Category: 3. Business

The group, which pumps about half of the world’s oil, has been curtailing production since 2022 to support the market. But it has reversed course this year to regain market share and as US President Donald Trump demanded the group pump more to help keep gasoline prices lower.

The production boost will come from eight members of the group – Saudi Arabia, Russia, the UAE, Kuwait, Oman, Iraq, Kazakhstan and Algeria. The eight started to unwind their most recent layer of cuts of 2.2 million bpd in April.

The August increase represents a jump from monthly increases of 411,000 bpd OPEC+ had approved for May, June and July, and 138,000 bpd in April.

OPEC+ cited a steady global economic outlook and healthy market fundamentals, including low oil inventories, as reasons for releasing more oil.

The acceleration came after some OPEC+ members, such as Kazakhstan and Iraq, produced above their targets, angering other members that were sticking to cuts, sources have said.

Kazakh output returned to growth last month and matched an all-time high.

OPEC+, which groups the Organisation of the Petroleum Exporting Countries and allies led by Russia, wants to expand market share amid growing supplies from rival producers like the United States, sources have said.

Oblivious to the punishing midday heat, a wheeled robot powered by the sun and infused with artificial intelligence carefully combs a cotton field in California, plucking out weeds.

As farms across the United States face a shortage of laborers and weeds grow resistant to herbicides, startup Aigen says its robotic solution — named Element — can save farmers money, help the environment and keep harmful chemicals out of food.

“I really believe this is the biggest thing we can do to improve human health,” co-founder and chief technology officer Richard Wurden told AFP, as robots made their way through crops at Bowles Farm in the town of Los Banos.

“Everybody’s eating food sprayed with chemicals.”

Wurden, a mechanical engineer who spent five years at Tesla, went to work on the robot after relatives who farm in Minnesota told him weeding was a costly bane.

Weeds are becoming immune to herbicides, but a shortage of laborers often leaves chemicals as the only viable option, according to Wurden.

“No farmer that we’ve ever talked to said ‘I’m in love with chemicals’,” added Aigen co-founder and chief executive Kenny Lee, whose background is in software.

“They use it because it’s a tool — we’re trying to create an alternative.”

Element the robot resembles a large table on wheels, solar panels on top. Metal arms equipped with small blades reach down to hoe between crop plants.

“It actually mimics how humans work,” Lee said as the temperature hit 90 degrees Fahrenheit (32 degrees Celsius) under a cloudless sky.

“When the sun goes down, it just powers down and goes to sleep; then in the morning it comes back up and starts going again.”

The robot’s AI system takes in data from on-board cameras, allowing it to follow crop rows and identify weeds.

“If you think this is a job that we want humans doing, just spend two hours in the field weeding,” Wurden said.

Aigen’s vision is for workers who once toiled in the heat to be “upskilled” to monitor and troubleshoot robots.

Along with the on-board AI, robots communicate wirelessly with small control centers, notifying handlers of mishaps.

– Future giant? –

Aigen has robots running in tomato, cotton, and sugar beet fields, and touts the technology’s ability to weed without damaging the crops.

Lee estimated that it takes about five robots to weed 160 acres (65 hectares) of farm.

The robots made by the 25-person startup — based in the city of Redmond, outside Seattle — are priced at $50,000.

The company is focused on winning over politically conservative farmers with a climate friendly option that relies on the sun instead of costly diesel fuel that powers heavy machinery.

“Climate, the word, has become politicized but when you get really down to brass tacks farmers care about their land,” Lee said.

The technology caught the attention of Amazon Web Services (AWS), the e-commerce giant’s cloud computing unit.

Aigen was chosen for AWS’s “Compute for Climate” fellowship program that provides AI tools, data center power, and technical help for startups tackling environmental woes.

“Aigen is going to be one of the industry giants in the future,” said AWS head of climate tech startups business development Lisbeth Kaufman.

“I think about Ford and the Model T, or Edison and the light bulb — that’s Kenny and Rich and Aigen.”

gc/arp/des/mlm

Who’s buying Bitcoin? The US, China, UK, Ukraine, North Korea, Bhutan, El Salvador, Venezuela and Finland collectively hold 527,883 Bitcoin, valued at approximately $52.8 billion. Forty-three Exchange Traded Funds (ETFs) own 1.4 million Bitcoin, valued at $140 billion. Four major exchanges hold 154,852 Bitcoin, worth $15.5 billion. Forty private companies possess 290,878 Bitcoin, valued at $29.1 billion. Additionally, 140 large public corporations, including MicroStrategy, MARA, Metaplanet and Tesla, own 841,715 Bitcoin, valued at $84.2 billion.

Who’s buying Bitcoin? The Abu Dhabi Investment Authority, with $1.7 trillion in assets and one of the largest Sovereign Wealth funds, is buying Bitcoin. The Qatar Investment Authority is buying Bitcoins. Temasek Holdings (Singapore) is buying Bitcoin. Government Pension Fund Global (Norway) is buying Bitcoin. Saudi Arabia’s Public Investment Fund, managing $925 billion, is buying Bitcoin.

Switzerland has a campaign called ‘Bitcoin Initiative’ proposing that the Swiss National Bank buy Bitcoin as a reserve asset alongside gold. Mubadala (Abu Dhabi) is buying Bitcoin. Bank Markazi-ye Jomhuri-ye Esl mi-ye Ir n is buying Bitcoin. The Czech National Bank is buying Bitcoin. Portugal is offering citizenship through investment in a Bitcoin fund.

Who else is buying Bitcoin? BlackRock, the world’s largest asset manager with $11.5 trillion under management, has acquired $75 billion in Bitcoin and continues to expand its holdings. Other asset managers buying Bitcoin include Morgan Stanley, Vanguard, Cantor, Geode, Citadel, Clear Street, Weiss, State Street and Capital Group.

Institutional investors, including BlackRock (USA), Druk Holding (Bhutan) and major corporations, view Bitcoin as a hedge against economic volatility and a tool for portfolio diversification, driving its adoption and reinforcing its value as a scarce asset in an uncertain global economy.Who’s buying Bitcoin? Houston Firefighters’ Relief and Retirement Fund (USA) is buying Bitcoin. The Ontario Teachers’ Pension Plan (Canada) is buying Bitcoin. Yes, South Korea’s National Pension Service is buying Bitcoin. Texas, Wyoming, Florida, Louisiana, Oklahoma, Arizona, Tennessee, Nevada, New Hampshire have either passed or are considering Bitcoin-related resolutions, legislation, or policies.

Red alert: Who’s saying no to Bitcoin? Pakistan’s central bank – the State Bank of Pakistan (SBP). The SBP’s Circular No 3 is the SBP’s ‘prohibition notice’: Virtual currencies like Bitcoin are not legal money in Pakistan; Banks and financial institutions must stay away; Suspicious Transaction Reporting Required; No one is licensed to deal in them.

US state pension funds, including Arizona’s State Retirement System, California’s State Teachers’ Retirement System, Colorado’s Public Employees’ Retirement Association, Florida’s State Board of Administration, Illinois’ Municipal Retirement Fund, North Carolina’s State Treasurer, New Jersey’s Police and Firemen’s Retirement System, Ohio’s Public Employees Retirement System, Texas’ Teacher Retirement System, and Wisconsin’s Investment Board, are buying Bitcoin.

Nation-states are buying Bitcoin. Multi-billion-dollar corporations are buying Bitcoin. Institutions are acknowledging Bitcoin’s role as a hedge against economic uncertainty. From Texas to Switzerland, governments and funds explore Bitcoin’s potential as a reserve asset, signalling a seismic shift in financial thinking.

Lo and behold, Bitcoin has a hard cap of 21 million coins, coded into its protocol. How will Bitcoin’s constrained supply and surging demand impact its price?

Three questions: In what world does the SBP operate? Which economic playbook is the SBP following? Whose logic is guiding the SBP’s actions?

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The writer is a columnist based in Islamabad. He tweets/posts @saleemfarrukh and can be reached at: farrukh15@hotmail.com

KARACHI: The Pakistan Stock Exchange (PSX) commenced the new fiscal year on a bullish note, as the KSE-100 index posted a robust 6.1 per cent gain during the outgoing week, closing at a record high of 131,949.06 points. The rally was underpinned by strong institutional buying, a reallocation of funds from fixed-income instruments, and strengthening macroeconomic fundamentals.

Topline Securities Ltd attributed the surge to shifting liquidity dynamics following the implementation of the Finance Act 2025-26, which raised withholding tax on returns from savings and fixed deposits to 20pc, while keeping equity investment tax at 15pc. This encouraged a shift towards equities amid falling yields.

The benchmark index added 7,570 points over the week, rising from the previous close of 125,627.31. Average daily trading volumes jumped 31.4pc to 967 million shares, while average traded value rose 33pc to Rs41.5bn. In dollar terms, average daily turnover reached $145.7m, up 31.9pc week-on-week.

The upbeat sentiment was supported by stabilising macroeconomic indicators. Inflation eased to 3.2pc in June from 3.5pc in May. The trade deficit narrowed to $2.3bn for June — down 9pc month-on-month and 3pc year-on-year — while the full-year trade deficit for FY25 stood at $26.3bn, up 9pc from FY24.

KSE-100 index gained 6.1pc to close at a record high of 131,949 points

Foreign exchange reserves held by the State Bank of Pakistan (SBP) rose by $3.66bn to $12.73bn for the week ended June 27, marking the second-largest weekly increase on record. Total reserves hit $14.5bn by the end of June, in line with SBP’s year-end target.

The rupee remained broadly stable, closing the week at Rs283.97 against the dollar, down just two paise.

Sector-wise, commercial banks led the rally, contributing 4,561 points to the index, followed by fertiliser (722 points), technology and communication (438 points), exploration and production (401 points), and pharmaceuticals (187 points). Conversely, cement (-136 points), glass and ceramics (-65 points), refinery (-6 points), and woollen (-1.5 points) sectors posted negative contributions.

Major positive contributors included United Bank (1,597 points), MCB Bank (653 points), Habib Bank (462 points), and Bank Al Habib (425 points). On the losing side, Maple Leaf Cement (-44.1 points), Lucky Cement (-41 points), Ghani Glass (-39 points), and Pioneer Cement (-30 points) weighed on the index.

Foreign investors remained net sellers for the second consecutive week, offloading equities worth $15.3m, compared to $11.8m the week before. The highest selling was seen in commercial banks ($4.5m) and miscellaneous sectors ($4m). In contrast, local mutual funds and companies were net buyers, investing $22.1m and $12.2m, respectively.

Among regulatory and economic developments, Nepra reduced electricity tariffs by Rs1.14/kWh to Rs31.59/kWh, while Ogra raised gas prices across residential and industrial categories effective July 1. The government also introduced a New Energy Vehicle (NEV) levy, resulting in price hikes for multiple car models.

In the cement sector, total dispatches for FY25 rose to 46.2m tonnes, up 2pc year-on-year, driven by stronger exports. Domestic sales, however, declined 2.4pc to 38.6m tonnes. The oil marketing sector posted a 7pc rise in product offtake to 16.3m tonnes for the fiscal year.

Performance vs other asset classes

The KSE-100 emerged as the best-performing asset class in FY25, delivering a stellar return of 60.15pc. In comparison, T-Bills returned 21.44pc, Defence Savings Certificates 12.61pc, bank deposits 12.60pc, Pakistan Investment Bonds 11.97pc, gold 4.52pc, and the rupee appreciated 1.95pc against the US dollar.

The strong equity market performance was driven by aggressive monetary easing, improved liquidity, and the unlocking of value in key sectors — reinforcing investor confidence in Pakistan’s capital markets.

Arif Habib Ltd expects the bullish momentum to persist in the near term, driven by positive investor sentiment, macroeconomic stability, and relatively low equity valuations. The KSE-100 is currently trading at a forward price-to-earnings ratio of 6.8x for 2025, compared to a 10-year average of 8.0x, while offering an attractive dividend yield of approximately 7.4pc versus a historical average of 6.5pc.

AKD Securities echoed the optimistic tone, forecasting the index to reach 165,215 points by December. Strong earnings in the fertiliser sector, sustained return on equity in banks, and improving cash flows of exploration and oil marketing companies — buoyed by falling interest rates — are expected to drive further gains.

Inflation for FY25 averaged 4.5pc. Forward inflation for FY26 is projected at 4.4pc, providing room for further monetary easing and acting as a potential catalyst for equities.

Published in Dawn, July 6th, 2025