- Air India crash probe focuses on actions of plane’s captain, WSJ reports Reuters
- Exclusive | New Details in Air India Crash Probe Shift Focus to Senior Pilot The Wall Street Journal
- How Air India flight 171 crashed and its fatal last moments Al Jazeera
- India orders its airlines to check fuel switches on Boeing jets Dawn
- Doomed Air India pilot’s medical records probed amid reports of depression, other mental health struggles New York Post
Blog
-
Air India crash probe focuses on actions of plane's captain, WSJ reports – Reuters
-
Govt offloads another white elephant
Listen to article
ISLAMABAD:The government on Wednesday reaffirmed its decision to close the lossmaking Utility Stores Corporation from the end of this month and constituted a panel to consider giving a golden handshake to 11,421 employees that may cost it over Rs29 billion.
It was not clear whether the government would give the severance package to all 11,421 employees or limit it to regular 5,217 employees. The discussions took place during a meeting of a committee constituted by the Prime Minister to oversee the closure and privatization of the Utility Stores Corporation (USC).
Finance Minister Muhammad Aurangzeb chaired the meeting, which was attended by other cabinet members.
The committee has been tasked with ensuring a smooth and transparent closure process, formulating a suitable VSS for USC employees, and recommending a structured timeline for privatisation, said the Ministry of Finance.
The finance ministry said that the committee reviewed the progress made in the light of the tasks assigned to it and held detailed deliberations on the way forward.
“It was reaffirmed that, in accordance with the government’s directives, all operations of USC will be closed by July 31, 2025,” according to the Ministry of Finance. The committee discussed at length the formulation of a fair and financially viable Voluntary Separation Scheme (VSS) for the USC employees, it added.
Trading entities like USC struggled with high liabilities, ineffective subsidy utilisation, and operational inefficiencies, according to the SOEs performance report that the Ministry of Finance released last week. It added that dependence on delayed government subsidies creates cash flow crisis, while poor inventory management worsens fiscal risks
The Finance Ministry report stated that the USC lost Rs6.1 billion at the operating level during July-December period of last fiscal year and it was riddled with finance costs, adding to the burden due to compounding operational losses.
The USC model is subsidy-driven rather than market and cumulative losses stood at Rs15.9 billion as of December last year, according to the Finance Ministry. It added that the balance sheet revealed a weak equity of just Rs1.8 billion, heavily overshadowed by current liabilities of Rs50.7 billion, reflecting solvency risks and negative working capital.
According to the official documents, there were a total 11,421 employees of the USC, including 5,217 regular employees. The total cost of the golden handshake is estimated at Rs29.2 billion, including Rs22.8 billion for the regular employees. However, these figures are not final and the cost of the severance package will be determined by another committee.
The details showed that the regular employees having over 20 years association with the USC would get two running basic pays of the completed years while those having less than 20 years of experience will get either three running basic pay of completed years or 125% of the basic pay of the remaining months, whichever is higher.
The regular employees will also get terminal dues and house rents.
There are 3,319 contractual employees who are proposed to receive two running basic pay of completed years as compensation, which will cost Rs3.5 billion. Another 2,885 are the daily wagers who are proposed to be given two salaries of the completed years that will cost Rs2.9 billion.
The entity has 21 properties and it also faces a major issue of non-payments of promised subsidies of over Rs50 billion by the Ministry of Finance.
The Finance Ministry handout stated that during the course of the meeting, the members examined various dimensions of the proposed VSS, including its projected size, potential fiscal impact, and legal and operational implications associated with its structure and rollout. The Committee recommended that the Privatization Commission be consulted regarding the optimal structuring and feasibility of privatization or alternatively asset sales linked with the USC operations.
To facilitate a comprehensive analysis, the Chair constituted a sub-committee headed by the Secretary Establishment Division, stated the ministry.
The committee will include representatives from the Finance Division and the Industries & Production Division to examine the legal and operational aspects, contours, size, and structure of the proposed VSS and submit its report to the main Committee by the end of the week.
This will enable the Committee to consolidate its findings and finalize its report and recommendations to be submitted to the Prime Minister in line with the Terms of Reference, said the Ministry of Finance.
The SOEs report stated that USC’s heavy reliance on government subsidies and declining sales highlighted systemic inefficiencies. The USC reflects a structurally weak and inefficient business model that is unsustainable without continuous government subsidies.
The report showed that the company’s sales sharply dropped by more than 50% compared to the same period last year — showing the company’s inability to retain market share or operate competitively. However, one of the reasons for drop in sales was the government’s decision to wind up the entity.
The report underlined that without structural reform, including privatization, supply chain digitization, direct beneficiary targeting (DBT) of subsidies, and converting to a lean wholesale model, USC will continue draining fiscal resources with no viable path to self-sustainability.
Continue Reading
-
Changes On Cricket’s Chief Executives’ Committee After Election Kick-Starts ICC Annual Conference
The ICC annual conference is being held this year in Singapore (Photo by Patrick Bolger-ICC/ICC via … More
Gurumurthy Palani (France), Anuraag Bhatnagar (Hong Kong) and Gurdeep Klair (Canada) won coveted spots on the Chief Executives’ Committee after Thursday’s election kick-started the International Cricket Council’s annual conference in Singapore.
Three coveted Associate Member seats were up for grabs amid changing dynamics among cricket’s powerbrokers. Palani and Bhatnagar finished with 28 votes, while Klair had 21.
The results mean the influential CEC will be new-look after Sumod Damodar, a veteran administrator and former chair of the African Cricket Association, did not retain his position after finishing with 16 votes.
Damodar was the only incumbent to recontest in the eight-candidate field, with Rashpal Bajwa (Canada) and Denmark’s Umair Butt deciding not to.
The election launched the annual conference, with a number of big issues set to be debated in a new era for the governing body led by new chief executive Sanjog Gupta and his Indian counterpart Jay Shah.
Sanjog Gupta is the new ICC chief executive (Photo by Matthew Lewis-ICC/ICC via Getty Images)
The CEC’s role is to promote and develop cricket worldwide, while governing and regulating the sport at the international level. It is highly coveted for Associate chiefs and seen as a stepping stone to get onto the ICC board – where the real power lies in global cricket.
Former Hong Kong chief Tim Cutler (Vanuatu), ex USA cricket governing body administrator Sankar Renganathan (Sierra Leone), Stella Siale (Samoa) and Sarah Gomersall (Jersey) also ran.
Damodar had three terms on the CEC until 2023 before returning late last year after Mubashshir Usmani, a rising administrator at the helm of the Emirates Cricket Board, was elected to the ICC board.
The outspoken Damodar has been behind ambitious proposals such as reviving the Afro-Asia Cup and pushing more marquee events for Associate nations.
Renganathan loomed as a wildcard and he has been well know as an outspoken critic of embattled USA Cricket, which is facing suspension.
Sankar Renganathan missed out on the CEC.
Voters were made up from 40 Associate Members and five regional representatives (Americas, Asia, Europe, East Asia-Pacific and Africa). Under ICC rules, candidates had to be a representative of an Associate Member or a current/past ICC director.
Newly elected members will have two-year terms and will also be part of the Associate Member Committee helping govern and regulate the Associate level.
Continue Reading
-
July 31 deadline set to wind up Utility Stores – Business
ISLAMABAD: A meeting of the committee formed by the prime minister to oversee the closure and privatisation of the Utility Stores Corporation (USC) was held at the Finance Division on Wednesday.
Chaired by Finance Minister Muhammad Aurangzeb, the meeting was attended by Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan, secretaries of the Establishment, Finance, and Industries & Production divisions, the USC managing director, and senior officials of the Finance Division.
The committee, mandated to ensure a smooth and transparent closure process, is tasked with devising a fair Voluntary Separation Scheme (VSS) for USC employees and recommending a structured timeline for privatisation.
To facilitate a comprehensive review, Mr Aurangzeb constituted a sub-committee led by the Establishment Secretary, with representation from the Finance and Industries & Production divisions. The sub-committee will examine the legal and operational framework, scale, and structure of the proposed VSS, and submit its report by the end of the week.
Sub-body formed to finalise VSS and assess privatisation options
The findings will allow the main committee to consolidate its recommendations for submission to the prime minister in accordance with its terms of reference.
The committee reviewed progress on its assigned tasks and held detailed discussions on the path forward. It reaffirmed the government’s decision to wind up all USC operations by July 31.
Deliberations focused on formulating a financially viable and equitable VSS, with particular attention to the projected size, fiscal impact, and the legal and operational complexities involved.
It was also recommended that the Privatisation Commission be consulted to assess the most effective model for divestment, including the feasibility of full privatisation or selective asset sales associated with USC operations.
Established in 1971, USC is a state-owned enterprise tasked with supplying essential commodities at subsidised rates, primarily targeting low-income households. It currently operates over 4,000 retail outlets nationwide.
According to the Finance Ministry’s Federal State-Owned Enterprises (SOE) Performance Overview for the first half of FY25, USC posted a loss of Rs4.1bn over six months, with cumulative losses rising to Rs15.5bn — highlighting persistent structural and operational challenges.
Published in Dawn, July 17th, 2025
Continue Reading
-
Jenna Bush reveals what really makes her husband ‘grumpy’
Jenna Bush reveals what really makes her husband ‘grumpy’ Jenna Bush Hager’s husband, Henry Hager, has some clear boundaries when it comes to publicizing his family.
In a recent chat on her Today with Jenna & Friends show, the 43-year-old host talked about her husband’s reaction when some personal stories were shared on her platform.
“I think it’s in the same vein as when you’re writing,” Bush Hager shared July 16 episode of her show. “You’re like, ‘Wait, whose story is this? Am I telling my story or is this posting because the kids are doing something really cute?”
“And will it embarrass them someday? It might feel funny and cute now, but if it’s up forever, will you regret posting it?” guest co-host Willie Geist reflected.
Jenna, who tied the knot with Henry in 2008 and shares three children, Mila, 12, and Poppy, 9, and son Hal, 5, admitted her husband knows how to protect the family’s privacy.
“One of the great things about Henry is he always is thinking that way, he just believes we should have privacy as a family. So if I say something — maybe on this show — that gets pickup, he gets grumpy about it.”
The TV personality weighed in on Henry’s approach, noting, “It helps me realize that I should be better for Mila, for Poppy and Hal.”
Continue Reading
-
US firms eye investment in Pakistan’s port sector – Business
A participant speaks at the webinar on investment opportunities at Pakistani ports on Wednesday.—Courtesy US consulate ISLAMABAD: Over 65 US companies joined a landmark webinar on Wednesday to explore commercial opportunities at Karachi Port and Port Qasim.
The webinar hosted by the US Department of Commerce’s International Trade Administration and the US Department of State, in collaboration with the Ministry of Maritime Affairs, part of the ‘Gateways to Growth: South Asia Port Opportunities’ series, has opened new doors for American commercial services in the port sector of Pakistan.
The webinar served as a strategic platform for American companies to engage directly with Pakistani port officials and private operators.
“US investors have made substantial contributions to Pakistan’s development, and we are confident that the port sector will be another area where we can achieve great success together,” said US Consul General Scott Urbom in Karachi, emphasising the role of partnership in fostering long-term commercial ties.
“We believe that by working together, we can unlock the full potential of Pakistan’s port sector, create new opportunities for American businesses, and contribute to Pakistan’s economic development,” he said.
Senior representatives from the Ministry of Maritime Affairs, Port Qasim Authority, Abu Dhabi Ports, which operates Karachi Gateway Terminal Ltd, and Dubai Ports World, which operates Qasim International Container Terminal, outlined Pakistan’s infrastructure goals, regulatory landscape, and trade priorities, and participated in the webinar.
The hybrid session highlighted how American firms can support Pakistan’s port development plans, helping expedite trade flows and build new supply chain linkages between our countries.
Ean Hundley, Director of ICT and Infrastructure Policy at the US International Development Finance Corporation, noted, “This initiative equips US companies with market intelligence and direct access to local decision-makers, enabling them to capitalise on infrastructure opportunities across South Asia.”
Published in Dawn, July 17th, 2025
Continue Reading
-
Should China adopt a zero interest rate?
The release of China’s second-quarter growth data this week embodied a dilemma for the country’s policymakers: real economic expansion was strong and steady at 5.2 per cent but widespread falling prices meant nominal growth was much weaker, at 3.9 per cent.
Solid real growth reflects the expansion of Chinese industry and exports — but nominal growth is what Chinese workers feel in their wage packets and Chinese companies see on their revenue line.
It also means that interest rates, when deflation is taken into account, are much higher, leading to an ongoing, contentious debate about whether China should follow the path of western nations and adopt a zero interest rate.
“We don’t think that there is a consensus among politicians and policymakers that zero interest rates in China could happen,” said Helen Qiao, Greater China chief economist at BofA Global Research. “But most policymakers, as well as the market and investors, are gradually accepting the fact that interest rates are going quite low.”
Two historic precedents loom large for China, according to multiple academics and state-affiliated policy experts.
One is the zero interest rate era in the US and Europe, post-2008, which is seen by some in Beijing as a profligate event that inflated asset bubbles and destabilised markets.
The other is Japan’s decades of stagnation after its real estate bubble burst in 1990 — an experience China would like to avoid. Its own real estate slump has dragged on since 2020.
This divergence in views has become a block for Chinese monetary policymaking, and the timing of any shift may hinge on economic and tariff decisions from the US, with Beijing keen to hold policy firepower in reserve so it can respond.
One camp wants China to drop rates fast, which would enable heavily indebted local governments to refinance and boost public investment.
“A zero interest rate should not be unthinkable. Even if it can’t go all the way to zero, there’s still room to cut at least 0.4 percentage points to align with the fiscal plan,” said Gene Ma, head of China research at the Institute of International Finance.
The central bank’s benchmark seven-day reverse repo rate, following a series of gradual cuts, now stands at 1.4 per cent.
“China still has significant space for public investment to reach its potential growth. A deeper rate cut, combined with fiscal expansion, could help unlock that,” said Ma.
The yield on China’s 10-year government bond has been hovering around 1.7 per cent, near historic lows, suggesting investor expectations of persistent disinflation.
A second camp in Beijing opposes a formal zero-interest rate policy. Its biggest concern is the banking sector. China’s lenders rely on the net interest margin, the difference between their borrowing and lending rates, for profitability.
The average interest margin at China’s top six state lenders fell to 1.48 per cent in the first quarter, its lowest level on record, compared with more than 2 per cent in 2021.
Zero interest rates would further compress bank margins at a time when many are already facing deteriorating asset quality and rising defaults in the property sector.
“The ultimate question, which one would ask before making the decision [to adopt zero rates] is: what to do with millions of depositors who rely on the interest of their massive banking savings?” said one adviser familiar with the debate. “It’s not an economic question, but a political one.”
Some advisers argue the country already has a de facto zero interest rate regime, since Chinese banks — guided directly by the central bank on loan pricing — have steadily lowered borrowing costs over the past few years, limiting the impact of further cuts.
“China’s monetary policy is already very close to a zero-interest rate policy,” said Chen Long, co-founder of Beijing-based consultancy Plenum. “For households and enterprises, the interest rate environment is currently about the same as that in the US when the Federal Reserve conducted its zero-interest rate policy.”
Opponents also warn that zero rates could distort the economy over the long run and worsen China’s challenge with overcapacity.
“China is at a juncture with overcapacity problems on the supply side and lack of sufficient domestic consumption on the demand side. Zero or negative rates could further deteriorate the supply-demand imbalance, as investment would be more sensitive to rates than consumption,” said Zhi Xiaojia, chief China economist at Crédit Agricole.
Households, scarred by the property downturn and lingering uncertainty over the country’s economic outlook, continue to build their precautionary savings, with household deposits reaching a new record of Rmb147tn ($20tn) in June.
The prospect of a further rate cut has prompted many savers to lock in higher interest rates. At most Chinese banks, the interest rate on demand deposits is 0.05 per cent, while one-year term deposits yield less than 2 per cent.
“It is evident right now that the low interest rates not only fall short of delivering the intended purposes such as boosting consumption, but would also exacerbate the very issues policymakers sought to address,” said Richard Xu, an analyst at Morgan Stanley.
Behind the scenes, the People’s Bank of China has turned its attention towards scenario planning. It has quietly sought guidance from European institutions with experience in managing a prolonged low-rate environment.
As the debate grinds on, a larger question looms: can the Chinese economy afford the cost of delay?
“Without a strong policy stimulus, it’s hard to escape the ongoing deflationary spiral,” said Larry Hu, China economist at Macquarie in Hong Kong.
Continue Reading
-
NA committee grills govt on sugar policy – Pakistan
ISLAMABAD: A parliamentary committee on Wednesday questioned why the government was focusing on sugar prices despite having deregulated wheat prices, as the finance ministry confirmed ongoing discussions with the International Monetary Fund for an import rebate.
A meeting of the National Assembly’s Standing Committee on Finance and Revenue, presided over by Syed Naveed Qamar, expressed concern over tax exemptions on the import of sugar.
Federal Board of Revenue (FBR) Chairman Rashid Mehmood Langrial informed the committee that sugar imports were subject to a total of 54 per cent tax, resulting in higher retail prices of the commodity. He said the FBR had granted tax exemptions on sugar imports after receiving the federal cabinet’s decision in this regard.
Mr Qamar observed that the government should disengage from sugar-related matters and allow the private sector to handle its import and export. He said that while the prices of other commodities fluctuate based on supply and demand, increases in sugar prices consistently trigger public outcry. He added that it was surprising the government had deregulated wheat operations yet continued to focus on sugar prices, despite sufficient sugar stocks being available in the country.
Food ministry says retail price to be capped at Rs175 per kilogram
Committee member Javed Hanif inquired about the IMF’s stance on the tax exemption for sugar imports. He criticised the government for attributing every budgetary measure to IMF requirements, noting that taxes had been imposed even on poultry chicks and mutual funds, while sugar had been granted an exemption.
The finance secretary told the committee that discussions with the IMF were still ongoing on the issue.
The committee also considered “The Parliamentary Budget Office Bill, 2025”, moved by MNA Rana Iradat Sharif Khan, and constituted a subcommittee under the convenorship of MNA Nafisa Shah for detailed deliberation and submission of a report within 30 days. MNAs Ali Zahid, Arshad Abdullah Vohra and Muhammad Mobeen Arif will serve as members of the subcommittee.
The standing committee expressed serious concern over the absence of the industries and production secretary, who was scheduled to give a detailed briefing on the new electric vehicle (EV) policy.
Minister of State for Finance Bilal Azhar Kayani regretted the absence and agreed with the committee’s decision to defer the agenda item related to the EV policy.
MNA Mirza Ikhtiar Baig presented the report of the subcommittee on “The Corporate Social Responsibility Bill, 2025”, moved by Nafisa Shah. The committee adopted the report but deferred discussion on it to the next meeting.
The Ministry of Finance and the Securities and Exchange Commission of Pakistan (SECP) opposed the bill and requested additional time to consult all stakeholders. However, Nafisa Shah, Ikhtiar Baig and Javed Hanif opposed granting further time to the government on the matter.
Mr Kayani said it would be premature for him to state whether the draft bill would be supported or opposed, but emphasised that broader consultation with stakeholders was necessary before any informed discussion could take place in the committee.
The committee chairman allowed the government one month to complete its consultations.
Sugar price at Rs175 a kg
Meanwhile, the Ministry of National Food Security and Research on Wednesday said that the retail price of sugar in the market will not exceed Rs173 to Rs175 in the wake of the ex-mill price of sugar fixed at Rs165 per kg.
A formal notification, fixing the retail price, is being finalised and will be issued after approval from the federal cabinet, the ministry says. Minister for National Food Security and Research Rana Tanveer Hussain emphasised that all provincial governments will be responsible for ensuring the implementation of the approved retail price of sugar, providing relief to consumers and maintaining price stability across the country.
Published in Dawn, July 17th, 2025
Continue Reading
