FRANKFURT: German defense firm Hensoldt has warned it will take time before European militaries can operate without American support as the continent races to rearm amid worries about US commitment to its security.
“It will only be possible in the medium term for Germany and the EU to achieve autonomy in armaments without relying on American capabilities,” Oliver Doerre, CEO of the defense electronics maker, told journalists on Tuesday.
The firm, based in the southern state of Bavaria, provides radars used in Ukraine to defend against Russian airstrikes.
European nations have been unsettled by signs of US President Donald Trump’s uncertain commitment to the continent’s defense and NATO, and were also shocked after he made overtures to Russia on the Ukraine war.
Responding to the geopolitical turmoil, German lawmakers Tuesday approved a plan to dramatically ramp up defense spending pushed by leader-in-waiting Friedrich Merz while the EU is seeking to mobilize huge sums for the continent to rearm.
But Doerre cautioned that it was “essential to continue our trusted collaboration with the American industry, particularly with Lockheed Martin,” in the areas of naval command systems and radar technologies.
He called for defense firms, both in Germany and Europe, to focus more on greater cooperation and less on competing with one another, and for Europe to improve when it comes to procurement of military gear.
Doerre, who served in the Germany military for over 20 years, said there were still “significant deficits in terms of capabilities” in the Germany army, despite a 100-billion-euro special fund set up to boost the armed forces after Russia invaded Ukraine in 2022.
Germany needs an estimated 300 billion to 500 billion euros for investments in equipment, infrastructure and extra personnel, he said.
Doerre said that Hensoldt was “ready” to boost its operations in response to growing demand, noting the company had invested one billion euros in recent years to ramp up production, and had hired 1,000 people alone last year.

ISLAMABAD: Pakistan’s benchmark stock index (PSX) hit an all-time high on Wednesday, nearing the barrier of 118,000 points due to strong buying activity from local institutions, Topline Securities said. 

The KSE-100 Index hit a record high of 117,974 points, rising by 973 points (0.83 percent). 

“The market continued its upward momentum, fueled by strong buying activity from local institutions, peaking at 118,244 points during the day,” Topline Securities said in its market review. 

The rally was primarily driven by Hub Power Company, Mari Energies, Engro Holdings, Systems Limited and Pakistan Petroleum, which together contributed 551 points to the index. On the other hand, Fauji Fertilizer Company, Engro Fertilizer, and Pakistan Oilfields exerted downward pressure, pulling the index down by 54 points.

“Overall, 543 million shares were traded, with a turnover of Rs 32 billion. Pakistan International Bulk Terminal topped the volume chart with 52 million shares traded,” Topline added. 

Mohammed Sohail, a chief executive at Topline Securities, attributed the bull run to “expectations that the government will agree with banks to resolve old circular debt issues that will help listed energy companies.”

In Pakistan, “circular debt” refers to a cascading cycle of unpaid liabilities within the energy sector, where power distribution companies (DISCOs) fail to pay the Central Power Purchasing Authority-Guarantee (CPPA-G), which in turn cannot pay power generation companies (GENCOs), and so on.

The government last week announced it had reached an agreement with banks to extend PHL, a state-owned entity, Rs1.25 trillion in financing at a favorable floating interest rate of Kibor minus 0.90pc per annum.

The move was described as part of a broad strategy to eliminate circular debt in the power sector, which has been fueled by unpaid bills, theft, and distribution losses that have continued to accumulate over the past decade. Circular debt is one of the most contentious issues in Pakistan’s negotiations with the International Monetary Fund (IMF) for the first review of its $7 billion bailout program.

Sana Tawfik, head of research at Arif Habib Limited, said the positive momentum in stocks was continuing since last week.

“Secondly, volume levels have improved since Ramazan’s first week — that is, buying activity is visible,” she said. “On the economic front, there has been significant progress made regarding the IMF deal.”