US Senate Republicans pass measure to move forward on Trump’s tax cuts

The US Capitol at dusk in Washington, DC, on April 4, 2025. Republican senators are working to pass a budget plan that will unlock trillions of dollars for US President Donald Trump's vision of significant spending and tax cuts. (AFP)
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Updated 05 April 2025
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US Senate Republicans pass measure to move forward on Trump’s tax cuts

  • House Republicans now must weigh Senate’s work
  • Plunging stock market hovers over fiscal outlook

WASHINGTON: The US Senate approved a Republican budget blueprint early on Saturday that aims to extend trillions of dollars worth of President Donald Trump’s 2017 tax cuts and sharply reduce government spending.
The 51-48 vote, following a late-night legislative session, unlocks a maneuver called budget reconciliation that will allow Republicans to bypass the Senate’s filibuster — a rule that imposes a 60-vote threshold on most legislation — and pass Trump’s tax, border security and military priorities later this year without Democratic votes.
“Tonight, the Senate took one small step toward reconciliation and one giant leap toward making the tax cuts permanent, securing the border, providing much-needed help for the military and finally cutting wasteful Washington spending,” Senate Budget Committee Chairman Lindsey Graham said.
Two Republicans — Senators Susan Collins and Rand Paul — joined Democrats in opposing the measure.
The Senate’s action sent the measure on to the Republican-led House of Representatives, which is expected to take it up next week.
Non-partisan analysts say the Trump agenda, if enacted, would add about $5.7 trillion to the federal government’s debt over the next decade. Senate Republicans contend the cost is $1.5 trillion, saying that the effects of extending existing tax policy that was scheduled to expire at the end of this year should not be counted in the measure’s cost.
The measure also aims to raise the federal government’s debt ceiling by $5 trillion, a move Congress has to make by summer or risk defaulting on $36.6 trillion in debt. It aims to partly offset the deficit-raising costs of tax cuts by cutting spending. Democrats have warned that Republican targets would imperil the Medicaid health insurance program for low-income Americans.
Republicans warned that allowing the 2017 tax cuts to expire would hit Americans hard, imposing a 22 percent tax hike on the average taxpayer. The cuts, Trump’s signature legislative achievement of his first term, reduced the top corporate tax rate to 21 percent from 35 percent, a move that is not set to expire.
The remainder of the cuts, for individual Americans, were set to expire, a decision made to limit the 2017 bill’s deficit-raising effects.
“Donald Trump has betrayed the American people. Tonight, Senate Republicans joined him in that betrayal. In voting for this bill, Senate Republicans sided with billionaires against the middle class, in total obeisance to Donald Trump,” Senate Democratic leader Chuck Schumer of New York said after the vote.

BRUTAL SELL-OFF
Hanging over the debate, which began late on Thursday, was a brutal stock market sell-off following Trump’s sweeping new trade tariffs, which economists warned will drive up prices and could trigger a recession.
Some Republicans said economic uncertainty could slow the path forward for Trump’s agenda if market weakness continues.
“My concern is, if we are having the kind of conversation today three weeks from now, then the distraction will be so great that it will slow down what we try to do,” Republican Senator Thom Tillis told reporters.
During a six-hour “vote-a-rama” session to consider amendments, Senate Republicans altered the blueprint to add a deficit-neutral reserve fund to help protect Medicaid and the Medicare health care program for the elderly.
Republicans also turned away dozens of Democratic amendments aimed at rescinding Trump trade tariffs and protecting Medicaid, Medicare, nutrition support for low-income women and children, the Social Security retirement system, veterans benefits and other government assistance.
Republican Senators Lisa Murkowski, Josh Hawley and Collins backed Democratic measures to safeguard social safety-net programs, but their support was not enough.
If House Republicans get their way, Congress could enact $2 trillion in spending cuts by overhauling Medicaid and food assistance programs and by eliminating popular environmental policies.
The budget blueprint would also make room for tighter security measures along the US border with Mexico, fund administration efforts to significantly ramp up immigrant deportations and bolster US military readiness. 


Saudi Arabia records 89% growth in licensed tourism hospitality facilities

Updated 59 sec ago
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Saudi Arabia records 89% growth in licensed tourism hospitality facilities

RIYADH: Saudi Arabia’s tourism sector saw significant growth in 2024, with the number of licensed hospitality facilities increasing by 89 percent to 4,425 across various regions of the Kingdom.

In a post on X, the Ministry of Tourism’s official spokesperson Mohammed Al-Rasasimah described the surge as “remarkable,” adding that it reflects efforts “to support the sector's growth and enhance its investment attractiveness.”

He added that the expansion comes amid a significant boom in the Kingdom’s tourism sector, driven by an influx of travelers and the ministry’s commitment to fostering a world-class hospitality environment.

The ministry reported in March that the number of licensed hospitality facilities in Makkah reached 1,030 by the end of 2024, marking an 80 percent rise compared to the previous year.

This increase positions the province as the leader in the Kingdom for the highest number of licensed facilities and rooms, underscoring the region’s dedication to enhancing visitor experiences, the Saudi Press Agency reported.

This move also reinforces the ministry’s dedication to protecting the rights of visitors and Umrah pilgrims using hospitality services in Makkah as part of its ongoing efforts to improve service quality.

“The ministry’s inspection teams conduct regular monitoring and inspection visits throughout the year to ensure that all facilities comply with licensing requirements, detect violations, and impose fines under the Tourism Law and Regulations of Tourist Accommodation Facilities,” SPA said.

Saudi Arabia’s hospitality sector is growing beyond Makkah. By the end of the third quarter of 2024, the total number of licensed hospitality facilities across the Kingdom surpassed 3,950, a 99 percent increase from the third quarter of 2023. Licensed rooms climbed to 443,000, a 107 percent jump from the 214,000 recorded a year earlier.

According to CoStar, a global real estate data provider, Makkah and Madinah have 17,646 and 20,079 rooms, respectively, in various stages of development in 2025.

This comes as Saudi Arabia recorded 30 million inbound tourists in 2024, up from 27.4 million in 2023, government data revealed. The Kingdom aims to attract 150 million visitors annually by 2030, with plans to raise the tourism sector’s gross domestic product contribution from 6 percent to 10 percent.

Saudi Arabia’s aggressive expansion in hospitality and tourism underscores its ambition to position itself as a global travel hub, catering to religious and leisure visitors.


Closing Bell: Saudi Arabia’s benchmark index closes in red at 11,096

Updated 42 min 12 sec ago
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Closing Bell: Saudi Arabia’s benchmark index closes in red at 11,096

RIYADH: Saudi Arabia’s Tadawul All Share Index concluded Wednesday’s trading session at 11,096.65 points, marking a decrease of 206.11 points, or 1.82 percent.

The total trading turnover of the benchmark index was SR6.83 billion ($1.82 billion), as 23 stocks advanced, while 225 retreated.

The MSCI Tadawul Index also declined by 23.02 points, or 1.61 percent, to close at 1,409.46.

The Kingdom’s parallel market, Nomu, reported a decrease as well, declining by 103.58 points, or 0.36 percent, to close at 28,369.89 points. This comes as 24 of the listed stocks advanced, while 57 retreated.

The index’s top performer, Raoom Trading Co., saw a 3.56 percent increase in its share price to close at SR168.80.

Other top performers included Al-Rajhi Co. for Cooperative Insurance, which saw a 2.86 percent increase to reach SR129.60, while Saudi Paper Manufacturing Co.’s share price rose by 2.74 percent to SR60.

Almoosa Health Co. also recorded a positive trajectory, with share prices rising 2.49 percent to reach SR140. Saudia Dairy and Foodstuff Co. also witnessed positive gains, with a 1.55 percent increase, reaching SR301.60.

Bank Albilad led losses on the main index, falling 6.39 percent to SR32.25, followed by Sadr Logistics Co., which dropped 6.08 percent to SR2.78. Kingdom Holding Co. also registered a notable fall of 5.87 percent, closing at SR7.86.

Other significant decliners included Sustained Infrastructure Holding Co., down 5.85 percent, and Derayah Financial Co., which lost 5.83 percent.

On the parallel market Nomu, Balady Poultry Co. was the top gainer, with its share price surging by 13.79 percent to SR330.

Other top gainers in the parallel market included Tam Development Co., which jumped 8.55 percent to SR165.00, and Balsm Alofoq Medical Co., which rose 8.19 percent to SR77.90.

Digital Research Co. and Al-Razi Medical Co. were the other top gainers on the parallel market.

Knowledge Net Co. was the biggest decliner on Nomu, with its share price falling 10.98 percent to SR30. Naas Petrol Factory Co. and Mulkia Investment Co. also posted steep losses, dropping 9.09 percent to SR60 and 8.89 percent to SR41, respectively.


Saudi Arabia sees 48% surge in new business registrations in Q1 2025

Updated 51 min 59 sec ago
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Saudi Arabia sees 48% surge in new business registrations in Q1 2025

RIYADH: Business registrations in Saudi Arabia saw a 48 percent year-on-year increase during the first quarter of 2025, with 154,638 commercial records issued, according to official data.

The Ministry of Commerce, which issued the data, explained that a commercial registration certificate legally verifies a business’s official status within the Kingdom. These records are mandatory for all businesses operating in Saudi Arabia, as they are required to open a bank account, hire employees, sign contracts, and carry out other business activities.

The data also revealed that 71 percent of the total commercial records issued were concentrated in three key regions: Riyadh, Makkah, and the Eastern Province.

This surge in registrations aligns with recent reforms to Saudi Arabia’s business registration system. Notably, the introduction of the new Commercial Register Law and Trade Names Law has streamlined the process.

One of the key changes is the abolition of subsidiary registers, meaning that a single commercial register now suffices for all businesses. Furthermore, businesses no longer need to specify the city of registration, as a single registration is valid nationwide.

The newly released ministry report stated: “Promising sectors represent key opportunities outlined by Saudi Vision 2030 for both local and foreign businesses. In this newsletter, we highlight critical sectors that directly contribute to the country’s gross domestic product, including technology, tourism, entertainment, research and development, and more.”

The report further emphasized: “These sectors offer businesses significant opportunities to grow and expand partnerships.”

Additionally, the bulletin revealed that 45 percent of the total commercial records issued to institutions are owned by women.

E-commerce

The bulletin also reported a 6 percent year-on-year surge in e-commerce registrations in the first quarter of the year, as a total of 41,322 permits were issued between January and March.

Riyadh took the lead in registrations with 17,092, followed by Makkah at 10,412 and the Eastern Province at 6,534. Madinah followed as it allocated 1,939 permits, and Qassim issued 1,342.

Cloud computing registrations

Saudi Arabia’s cloud computing registrations saw a 33 percent year-on-year increase in the first quarter of 2025.

Cloud computing refers to the on-demand availability of system resources, specifically data storage, without direct active management by the user.   

The government bulletin reported the issuance of as many as 3,278 cloud computing permits between January and March.       

This surge underscores the Kingdom’s aim to make the region a hub for technology by 2030.    

It also correlates with the Saudi government’s proactive approach to implementing digital technologies, driving economic diversification, and boosting innovation.

As per the ministry report, Riyadh took the lead in registrations with 2,065, followed by Makkah at 622 and the Eastern Province at 352. Madinah came next as it allocated 73 permits, and Asir issued 38.  

Virtual and AR technologies

The analysis also indicated that Saudi Arabia’s virtual and augmented reality technologies witnessed a 39 percent year-on-year rise in the first three months of 2025, as 8,218 permits were issued between January and March.

Riyadh took the lead in registrations with 5,060, followed by Makkah at 1,637 and the Eastern Province at 837. Madinah came next as it allocated 245 permits, and Qassim issued 112.


Pakistan stocks remain under pressure on uncertainty over US tariffs

Updated 09 April 2025
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Pakistan stocks remain under pressure on uncertainty over US tariffs

  • Benchmark KSE-100 index experienced significant intraday pressure on Wednesday, plunging as much as 2,640 points during the session 
  • Global markets took a pummeling on Wednesday as President Donald Trump’s eye-watering 104% tariffs on China came into effect

ISLAMABAD: Pakistan’s benchmark KSE-100 index experienced significant intraday pressure on Wednesday, shedding as much as 2,640 points during the session before settling at 114,153 points on uncertainty over US tariff measures.
Global markets took a pummeling on Wednesday as President Donald Trump’s eye-watering 104% tariffs on China came into effect, and a savage selloff in US bonds sparked fears that foreign funds were fleeing US assets.
This week has brought crisis-era volatility to markets, wiping off trillions of dollars in value from stocks and hitting commodities and emerging markets with force.
“The Pakistan Stock Exchange remained under significant pressure today, as mounting uncertainty over potential US tariff measures reverberated across global financial markets,” Pakistani brokerage house Topline Securities said in its daily market review.
“In line with the negative trend witnessed in international equities, the local bourse experienced heightened volatility throughout the session.”
After plunging as much as 2,640 points during intraday trading on Wednesday, some recovery was seen in the latter half of the day and the index closed at 114,153 points, marking a net decline of 1,379 points or 1.19%.
On Tuesday, Pakistan stocks had closed at 118,938, gaining 623 points (0.54%), a day after the exchange fell to an intraday low of 8,687 points, the largest intraday point-wise drop in PSX history.
Major stock indexes plunged on Monday after Trump announced tariffs on goods imported from the rest of the world, saying a 10% tariff on all nations and much higher rates of up to 50% on individual countries will boost the US economy and protect jobs.
The Trump administration has also imposed a 29% tariff on Pakistan.


Lebanon nears approval of banking secrecy law, finance minister confirms

Updated 09 April 2025
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Lebanon nears approval of banking secrecy law, finance minister confirms

KUWAIT CITY: Lebanon’s Finance Minister Yassine Jaber told Reuters that he expected a banking secrecy law to be passed in parliament within days.

Speaking to reporters in Kuwait, where he is attending meetings of Arab financial institutions, Jaber said: “My expectation is that it will pass—if not tomorrow, then the day after... it will definitely be approved.”

Jaber also criticized certain Lebanese officials for using banking secrecy laws as a pretext to withhold information, particularly pointing to former Central Bank Gov. Riad Salameh.

He clarified that the law has already been approved by the government and is not entirely new, emphasizing that banking secrecy was largely lifted in 2022. The current objective is to amend a single clause to provide the Banking Control Commission with broader access to account information.

Additionally, Jaber revealed that Lebanon is in negotiations with the World Bank for several loans, including one to create a fund for rebuilding infrastructure in affected areas. He highlighted that the World Bank has allocated $250 million as initial capital for the fund.

He further explained that the only condition set by the World Bank is “reform.”

“Reform, reform – that’s our program. These aren’t harsh conditions; we need them,” he added.

Jaber stressed that small depositors, those with balances under $100,000, make up 84 percent of all depositors in Lebanon, totaling around $20 billion.

He confirmed that the government is working on a plan to address the depositor issue, stating: “Naturally, it will start with small depositors.”

When asked about potential Gulf aid, Jaber replied: “The Gulf states have supported Lebanon, and today they are advising us to address our situation.”

He concluded: “In past years, our performance wasn’t good and we need to focus on improving it.”