KARACHI: Pakistan's stock market was down on Tuesday with oil and gas recording a major dip after international oil prices crashed to below zero.
Experts, however, are optimistic that the country could benefit from the historically low oil prices.
The Pakistan stock exchange’s benchmark KSE-100 index was down by more than 3 percent or 1,131 points by afternoon trade as investors weighed heavily on an unprecedented meltdown in the international oil market where oil prices crashed through zero, closing at -$37 per barrel.
“The market is in pressure today due to the international oil prices as the uncertainty about the oil futures prevails. Otherwise, the market was bullish," Abdul Azeem, Head of Research at Spectrum Securities, said.
He added that the impact of the "global oil prices' decline" is reflected in the oil and gas shares which are taking "a major hit today".
On Monday, the US trade of West Texas Intermediate (WTI) for May delivery fell more than 300% to $37.63 a barrel.
It marks the first time in history that crude oil has plunged to below zero, mainly due to disruptions caused by the coronavirus outbreak and a price war between Saudi Arabia and Russia.
“The prices for WTI reflect the contract for May, which expires this week. The crash reflects that the traders are leaving the May contract, and moving on to June. This is the theoretical value, and when the buying starts again, it will go up," Tahir Alam, General Secretary, Petroleum Club of Pakistan, said.
Experts say the turn of events could be good news for Pakistan by drastically reducing its oil import bill.
“The oil prices are declining due to a lack of demand and oversupply as more than 200 million barrels of oil are oversupplied. Lack of storage capacities, high-handling costs force producers to sell the oil at throw-away prices," Masood Siddiqui, former CEO of Pakistan’s energy giant Oil and Gas Development Company OGDC, told Arab News.
He added that the situation could turn Pakistan's current account into surplus and "render exports competitive after energy cost cuts”.
Pakistan’s petroleum products’ imports declined by 39.2 percent to $668 million in March 2020 when compared to those recorded last month, while the country imported $8.9 billion worth of oil which is 16 percent down during the July- March period of the current fiscal year FY20, according to the Federal Bureau of Statistics (FBS).
Siddiqui, who is also a veteran petroleum expert, predicts that the depressed oil price scenario will last for at least three years.
“The countries exporting oil would take a major hit... while those importing the commodity could benefit from the situation that is expected to stay at least for three years," Siddiqui said, adding that thousands of oil companies in the US "may go bankrupt" after failing "to pay back their investors and creditors.”
Commenting on the future of Pakistan’s exploration and production companies, the former OGDC head said that the price floor and ceiling mechanism in the Petroleum Exploration & Production Policy 2012 protects their interests in the South Asian country.
Pakistan's shares on Monday posted more than 2 percent gains as investors weighed the positive outcome of the central bank’s surprise rate cut by 2 percent on leveraged scrips, a decision by G20 creditors to defer $12 billion payments through a debt relief fund, and the IMF's approval for a $1.4 billion economic support during the coronavirus pandemic, and the stability of the rupee against the dollar.
Pakistan's stock market takes a beating after global oil price crash
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Pakistan's stock market takes a beating after global oil price crash
- Registers a 3% drop after commodity cost closes at -$37 a barrel
- Islamabad could benefit from low rates which are likely to last for three years, experts say
Pakistan confirms OIC participation as PM Sharif, Türkiye’s Erdogan discuss Iran crisis
- OIC’s Council of Foreign Ministers is scheduled to take place in Istanbul on June 21-22
- Event comes as two OIC members have faced military standoffs with their regional rivals
ISLAMABAD: Prime Minister Shehbaz Sharif on Saturday assured Turkish President Recep Tayyip Erdogan of his country’s participation in the upcoming Organization of Islamic Cooperation (OIC) meeting in Istanbul, as both leaders expressed deep concern over Israel’s recent attack on Iran and pledged to coordinate peace efforts.
The telephone call came as the OIC’s Council of Foreign Ministers (CFM) prepares to convene in Türkiye on June 21–22 at a volatile moment for the bloc, with two of its member states — Pakistan and Iran — having faced military standoffs with their regional rivals.
While Pakistan’s border exchange with India lasted four days before a US-brokered ceasefire was reached last month, Iran remains in a state of heightened uncertainty following Israel’s strike on its military and nuclear facilities on Friday, as the war shows no signs of easing.
“Prime Minister Muhammad Shehbaz Sharif held a telephone conversation with President Recep Tayyip Erdogan of Türkiye, this evening,” Sharif’s office said in a statement after the call. “During their most warm and cordial conversation, both leaders discussed the deeply worrying situation in the region in the wake of Israel’s unprovoked and unjustified aggression against Iran.”
“The Prime Minister said that Pakistan would continue to play a constructive role for peace, both as member of the UN Security Council, as well as in other forums such as the OIC,” the statement added. “In this regard, the Prime Minister said that Deputy Prime Minister & Foreign Minister Mohammad Ishaq Dar would represent Pakistan at the upcoming OIC CFM meeting in Istanbul.”
Both leaders condemned Israel’s strikes, saying they violated Iran’s sovereignty and defied international law.
They also voiced solidarity with Palestine amid what they described as Israel’s “brazen military aggression,” which they said had continued “with complete impunity.”
The two leaders emphasized the international community and the United Nations must act collectively and urge Israel to immediately end its “aggressive posturing and illegal actions” against Iran, Palestine and other countries in the region.
Pakistan, Uzbekistan launch direct air link to deepen regional connectivity
- Uzbekistan Airways flight departed Islamabad for Tashkent with 126 passengers Saturday afternoon
- Pakistan is also advancing plans for a railway link connecting Peshawar with Kabul and Tashkent
KARACHI: Pakistan on Saturday hosted the inaugural direct flight by Uzbekistan Airways between Islamabad and Tashkent, marking yet another step toward enhanced regional connectivity and deeper economic ties with Central Asia.
Pakistan has been pushing to forge stronger trade links with landlocked Central Asian nations by offering access to its Arabian Sea ports. While several regional states border Afghanistan, Uzbekistan is seen as a strategic gateway due to its central location in the region and its larger economy.
“The Pakistan Airports Authority (PAA) proudly hosted the inaugural flight ceremony of Uzbekistan Airlines’ direct service from Islamabad to Tashkent (Flight HY466), marking a significant milestone in enhancing regional air connectivity and people-to-people ties between Pakistan and Central Asia,” said a PAA statement.
The flight, carrying 126 passengers, departed Islamabad at 1:09 p.m. on Saturday, following a festive check-in at Zone 1 of the international airport adorned with balloons, the statement said.
It informed that ambassadors from Uzbekistan, Tajikistan, Kazakhstan and Azerbaijan attended the ceremony, joined by airport officials, tourism executives and Uzbekistan Airlines’ country manager.
Pakistan is also advancing plans for a railway link connecting Uzbekistan to Pakistan through Afghanistan. Earlier this month, Foreign Minister Ishaq Dar spoke with Afghan counterpart Amir Khan Muttaqi and Uzbek officials about the proposed 573‑km Uzbekistan‑Afghanistan‑Pakistan (UAP) Railway Project.
The corridor aims to link Tashkent with Kabul and Peshawar, enhancing freight movement and reducing transit time by up to several days.
The overland route via Afghanistan connects Pakistan’s road and rail network through the mountainous frontier into Afghanistan and onward to Central Asia, offering an alternative to existing northbound trade routes.
Pakistan arrests suspects in visa fraud targeting job seekers hoping to reach Gulf, Europe
- All three suspects, including a woman, took large sums from people before going into hiding
- FIA arrested them from different cities after they failed to deliver on promised overseas jobs
ISLAMABAD: Pakistan’s Federal Investigation Agency (FIA) on Saturday arrested three individuals, including a woman, for allegedly defrauding job seekers by promising employment in Gulf countries and Europe, state media reported.
The arrests were made during raids in Bahawalpur, Bahawalnagar, Multan, and Lodhran. The suspects, identified as Abid Hussain, Hira Noor and Ajmal, are accused of collecting large sums from citizens in exchange for fake overseas job arrangements.
“These suspects were arrested for their involvement in visa fraud and human smuggling,” the Associated Press of Pakistan (APP) news agency said, adding all three went into hiding after failing to deliver on their promises.
The report further said Abid Hussain received Rs800,000 ($2,800) from one victim for a job in Saudi Arabia. Hira Noor allegedly took over Rs2.9 million ($10,150) from another individual, promising work in Europe. Ajmal is accused of charging Rs400,000 ($1,400) to arrange employment in Dubai.
The arrests come amid renewed efforts by Pakistan to crack down on human smuggling networks after a series of deadly boat tragedies in recent years involving Pakistani nationals trying to reach Europe as undocumented migrants.
Despite enforcement drives, criminal syndicates continue to exploit economically vulnerable individuals seeking better opportunities abroad.
Pakistan PM urges ‘credible’ global action to halt Israel’s war in call with Iran’s president
- President Masoud Pezeshkian calls for greater Muslim unity in the face of escalating regional threats
- Pakistan’s defense minister also urges Muslim countries to sever their diplomatic relations with Israel
ISLAMABAD: Prime Minister Shehbaz Sharif on Saturday urged the international community and the United Nations to take “urgent and credible steps” to end Israel’s war in Iran, during a phone call with Iranian President Masoud Pezeshkian, according to a statement from his office.
Israel launched surprise attacks on Iranian nuclear and military facilities in the early hours of Friday amid Tehran’s negotiations with Washington over its nuclear program. The strikes killed several senior military commanders and nuclear scientists, according to Iranian media, and also caused civilian casualties.
Israel, at war in the region since October 2023, initially launched a military campaign against Gaza following a Hamas assault, which the Palestinian group said was retaliation for decades of oppression. Since then, the Israeli government has expanded its military operations to neighboring Muslim states such as Syria and Lebanon before targeting Iran.
Sharif said Pakistan stood in “resolute solidarity” with Iranian people and government during his conversation with the Iranian president.
“The Prime Minster denounced Israel’s blatant provocations and adventurism as a grave threat to regional and global peace and stability,” said the statement released by his office after the phone call.
“He urged the international community and the United Nations to take urgent and credible steps to put an end to Israel’s aggressive behavior and its illegal actions,” it added. “He stated that Pakistan was fully committed to promoting peace in the region and stood ready to play its role in this context.”
Sharif also conveyed condolences over the loss of life in Friday’s Israeli strike and recalled Pakistan’s statement of support for Iran during an emergency session of the UN Security Council a day earlier.
The Iranian President thanked Pakistan for its solidarity and support and called for greater unity among Islamic countries in the face of escalating regional threats.
UNIFIED STRATEGY
Earlier in the day, Pakistan’s Defense Minister Khawaja Asif urged Muslim nations to adopt a unified strategy to counter Israel, warning that failure to act collectively would leave them vulnerable, as he expressed full diplomatic support to Iran in a speech to the National Assembly following Israeli strikes.
“Just as Israel is currently targeting Yemen, Iran, and Palestine, if the Muslim world does not unite today and continues to prioritize its own interests and agendas, then everyone’s turn will come,” he told lawmakers.
“An OIC meeting should be convened, and all Muslim countries must come together to devise a strategy through which Israel can be confronted collectively,” he continued. “There is a need for an initiative that reflects the unity of the Islamic world. Wherever there are diplomatic ties with Israel in the Muslim world, they should be severed.”
The Pakistani minister added the Muslim world remained “militarily vulnerable” and voiced what he described as Pakistan’s unwavering solidarity with Iran.
NO NUCLEAR TALKS
The Iranian foreign ministry also announced during the day it would no longer take part in planned nuclear negotiations with the United States in Oman, calling them “meaningless” while Israeli attacks continued.
“It is obvious that in such circumstances and until the Zionist regime’s aggression against the Iranian nation stops, it would be meaningless to participate in dialogue with a party that is the biggest supporter and accomplice of the aggressor,” an Iranian spokesperson said, according to international wire agencies.
Israel’s defense minister also warned “Tehran will burn” if Iran continued to launch missiles at Israeli cities. Iran had retaliated on Friday night by launching a barrage of missiles at Israel, with explosions lighting up the skies over Jerusalem and Tel Aviv.
Just a day earlier, hours after Israel targeted Iran, Pakistan’s envoy to the UN, Ambassador Asim Iftikhar Ahmad, condemned the strike on Iran’s military and nuclear infrastructure, calling it a violation of international law.
“Iran has the right to self-defense under Article 51 of the UN Charter,” he said, urging all sides to avoid further escalation and emphasizing the need to resolve tensions through diplomacy.
Pakistan PM calls for quick EV policy with stakeholder input to promote clean transport
- Shehbaz Sharif seeks ‘priority measures’ to promote electric motorcycles, scooters, cars and buses
- He says charging stations and battery-swapping centers must be ensured to strengthen EV rollout
ISLAMABAD: Pakistan’s government on Saturday pledged to promote electric vehicles (EVs) across all segments of transport, with Prime Minister Shahbaz Sharif calling for a national policy on the subject to be finalized in consultation with stakeholders.
The move comes amid a steady rise in EV adoption in a market long dominated by Japanese automakers such as Suzuki, Toyota and Honda. Increasingly, Chinese and Korean brands are entering the space, with electric vehicles becoming more and more visible in cities like Islamabad, Lahore and Karachi.
The government is hoping to ride this momentum to cut fuel imports and reduce emissions.
“Priority measures will be taken for the promotion of electric motorcycles, scooters, three-wheelers, cars and buses,” the prime minister said while chairing a meeting in Lahore to discuss the adoption of EVs.
The draft Electric Vehicles Policy 2025 was reviewed at the meeting, with Sharif calling for its urgent finalization “in consultation with all stakeholders” before being presented to the cabinet.
“Charging stations and battery-swapping stations must be ensured,” he said during the meeting. “Industries will also be facilitated to increase the manufacturing capacity of two- and three-wheelers.”
While EVs offer a way to reduce the country’s petroleum import bill and carbon footprint, the lack of infrastructure, frequent power outages and limited financing options remain key impediments to their widespread adoption and scale-up.
Yet industry experts believe existing players in Pakistan’s auto market will face stiff competition from various EV brands, with many seeing electric vehicles as poised to consolidate their place in the domestic market.
