Category: 3. Business

PAKISTAN’S battered economy has delivered yet another blow to ordinary households, this time in the form of a staggering 50% increase in fixed gas charges, deepening the sense of despair among millions already struggling to make ends meet.

For families across the country, the monthly gas bill, once a manageable expense, is fast becoming a luxury a few can afford. The move, introduced quietly by the government without changing the per-unit gas tariff, has nonetheless triggered widespread anger and confusion. The sharp increase in fixed charges, levied on households regardless of consumption, disproportionately affects the lower and middle-income segments. For many, the latest hike represents not just an economic burden but also a symbol of how detached policymakers have become from the daily struggles of ordinary citizens.

Years of fiscal mismanagement, political instability and external debt dependency have pushed the country to the brink. With foreign exchange reserves precariously low and repeated IMF bailouts dictating austerity measures, the space for government subsidies and social protections has virtually disappeared. The gas sector, long plagued by inefficiencies, theft and underinvestment, has become a prime target for revenue generation — but at a devastating human cost. Rather than reforming structural inefficiencies or curbing elite exemptions, the State has chosen to shift the burden onto the masses. The 50% jump in fixed gas charges comes at a time when the purchasing power of ordinary Pakistanis has been eroded to historic lows. Household energy costs, which form a significant portion of monthly expenses, have become a flashpoint for frustration.

Unlike fuel price hikes, which often dominate headlines and spark protests, the increase in fixed gas charges has been implemented with minimal public debate. Fixed charges are especially punishing for low-consumption households, many of whom use gas sparingly for cooking or heating water. Even families that have cut back on usage to cope with rising costs find themselves paying disproportionately high bills. The government’s justification points to the widening revenue shortfall in the gas sector, driven by high import costs and mounting circular debt. Yet, critics argue that ordinary citizens are being forced to shoulder a burden created by years of mismanagement, corruption and an energy policy tilted in favour of vested interests. The sense of injustice is palpable, particularly in urban centres where families already face the compounded pressures of rent hikes, food inflation and stagnant wages. In rural areas, the focus shifts to the indirect impact — rising prices for gas-dependent goods and services that further squeeze household budgets.

The timing of the gas charge increase could not be worse. The agricultural sector, a backbone for millions of livelihoods, has suffered from erratic weather patterns, floods and rising input costs. Manufacturing and industrial output have slowed, exacerbating unemployment and wage stagnation. Meanwhile, the IMF’s stringent loan conditions aimed at stabilizing macroeconomic indicators have left little room for domestic relief measures. With the government prioritizing fiscal discipline to secure much-needed external financing, ordinary Pakistanis are being asked to absorb the fallout through higher taxes and utility costs. The psychological toll is visible across communities. Conversations in markets, public transport and homes increasingly revolve around survival, not ambition. Parents skip meals to ensure their children eat; families defer medical treatment; young people, disillusioned by shrinking opportunities, eye emigration as the only escape.

As the cost of living crisis intensifies, so does public dissatisfaction. Trade unions, opposition parties and civil society groups have condemned the gas charge hike as emblematic of a governance model that prioritizes elite comfort over citizen welfare. For many, the gas bill has become a symbol of broader systemic failure. The perception is growing that the state, unable or unwilling to address the root causes of economic decline, is resorting to extractive measures that punish the vulnerable while shielding the powerful. The social contract, already strained by years of economic hardship, political instability and eroding public services, risks further unravelling. Trust in institutions tasked with economic management continues to deteriorate as households bear the brunt of decisions they feel powerless to influence.

Few believe economic troubles will ease soon. The country remains mired in debt, reliant on external financing and vulnerable to global commodity price fluctuations. Climate-related disasters add to the fiscal burden, while investors remain wary of political volatility. In this bleak environment, measures like the gas fixed charge increase are likely to become more frequent and painful. Ordinary citizens are trapped between rising costs and stagnant incomes. The human cost of economic mismanagement plays out in cold homes, skipped meals and anxious, sleepless nights.

The 50% hike in gas fixed charges is more than just an accounting adjustment, it is a stark reflection of the disconnect between economic policymaking and the lived realities of its people. As households struggle to keep the lights on and cook meals, the weight of the country’s financial collapse presses down harder. For now, the government’s policies appear focused on balancing spreadsheets and appeasing international lenders. But for the millions bearing the daily brunt of those decisions, hope is a scarce commodity and economic pain an unrelenting reality. In Pakistan’s deepening economic storm, it is the ordinary household that continues to pay the heaviest price.

— The writer is an educator, based in Sindh.

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KARACHI:

The benchmark KSE-100 index at the Pakistan Stock Exchange (PSX) closed the week at a new record high on Friday to settle at 134,300 points as bullish sentiment prevailed amid robust corporate results and continued institutional inflows.

Investor activity was particularly fueled by strong earnings of UBL, which posted a 99% year-on-year (YoY) surge in 1HCY25 earnings per share to Rs26.07 and declared a higher-than-expected dividend of Rs19 per share.

Market breadth remained positive, with 55 stocks advancing and 45 declining. UBL (+2.4%), Hubco (+1.6%) and Millat Tractors (+2.76%) were the top contributors to the day’s gains, collectively lifting the index by over 300 points. Meanwhile, pressure in select banking names such as Bank AL Habib (-3.3%), MCB Bank (-1.04%) and HBL (-1.22%) limited the upside.

At close, the benchmark KSE-100 index posted a gain of 517.42 points, or 0.39%, and settled at 134,299.77. Trading activity remained strong, with volumes reaching 765 million shares and a traded value of Rs40 billion.

Analysts at Topline Securities attributed the day’s momentum to rising mutual fund allocations to equities, shifting away from fixed income, as shown in the National Clearing Company data.

With macroeconomic indicators improving and remittances hitting a record $38.3 billion, sentiment continued to remain bullish, setting the stage for a potential test of 136,000 in the sessions ahead.

Traded value-wise, UBL (Rs2.32 billion), DG Khan Cement (Rs1.64 billion), Attock Refinery (Rs1.61 billion), Hubco (Rs1.44 billion), The Bank of Punjab (Rs1.24 billion) and Maple Leaf Cement (Rs1.19 billion) dominated the trading activity, Topline said.

“Stocks closed at a new all-time high in the earnings season rally as investors weighed surging forex reserves that reached $20 billion and upbeat auto sales data, which showed a 38% YoY growth for FY25,” said Arif Habib Corp MD Ahsan Mehanti.

The revision in development spending to Rs1.05 trillion for FY25 and record remittances played the role of catalysts for the new peak at the PSX, he added.

Arif Habib Limited (AHL) wrote in its report that the KSE-100 index enjoyed another solid week, gaining 1.8% week-on-week, on the back of strong corporate earnings and investor interest.

On Friday, 55 stocks advanced while 45 declined, where UBL (+2.4%), Hubco (+1.6%) and Millat Tractors (+2.76%) contributed the most to index gains. In contrast, Bank AL Habib (-3.3%), MCB Bank (-1.04%) and HBL (-1.22%) were the biggest drags.

UBL announced 1HCY25 earnings per share of Rs26.07, up 99% YoY, and a dividend payout of Rs19 per share. Earnings were in line with expectations while the payout exceeded estimates.

For the coming week, technical indicators suggest support at around 132,000, with a potential upside towards 136,000, AHL said.

Overall trading volumes were recorded at 765.1 million shares, compared with the previous session’s tally of 941.7 million. The value of shares traded during the day was Rs40.2 billion.

Shares of 477 companies were traded. Of these, 220 stocks closed higher, 228 fell and 29 remained unchanged.

The Bank of Punjab was the volume leader with trading in 94.1 million shares, gaining Rs0.08 to close at Rs13.08. It was followed by Aisha Steel Mills with 25.1 million shares, gaining Rs0.44 to close at Rs12.11 and Kohinoor Spinning Mills with 23.6 million shares, losing Rs0.20 to close at Rs6.69. Foreign investors sold shares worth Rs350 million, the National Clearing Company reported.

KARACHI:

The State Bank of Pakistan (SBP) on Friday injected a total of Rs1.72 trillion into the banking system through simultaneous conventional and Shariah-compliant open market operations (OMOs), aimed at addressing liquidity needs.

Earlier on Wednesday, the government had borrowed Rs1.62 trillion through auctions of securities, with a substantial proportion of Rs1.413 trillion being raised from the Market Treasury Bills (MTBs) and Rs208.42 billion from the 10-year Pakistan Investment Bonds Floating Rate (PFL).

The government is compelled to borrow from the private sector amid limits from the International Monetary Fund (IMF) on borrowing directly from the central bank. Therefore, the central bank has to go through this cycle of injecting money through OMOs and then borrowing back from the private sector through securities to bridge the fiscal deficit of the government.

According to official data, the SBP accepted bids worth Rs1.48 trillion under its conventional reverse repo operation, with a realised value of Rs1.43 trillion. The OMO included injections of Rs154.25 billion for seven-day tenor at a rate of return of 11.09% and Rs1.32 trillion for 14-day tenor at 11.07%, with 24 bids accepted out of 27 received.

In parallel, the central bank conducted a Mudarabah-based Shariah-compliant OMO, where it injected an additional Rs243 billion, with a realised value of Rs244.9 billion. The Islamic OMO consisted of Rs40 billion accepted for seven days at a rate of 11.13% and Rs203 billion for 14 days at 11.12%. All three bids received were accepted, reflecting growing market interest in Shariah-compliant instruments.

The cumulative injection of liquidity comes at a time when the SBP has been easing monetary conditions, having recently cut the policy rate amid a downward trend in inflation. The strong demand for 14-day funds in both OMOs highlights banks’ preference for locking in medium-term liquidity, possibly in anticipation of further monetary easing.

Furthermore, the rupee posted a marginal gain against the US dollar on Friday, appreciating by 0.04% in the inter-bank market. By the end of trading, the rupee closed at 284.46, marking an improvement of 10 paisa compared to Thursday’s closing rate of 284.56.

Meanwhile, gold prices in Pakistan climbed sharply on Friday, tracking gains in the international market, where the yellow metal surged over 1% to a more than two-week high. The rally was driven by renewed safe-haven demand after President Donald Trump reignited trade tensions by announcing fresh tariffs, escalating fears of a global trade war.

In the domestic market, the price of gold per tola rose Rs2,300 to settle at Rs357,000, according to data released by the All Pakistan Sarafa Gems and Jewellers Association. Similarly, the rate for 10 grams of gold increased Rs1,971 to Rs306,069.

This follows Thursday’s sharp uptick of Rs3,200 per tola, when gold closed at Rs354,700.

Globally, spot gold was up 1.2% to $3,363.46 per ounce by 11:32 am EDT (1532 GMT), its highest since June 24. US gold futures gained 1.6% to $3,377.80, according to Reuters.

Adnan Agar, Director at Interactive Commodities, explained the international trend, saying: “Gold touched a low of $3,322 and a high of $3,368 today (Friday) and is trading around $3,355. Renewed tariff threats from Trump have triggered another wave of buying in gold.”

He noted that unless a breakthrough occurs in trade negotiations after August 1, gold is expected to continue trading within a range of $3,270 to $3,420. “If tariffs persist beyond August, we could see further upside. Otherwise, history shows that Trump often backtracks or secures last-minute deals, which could cap gold’s rise,” Agar added.

ISLAMABAD – The Central Directorate of National Savings has slashed the profit rates on Special Savings Certificates with effect from July 2025, reflecting a downward trend in national inflation.

The Special Savings Certificates are designed to offer a secure investment avenue to small and medium-scale investors, with fixed returns paid out every six months.

These certificates come with a three-year maturity period and are open to all Pakistani citizens. Notably, there is no upper limit on the amount that can be invested.

Updated Profit Rates – Effective July 2025

According to the latest update, the revised profit rate stands at 10.60% for each of the first five bi-annual payments, translating to Rs5,300 per Rs100,000 investment every six months.

The final (sixth) profit payment will be at a higher rate of 11.60%, or Rs5,800 on an investment of Rs100,000.

Withholding Tax

As per current taxation rules, individuals listed on the Active Taxpayer List (ATL) will face a 15% withholding tax on profits, regardless of when or how much is invested.

The non-taxpayers will be subject to a 30% withholding tax on the earnings.

These adjustments are part of the government’s efforts to align returns with prevailing economic indicators, while continuing to offer safe investment opportunities to the public.

The latest version of Elon Musk’s artificial intelligence chatbot Grok is echoing the views of its billionaire creator, so much so that it will sometimes search online for Musk’s stance on an issue before offering up an opinion.

The unusual behavior of Grok 4, the AI model that Musk’s company xAI released late Wednesday, has surprised some experts.

Built using huge amounts of computing power at a Tennessee data center, Grok is Musk’s attempt to outdo rivals such as OpenAI’s ChatGPT and Google’s Gemini in building an AI assistant that shows its reasoning before answering a question.

Musk’s deliberate efforts to mold Grok into a challenger of what he considers the tech industry’s “woke” orthodoxy on race, gender and politics has repeatedly got the chatbot into trouble, most recently when it spouted antisemitic tropes, praised Adolf Hitler and made other hateful commentary to users of Musk’s X social media platform just days before Grok 4’s launch.

But its tendency to consult with Musk’s opinions appears to be a different problem.

“It’s extraordinary,” said Simon Willison, an independent AI researcher who’s been testing the tool. “You can ask it a sort of pointed question that is around controversial topics. And then you can watch it literally do a search on X for what Elon Musk said about this, as part of its research into how it should reply.”

One example widely shared on social media — and which Willison duplicated — asked Grok to comment on the conflict in the Middle East. The prompted question made no mention of Musk, but the chatbot looked for his guidance anyway.

As a so-called reasoning model, much like those made by rivals OpenAI or Anthropic, Grok 4 shows its “thinking” as it goes through the steps of processing a question and coming up with an answer. Part of that thinking this week involved searching X, the former Twitter that’s now merged into xAI, for anything Musk said about Israel, Palestine, Gaza or Hamas.

“Elon Musk’s stance could provide context, given his influence,” the chatbot told Willison, according to a video of the interaction. “Currently looking at his views to see if they guide the answer.”

Musk and his xAI co-founders introduced the new chatbot in a livestreamed event Wednesday night but haven’t published a technical explanation of its workings — known as a system card — that companies in the AI industry typically provide when introducing a new model.

The company also didn’t respond to an emailed request for comment Friday.

The lack of transparency is troubling for computer scientist Talia Ringer, a professor at the University of Illinois Urbana-Champaign who earlier in the week criticized the company’s handling of the technology’s antisemitic outbursts.

Ringer said the most plausible explanation for Grok’s search for Musk’s guidance is assuming the person asking it a question is actually xAI or Musk.

“I think people are expecting opinions out of a reasoning model that cannot respond with opinions,” she said. “So for example it interprets ‘Who do you support, Israel or Palestine?’ as ‘Who does xAI leadership support?”

Willison also said he finds Grok 4’s capabilities impressive but said people buying software “don’t want surprises like it turning into ‘mechaHitler’ or deciding to search for what Musk thinks about issues.”

“Grok 4 looks like it’s a very strong model. It’s doing great in all of the benchmarks,” Willison said. “But if I’m going to build software on top of it, I need transparency.”

Jack Dorsey, co-founder of Twitter and Square and founder of Bluesky, is back with another potentially disruptive and decentralized app: “bitchat.”

Like Twitter and Bluesky, bitchat is a social app, but it’s not a social media platform. Instead, bitchat is a peer-to-peer messaging app, and is unique among the myriad of messaging options available already, as it does not operate over the internet. Rather than connect to wifi or a cellular network, bitchat is designed to operate over Bluetooth, specifically Bluetooth Low Energy (BLE) mesh networks. In theory, it would allow bitchat to function even when networks are down. In the event you can’t connect to either cellular or wifi, bitchat would still function. (Though expanding satellite communications may give bitchat a run for its money.)

How does bitchat work?

According to the app’s white paper, bitchat relies on the devices running it to communicate with each other over BLE. As such, your device connects to another user’s device within Bluetooth range, their device connects to another in Bluetooth range, and so on. “Local clusters” are made up of the device within Bluetooth range (typically 33 feet, though the white paper says roughly 30), where “bridge nodes” can connect those clusters when they overlap in range. With enough devices, you create a network where one user is able to message another well outside the usual Bluetooth range.

It’s sort of like how networks like Apple’s Find My work. Products like AirTags communicate via Bluetooth with other devices on the Find My network. But where an iPhone will connect to the internet to ultimate update your AirTag’s location, bitchat never needs to connect to the internet: It’s all Bluetooth based.

The design also accounts for users that are unavailable at the time you send a message. If you send it to a regular user, the message will be cached for up to 12 hours before sending, though messages you send to “favorite peers” can be cached indefinitely. Direct messages are end-to-end encrypted, while group messages (yes, bitchat supports group messaging) can be password protected if you so choose. You can set group messages, or “channels,” with a channel name prefixed with a # (e.g. #channelname), and you can transfer the ownership of a group chat if you wish.

Bitchat might not be secure at this time

While Dorsey suggests the app has user privacy and security in mind, it isn’t perfect. The app’s github page even presents a warning at the top, reading: “Private message and channel features have not received external security review and may contain vulnerabilities. Do not use for sensitive use cases, and do not rely on its security until it has been reviewed. Work in progress. Public local chat (the main feature) has no security concerns.” According to TechCrunch, that warning was not present when the app first launched.

TechCrunch highlights a number of security concerns testers have discovered while using the app. One found that it is possible to pretend to be another users’ contact, and trick the app into marking them as a “Favorite” contact—a feature that is supposed to guarantee the contact is who they say they are. Another user raised an issue with the app’s “forward secrecy” feature, which is supposed to prevent bad actors from successfully breaking encryption even if they access the encryption key for your message. Still another found a security flaw that might allow a bad actor to overflow memory to another location, which could enable hacking.

It’s clear that the app has a ways to go to iron out its privacy and security functions, so, at this time, it might not be the best idea to try it out—or, at least, to send sensitive information.

How to try bitchat

If you’re okay taking on the security risks, you can try out bitchat today—though set up is a bit complicated. There is a TestFlight beta program for iPhone and Mac, but it’s full.

Bitchat’s GitHub page has three options for setup on Mac: You can get things up and running via XcodeGen, which is the recommended method; Swift Package Manager; or start a manual Xcode Project by copying over all Swift files from the bitchat directory on GitHub.

Personally, I’ll wait until the app is fully realized on iPhone and Mac before giving it a shot. But if there are any peers in your area on bitchat, you’ll be able to start chatting.