March 16, 2026 - Daily Capital Mail

Flood relief and Samaritan’s dilemma

March 16, 2026 capital

LONDON: Pakistan suffered a devastating flood season last year, prompting massive state compensation. While the compassion behind this response is unquestionable, the way relief is structured may unintentionally deepen long-term vulnerabilities. This reflects what Nobel laureate James Buchanan termed the Samaritan’s dilemma – a situation in which unconditional aid reduces the recipient’s incentive to prevent harm, thereby reinforcing the very problem it seeks to solve. The Punjab government’s recent flood relief programme is a striking example. It offered immediate, unconditional cash compensation to fully cover damages to homes, property, and…

Oil shock and the import trap

March 16, 2026 capital

KARACHI: The conflict in the Middle East has once again created a wave of uncertainty amid increasing volatility in oil prices. Although the conflict is external, the implications for the domestic economy are significant. At the time of writing, Brent and West Texas Intermediate (WTI) crude oil prices showed significant oscillation, suggesting uncertainty in the oil market. The length of the conflict and the extent of damage to oil infrastructure are likely to dictate the trend in global oil prices. A shorter conflict will likely have a limited impact, while…

Oil rises as focus returns to threats on Middle East export facilities

March 16, 2026 capital

Oil prices rose on Monday as ‌investor focus returned to threats facing Middle East oil facilities, despite US President Donald Trump’s call for nations to help safeguard the Strait of Hormuz, a vital artery for global energy shipments. Brent crude futures climbed $1.27, or 1.2%, to $104.41 a barrel by 0400 GMT, after settling up $2.68 on Friday. US West Texas Intermediate crude gained 54 cents, or 0.6%, at $99.25 a barrel, after settling up nearly $3 in the previous session. Read: Trump says US in contact with Iran but doubts Tehran…

FBR to recover Rs100b surcharge

March 16, 2026 capital

ISLAMABAD: In a double jeopardy for businesses hit by the super tax court judgment, Pakistan has informed the International Monetary Fund (IMF) that it will recover over Rs100 billion in late payment surcharge from firms that went to the courts and did not make timely payments. The development comes in the midst of the Prime Minister Shehbaz Sharif’s decision to seek the IMF’s nod to abolish the super tax in order to lower the tax burden on wealthy individuals and the corporate sector that are penalised for making profits. The…

Seeking cheap external development finance

March 16, 2026March 16, 2026 capital

LAHORE: The capitalist system is based on debt. Business firms and governments are net borrowers in this system while households are net lenders. There are two types of debt: domestic and external. A government can never default on the domestic debt but it may default on the external debt. On this basis, the external debt may create problems for the people. Every year, the fiscal deficit contributes to the debt stock. As far as the case of Pakistan is concerned, the fiscal deficit is mainly financed through domestic sources while…

Pakistan to export food to Gulf states as regional supply chains affected

March 16, 2026 capital

Prime Minister Shehbaz Sharif on Sunday directed the Pakistan National Shipping Corporation (PNSC) to take the necessary measures to export food items to Gulf countries via maritime routes as the Iran war disrupts food supply in the region, according to a statement released by the Prime Minister’s Office. The statement said that PM Shehbaz chaired a meeting to review Pakistan’s domestic food situation and the export of surplus commodities in light of changing regional dynamics due to the US-Israel war on Iran. The meeting was attended by Deputy Prime Minister and Foreign…

Robotic surgeries begin at PKLI

March 16, 2026 capital

ISLAMABAD: Marking a new phase in medical innovation, Chairman of the Board of Directors and Chief Executive Officer of the Pakistan Kidney & Liver Institute and Research Centre (PKLI), Dr Saeed Akhtar, on Sunday announced the introduction of robotic surgeries for kidney, liver and other complex procedures at the institute. He noted that between 50 and 80 per cent of patients are currently receiving free, technology-driven treatment. Speaking in a PTV programme, Dr Akhtar said that with the support of the Punjab government, PKLI has emerged as a strong medical…

RCB hit by Rs41m commercialisation fee loss

March 16, 2026 capital

RAWALPINDI: The Rawalpindi Cantonment Board (RCB), which has been running an extensive campaign to boost revenue and recover dues, has suffered a loss of Rs41.1 million in commercialisation fees. Owners of a property allegedly being used for illegal commercial purposes deposited only Rs2,790,595 instead of the required Rs43,891,512 as commercialisation fee and obtained a stay order from a court through other co-owners. According to sources, the property located on Peshawar Road covers 50.64 marlas of land and houses a large private educational institution. The cantonment board issued a notice to…

‘Cantt board employees not civil servants’

March 16, 2026 capital

ISLAMABAD: The Supreme Court has held that no court has the authority to decide a lawsuit that falls beyond the scope of its jurisdiction. It ruled that employees of Cantonment Boards are not civil servants; therefore, the Federal Service Tribunal (FST) lacks jurisdiction over their service matters, and such employees may approach the relevant high court for redress. “It is the prime duty of the court to decide the question of jurisdiction first in cases where doubts are raised regarding jurisdiction, and in any such situation, it is the responsibility…

Pakistan declines China’s push for talks with Kabul

March 16, 2026 capital

ISLAMABAD: Pakistan has politely told China that it will continue with its existing policy of non-engagement with the Taliban regime, citing Kabul’s failure to change its stance on the presence of the outlawed Tehreek-e-Taliban Pakistan (TTP) and other terrorist groups operating from Afghan soil. The response effectively means Islamabad has declined the latest diplomatic effort by Beijing, a close ally, aimed at easing tensions between Pakistan and Afghanistan. China recently intensified its diplomatic engagement by dispatching its special envoy on Afghanistan to both Kabul and Islamabad as part of a…