Category: 3. Business

KARACHI: Sami Wahid has assumed the role of General Manager for the Pakistan and Afghanistan Region of Eurasia & Middle East Operation Unit of The Coca-Cola Company. With nearly two decades of expertise in marketing, sales, strategy, and general management, Mr. Wahid brings a comprehensive approach to strategic planning and commercial operations leadership.

Prior to joining Coca-Cola, Wahid served as Managing Director at Mondelez Pakistan, where he drove sustainable growth and progress across various Middle East, North Africa, and Pakistan markets. He has had a remarkable track record for driving transformational growth, creating an innovative culture, while driving brand and business success.

Sami is a strong advocate for sectoral growth, representing industry’s interests on key matters before regulatory authorities and is particularly passionate about environmental, governance and sustainability. Sami Wahid has also served as the Senior Vice President of the American Business Council. He believes in driving initiatives that create a meaningful impact for the community at large.

Copyright Business Recorder, 2025

SHANGHAI: Japanese rubber futures snapped a two-day winning streak on Thursday, marking its biggest drop in more than one week, amid lower oil prices and concerns that intensifying price competition in China’s automotive sector could pressure prices.

The Osaka Exchange (OSE) rubber contract for December delivery ended daytime trade down 2.5 yen, or 0.8%, at 310.5 yen ($2.16) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery dipped 75 yuan, or 0.53%, to 14,015 yuan ($1,956.88) per metric ton.

The most active August butadiene rubber contract on the SHFE fell 45 yuan, or 0.4%, to 11,185 yuan ($1,561.74) per metric ton. Oil prices eased, reversing gains from the previous session, on concerns that potentially higher US tariffs being reinstated could lower fuel demand. Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.

A notable Chinese Communist Party publication urged for stricter measures against competitive practices that lead to price wars in the automobile sector in China.

This follows appeals from car dealers, who have urged automakers to revise their sales strategies that compel dealers to sell new cars at prices below cost. Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres. Lower automobile prices, driven by fierce competition, exert a downward pressure on rubber tyre prices.

The yen weakened slightly to 143.84 per dollar. A stronger currency makes yen-denominated assets less affordable to overseas buyers. Japan’s Nikkei share gauge eked out a small gain even as uncertainty over a trade deal with the United States and the threat of heavy tariffs kept a lid on investor optimism.

A recent World Bank study, ‘Foreign Direct Investment in Retreat: Policies to Turn the Tide’, highlights a concerning decline in foreign direct investment (FDI) inflows to emerging and developing economies, which have reached their lowest levels since 2005.

Globally, the FDI-to-GDP ratios for these economies have diminished from approximately 5.0 per cent in 2008 to alarmingly low levels around 2.0 per cent in recent years.

Pakistan, which relies heavily on FDI and external financing to address significant infrastructure deficits, stimulate exports, create employment opportunities and mitigate the impacts of climate change, is particularly affected by this global trend. The report indicates that four out of six Emerging Market and Developing Economies (EMDE) regions have experienced a continuous decline in FDI, with nearly 60 per cent of EMDEs reflecting lower FDI-to-GDP ratios in the period from 2012 to 2023 compared to 2000 to 2011.

This decline exacerbates Pakistan’s well-documented economic vulnerabilities, characterised by chronic current account deficits, an unsustainable external debt burden, and periodic balance-of-payments crises. As of December 2023, Pakistan’s external debt had risen to $131 billion, with Chinese financing constituting over $68 billion through a network of more than 400 projects initiated since 2000. CPEC has raised concerns due to escalating debt repayments amidst unclear debt-equity arrangements and substantial interest obligations. With debt servicing alone consuming approximately $30 billion annually, Pakistan is at significant risk of falling into a debt trap. The drastic reduction in foreign exchange reserves, plummeting to a low of $4.1 billion in June 2023 before rebounding to $13.15 billion by early 2024, shows the country’s structural volatility.

Despite stabilisation measures, Pakistan faces nearly $6 billion in scheduled payments before June 2025, alongside a current-account deficit of $269 million during the same timeframe. The ongoing inflationary pressures, with double-digit price growth anticipated in 2024 and monthly year-over-year rates peaking at 29 per cent, further complicate economic forecasting.

Nevertheless, 2024 has presented indications of macroeconomic adjustment. The IMF approved a new loan worth $7 billion in September 2024, contingent on implementing structural reforms and disciplined fiscal measures. Credit rating agencies, including Fitch and Moody’s, have responded positively, raising Pakistan’s outlook to ‘CCC+’ and ‘Caa2’, respectively. These upgrades follow a significant 450-basis-point reduction in policy rates since mid-2024 and a moderation in inflation, with consumer prices declining from near 30 per cent to below 13 per cent by early 2024.

Domestic investment, measured as a share of GDP, remains at a fifty-year low. However, the newly established Special Investment Facilitation Council (SIFC), designed to stimulate investment and streamline regulatory processes, has achieved mixed but predominantly incremental results. Its initiation led to a 10 per cent increase in exports to $30.64 billion during FY2024, while foreign inflows to local government bond markets amounted to $875 million, among the highest in Asia. Pakistan’s stock market also experienced a remarkable 73 per cent surge, making it the best-performing exchange globally in 2024, buoyed by IMF reserves, currency stabilisation and moderated inflation.

Despite these positive developments, the gains remain fragile. The robust financial momentum of the SIFC masks deeper structural issues. Pakistan continues to depend on short-term mechanisms such as IMF assistance, sovereign bond offerings and temporary investment pledges rather than pursuing sustainable macroeconomic reforms. The SIFC’s reactive strategy neglects essential long-term policy realities, as regulatory unpredictability, inadequate institutional quality, inconsistent tax and tariff frameworks and sectoral distortions persist unaddressed.

Key sectors, including energy, infrastructure, manufacturing and agriculture, remain hindered by inefficiencies. The World Bank’s global guidance emphasises that sustained FDI necessitates incentives for engagement and substantial improvements in governance, legal certainty, competitive market conditions and human capital development. These foundational aspects have historically been weak within Pakistan’s economic framework.

The World Bank articulates a comprehensive three-pronged strategy for revitalising FDI in emerging markets and developing economies (EMDEs): enhancing attractiveness, maximising domestic benefits and promoting global cooperation. When adapting this framework to the context of Pakistan, a multifaceted roadmap emerges.

To begin with, significant improvements in institutional strengthening and rule of law are essential. This includes enhancing transparency and consistency in investment regulations, facilitating effective dispute resolution, ensuring robust contractual enforcement and strengthening anti-corruption mechanisms. Implementing a streamlined, e-governance-driven investment regime would alleviate bureaucratic challenges and counteract the arbitrary policymaking that currently discourages foreign investors.

Achieving macroeconomic stability and currency predictability remains paramount. Continued fiscal discipline, particularly under the auspices of the IMF, is critical. Efforts to reduce budget deficits, normalise monetary policy and rebuild reserve buffers to a target of $20 billion would send strong signals of confidence to potential investors. A carefully managed and predictable exchange rate policy would further assuage concerns regarding abrupt currency devaluations.

Regarding trade and investment liberalisation, Pakistan should reevaluate existing restrictions on FDI, particularly in the finance, energy, telecommunications and logistics sectors. Re-engaging in bilateral investment treaties, simplifying joint venture frameworks and expanding privileges within free trade zones are viable strategies to attract both public and private capital. Sectoral upgrading with linkages is also crucial. Beyond merely enticing prominent investments, FDI must foster the growth of domestic industries. Instituting mandated local content requirements, initiating supplier development programmes, enhancing vocational training and offering research and development incentives, especially in renewable energy, high-value agriculture, export-oriented manufacturing and digital services, will enhance the benefits of investment spillovers.

Effective domestic resource mobilisation and sovereign fund deployment are essential. The government must judiciously realign the Pakistan Sovereign Wealth Fund (PSWF), established in 2023 and capitalised with Rs2.3 trillion (approximately $8 billion) worth of profitable state-owned enterprise equity. While the IMF has expressed concerns regarding its governance structure, effective deployment of public–private partnerships in the energy, logistics, and mining sectors could attract capital from the

Gulf states and private institutional investors. Enhancing transparency and compliance with anti-money laundering regulations will further bolster credibility.

For Pakistan to secure substantial FDI gains, immediate stabilisation must evolve into sustained governance and structural reforms over the next 12 to 24 months. Key challenges to monitor include political instability, the risk of populist policy reversals, currency devaluation and sporadic security incidents – all of which could undermine investor confidence.

Pakistan’s macroeconomic conditions are at a critical juncture. The decline in FDI is not an isolated phenomenon; it is indicative of systemic deficiencies that have been exacerbated by global trends. Nonetheless, the country is not devoid of potential for recovery. Evidence suggests that Pakistan has begun to gain momentum, characterised by a reliable rescue package, stock and bond inflows and the initial signs of FDI recovery.

The forthcoming challenge lies in translating this momentum into enduring structural renewal. Should Pakistan successfully implement the World Bank’s three-pronged policy strategy anchored in macroeconomic stability, institutional strengthening and strategic global cooperation, it can shift towards sustainable, investment-led growth.

This transformation would necessitate disciplined fiscal, monetary and exchange rate policies, a transparent investment framework that upholds the rule of law; a bold reimagining of major projects such as CPEC and KPEC to optimise domestic benefits and sovereign equity rather than accruing debt; effective mobilisation of domestic institutional capital through the Pakistan Sovereign Wealth Fund (PSWF) and reformed state-owned enterprises (SOEs); as well as targeted trade liberalization and investment law reforms to regain access to Gulf, Asian and Western FDI.

If Pakistan successfully navigates this transition, FDI could approach 3-4 per cent of GDP. Although this would still fall short of the peaks observed, it would signify a substantial improvement from current lows. Such inflows could finance critical infrastructure, support export expansion, and promote sustainable employment opportunities. The alternative recurrent crises are unsustainable.

As highlighted by the World Bank, FDI is not a guaranteed advantage; it necessitates a convergence of investor confidence, regulatory stability, and global engagement. Pakistan’s trajectory since 2022 resembles a turbulent rollercoaster, marked by abrupt shocks, emergency interventions, macroeconomic recalibrations, and cautious optimism. What remains absent is a durable transformation.

If political leaders, technocrats and society as a whole commit to the arduous task of overcoming political cycles, entrenched interests and capacity constraints, Pakistan can transform FDI challenges into an opportunity for developmental renaissance. The stakes are considerable: bridging the infrastructure deficit, alleviating poverty and steering a population of 240 million towards innovation and prosperity.

Pakistan finds itself at a crossroads in today’s volatile global and domestic landscape. A reformist agenda aligned with the World Bank’s pragmatic guidance presents a pathway toward recovery and a lasting economic redefinition. The decisive question remains: will Pakistan seize this opportunity?

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The writer is a trade facilitation expert, working with the federal government of Pakistan.

(Bloomberg) — Asian shares traded in a tight range Friday after President Donald Trump’s threat to impose higher tariffs outweighed the sentiment from a stronger US jobs data.

The MSCI Asia Pacific Index swung between small gains and losses at the open after US stocks closed at a record Thursday in a shortened session ahead of Friday’s Independence Day holiday. Trump said his administration may begin sending out letters to trading partners as soon as Friday, setting unilateral tariff rates, ahead of the July 9 deadline for negotiations.

Treasuries fell and the dollar rose Thursday in a sign traders see less pressure on the Federal Reserve to cut interest rates after US jobs growth exceeded expectations in June. Swap traders saw almost no chance of a July Fed cut, compared with a roughly 25% probability seen before the data. The chance of a move in September ebbed to about 70%.

“The solid June jobs report confirms that the labor market remains resolute and slams the door shut on a July rate cut,” said Jeff Schulze at ClearBridge Investments. “A wage-price inflationary spiral shouldn’t be a near-term concern, setting up something resembling a ‘Goldilocks’ scenario.”

Meanwhile, Trump secured a sweeping shift in US domestic policy as the House passed a $3.4 trillion fiscal package that cuts taxes, curtails spending on safety-net programs. The 218-214 vote in the House Thursday sends the legislation to Trump, in time for a July 4 deadline he set.

The president said he plans to sign the bill on Friday at a 4 p.m. ceremony at the White House.

A $5 trillion increase in the US debt limit in the package eliminates the risk of a market-rattling payment default the Treasury had forecast could come as soon as mid-August without congressional action.

“The removal of the risk that the Treasury Department would exhaust the capacity to fund itself is a highly welcome development for all market players,” Chris Weston, head of research at Pepperstone Group, wrote in a note. “The Treasury department will soon look to ramp up bill issuance.”

In Asia, Hong Kong’s de-facto central bank bought the city’s dollar again to defend its foreign-exchange peg. The Hong Kong dollar has had a wild ride recently with two previous rounds of intervention failing to send funding costs high enough to dampen bearish currency bets. 

Separately, Treasury Secretary Scott Bessent on Thursday questioned Fed officials’ judgment on rates, reiterating his view that two-year yields are a signal their benchmark rate is too high.

“The committee seems to be a little off here in their judgment,” Bessent said in an interview on Fox Business, referring to the Fed’s rate-setting Federal Open Market Committee.

 

Some of the main moves in markets:

Stocks

• S&P 500 futures fell 0.2% as of 9:25 a.m. Tokyo time
• Japan’s Topix rose 0.1%
• Australia’s S&P/ASX 200 rose 0.2%
• Euro Stoxx 50 futures rose 0.4%

Currencies

• The Bloomberg Dollar Spot Index fell 0.1%
• The euro was little changed at $1.1767
• The Japanese yen rose 0.2% to 144.64 per dollar
• The offshore yuan was little changed at 7.1689 per dollar

Cryptocurrencies

• Bitcoin fell 0.4% to $109,550.34
• Ether fell 0.3% to $2,591.6

Bonds

• Japan’s 10-year yield advanced 1.5 basis points to 1.455%
• Australia’s 10-year yield advanced three basis points to 4.21%

Commodities

• West Texas Intermediate crude was little changed
• Spot gold was little changed

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Richard Henderson.

©2025 Bloomberg L.P.

GIVEN an unpredictable ebb and flow in international economic landscape infested by incessant conflicts, wars and corporate globalization, China-driven global entrepreneurship is the sole headway holding promises for sustainable and equal market share for both struggling economies and rich economies without any prejudice.

Conversely to corporate globalization that concentrates power among multinational corporations and financial institutions, leading to erosion of democracy, loss of national sovereignty, environmental degradation, and growing income inequality, China’s entrepreneurial spirit runs deeper than just in business. It manifests itself in the government and in the desires of ordinary people.

Even at World Economic Forum (Summer Davos 2025), what impressed the international players is Chinese entrepreneurial vibes that energize private economy in true letter and spirit. Reason lies in its buzzing investment flow, universality and flexibility to stay wide open to the world. China’s entrepreneurial businesses (private market) currently account for over 60 per cent of national GDP, 70 per cent of technological advancements, and 80 per cent of urban employment. By the end of March 2025, more than 57 million private enterprises have been registered, making up over 92 per cent of all firms in the country.

In order to remain attractive for local as well as global entrepreneurship, China has recently approved its first comprehensive law aimed at supporting and protecting the private sector. This law has been a long-awaited move that aims to revitalise private business activity amid ongoing domestic economic challenges in China, as well as its ongoing trade war with the United States. One of the defining characteristics of China’s entrepreneurial boom is its focus on addressing contemporary challenges. From green technology and sustainable solutions to advancements in AI and digital platforms, Chinese startups are at the forefront of addressing global concerns. As Chinese enterprises continue to expand, they are not just looking inward but also making substantial progress on the global stage. The international rise of Chinese entrepreneurs is dispelling stereotypes about China’s economic model being insular. Chinese global entrepreneurship defies law of jungle making a room for everyone to grow exponentially with tandem. Chinese premier Li Qiang in his address at the Opening Plenary of the Annual Meeting of the New Champions 2025, categorically supported entrepreneurship saying in the development of global economy and trade, entrepreneurs shoulder an important mission and play a critical role.

Amid rising trade and geo-economic tensions, extreme weather events, social polarization and disruptive technological changes, the global outlook may seem more uncertain than ever. Yet it is in such turbulent times that entrepreneurship demonstrates its enduring value. Entrepreneurship often thrives in difficult times, prompting shifts in our worldviews and ways of working, creating opportunities for new businesses to emerge and for existing ones to evolve and build new capabilities.

Two areas are especially critical for entrepreneurial action and new collaborative frameworks: addressing the climate emergency and shaping global technology governance. Vision and strategy must be anchored in values, ethics and purpose. As entrepreneurs leverage technologies such as artificial intelligence to gain comparative advantages, they should pair innovation with irreplaceable human qualities: conscience, compassion and meaningful connections. Likewise, in addressing the climate crisis, unleashing growth and prosperity in the new era requires leaders to harness our collective capacity for creativity, collaboration and co-creating new methods of production and consumption that are better aligned with the UN Sustainable Development Goals.

Chinese-styled entrepreneurship that stands the test of time is oriented toward serving humanity. Forward-thinking entrepreneurs recognize that long-term business viability depends on aligning profit with purpose — integrating commercial success with a commitment to the greater good. This approach is reflected in concrete actions: investing in employees, strengthening the customer and supplier relationship, and safeguarding the overall health of the environment and the broader ecosystem. These efforts create a virtuous cycle, where profits are used to improve the well-being of all. Entrepreneurs are already turning the climate emergency into a catalyst for industrial reinvention, pioneering business models that decarbonize economies while developing new value chains. In recent years, Chinese entrepreneurs have built a global industry in electric vehicles (EVs), significantly advancing the green energy transition and decarbonization efforts. In 2024, China produced more than 70 percent of the world’s EVs, supported by nearly 13.75 million chargers. As a result, nearly half of all the cars sold in China last year were EVs.

Globally, eco-entrepreneurial endeavours are integrating profit, people and the planet. A recent World Economic Forum study estimates that companies investing in adaptation to climate change, and decarbonization are seeing from $2 to $19 in avoided losses for every dollar spent. The completion of the 3,046-kilometer barrier encircling the Taklamakan Desert, the world’s largest such project, has halted the expansion of desert and reduced sandstorms, while boosting local economies. Farmers now intercrop medicinal herbs under shelterbelts, and solar farms generate clean energy while enabling agricultural production below the panels. The initiative has supported agriculture and eco-tourism, and created jobs.

True, technologies can aggravate global divides. But they can also be great equalizers. Digital education platforms are democratizing access to knowledge, breaking geographical and socioeconomic barriers. Online learning and AI-driven tools are empowering individuals in remote or underserved regions with good education and vocational training. Since technological progress must be guided by human ethics, some Chinese AI models are trained on diverse linguistic and cultural data, mitigating the risk of value deviations stemming from cultural differences in training data.

Ethics also requires balancing efficiency with equity. Pioneering AI tools designed for hiring demonstrate this principle by ignoring demographic variables like age or location and instead focusing on skills and experience, preventing algorithmic bias and creating fairer opportunities. There is immense potential to tap into the entrepreneurial energy of the next generation for systems change. In Africa, about 80 percent of start-up founders are aged below 35, exemplifying the youths’ entrepreneurial dynamism in addressing local challenges with global relevance. More than 2,000 years ago, entrepreneurs of the Silk Road transformed regional commerce into global exchange networks. Their ventures not only enabled unprecedented flows of goods, ideas and technologies, but also bridged cultures, advanced civilizations and created opportunities for human development and progress.

—The writer is contributing columnist.

([email protected])

Oil was little changed before an OPEC+ meeting that’s set to deliver another oversized production hike, threatening to swell a glut forecast for later this year.

Brent traded near $69 a barrel after losing 0.4% on Thursday, while West Texas Intermediate traded above $67. The cartel has begun discussing a fourth 411,000 barrel-a-day production increase for August ahead of the group’s video-conference on Sunday, delegates said. That is triple the initially scheduled rate to revive the halted output.

VELIZY-VILLACOUBLAY, France — July 4, 2025 — Dassault Systèmes (Euronext Paris: FR0014003TT8, DSY.PA) today announced that Raphe mPhibr, India’s most innovative aircraft manufacturing company specializing in unmanned aerial vehicles, has adopted its 3DEXPERIENCE platform to transform how aircraft systems are conceived, validated and built, substantially reducing the design cycle.

Unmanned aircraft systems are emerging in light of growing applications in defense, homeland security, agriculture, logistics and infrastructure monitoring, and are expected to reach an estimated 6.5 million units in 2030.  To contribute to India’s goal of becoming self-reliant in aerospace and defense, Raphe mPhibr needed a new approach to integrate technology and advanced scientific principles into its design process for the engineering of next-generation UAVs with superior strength-to-weight performance and increased payload capacity.

From metals to composites and electronics, Raphe mPhibr designs and builds everything under one roof. Dassault Systèmes’ 3DEXPERIENCE platform significantly reduced its product development cycle while integrating physics and design for manufacturing within the design phase.  One of the most compelling use cases for the 3DEXPERIENCE platform at Raphe mPhibr was during the development of its engine. Traditionally a multi-year effort, the engine development process was shortened to just three months. The platform empowered the team to redesign parts optimized for 3D manufacturing. 

Raphe mPhibr successfully created complex composite parts through an integrated design and simulation workflow.  It reduced the weight of its 4kW 2-stroke engine, which outperforms systems seven times its weight, by 700 grams (1.54 pounds), and made a strategic shift toward 3D-centric design thinking that led to more intuitive and efficient part development. The platform also enabled the team to push the boundaries of engineering by designing high-performance aerodynamic surfaces.

“Designing and manufacturing a drone is nothing less than designing and manufacturing a whole aircraft. The kind of drones we are manufacturing have 20,000 to 30,000 parts,” said Vikash Mishra, Chairman, Raphe mPhibr. “The 3DEXPERIENCE platform allows us to think in 3D – not in straight lines, circles or squares.  Biological systems that have evolved in nature – such as plants, anatomical structures and geological formations – are not made up of geometrical shapes. So, using this platform, we can design more organically and without limitations. It’s the best software to create our vision.”

“Raphe mPhibr’s adoption of our 3DEXPERIENCE platform shows how innovators are building tomorrow’s advanced air mobility solutions with virtual twin experiences. Its focus on in-house design sets a new benchmark for engineering excellence,” said David Ziegler, Vice President, Aerospace and Defense Industry, Dassault Systèmes.  “The 3DEXPERIENCE platform combines all aspects of design, simulation and collaboration in a single environment for innovation and operational efficiency.”

Raphe mPhibr recently announced it closed $100 million in funding in a round led by General Catalyst – the largest private funding round for an Indian aircraft manufacturer to date.  Raphe mPhibr has a team of over 500 people and more than 100 unique intellectual property assets.  Its products have logged over one million kilometers (621,371 miles) with the security forces of India. Raphe mPhibr’s future roadmap includes growing its workforce, expanding its research, development and manufacturing facility, and using virtual twin experiences for lifecycle management.