Category: bussines

WASHINGTON: While keeping interest rates unchanged on Wednesday, the Federal Reserve stated that the threats of increased unemployment and inflation had increased, further obscuring the US economy as its decision-makers deal with the effects of President Donald Trump’s tariffs. It is unclear at this moment whether the economy will maintain its current rate of growth or falter due to growing uncertainty and a potential impending inflation increase, said Fed Chair Jerome Powell. With so much unsettled about what Trump will ultimately decide and what of that survives possible court and…

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The stock market opened to turmoil on Wednesday as fears of an all-out military confrontation between Pakistan and India sent shockwaves through the bourse. The rout came on the heels of escalating cross-border hostilities and retaliatory strikes that deepened geopolitical uncertainty. But what began as one of the steepest intraday crashes in recent memory gradually gave way to a recovery, driven by investor recalibration and renewed hope over Pakistan’s pending International Monetary Fund (IMF) disbursement. “Pakistan Stock Exchange, after falling sharply by 6% at open, has recovered and is down…

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LONDON: The UK on Tuesday agreed a free trade agreement with India, its biggest such deal since leaving the European Union, after negotiations relaunched in February following US tariff threats. Britain has sought to bolster trade ties across the world since it left the EU at the start of the decade, a need that strengthened after the United States unleashed tariffs that risk weaker economic growth. “Today we have agreed a landmark deal with India — one of the fastest growing economies in the world, which will grow the economy…

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The capital market rallied at the open on Tuesday but soon faltered, as investors rushed to realise gains following the central bank’s unexpected rate cut. The Pakistan Stock Exchange’s benchmark KSE-100 Index closed at 113,568.50, down 533.73 points or -0.47%, from the previous close of 114,102.23. During intraday trade, the index climbed to an intraday high of 115,093.10, an increase of 990.87 points, or 0.87%. The session’s low was recorded at 113,418.52, reflecting a decline of 683.71 points, or 0.6%. “The market was unable to capitalise on yesterday’s surprise rate…

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OpenAI has abandoned a plan to convert into a fully for-profit company, opting instead to remain under nonprofit governance, CEO Sam Altman confirmed in a message to staff on Monday. The proposed transition, meant to reassure investors and unlock large-scale funding, sparked significant pushback from regulators, AI ethics advocates, and some of the company’s founders. Critics argued that a move toward profit-maximisation could put society at risk by prioritising commercial gain over responsible AI development. Altman said the decision followed consultations with civic leaders and officials in California and Delaware,…

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KARACHI: The State Bank of Pakistan (SBP) on Monday reduced its key interest rate by 100 basis points, bringing it down to 11% as inflation has shown a clear decline over the past two months, beating the market consensus of a rate hold. The move comes as a surprise, as most analysts and surveys from major brokerage firms had predicted the central bank would keep the policy rate unchanged, while some had forecast a reduction of 50 basis points (bps). However, few had expected a cut as steep as 100…

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The Gwadar Port Authority (GPA) has informed the Balochistan government that the province receives no share of the revenue generated from Gwadar Port, despite its strategic and economic importance to the region. In a letter presented in the Balochistan Assembly, the GPA stated that operational control of the port rests with the China Overseas Ports Holding Company. It further noted that while two operating entities contribute 9% of their revenue to the GPA and a third provides 15%, none of these funds are passed on to the provincial government. The…

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LONDON/DUBAI: Despite falling prices and expectations of weaker demand, OPEC+ has agreed to accelerate oil production hikes for a second consecutive month, raising output in June by 411,000 barrels per day, the group said on Saturday. Following an online meeting lasting just over an hour, the producer group announced the supply increase, saying the fundamentals of the oil market were healthy and inventories were low. Oil prices fell to a four-year low in April below $60 per barrel after OPEC+ announced a bigger-than-expected production boost for May, and as US…

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NEW DELHI: As diplomatic tensions between the two nuclear-armed nations flared in the wake of a deadly attack on tourists in Indian Illegally Occupied Kashmir (IIOJK) region, India said it has banned the import of goods originating from or transiting via Pakistan. India’s Directorate General of Foreign Trade in a notification said the ban will take effect immediately. “This restriction is imposed in the interest of national security and public policy,” it said. A provision in this regard has been added in Foreign Trade Policy (FTP) 2023 “to prohibit direct…

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NEW DELHI/KARACHI: Amid escalating tensions between the South Asian neighbours over a deadly attack in Indian Illegally Occupied Jammu and Kashmir (IIOJK), India has asked the International Monetary Fund (IMF) to review loans disbursed to Pakistan, an Indian government source told Reuters on Friday. India and Pakistan have announced a raft of measures after an attack on tourists in the IIOJK last week killed 26 men and there is a fear that the latest crisis between the nuclear-armed rivals could spiral into a military conflict. Islamabad has denied any role and called…

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