational effectiveness, and compliance with international safety standards. The Chief Executive Officer Nishat Fatema said on the occasion: “The establishment of South Air is not merely the addition of a new airline, but a national effort to further strengthen Pakistan’s air connectivity. Our commitment is to provide every passenger with safe, punctual, and high-quality travel services, and to connect those regions with the national aviation network where air services have remained limited.” He further added that the company plans to expand its route network and fleet in the near future so that more cities across the country can benefit from modern air travel facilities. To promote collaboration in the tourism and hospitality sectors, South Air has signed a strategic Memorandum of Understanding (MoU) with Dream World Destination Hotels and Golf Course. Under this partnership, various initiatives will be undertaken to introduce joint travel packages, special discount offers, and the promotion of tourism-related activities.

Federal Minister launches national WEs strategy, genomics dashboard ISLAMABAD

PUNJAB CM SAYS 1,100 E-BUSES WILL BE OPERATIONAL BY END-AUGUST, WITH ANOTHER 1,500 TO JOIN FLEET THIS FISCAL YEAR LAHORE

SALEEM JADOON

UNJAB Chief Minister Maryam Nawaz on Thursday digitally inaugurated electric bus (e-bus) services in Layyah, Okara, Sialkot, Chiniot and Murree, reaffirming her government's commitment to deploying 5,000 electric buses across Punjab over the next five years as part of what she described as Pakistan's largest public transport system. Addressing the inauguration ceremony, the chief minister said the government was on course to make 1,100 electric buses operational across the province by the end of August, adding that the same number of buses would be inducted under the first phase of the project while another 1,500 buses would join the fleet during the current financial year. She appreciated Transport Minister Bilal Akbar and Transport Secretary Imran Sikandar Baloch for their efforts in implementing the flagship public transport initiative. According to a briefing presented by Transport Minister Bilal Akbar, 51 electric buses will initially operate on 10 routes across Layyah, Okara, Sialkot, Chiniot and Murree. Another 101 buses

are scheduled to begin operations by the end of July in Gujranwala, Gujrat, Sheikhupura, Multan, Vehari, Kasur, Lodhran, Nankana Sahib and Narowal. The briefing stated that in Layyah, the buses will operate from the General Bus Stand to Paharpur and Tehsil Hospital. In Chiniot, 10 buses will ply the Tehsil Chowk-Bhowana and Lalian routes. In Okara, services will run from

Sahiwal Bypass to KFC Bypass and from the General Bus Stand to Shergarh via Akhtarabad. In Sialkot, buses will operate between the General Bus Stand and Daska and Pasrur, while in Murree they will run from the General Bus Stand to Kotli Sattian and 17-Mile. The transport minister further informed the meeting that 500 electric buses were already operating across 24

UMT hosts two-day final year thesis exhibition 2026 LAHORE

STAFF REPORT

also attended the inauguration. During the exhibition, Prof. Dr. Muhammad Ali Shah and Prof. Dr. Asif Raza visited the student's thesis displays, closely reviewed the projects and interacted with students to discuss their research concepts, creative ideas, and innovative design solutions. Speaking on the occasion, Prof Dr. Muhammad Ali Shah praised the students for their creativity, innovative thinking and professional capabilities. He remarked that the

exhibited projects reflected excellence in research, innovation and creative expression while meeting international and industrial standards. He emphasized that young professionals have the potential to drive positive transformation in Pakistan's textile and design industries through innovation, adding that such creative talent will play a significant role in strengthening the country's industrial development.

STAFF REPORT

Federal Minister for National Health Services, Regulations and Coordination, Syed Mustafa Kamal, officially launched Pakistan's Wastewater Environmental Surveillance (WES) Strategy and the National WES Genomics Dashboard at a ceremony organized by the National Institute of Health (NIH), marking a significant milestone in strengthening Pakistan's public health surveillance system. The ceremony was attended by senior officials from the Ministry of National Health Services, Regulations and Coordination, the National Institute of Health, provincial health departments, Water and Sanitation Agencies, municipal authorities, academia, development partners, the Aga Khan University (AKU), and the Duke-NUS Centre for Outbreak Preparedness, Singapore. Addressing the gathering, the Federal Minister reaffirmed the Government of Pakistan's commitment to strengthening public health surveillance systems and described wastewater environmental surveillance as a strategic investment for enhancing early warning, outbreak detection, and evidence-based public health decision-making. He emphasized the importance of strengthening wastewater treatment systems and called for continued collaboration among government, academia, and international partners to expand and sustain the national WES programme. Dr. Muhammad Salman, Chief Executive Officer, NIH, highlighted that the launch of Pakistan's Wastewater Environmental Surveillance (WES) System marks a "significant milestone in strengthening the country's public health surveillance and outbreak preparedness."

Sindh governor terms martyrs, war veterans pride of nation

KARACHI STAFF REPORT

Sindh Governor Syed Muhammad Nehal Hashmi has said that the word "Shaheed" (martyr) is derived from the Holy Quran, not from the Constitution of Pakistan. He stated that "The death of a Shaheed is the life of the nation," adding that the

A developed capital market indispensable for sustainable economic growth: Arif Habib ISLAMABAD

STAFF REPORT

The University of Management and Technology (UMT) inaugurated its Two-Day Final Year Thesis Exhibition 2026, organized by the School of Design and Textiles, showcasing the creative and research-based achievements of graduating students. A total of 190 final-year students from the disciplines of Graphic Design, Interior Design, Textile Design and Fashion Design presented innovative thesis projects aligned with contemporary industry trends and market demands. The exhibition attracted widespread appreciation from academics, industry professionals and experts from the design sector. The event was graced by Vice Chancellor of the University of the Punjab, Prof. Dr. Muhammad Ali Shah, as the Chief Guest. Rector UMT Air Vice Marshal (R) Prof. Dr. Asif Raza, Dean, School of Design and Textiles, Prof. Dr. Mumtaz Hassan Malik, and Chief Advisor Innovation, Prof. Abid Sherwani,

districts of Punjab. The chief minister directed deputy commissioners to closely monitor the construction and rehabilitation of e-bus terminals and instructed deputy and assistant commissioners to ensure the prompt resolution of issues relating to the new transport service. Speaking on the occasion, Maryam Nawaz described the launch of electric bus services in Layyah, Okara, Sialkot, Chiniot and Murree as a moment of satisfaction and gratitude. She congratulated the people and elected representatives of the five districts on the introduction of the service. "Alhamdulillah, we are establishing not only Punjab's but Pakistan's largest public transport system," she said, adding that within two and a half years the electric bus project had gained widespread public acceptance. She said residents of remote and underdeveloped districts were now benefiting from modern, comfortable transport facilities, adding that electric buses were being extended to every tehsil of Punjab without any distinction between rural and urban areas. Describing the Rs200 billion initiative as the province's largest public mega project, the chief minister expressed satisfaction that people in the newly covered districts would now also benefit from the service. She particularly welcomed the introduction of electric buses in the hilly terrain of Murree.

entire nation takes immense pride in its martyrs and war veterans. He expressed hope that Maulana Fazlur Rehman would reconsider and withdraw his remarks regarding the country's martyrs. He expressed these views while addressing a press conference at Governor House Karachi alongside leaders of the National Paigham-e-

Aman Committee. Governor Sindh Syed Muhammad Nehal Hashmi said that Islam is a religion of peace, tolerance, harmony and coexistence. He said that every individual who sacrifices his life in defence of the country— including personnel of the Pakistan Army, Pakistan Navy, Pakistan Air Force, Rangers and Police—attains the noble status of martyrdom. He added that the nation will always remember and honour the sacrifices of its martyrs and war veterans. Speaking on the occasion, Chairman of the Pakistan Ulema Council and leader of the National Paigham-e-Aman Committee, Hafiz Muhammad Tahir Mahmood Ashrafi, said that the committee is a joint platform representing scholars and religious leaders from all schools of thought across Pakistan, with its organisational structure being expanded to divisional and district levels.

A developed capital market is indispensable for sustainable economic growth, veteran businessman Arif Habib said at the SECP Talk Series, where he shared insights from over five decades in Pakistan's capital markets. The session, attended by SECP Chairman Dr. Kabir Ahmed Sidhu, Commissioners, market institutions, academia and business leaders, explored the evolution of Pakistan's capital markets, long-term investing and the reforms needed to deepen investor participation. Opening the session, Dr. Kabir Ahmed Sidhu said the Talk Series aims to institutionalize knowledgesharing by connecting regulators with experienced market practitioners to support evidence-based policymaking. He highlighted SECP's ongoing reforms, including digital investor onboarding, implementation of the T+1 settlement cycle, and initiatives to expand the investor base to 2.5 million through greater financial inclusion and easier market access.

TPL Insurance begins a new chapter as part of JazzWorld Ecosystem ISLAMABAD

STAFF REPORT

Following the completion of Jazz International Holding Limited's acquisition of a controlling stake in TPL Insurance Limited, the Company is entering a new phase of growth focused on innovation, digital enablement, and expanding access to insurance across Pakistan. For over two decades, TPL Insurance has established itself as one of Pakistan's leading general insurers through a strong focus on customer centric innovation, disciplined underwriting, and a robust omnichannel distribution network. Joining the JazzWorld ecosystem represents an important milestone in the Company's journey and creates new opportunities to further strengthen its digital capabilities and broaden access to insurance solutions. “Insurance should be simple, accessible, and seamlessly integrated into people’s everyday digital experiences,” said Aamir Ibrahim, CEO, JazzWorld. “This acquisition marks an important milestone in our journey to build a comprehensive digital ecosystem. Together with TPL Insurance, we have an opportunity to transform how millions of Pakistanis access financial protection, making it more affordable, personalized, and relevant to their everyday lives.” Commenting on the development, Muhammad Aminuddin, Chief Executive Officer, TPL Insurance Limited, said: "This marks an exciting new chapter for TPL Insurance.

‘AWAJ Builds Bridge’: Alliance puts govts, startups and investors on one stage in Tokyo TOKYO

STAFF REPORT

The gap between governments that write the rules, startups that build the products and investors that fund them is where most crossborder partnerships die. On Wednesday, the Asia Web3 Alliance Japan set out to close it. AWAJ, the Tokyo-based alliance led by President Hinza Asif, convened Japan's Parliamentary Vice-Minister for Digital Affairs, Mr. Kawasaki Hideto; Pakistan's Federal Secretary for IT and Telecommunication, Mr. Zarrar Hasham Khan; H.E. Mr. Abdul Hameed, Ambassador of Pakistan to Japan; Ms. Madiha Ali, Trade and Investment Counsellor at the Embassy; and panelists Mr. Jonathan T., 500 Global mentor and venture capital advisor, and Ms. Tomoko Takasaki of Ibex Japan KK and Antler Ibex — alongside venture investors and founders from both countries — under one roof at the Embassy of Pakistan. The summit was designed, in the

alliance's own framing, to be the bridge between government, startups and investors. "That triangle is the whole point," is how the alliance's positioning can be summed up. Policy without founders is paper. Founders without capital stall. Capital without regulatory clarity stays home. AWAJ's bet is that putting all three in the same room, on diplomatic ground, is what converts talk into deals. Asif, who moderated the day's panel, articulated the thesis at the heart of the event: no single actor can build a Pakistan–Japan innovation corridor alone. Her argument ran on three legs: • Government provides the rails — Japan's new data laws, yen stablecoins and FIEA token rules on one side; Pakistan's Special Technology Zones, PSEB support and startup tax reforms on the other. Both governments were physically present and pitching. • Startups provide the momentum — and Pakistan's founders, engineers and AI specialists need a credible entry point into

Japan. Asif pointed to Japan's Startup Visa as the practical, underused route, and to Japan's acute shortage of technology professionals as a genuine career and business opening for Pakistani talent. • Investors provide the fuel — and Japan's deep capital markets and corporate innovation demand are hunting for exactly the kind of fast-growing, talent-rich ecosystem Pakistan now represents. The venue itself was part of the argument. By staging the summit inside the embassy, AWAJ gave the government–startup–investor triangle official standing from day one: Japanese institutions get a trusted, diplomatic gateway into Pakistan's ecosystem; Pakistani founders get a direct line into Japan's policy and business establishment. Asif made clear the alliance sees Wednesday as a founding act, not a one-off — the first plank of an institutionalized corridor carrying investment one way and talent the other.

The bridge's government pillar showed up in force. Parliamentary Vice-Minister Kawasaki Hideto used his keynote, "Creating the Digital Future: Startup Co-Creation in the AI & Web3 Era," to lay out Japan's newly liberalized playbook: this month's amendments to the Personal Information Protection Act and

Data Utilization Act easing data-consent rules for AI, full-scale rollout of yen stablecoins as a low-cost cross-border payments rail, the migration of token regulation to the Financial Instruments and Exchange Act, the LDP's new Next-Generation AI and OnChain Finance Project Team, and Japan's leadership of Data Free Flow with Trust.

Friday, 17 July, 2026

reserves ruling on PAkIStAN, UzBekIStAN Set tO SIgN FIve-yeAr SC NAB bail jurisdiction eCONOmIC rOAdmAP tO deePeN trAde tIeS after FCC dispute

PRAYER TIMINGS

NEWS

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ISLAMABAD

STAFF REPORT

AKISTAN and Uzbekistan are expected to further deepen their growing economic partnership next week with the signing of a five-year roadmap for trade and economic cooperation, as Uzbek Deputy Prime Minister Jamshid Khodjayev is set to visit Islamabad on July 20-21 for talks aimed at boosting bilateral trade, investment and regional connectivity, according to the Ministry of Information. Deputy Prime Minister Khodjayev's visit is expected to provide fresh momentum to bilateral economic and commercial relations, with both sides seeking to expand cooperation across a range of key sectors. In preparation for the visit, Federal Minister for Economic Affairs Ahad Cheema on Wednesday chaired a highlevel meeting to review proposals for enhancing trade corridors, improving road and rail connectivity, and strengthening

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logistics infrastructure to ensure faster and more cost-effective movement of goods between Pakistan and Uzbekistan. During the meeting, the minister expressed optimism that the Five-Year Roadmap for Trade and Economic Cooperation would be signed during the

Overseas Pakistanis flying from any country barred from boarding with expired or invalid NICOPs PROFIT

MONITORING REPORT

Overseas Pakistanis, flying from any country, will no longer be allowed to board flights to Pakistan using an expired, cancelled or otherwise invalid National Identity Card for Overseas Pakistanis (NICOP), Dawn reported, citing official directives issued to the Federal Investigation Agency (FIA). Officials said the rule applies to travellers arriving from all countries and is not limited to any particular destination. All FIA zonal directors have been instructed to inform airlines operating inbound flights that NICOP validity must be checked before passengers are allowed to board. Read This: UK raises possibility of visa sanctions in Pakistan deportation dispute as Islamabad revises entry rules for British passport holders Passengers travelling on foreign passports with an invalid NICOP will need a valid Pakistani visa to enter the country. Dawn cited a senior FIA official as saying the requirement for valid travel documents already existed, but the latest instructions were aimed at ensuring uniform enforcement by airlines and immigration check-posts.

gB gears up for July 19 kashmir solidarity events as APHC, governor reaffirm support GILGIT

STAFF REPORT

Uzbek deputy prime minister's visit. "He (Cheema) expressed confidence that the Five-Year Roadmap for Trade and Economic Cooperation would be signed during the visit, providing a comprehensive framework to expand bilateral trade, investment, connectivity, and

Pakistan, China reaffirm ironclad defence partnership at PLA's 99th anniversary ISLAMABAD

STAFF REPORT

Pakistan and China on Thursday reaffirmed their deepening strategic partnership and expanding defence cooperation as the two countries marked the 99th anniversary of the founding of the Chinese People's Liberation Army (PLA) at a high-profile ceremony in Islamabad, underscoring the enduring strength of their "all-weather strategic cooperative partnership." The commemorative event, hosted by Chinese Ambassador Jiang Zaidong and Defence Attaché Major General Wang Zhong, brought together senior Pakistani civil and military officials, diplomats and members of the diplomatic corps, reflecting the close and longstanding ties between the two friendly countries. According to a Gwadar Pro report, Chief of Air Staff Air Chief Marshal Zaheer Babar Sidhu attended the ceremony as the chief guest and extended congratulations to the Chinese leadership, the Communist Party of China and the People's Liberation Army on the occasion of the PLA's 99th founding anniversary. Describing Pakistan-China re-

lations as "time-tested and enduring," the Air Chief said the bilateral partnership has continued to flourish despite evolving regional and international dynamics. He noted that mutual trust, strategic coordination and unwavering support for each other's core interests have transformed the friendship into one of the world's most resilient bilateral partnerships. Emphasising the growing importance of military ties, Air Chief Marshal Sidhu said defence cooperation between the armed forces of Pakistan and China has become a vital pillar of regional peace, collective security and strategic stability. He added that bilateral military collaboration continues to expand through joint exercises, professional exchanges, defence technology cooperation and institutional engagement. The Air Chief reaffirmed Pakistan's commitment to further broadening defence cooperation with China while simultaneously enhancing collaboration in the economic, technological, industrial and cultural spheres. He expressed confidence that the comprehensive partnership between the two countries would continue to make a significant

contribution to regional peace, prosperity and stability. Chinese Ambassador Jiang Zaidong thanked Pakistan's military leadership for participating in the celebrations and reaffirmed Beijing's appreciation for Pakistan's consistent friendship and strategic support. He said the PLA anniversary commemorates not only China's military achievements over nearly a century but also symbolises the enduring friendship and strategic trust that continue to define China-Pakistan relations. Chinese Defence Attaché Major General Wang Zhong said defence cooperation between the two countries has continued to expand steadily, reflecting the shared commitment of both sides to safeguarding regional security and promoting common development. Founded in 1927, the People's Liberation Army is the principal armed wing of the Communist Party of China and serves as the armed forces of the People's Republic of China. With approximately 2.03 million active-duty personnel, the PLA remains the world's largest standing military, comprising the Ground Force, Navy, Air Force, Rocket Force and Aerospace Force.

CM Maryam unveils sweeping education, welfare package, announcing 100,000 laptops for students LAHORE

SALEEM JADOON

A high-level delegation of the All Parties Hurriyat Conference Azad Jammu and Kashmir (APHC-AJK) chapter, led by its Convener Ghulam Muhammad Safi, called on Gilgit-Baltistan Governor Syed Mehdi Shah at the Governor House in Gilgit on Thursday, where the two sides reviewed preparations for the July 19 Youm-eIlhaq-e-Pakistan (Accession to Pakistan Day) observances and discussed the prevailing situation in Indian illegally occupied Jammu and Kashmir (IIOJK). The meeting focused on finalising arrangements for the public rally and gathering to be held in Gilgit on July 19, with particular emphasis on ensuring maximum public participation and effectively highlighting the Kashmir dispute. Speaking on the occasion, Ghulam Muhammad Safi said the July 19, 1947 Accession to Pakistan Resolution symbolises the historic resolve of the Kashmiri people and reflects their enduring bond with Pakistan. He said the people of all regions of the erstwhile State of Jammu and Kashmir are entitled to exercise their United Nations-recognised right to self-determination in accordance with the relevant UN resolutions. Governor Syed Mehdi Shah said the people of GilgitBaltistan take pride in their historic, religious and national affiliation with the people of Kashmir and would continue extending political, moral and diplomatic support for a just resolution of the Kashmir dispute.

economic collaboration in the years ahead," the Ministry of Information said in a statement. Pakistan and Uzbekistan have steadily strengthened their economic engagement in recent years, with Islamabad positioning itself as a regional transit hub by providing landlocked Central Asian states with greater access to international markets. Uzbekistan became the first Central Asian country to sign a bilateral Transit Trade Agreement with Pakistan in 2021, followed by a Preferential Trade Agreement in March 2022, covering 17 items, which became operational in 2023. The two countries have also set ambitious targets for expanding bilateral commerce. During Prime Minister Shehbaz Sharif's meeting with Uzbek President Shavkat Mirziyoyev in February, the two leaders encouraged business communities on both sides to work towards achieving $2 billion in bilateral trade within the next five years, up from an annual trade volume of nearly $450 million in 2025.

Punjab Chief Minister Maryam Nawaz on Thursday unveiled a wide-ranging package of education and public welfare initiatives, announcing the distribution of 100,000 laptops to students, 50,000 additional Honhaar Scholarships for higher education and Rs40 billion for upgrading government schools, while reaffirming her government's commitment to expanding educational opportunities and social development across the province. Addressing the inauguration ceremony of 10 Nawaz Sharif Schools of Eminence in the Sahiwal Division at Arifwala, the chief minister also announced the establishment of computer, information technology, artificial intelligence (AI) and STEAM laboratories in government schools throughout Punjab, describing education as the foundation of the province's long-term development strategy. The chief minister received an enthusiastic welcome from stu-

dents, who greeted her as their "superhero," and she invited them to pledge their love and commitment to Pakistan. Maryam Nawaz said she became emotional during her visit to the Nawaz Sharif School of Eminence, observing that even many expensive private institutions lacked comparable facilities. She said the schools were equipped with qualified principals and teachers, state-of-the-art AI laboratories and fully air-conditioned classrooms, reflecting the government's resolve to provide quality education to deserving students regardless of their financial background. She said it had always saddened her to see talented children forced to study under poor conditions, stressing that no child's future should be determined by a lack of resources. "We are breaking old traditions and creating new opportunities," she said, adding that girls across Punjab were progressing with confidence. "Many gifted children fail to realise their dreams because of financial constraints. I

want every child in Punjab to study without worrying about resources because your government will provide them." Reiterating the government's commitment to establishing 300 Nawaz Sharif Schools of Eminence across Punjab, the chief minister said the institutions would provide world-class educational facilities to deserving students from all segments of society. She announced that students unable to afford higher education would continue to benefit from the Honhaar Scholarship Programme, while graduates would also receive business loans to help them become financially independent and pursue entrepreneurial opportunities. Highlighting the government's focus on employability, Maryam Nawaz said 500,000 students were receiving skill development training across the province. She added that skilled youth seeking employment in Gulf countries would receive Rs300,000 through the Parwaaz Card to cover travel expenses, while employment arrangements had also been made for trained workers abroad.

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NEWS DESK

The Supreme Court on Thursday reserved its decision on a jurisdictional question over whether it can continue hearing bail applications in pending National Accountability Bureau appeals or whether such matters must now go before the newly formed Federal Constitutional Court under the 27th Constitutional Amendment. A three-member bench headed by Justice Muhammad Ali Mazhar, and comprising Justice Musarrat Hilali and Justice Shahid Bilal Hassan, heard arguments on whether bail pleas in pending NAB appeals fall within the class of cases that must be transferred to the FCC. While wrapping up the proceedings, the bench indicated that its ruling could be announced within a day or two. Dispute over forum for bail pleas The federal government told the court that both appeals and bail applications in pending NAB matters should now be heard by the FCC. The issue arose in the context of changes introduced through the 27th Amendment and a recent amendment to the NAB law. Appearing for under-trial prisoner Aamir Mahmood, senior counsel Ibadur Rehman Lodhi argued that bail requests by under-trial prisoners were governed by Section 497 of the Criminal Procedure Code, which deals with grant of bail, and not Section 426, which concerns suspension of sentence by an appellate court for a convicted person, with release on bail during the pendency of appeal. He contended that the newly inserted Section 32-A of the NAB law, added through the NAB Amendment Act on March 5, applied to second appeals against convictions handed down by high courts. According to the amendment, any person convicted, or the Prosecutor General Accountability if so directed by the NAB chairman, may file a second appeal before the FCC within 30 days if aggrieved by a high court decision under Section 32. Lodhi maintained that in pending matters, the Supreme Court remained competent to hear bail applications under Section 32 of the NAB law. He argued that in NAB cases only appeals against a high court’s final ruling were to go to the FCC, whereas if bail was declined by a high court, the matter could still be taken to the Supreme Court. He also said Section 32 of the National Accountability Ordinance did not apply to bail questions. Bench observations during hearing Justice Mazhar observed that the court was not examining Parliament’s intent in amending the NAB law. He added that the Supreme Court had not given up its authority, but the 27th Amendment provided that appeals would go to the FCC.

Pakistan advances strategic oil reserve plan as four firms bid for feasibility study PROFIT

MONITORING REPORT

The Petroleum Division has advanced work on Pakistan's strategic petroleum reserve initiative, with four firms submitting bids for a feasibility study as the government pushes ahead with measures to strengthen the country's fuel security and storage capacity, Business Recorder reported. The initiative follows directives issued by Prime Minister Shehbaz Sharif during a high-level meeting on April 22-23, 2026, to develop a comprehensive liquid fuel reserve framework, expand crude oil storage and improve energy security. According to officials, Pakistan LNG Limited (PLL) has finalised and published the request for proposals for the feasibility study in local and international newspapers. The bidding process closed on July 1, attracting four participants. The technical evaluation of bids is scheduled to conclude by July 17, while financial proposals are expected to be opened on July 27. A technical committee reviewing the project has recommended hiring an international consultant to conduct a comprehensive feasibility study covering all aspects of establishing Strategic Petroleum Reserves. Separately, the Petroleum Division has reviewed the existing Bonded Storage Policy with the assistance of KPMG and incorporated feedback from domestic and international stakeholders. A summary containing proposed amendments has been circulated for consultation before being submitted to the Economic Coordination Committee. The proposed changes are intended to make the policy tax-neutral, encourage foreign investment in storage infrastructure and re-export facilities, and position Pakistan as a regional energy storage hub. The Petroleum Division has also proposed amendments to the Brownfield Refining Policy, requiring upgraded refineries to maintain crude oil inventories equivalent to 14 days of nameplate capacity, in addition to five days of crude cargoes at sea.

Pakistan’s trade deficit widens to $39.62b in FY2025-26 as imports rise 8.14%, exports fall 5.93% PROFIT NEWS DESK

Pakistan’s merchandise trade deficit widened to $39.622 billion during FY202526 as imports increased while exports declined, provisional data released by the Pakistan Bureau of Statistics (PBS) showed. The cumulative deficit was equivalent to Rs11.140 trillion during July-June FY2025-26. In June alone, the trade gap reached $4.679 billion, or Rs1.305 trillion, as imports rose sharply and exports fell on both monthly and annual bases. June trade deficit reaches $4.68 billion Pakistan exported goods worth $2.252 billion in June 2026, while imports stood at $6.931 billion, resulting in a monthly trade deficit of $4.679 billion. In rupee terms, exports were recorded at Rs626.686 billion against imports of

Rs1.932 trillion. The June deficit reflected a 27.08% month-on-month increase in imports alongside a 16.25% decline in exports. Full-year exports fall 5.93% to $30.14 billion Pakistan’s exports declined to $30.139 billion during July-June FY2025-26 from $32.040 billion in the corresponding period of the previous fiscal year, a fall of 5.93%. In rupee terms, exports decreased by 5.51% to Rs8.454 trillion from Rs8.948 trillion. Exports in June fell to $2.252 billion from $2.689 billion in May, marking a monthly decline of 16.25%. Compared with $2.477 billion in June 2025, exports were down 9.08%. In rupee terms, June exports dropped 16.36% from Rs749.272 billion in May and 10.61% from Rs701.091 billion a year earlier. Textile exports weaken in June Knitwear remained Pakistan’s largest export category during June at Rs101.348

billion. However, its value fell 18.43% from May and 21.31% from June 2025. Readymade garment exports stood at Rs87.768 billion, declining 23.95% monthon-month and 13.88% year-on-year. Bedwear exports reached Rs58.361 billion, down 26.60% from May and 24.55% from the same month last year. Cotton cloth exports were recorded at Rs31.209 billion, falling 23.21% on a monthly basis and 10.11% annually. Towel exports declined to Rs18.462 billion, down 36.84% from May and 25.18% from June 2025. Made-up articles, excluding towels and bedwear, generated Rs13.557 billion, declining 27.38% month-on-month and 23.38% year-on-year. Cotton yarn exports, however, increased to Rs17.820 billion, rising 6.49% from May and 1.29% from a year earlier. Rice and petroleum exports record

growth Exports of non-basmati rice stood at Rs34.558 billion in June, increasing 9.67% from May and 20.70% from June 2025. Basmati rice exports reached Rs24.943 billion, up 5.24% month-on-month and 81.22% year-on-year. Petroleum product exports, excluding top naphtha, rose to Rs19.526 billion, increasing 30.56% from May and 81.58% from the corresponding month last year. Full-year imports rise 8.14% to $69.76 billion Pakistan’s imports increased to $69.761 billion in FY2025-26 from $64.507 billion in the previous fiscal year, an increase of 8.14%. In rupee terms, imports rose 8.72% to Rs19.595 trillion from Rs18.023 trillion. June imports jumped to $6.931 billion from $5.454 billion in May, an increase of 27.08%. Compared with $5.359 billion in

Published by Asad Nizami at Qandeel Printing Press, 4 Queens Road, Lahore, for PT Print (Pvt) Limited. Ph: 042-36300938, 042-36375965. Email: newsroom@pakistantoday.com.pk

June 2025, imports rose 29.33%. In rupee terms, June imports increased by 26.24% from Rs1.531 trillion in May and 27.41% from Rs1.516 trillion a year earlier. Oil imports lead June import bill Petroleum crude was the largest import item in June at Rs230.079 billion. Its value increased 17.66% from May and 74.87% from June 2025. Petroleum product imports reached Rs215.780 billion, rising 52.35% monthon-month and 49.53% year-on-year. Liquefied natural gas imports stood at Rs57.117 billion, increasing 55.14% from May but falling 23.81% from a year earlier. Machinery, vehicles and industrial inputs rise Electrical machinery and apparatus imports were recorded at Rs91.833 billion, up 27.68% from May but down 30.38% from June 2025.