Speaking at delegation-level talks with Iranian President Masoud Pezeshkian, Prime Minister Shehbaz welcomed the president and his delegation, calling the visit a matter of “great happiness and satisfaction” following the Islamabad memorandum of understanding (MoU) between the US and Iran.

The prime minister also conveyed warm regards to Iran’s Supreme Leader, Mojtaba Ali Khamenei, praising what he called his “sagacious leadership” and crediting that leadership for enabling Iran to reach an understanding and a ceasefire “with dignity and honour”. He also offered condolences over the loss of civilian lives during the recent hostilities.

READ MORE: Iranian president due today

“With your calm and visionary leadership, today we are able to look towards a very bright future,” he said, adding that he was grateful to the Iranian leadership for its “abiding trust in Pakistan’s ability to mediate with honesty and sincerity”. He stressed that, as a “brotherly country”, Pakistan would not let Iran down.

He said the relationship between the two countries was rooted in “true brotherhood”, adding that it required no further justification or explanation.

Pakistan, he added, would continue its facilitation efforts until a durable and dignified peace was achieved.

The prime minister also praised the resilience of the Iranian leadership and people.

He also highlighted the role of Chief of Defence Forces (CDF) and Field Marshal Syed Asim Munir, describing his contribution to the ceasefire process and the MoU as “outstanding”.

He said that Gen Munir had worked “through the nights and dark days” with the objective of preventing further escalation.

Sharif also acknowledged the efforts of Deputy Prime Minister and Foreign Minister Ishaq Dar and Interior Minister Mohsin Naqvi, as well as Iranian Foreign Minister Abbas Araghchi.

He further expressed gratitude to Qatar, Saudi Arabia, Türkiye and Egypt for their support during the diplomatic engagement.

Looking ahead, the prime minister said Pakistan and Iran would work to deepen cooperation across multiple sectors, including trade, investment, economic ties and reconstruction efforts.

“Iran and Pakistan today are brothers and friends forever,” he said. “We will share our joys and sorrows and work together for peace, stability and progress not only in this region but also across the wider Middle East, Gulf and South Asia.”

Copyright Business Recorder, 2026

The Senate voted 50-48 in favor of the war powers resolution, which passed the House of Representatives early this month, reflecting growing concern even among some of Trump’s Republicans about the unpopular conflict that began on February 28.

It was the first time both chambers of Congress had passed a resolution directing a president to remove US armed forces from hostilities, as spelled out in the War Powers Resolution of 1973, more commonly known as the War Powers Act.

While likely to remain largely symbolic, the votes were a clear setback for Trump, who until recently enjoyed nearly full support from Republican members of Congress.

READ MORE: Trump slams ‘unpatriotic’ US House vote to end Iran war

Trump’s Republicans hold slim majorities in both the Senate and House. The Senate vote was nearly along party lines, with four Republicans joining all but one Democrat in favor. Two Republican senators did not vote.

It was not immediately clear how it would affect the conflict, as Trump’s administration works to negotiate a peace agreement with Iran.

Under the War Powers Act, the measure does not get sent to the White House for Trump’s signature. However, the White House has insisted the legislation is not constitutional and thus not binding.

Experts say it remains a contested legal question likely to be settled in the courts.

“The executive branch will likely ignore it on constitutional grounds, and it’s not clear who might have standing to sue to enforce it,” said Scott Anderson, a senior fellow at the Brookings Institution and senior editor of the online legal publication Lawfare, adding that he expected someone would do so.

The resolution had also passed the House with slim Republican support. The tally there was 215-208 with four Republicans and every Democrat voting yes.

Brent crude futures were down 37 cents, or 0.5%, at $76.71 a barrel as of 0043 GMT, and U.S. West Texas Intermediate slipped 36 cents, or 0.5%, to $72.85 a barrel. ​Both benchmarks declined nearly 1% on Tuesday, touching their lowest levels since early March.

Prices ​have come under pressure this week after Washington granted Tehran a 60-day sanctions ⁠waiver following initial peace talks, allowing it to sell oil, and as hostilities in ​Lebanon eased.

“Crude oil prices were weighed down by hopes of easing US-Iran tensions and a recovery ​in oil shipments through the Strait of Hormuz,” said Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting.

“Further progress in nuclear negotiations could push prices back to pre-war levels,” he added.

On Tuesday, Oman and Iran ​agreed to press on with discussions about the future administration of navigation in the Strait. U.S. ​Secretary of State Marco Rubio said any Iranian attempt to levy transit fees would violate international law.

Still, uncertainty remains ‌over ⁠the durability of the accord. U.S. President Donald Trump said on Tuesday that Iran had agreed to nuclear inspections into “infinity,” while Tehran said it had made no such concession in negotiations.

Investors are also watching how quickly Middle Eastern producers can restore exports and whether more ships will enter ​the region.

An Iranian military ​source told Fars news ⁠agency that a limited number of vessels are being allowed to pass through the strait each day under coordination with Iran’s Revolutionary Guards Navy.

Ship-tracking ​data showed that three stranded supertankers passed through the strait on Tuesday. The ​U.N. shipping ⁠agency said an evacuation plan to enable hundreds of ships with 11,000 seafarers stranded in the Gulf to sail through the strait is underway after the U.S.-Iran ceasefire deal.

Meanwhile, crude stocks fell by 765,000 barrels ⁠in ​the week ended June 19, market sources said, citing ​data from the American Petroleum Institute released on Tuesday. Nine analysts polled by Reuters estimated, on average, that crude inventories fell ​by about 4.5 million barrels in the last week.

Spot gold ‌fell 0.5% to $4,087.68 per ounce by 0116 GMT, hitting its lowest level since June 11. U.S. gold futures for August delivery declined 1.1% ​to $4,105.40.

The dollar hit a more than one-year high, ​making bullion more expensive for overseas buyers.

US President ⁠Donald Trump said on Tuesday that Iran had agreed ​to nuclear inspections into “infinity,” while Tehran said it had made no such ​concession in negotiations, raising questions about the viability of their fragile peace deal.

Traders are pricing in three interest rate hikes from the ​US Federal Reserve this year, according to the CME FedWatch ​Tool.

Investors await the U.S. Personal Consumption Expenditures data, the Fed’s preferred ‌inflation ⁠gauge, due on Thursday, for further cues on monetary policy.

Dubai’s commodities exchange will launch a same-day settlement gold contract, its CEO told Reuters, aiming to tap safe-haven demand and faster ​trading infrastructure to ​boost liquidity in ⁠the emirate’s bullion market.

Ghana’s Gold Board is aligning its gold pricing regime with internationally recognised ​LBMA benchmarks from July 1 while imposing strict ​caps ⁠on purchase prices to tighten market discipline and curb irregular trading, it said on Tuesday.

Spot silver fell 1.1% to $61.36 per ⁠ounce, ​platinum lost 0.9% to $1,637.34, and palladium ​was down 1.2% at $1,223.29.

A broad sell-off in technology and semiconductor shares has dragged global stocks lower as investors take profits on a long rally, sparking safe-haven demand for dollar and bonds.

Meanwhile, expectations of a US rate hike continued to build with Federal Reserve officials sounding increasingly hawkish amid the strength of the U.S. ​economy.

Markets are pricing in a 37% chance of a 25-basis-point hike at the July meeting, up ​from 8.5% a week ago, and 70% for September up from 29.1%, according to CME ⁠FedWatch.

The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, ​climbed to a high of 101.44, the strongest level since May 13, 2025.

“The US dollar is still the preferred safe-haven,” ​said Ray Attrill, head of FX strategy at National Australia Bank.

“Obviously the momentum is on its side at the moment, but I think there is a lot priced in,” he said. “We’ll have to see a correction in risk sentiment, one that’s broader rather than ​just the tech sector, or the market further ratcheting up its expectations for hikes, before the dollar can go ​very much higher from here.”

The euro last traded at $1.1375 , near a one-year low. The British pound weakened slightly to $1.3199, after Bank ‌of England ⁠policymaker Alan Taylor said an “extended hold” for interest rates was the right response to inflation pressure.

The risk-sensitive Australian dollar was steady at $0.6918 ahead of the latest CPI reading later in the day. The New Zealand dollar weakened 0.05% to $0.5665, a fresh seven-month low.

Also supporting the safe-haven demand, the U.S. and Iran appeared to be at odds on some major aspects of their ​framework including nuclear issues and ​control of the Strait ⁠of Hormuz, raising questions about the viability of their fragile peace deal.

Yen languishes

The Japanese yen last traded at 161.57 after briefly weakening to a two-year low of 161.93 late ​on Monday as the greenback extended its gains. A break above 161.96 would leave the ​yen at its ⁠weakest level since 1986.

The latest round of verbal warnings from Japanese officials had done little to relieve sustained pressure on the currency, amid wide U.S.-Japan rate differentials and doubts about Tokyo’s commitment to intervention.

The Japanese yen could weaken to 165 per dollar if the ⁠Fed raises ​interest rates this year, former Bank of Japan policymaker Sayuri Shirai said.

Some ​Bank of Japan board members called for further interest rate hikes to push the central bank’s policy rate closer to levels deemed neutral to ​the economy, a summary of opinions at their June policy meeting showed on Wednesday.

His remarks came during a charged National Assembly sitting that ended in an opposition walkout after a heated exchange with Pakistan Tehreek-e-Insaf (PTI)-backed opposition leader Mehmood Khan Achakzai.

The session, already tense over domestic political disputes, escalated into repeated interruptions and sharp rebuttals from both the prime minister and National Assembly Speaker Ayaz Sadiq.

READ MORE: US-Iran talks: PM says satisfied with successful conclusion

Amid the parliamentary confrontation, the prime minister briefly shifted focus to foreign policy, referencing weekend diplomacy in the Swiss resort town of Burgenstock, where US and Iranian delegations held extended talks with Pakistan and Qatar acting as facilitators.

The discussions, he added, stretched for hours past midnight into early Monday and concluded with a joint statement outlining 60 days of technical negotiations on Iran’s nuclear programme, ballistic missile concerns, and frozen assets.

“Pakistan tried its best, with complete sincerity, to bridge the distance between the two sides,” he said, adding that the outcome had already helped project a “positive narrative” for Pakistan internationally.

He noted that major international newspapers had highlighted Pakistan’s role, calling it recognition that “billions of rupees” in publicity spending could not have bought.

Shehbaz congratulated the House and the nation for what he described as Pakistan’s “historic and key role” in facilitating the diplomatic engagement.

He also referred to the arrival of Iranian President Masoud Pezeshkian in Islamabad, saying discussions with Tehran would focus on strengthening bilateral ties and warning against politicising the moment.

Turning to domestic politics, the prime minister dismissed opposition claims about electoral illegitimacy, arguing that if the 2018 elections that brought PTI to power were considered valid, then the 2024 elections should be viewed through the same lens, calling for consistency in political judgement.

He also defended his earlier remarks on Balochistan’s resources and his desk-thumping during a previous speech, linking them to Pakistan’s diplomatic outreach and increased provincial allocations under the National Finance Commission (NFC) Award.

National progress, he added, depended on balanced development across all provinces, insisting that “Pakistan will not progress until all four provinces progress.”

The session grew increasingly confrontational as Achakzai criticised the NA Speaker’s conduct and accused the government of constitutional violations, including the disqualification of 14 PTI lawmakers.

He also condemned the life sentence awarded to Baloch Yakjehti Committee activist Dr Mahrang Baloch and raised concerns over unrest in Azad Jammu and Kashmir (AJK).

From the opposition benches, Achakzai challenged the government’s definition of national unity, arguing that Pakistan was not an abstraction but a federation of Khyber Pakhtunkhwa, Balochistan, Sindh and Punjab.

“Why don’t you see KP as part of Pakistan,” he asked, accusing the government of sidelining regions and “trampling the Constitution.”

Speaker Sadiq pushed back forcefully, saying he would not allow remarks against Pakistan, the armed forces or the judiciary.

He accused the opposition of procedural obstruction and inconsistency, noting they continued to exceed speaking limits while questioning the legitimacy of Parliament itself.

In unusually sharp remarks, he described the opposition as being in a “state of confusion,” stressing that democratic institutions must be respected even amid political disagreement.

Copyright Business Recorder, 2026

The House adopted government-backed amendments and rejected all amendments moved by the opposition.

The Lower House had passed the federal budget for the next fiscal year 2026-27, with a total outlay of Rs18.771 trillion, focusing on accelerating the country’s economic growth.

Members of the Jamiat Ulema-e-Islam-Fazl (JUI-F) did not join the walkout staged by Pakistan Tehreek-e-Insaf (PTI). The three female members of JUI-F — Aliya Kamran, Naeema Kishwar Khan, and Shahida Begum — participated in the legislative process and other business of the House.

The House rejected a total of 63 proposed amendments, mostly moved by the three female members of JUI-F in “The Finance Bill, 2026”. The House adopted two amendments — one in clause six and the insertion of a new clause 6A — and two amendments in clause five of the bill. These amendments were moved by the Finance Minister in the House. The House approved the amendments.

In the Budget-2026-27, the revenue collection target for the Federal Board of Revenue (FBR) is set at Rs15.264 trillion, while the non-tax revenue target is estimated at Rs5.336 trillion for the next fiscal year. A total of Rs1 trillion has been allocated for the federal PSDP 2026-27. The House has approved the largest allocation for the Benazir Income Support Programme (BISP), Rs844.78 billion, to continue its social protection and cash transfer initiatives for low-income households across the country.

While discussing the bill, MNA Aalia Kamran questioned whether the government had adequately consulted traders, salaried individuals, small businesses, tax experts, and civil society before finalising the budget. She proposed capping the Petroleum Development Levy at Rs50 per litre, reducing the carbon levy to Rs2.5, lowering taxes on telephone cards and air tickets, and fixing the sales tax rate at 10 percent.

Naeema Kishwar Khan opposed the increase in token tax on 1,000cc vehicles from Rs 4,000 to Rs 20,000 and called for avoiding additional taxes on household goods, plastic products, stationery, and hygiene items. She also urged relief for salaried classes and economy-class air passengers.

Former National Assembly Speaker Asad Qaiser demanded an extension in tax exemptions for the former FATA and Provincially Administered Tribal Areas (PATA). He said the federal government should return net hydel profit arrears and the remaining share of NFC to Khyber Pakhtunkhwa.

Amir Dogar urged the government to extend tax concessions to all airlines operating in Pakistan following the privatisation of Pakistan International Airlines (PIA). He said that on the one hand, the government is paying billions of rupees in capacity payments to IPPs, while on the other, it is imposing taxes on solar systems that provide low-cost electricity.

Rana Atif highlighted the growing circular debt burden, which he said had reached Rs2.8 trillion, and pointed to mounting losses of power distribution companies (DISCOs).

Muhammad Mubeen Arif stressed that fiscal legislation falls within Parliament’s constitutional domain and raised concerns over the proposed faceless tax system, arguing that while tax officials’ identities would remain confidential, taxpayers were not offered similar protection. He also criticised higher withholding taxes, increased penalties, and the creation of another compliance directorate.

Usama Mela criticised the tax structure, saying profitable companies continued to enjoy exemptions while taxes were being imposed on infant milk and solar panels. He also called for promoting non-profit social organisations.

Acting Pakistan Tehreek-e-Insaf (PTI) leader Barrister Gohar Khan opposed provisions allowing the freezing of assets during trial proceedings, arguing that such measures could discourage business activity and investment. He also questioned the legal and constitutional sustainability of the proposed faceless audit system.

Several lawmakers, including Shahida Akhtar Ali, Shandana Gulzar, and Dr Nisar, called for greater tax relief on essential food items, medical equipment, and renewable energy products, while urging measures to protect farmers and the middle class.

They also called for support to small and medium-sized enterprises, greater incentives for local industries, revisions to the federal excise framework, and fulfillment of commitments made to the merged districts of the former Federally Administered Tribal Areas (FATA).

Copyright Business Recorder, 2026

“We are pleased to inform you that an international investment group has expressed its interest in acquiring majority shareholding stakes in TPL Trakker Limited, a subsidiary of TPL Corp Limited,” TPL Corp said in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.

“This intention remains subject to requisite corporate and statutory/regulatory approvals, due diligence, negotiations with sellers, and execution of definitive agreements,” it added.

Incorporated in December 2016 as TPL Vehicle Tracking (Private) Limited, TPLT is primarily involved in the installation and sales of vehicle tracking devices and provides fleet management services.

The company also offers a wide range of Internet of Things (IoT) solutions to various industries, including cold chain monitoring, fuel monitoring, genset monitoring and driver behaviour monitoring.

In August 2025, Trakker Middle East LLC secured its first African project in Chad, providing IoT-based fuel monitoring solutions, marking a significant step in extending its geographic footprint beyond the Middle East.

According to official documents of the World Bank, the provincial government sought a major overhaul of the USD727 million project to address a financing gap of USD452.5 million, comprising USD267.5 million in cost overruns and USD185 million in commercial financing that is unlikely to materialize.

The World Bank has agreed in principle to restructure the project by discontinuing financing for the Madyan project, extending the project completion deadline by three years, and revising the financing structure, implementation schedule, and results framework.

READ MORE: PEDO opposes exclusion of two hydropower projects from IGCEP

The project, approved by the World Bank in September 2020 and effective since January 2021, was originally designed to support the development of the 88MW GabralKalam Hydropower Project (GKHPP), the 215MW Madyan Hydropower Project and a solar photovoltaic initiative in KP.

Under the restructuring proposal, all activities linked to MHPP will be cancelled, while the GabralKalam hydropower project, solar energy investments, and technical assistance programmes will continue.

The World Bank document notes that despite more than five years having elapsed since the project’s effectiveness, project disbursements stand at only four percent, reflecting significant implementation delays caused by procurement bottlenecks and the redesign of the Madyan project following the devastating floods of August 2022, which raised dam safety concerns. However, project implementation has recently gained momentum. Key contracts for GabralKalam have been awarded, land acquisition has been completed, and approximately 70 percent of the work on the project colony has been executed. Procurement processes for major electro-mechanical and civil works packages have also advanced.

The restructuring will reduce the overall project size from USD727 million to approximately USD480.6 million. Out of the World Bank’s total financing envelope of USD450 million, around USD277.7 million will be allocated to GabralKalam, including civil works, environmental and social measures, and project implementation support. Another USD25 million will be used for institutional strengthening and capacity building.

The remaining USD147.3 million will be reserved for potential new renewable energy investments, including hydropower projects, solar photovoltaic schemes, and contingency financing.

As part of the revised financing arrangement, the World Bank’s share in the project will increase dramatically. Following restructuring, the Bank will finance about 93.7 percent of the remaining project cost while the KP government will contribute only 6.3 percent. The originally envisaged commercial borrowing component will be eliminated.

To facilitate completion of the remaining activities, the project closing date will be extended from November 30, 2027, to November 30, 2030. The extension is based on updated implementation schedules showing that the GabralKalam project alone requires nearly 56 months for completion, including contingency provisions.

The restructuring also outlines significant environmental and social implications arising from the cancellation of the Madyan project. The KP government has been advised to discontinue the ongoing land acquisition process for MHPP, allowing the identified land to remain with the existing owners.

At the same time, environmental and social safeguards for the GabralKalam project will remain fully intact. The project will continue to be classified as a Category-A operation with substantial environmental and social risks, requiring implementation of approved resettlement, biodiversity, and community development plans.

The World Bank noted that complaints had been received regarding the environmental and social impacts of the Madyan project, and efforts were underway to address concerns raised by affected stakeholders.

Despite the downsizing, the Bank maintains that the project remains aligned with Pakistan’s clean energy agenda and the World Bank Group’s objectives of promoting affordable, reliable, and sustainable energy. The restructured project is expected to contribute to renewable energy generation, institutional capacity building, and reductions in greenhouse gas emissions.

The Bank has retained an overall “Substantial” risk rating for the project, citing technical complexity, implementation capacity constraints, environmental and social challenges, fiduciary risks, and uncertainties surrounding the project’s inclusion in future national power generation expansion plans.

Copyright Business Recorder, 2026

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb will present regular and technical supplementary grants for the financial years 2024-25 and 2025-26 in the Lower House of the Parliament for approval on Wednesday (today).

According to the order of the day of the National Assembly for today (Wednesday), a total of Rs12.65 trillion of demands for supplementary grants for the financial year 2025-26.

In detail, repayment of Domestic Debt — Rs 12.643 trillion, Election — Rs 455.984 million, and Federal Constitutional Court of Pakistan — Rs 2.25 billion.

READ MORE: Budget: National Assembly likely to pass Finance Bill on June 23

The Finance Minister would also present a total of Rs 2.644 trillion demands for supplementary grants for financial year 2024-25 in the house for approval.

In details; Staff Household and Allowances of the President (Personal) — Rs 208 million, Repayment of Short-Term Foreign Credits — Rs 40.350 billion, Audit — Rs 63 million, Repayment of Domestic Debt — Rs 2.604 trillion (Rs 2 trillion 603.865 billion)

About excess demands, the Finance Minister would present a total of Rs 2.088 trillion (Rs 2 trillion 87.572 billion) excess demands for grants for financial year 2024-25.

In details; Superannuation Allowances and Pensions — Rs 662.850 million, Foreign Loans Repayment — Rs 1.548 billion, Repayment of Short-Term Foreign Credits — Rs 32.810 million, Servicing of Domestic Debt — Rs 169.322 billion, Repayment of Domestic Debt — Rs 1.916 trillion (Rs 1 trillion 915.924 billion), Federal Ombudsman Secretariat for Protection against Harassment of Women at Workplace — Rs 48.668 thousand and Federal Tax Ombudsman — Rs 81.522 million.

Copyright Business Recorder, 2026

Globally, genetically modified (GM) crops are cultivated on approximately 201.5 million hectares, accounting for around 3 percent of the world’s cultivated land.

A total of 71 countries have adopted biotechnology in agriculture, including 29 countries that grow biotech crops, while another 42 countries—comprising 16 individual nations and 26 European Union member states—import GM commodities such as maize, soybean, and canola for food, feed, and processing.

READ MORE: GMOs imports: Govt to liberalise regulatory framework

Biotech crops have expanded beyond the traditional “big four”—maize, soybean, cotton, and canola—to include a wider range of crops such as alfalfa (1.3 million hectares), sugar beet (473,000 hectares), sugarcane (20,000 hectares), papaya (12,000 hectares), safflower (3,500 hectares), potatoes (2,265 hectares), and eggplant (1,931 hectares), along with smaller-scale cultivation of squash, apples, and pineapple. In addition, public-sector research is ongoing in crops such as rice, banana, wheat, chickpea, pigeon pea, and mustard, focusing on economically important traits and improved nutritional quality.

The Ministry of National Food Security and Research (MoNFS&R) informed the Cabinet that agricultural biotechnology is rapidly transforming global farming practices. Pakistan, it noted, possesses significant potential in this field due to its strong scientific base, established regulatory framework, and well-equipped research institutions. Key policy documents—including the Science and Technology Policies of 2011 and 2024, the National Food Security Policy 2018, the National Seed Policy 2025, and Pakistan Vision 2030—underscore the importance of biotechnology.

However, despite these strengths, Pakistan has yet to fully capitalise on the opportunities offered by agricultural biotechnology, primarily due to the absence of a comprehensive and unified strategic direction, the Ministry added.

The NABP–2025 categorises biotechnology into regulated and non-regulated domains. Regulated areas include GMO development and commercialisation, gene editing, import and export of GM products, and recombinant vaccines for animals. Non-regulated areas primarily cover plant tissue culture and genomic research. Both domains have been assigned priority based on national requirements.

The Cabinet was further apprised that the Special Investment Facilitation Council (SIFC), in its 6th Executive Committee meeting held on October 23–24, 2023, had directed the Ministry to develop a comprehensive GMO policy. Subsequently, a committee led by the Chairman of the Pakistan Agricultural Research Council (PARC) was constituted on November 20, 2023, to draft the policy.

Following initial drafting, another committee headed by the Chairperson of the National Seed Development and Regulatory Authority (NSDRA), comprising technical experts, was tasked with refining the document. A consultative meeting held on May 7, 2025, finalised the draft policy for submission to the Federal Cabinet.

Further consultations were held with provincial secretaries on June 2, 2025, followed by additional sessions focusing on animal biotechnology and engagement with private sector stakeholders on June 27, 2025, to ensure effective implementation.

The Cabinet was informed that the Prime Minister had granted approval for submission of the summary under Rule 17(1)(a) of the Rules of Business, 1973, to seek formal Cabinet approval.

During deliberations, it was noted that most countries already have biotechnology policies in place, making it imperative for Pakistan to adopt a similar framework. Such a policy would enable the country to benefit from advances in genetic engineering while ensuring safeguards against potential risks.

The import of GM soybean/Canola was the main issue under the Trade & Investment Framework Agreement (TIFA) between Pakistan and the USA. The GM soybean issue was resolved under trade diplomacy; however, the GM Canola issue is under review. The whole business of export/import related to genetically modified products needs to be clarified, facilitated, and eased. The import of seeds/seedlings/cuttings for cultivation and grains for FFP will be regulated according to Rule 14(2) and Rule (14)2A of Pakistan Biosafety Rules-2005 (Amended 2024), case by case.

The sources said, Government of Pakistan is confident that the National Agricultural Biotechnology Policy of Pakistan 2025 will receive strong support from Provincial Governments, Agricultural Universities, plant breeders, seed producers, the seed industry, technology developers and all other stakeholders. It is anticipated that this policy will act as a catalyst in achieving the objectives of sustainable agricultural development, ensuring food and nutritional security for the population, and raising living standards for farming communities.

Copyright Business Recorder, 2026

The proposed amendment to the Regulation of Generation, Transmission and Distribution of Electric Power Act will now be taken up by the Senate Standing Committee on Power for further consideration.

In a letter addressed to Chairman Senate Standing Committee on Finance and Revenue, Senator Saleem Mandviwalla, Karachi-based industrialist Rehan Javed warned that the proposed changes could undermine constitutional principles and concentrate excessive authority within the Power Division.

READ ALSO: Licencing rules amended: Nepra introduces new category of ‘on-site supplier’

The bill seeks to replace the term “Federal Government” with “Division concerned” or “Power Division” in key provisions of the Act, including Sections 7, 22, and 31(7).

Javed argued that the proposed change is in direct conflict with the Supreme Court’s landmark judgment in Mustafa Impex v. Government of Pakistan (PLD 2016 SC 808), which defined the “Federal Government” under Article 90 of the Constitution as the Federal Cabinet acting collectively, rather than any individual ministry or division.

He maintained that the principle of collective Cabinet responsibility is a fundamental constitutional safeguard, ensuring that decisions of national importance — including electricity tariff determination and regulatory oversight — are subject to broad-based deliberation and accountability.

Highlighting the practical implications, Javed cautioned that the amendment would grant the Power Division unchecked influence over electricity tariffs. Under the proposed framework, he said, Nepra could effectively be bound to follow the directions of the Power Division without Cabinet oversight.

“The Power Division already owns key entities in the power sector, including distribution companies (DISCOs), generation companies (GENCOs), and the Central Power Purchasing Agency (CPPA-G),” he noted, adding that placing tariff control and regulatory authority within the same ministry creates a serious structural conflict of interest.

He warned that such a concentration of power could have far-reaching consequences for electricity consumers and businesses across the country.

Raising a pertinent question, Javed asked why decisions claimed to be lawful and in the public interest could not be routed through the Federal Cabinet, which exists to ensure transparency and collective accountability.

He urged that the bill be deferred pending a formal constitutional opinion from the Law and Justice Division on its compatibility with the Supreme Court’s ruling and Article 90 of the Constitution.

He also called for comprehensive consultations with key stakeholders, including industrial representatives, Nepra, provincial governments, and international development partners.

While acknowledging the urgent need for reforms in Pakistan’s power sector, Javed stressed that such reforms must be grounded in constitutional principles rather than bypassing them. He expressed confidence that Parliament and the government leadership would give the matter the serious consideration it deserves.

Copyright Business Recorder, 2026

One of the biggest legal/operational action against non-complaint importers would be removal from green channel facility from July 1, 2026.

Sources told Business Recorder that the tax authority is considering strict enforcement measures against importers who have failed to comply with the Digital Invoicing System.

According to sources, FBR has taken notice of the slow pace of registration, integration, and issuance of electronic invoices by importers under the Digital Invoicing regime. The matter is reportedly being treated as a priority area under FBR’s Transformation Plan, which aims to improve documentation, transparency, and real-time reporting of taxable supplies across the economy.

Sources indicate that a substantial number of active importers have yet to integrate with the Digital Invoicing System. It has also been reported that several importers who have already completed integration are still not issuing electronic invoices through the prescribed system.

Under SRO 1852(I)/2025, importers were required to integrate with the Digital Invoicing System by 25 October 2025 and issue all invoices through the system from 1 November 2025.

Officials familiar with the matter suggest that FBR is now considering punitive enforcement action against non-compliant importers. The measures reportedly under consideration include initiation of penalty proceedings, suspension of sales tax registration, and removal of non-compliant importers from the green channel at the import stage until they complete compliance with Digital Invoicing requirements. Importers who have not yet completed registration or integration, or who are not issuing electronic invoices despite integration, may therefore face legal and operational consequences if compliance is not completed at the earliest, they added.

Copyright Business Recorder, 2026

According to Power Division, a world-class Bankable Feasibility Study (BFS), prepared by Dornier Group and EY Parthenon and presented today to Federal Minister for Power Sardar Awais Ahmed Khan Leghari, confirms that this transformation is not only technically feasible and economically compelling but also environmentally manageable.

The achievement of this milestone was made possible through the active support and collaboration of key stakeholders, including K-Electric (KE), Jamshoro Power Company Limited (JPCL), and the Private Power and Infrastructure Board (PPIB). To steer this complex initiative, the Federal Minister constituted a high-level steering committee, which convened 38 dedicated sessions to proactively monitor and expedite the completion of the BFS. Of these, 15 sessions were personally chaired by the Minister, reflecting the Government’s unwavering commitment to this transformative project. The Minister has expressed his sincere gratitude to KE, JPCL, PPIB, and all other partners for their invaluable support in bringing this feasibility study to fruition.

The initiative flows directly from the Prime Minister’s Power Sector Reform Plan and reflects sustained efforts by the Ministry of Energy to advance fuel indigenisation, with the BFS marking a key milestone in that process.

The economic case for the conversion is exceptionally strong. The project delivers a cost-benefit ratio of 1.8x, which remains favourable across all sensitivity scenarios. Total net benefits over the 26-year project life amount to USD 3.239 billion, comprising USD 1.720 billion in net benefits to the power sector, including generation cost savings of USD 1.051 billion and Thar mine expansion benefits of USD 669 million — alongside USD 1.519 billion in government savings from reduced interest costs on foreign borrowings. Critically, the project generates USD 2.113 billion in foreign currency savings, directly strengthening Pakistan’s balance of payments and reducing exposure to volatile international coal prices and exchange rate fluctuations. The required conversion CAPEX is estimated at USD 86.2 million (with total project cost of USD 116.6 million), representing a highly attractive return on investment.

The BFS, prepared by the internationally renowned Dornier Group as lead technical consultant, confirms that Jamshoro Unit-01 — Pakistan’s ultra-supercritical power plant — can be converted to burn 100 percent Thar lignite through targeted engineering modifications rather than a large-scale boiler retrofit, thereby preserving the value of the existing plant asset. The project is structured as a bankability-led brown-field modification, with a stage-gate implementation approach that introduces no new coal capacity.

Beyond the direct financial savings, the conversion carries transformative economic co-benefits for Pakistan. The shift to Thar lignite will catalyse the expansion of coal mines in Tharparkar, generating employment, accelerating infrastructure development in one of Pakistan’s most underserved regions, and deepening the country’s domestic energy supply chain. By eliminating reliance on imported coal — subject to international commodity price fluctuations, foreign exchange volatility, and supply chain disruptions — Pakistan will move decisively towards energy self-sufficiency, consistent with the Government’s broader indigenisation agenda under the Power Sector Reform Plan.

With the BFS now formally presented, the Ministry of Energy (Power Division) will proceed to the implementation readiness phase. Immediate next steps include obtaining final policy approval, initiating the lender-consent work stream and loan amendment roadmap, preparing the NEPRA/TCEB/SEPA/PPRA/PPA/CSA/EPC consent and contract matrix, launching basic design tender verification — including CFD modelling, mill tests, FGD/ESP and balance-of-plant modifications, and HAZIG/HAZOP studies — and developing a comprehensive procurement and contracting strategy with appropriate interface allocation and guarantees.

Copyright Business Recorder, 2026

The government has abolished Super Tax on exporters under the amended bill. Income tax relief of Rs 1200 has been granted on imported mobile phones ranging between USD100 to USD200.

The government has amended the Finance Bill 2026 through an amendment in the federal excise schedule of the Federal Excise Act.

READ MORE: Govt mulling giving relief to fruit juice industry

Previously, all kinds of mineral waters, aerated waters, hydration drinks or electrolyte beverages were subjected to 20 percent FED irrespective of the artificial sweetener or sugar content.

According to the amendment, Minister for Finance and Revenue to move that in the Finance Bill, 2026, as reported by the Standing Committee, in clause 6, in sub-clause (14), in paragraph (1), for sub-paragraph (e), the following shall be substituted, namely: — “(e) 3 excluding mineral waters, aerated waters, hydration drinks or electrolyte beverages specifically formulated to support hydration electrolytes replenishment containing artificial sweetener or sugar or both not exceeding 5g / 100 ml”.

Copyright Business Recorder, 2026

Addressing a joint press conference with Iranian President Masoud Pezeshkian in Islamabad, PM Shehbaz said there should be no double standards regarding missile capabilities, adding that “some countries should not have ballistic missiles while Iran should not.”

The prime minister thanked the Iranian leadership for placing its trust in Pakistan’s role as an honest mediator, saying the agreement had helped pave the way for a ceasefire.

“I am very grateful to the Iranian leadership for having trust in Pakistan’s ability to mediate with honesty,” he said, adding, “as brothers, we will never let you down.”

He conveyed his regards to Iran’s Supreme Leader Ayatollah Mojtaba Khamenei, saying his leadership had enabled Iran to reach the Islamabad MoU and, subsequently, “a ceasefire with dignity and honor.”

Expressing condolences over civilian casualties in the recent conflict, he said Pakistan stood with the Iranian people. “We offer our deepest condolences on the killing of innocent Iranian brothers and sisters, including children, whose numbers have reached into the thousands,” he said.

The premier said the two countries will save the Islamabad MoU from spoilers.

“There is no dearth of spoilers around the globe who are deeply dejected over this truce that can lead to lasting peace and prosperity and create unnecessary doubts and confusion,” the Prime Minister said. “President Masoud Pezeshkian and I are completely resolved to remain iron walls against those spoilers.”

The prime minister also expressed confidence in Iran’s future economic prospects, saying the country would transform into “one of the fastest-growing economies in the world” under its current leadership.

The prime minister thanked the Iranian leadership for placing its trust in Pakistan to facilitate the peace process and commended both Iranian and American delegations for their constructive participation in technical talks held in Switzerland.

He also acknowledged the support of regional leaders, including Qatar’s Emir Sheikh Tamim bin Hamad Al Thani, Saudi Crown Prince Mohammed bin Salman, Turkish President Recep Tayyip Erdogan and Egyptian President Abdel Fattah el-Sisi for encouraging peace efforts.

Speaking on the occasion, Iranian President Masoud Pezeshkian called for the establishment of a new regional security architecture in Western Asia and the Persian Gulf based on dialogue, mutual respect and cooperative engagement among regional states.

He praised Pakistan’s role in supporting de-escalation efforts and regional consultations, describing it as a “responsible and visionary” contribution to stability.

Pezeshkian said Iran and Pakistan share deep historical, cultural and fraternal ties, adding that both countries can serve as a model for broader regional cooperation and work together to advance peace, development and economic connectivity.

Quoting verses of Allama Muhammad Iqbal, whom he referred to as “Iqbal Lahori,” the Iranian President said the poet’s message of unity among Muslim nations remained as relevant as ever.

“The two nations do not merely live next to each other; they share a common destiny in their aspirations, concerns and hopes,” he said.

President Pezeshkian was welcomed at the Prime Minister House in Islamabad with a guard of honour, as he paid a brief visit to Pakistan on Tuesday, a day after Iran and the United States held high-level talks in Switzerland.

The Iranian president visited Pakistan at the invitation of Prime Minister Shehbaz Sharif.

He was received and welcomed by President Asif Ali Zardari, PM Shehbaz and Deputy PM/ Foreign Minister Ishaq Dar, Interior Minister Mohsin Naqvi, Minister for Information and Broadcasting Attaullah Tarar and Chairman of the Pakistan Peoples Party Bilawal Bhutto Zardari at the airport.

Upon his arrival, the Iranian president was accorded a 21-gun salute, while children dressed in traditional attire presented him with bouquets of flowers.

Chief of Defence Forces Field Marshal Asim Munir also called on the Iranian president, the Inter-Services Public Relations (ISPR) said.

During the meeting, the two leaders exchanged views on regional developments and ongoing peace initiatives, according to an ISPR statement.

CDF Munir, along with PM Shehbaz, participated in direct talks between the United States and Iran held in Switzerland over the weekend, where the two sides discussed a framework for regional peace.

Both leaders have been engaged in efforts to promote peace in the Middle East following the outbreak of the US-Iran war on February 28, when US-Israeli strikes targeted Iran cities.

During the meeting, Iranian President Masoud Pezeshkian appreciated Pakistan’s “constructive and responsible role in promoting dialogue, de-escalation, and regional stability,” the ISPR said.

He also acknowledged Pakistan’s “consistent efforts to encourage the peaceful resolution of disputes and foster understanding among regional stakeholders at a time of heightened geopolitical challenges”.

For his part, CDF Munir reaffirmed Pakistan’s unwavering commitment to regional peace and stability, the statement said.

“Both sides reaffirmed their commitment to further strengthening Pakistan-Iran relations and maintaining close consultations on issues of mutual interest, with the shared objective of advancing peace, prosperity and stability across the region,” the ISPR added.

It is pertinent to mention that a squadron of Pakistan Air Force JF-17 Thunder fighter jets also rendered a ceremonial salute in the honour of visiting dignitary.

Dr Pezeshkian was accompanied by a high-level delegation during his visit, including ministers and other high-ranking officials.

During the visit, President Pezeshkian met President Zardari and held talks with the prime minister.

During the visit, the two sides reviewed the full spectrum of bilateral relations and explored new avenues to further deepen cooperation across diverse sectors, including trade, energy, border security, people-to-people exchanges, and regional connectivity.

The visit also provided an important opportunity to discuss ongoing diplomatic engagements following the signing of the Islamabad memorandum of understanding, as well as regional and international developments of mutual interest.

The visit reflected the shared commitment of Pakistan and Iran to further deepening their historic and cultural ties, and it underscored their common aspiration for peace, stability, and sustainable progress in the region.

Earlier, Iranian Foreign Minister Seyyed Abbas Araghchi arrived in Islamabad today as part of the delegation accompanying Pezeshkian.

Upon arrival at Nur Khan Airbase, Araghchi was warmly received by DPM Dar.

“Iran has fully and completely agreed to highest level Nuclear inspections long into the future (Infinity!!!),” he wrote in a social media post. “This will insure ‘Nuclear Honesty.’ If they did not agree to this, there would be no further negotiations!”

Iran has denied it had begun discussions on its nuclear programme or agreed to invite International Atomic Energy Agency inspectors back to the country.

Trump also said that the United States would leave ships in the Strait of Hormuz in case it becomes necessary to reimpose its blockade of Iranian ports, something he said was “at this point, highly unlikely.” He added that 19 million barrels of oil flowed out of the Hormuz Strait on Monday.

The United States waived sanctions on Iran for 60 days from Monday after the first talks under a nascent peace deal.

Trump on Tuesday said the funds that the U.S. Treasury is releasing will go into escrow under U.S. control and will be used to buy food and medical supplies exclusively from the United States, including corn, wheat, and soybeans.

Iran says technical talks with US in Switzerland have concluded

“These are things that are desperately needed by Iran. This is a humanitarian crisis, and I feel it is necessary to help, NOW, before it is too late,” Trump wrote.

The development comes as Food minister Rana Tanveer Hussain chaired a high-level meeting with Minister of Agriculture Jihad of Iran, Gholamreza Nouri Ghezeljeh, to review progress on bilateral agricultural cooperation and explore new avenues for enhancing trade between the two neighboring countries, the ministry said.

“The meeting focused on strengthening collaboration in agriculture, livestock, food security, agricultural research, and trade facilitation.

“Both sides reaffirmed their commitment to deepening economic ties and translating existing agreements into tangible outcomes for the benefit of farmers, traders, and consumers in both countries.”

During the discussions, Rana Tanveer Hussain recalled his official visit to Iran in 2025, during which both countries agreed to expand bilateral trade in key agricultural commodities. He noted that Iran had expressed interest in importing Pakistani rice, mangoes, and meat to meet its growing domestic demand. The minister emphasised that Pakistan possesses significant potential in agricultural production and is fully capable of supplying high-quality products to the Iranian market.

The Iranian minister highlighted Iran’s intention to import meat from Pakistan and stated that Pakistan has the capacity to fulfill up to 60% of Iran’s total meat import requirements. He expressed confidence in the quality and standards of Pakistani livestock products and underscored the importance of establishing efficient trade mechanisms to ensure uninterrupted supplies, according to the ministry statement.

“Both ministers reviewed the progress made under the joint understandings reached during previous engagements and agreed that the commitments reflected in the joint communiqué would be implemented within the next two months. They directed relevant authorities to expedite procedural requirements and remove bottlenecks hindering trade growth.”

The Iranian minister appreciated Pakistan’s role in promoting regional peace and stability and thanked the Government of Pakistan for facilitating efforts aimed at strengthening regional understanding and cooperation.

The meeting also reviewed the status of the Pakistan-Iran Joint Working Committee on Agriculture. The Iranian minister noted that the committee had already been constituted and stressed that the time had come to make it fully functional and active so that agreed targets could be achieved within stipulated timelines. Both sides agreed to hold regular meetings of the committee and establish effective coordination mechanisms between technical experts and relevant institutions.

Hussain emphasised that enhanced agricultural cooperation between Pakistan and Iran would contribute significantly to regional food security, increased investment, technology transfer, and sustainable economic growth. He reiterated Pakistan’s commitment to facilitating bilateral trade and strengthening institutional linkages in the agriculture and livestock sectors.

The two ministers expressed satisfaction over the positive trajectory of Pakistan-Iran relations and agreed to continue close cooperation to unlock the full potential of agricultural trade, promote private-sector engagement, and enhance connectivity between the two countries.

Traffic through the vital strait has been modest since Iran lifted its effective blockade last week after agreeing to a 60-day ceasefire with the U.S., as talks on a ​permanent deal to end their war continue.

The number of ships going through Hormuz is a fraction of the daily ​average of 125 before the conflict began on February 28. As many as 100 tankers ⁠remain stuck inside the Gulf with cargoes onboard, according to market estimates, adding to a shortage of available vessels as ​Middle Eastern crude producers ramp up exports.

Rates for hiring a tanker outside the Strait of Hormuz have jumped to $190,500 a day ​from $106,500 a week ago, according to ship brokers and industry sources, with those hired outside the Gulf region also surging.

Tanker traffic through Strait of Hormuz picks up

Average daily earnings for very large crude carriers (VLCCs) have jumped to a record of nearly $470,000 a day for cargoes inside the Gulf that need to go through Hormuz, rising ​by over $50,000 from a week ago, according to estimates from the ship brokers and industry sources.

“Tanker owners are preparing for ​an influx of Middle East crude cargoes in the coming weeks and are emboldened by the fact that spot TCEs (earnings) averaged above $100,000/day despite ‌the loss ⁠of … cargo volume since the U.S.-Iran hostilities commenced,” ship broker Clarksons said.

“This indicates the (tanker) supply side remains exceptionally tight and a re-opening of Hormuz would tighten capacity further,” it said in a note.

Trump insists Iran has agreed to nuclear inspections

MIDDLE EAST PRODUCERS’ FLURRY OF TENDERS

Middle Eastern producers, particularly Abu Dhabi National Oil Company, have offered crude in a flurry of tenders this month and are urging buyers to load from inside ​the Gulf, spurring demand for ​tankers.

South Korean shipping group ⁠Sinokor — one of the world’s biggest operators of supertankers — did not respond to a request for comment. Its Belgium B supertanker entered the Gulf on Monday in the latest of the ​group’s vessels looking to load and was sailing towards Iraqi terminals, ship tracking data on ​MarineTraffic showed on ⁠Tuesday.

While tanker rates have risen, war risk insurance costs have softened in the past five days to around 3% of the value of a ship from around 5% over a week ago, excluding discounts, insurance industry sources said. This would mean a reduction in ⁠hundreds of ​thousands of dollars in insurance costs for ships.

US authorises Iranian oil sales amid talks on final peace deal

Buyers in India, including its ​biggest refiner Reliance, have been seeking crude from the region following months of disruption in supplies. Reliance did not respond to a Reuters request for comment.

The NA session has been adjourned till 11am Wednesday (tomorrow).

Finance Minister Muhammad Aurangzeb presented the bill in the House, which includes several government-backed amendments, during a budget session marked by heated protests from opposition parties.

Amendments proposed by Aurangzeb were accepted, while all opposition-proposed amendments were rejected, said Aaj News.

Days ago, Aurangzeb unveiled a Rs18.77 trillion federal budget for fiscal year 2026-27, extending relief to the salaried class and tax incentives to exporters, real estate, and construction sectors to revive industry, promote investment, and steer the economy towards a 4% growth target.

Despite facing an estimated revenue shortfall of around Rs1 trillion in the outgoing fiscal year, the government set an ambitious revenue target of Rs15.264 trillion for FY2026-27. Against the revised revenue estimate of Rs12.983 trillion for the current fiscal year, the target reflects a robust 17.6% growth in revenue collection for the next year.

Shortly after the budget presentation, the Federal Board of Revenue (FBR) released the Finance Bill 2026-27. On the same day, the Finance Minister moved a copy of the proposed Finance Bill 2026 in the Senate.

On June 15, the Senate commenced its debate on the proposed federal budget.

The National Assembly Standing Committee on Finance on Sunday cautioned the government against introducing legislative amendments without adequate technical examination and parliamentary scrutiny under the Finance Bill (2026).

The committee seriously observed that last-minute changes could compromise legislative quality, create legal ambiguities, and lead to implementation challenges.

Chairman Syed Naveed Qamar emphasised that a balanced and sector-neutral framework would not only enhance competition but also contribute to a stronger, more resilient, and efficient aviation industry.

Karachi Gateway Terminal Ltd, backed by Abu Dhabi Ports Group, has already completed a $60 million dredging project at Karachi Port and is expanding container and bulk-handling facilities, CEO Khurram Aziz Khan told Reuters in an interview.

“We are targeting another $75 million to $100 million” within five years, Khan said, adding that the next phase would focus on expanding the container terminal, enhancing yard capacity, larger ship and yard cranes, dedicated bulk export infrastructure, silos, warehouses and automated conveying.

New feeder service to serve KGTL, strengthens maritime connectivity between Pakistan, UAE

KGTL is also exploring investment in rail freight, including locomotives, rolling stock and storage hubs near agricultural areas, to link those areas to ports and help Pakistan export products such as corn and rice more competitively, he said.

“For transit as well, you need to provide a complete solution,” Khan said. “We are ready to invest in that as well, to bring our own rolling stock and locomotive for the freight trains business.”

Disruption into traffic

The Iran war created a new opportunity for Pakistan to act as a transshipment hub, as cargo was rerouted through Karachi for onward shipment to other destinations during the conflict, Khan said.

Minister marks Karachi Port dredging milestone

“Pakistan has never really handled transshipment volume,” he said. “This conflict has created this opportunity for Pakistan.”

The dredging project is expected to allow Karachi Port to handle bulk vessels of up to 120,000 metric tons, from about 60,000 tons previously, once Karachi Port Trust issues revised handling parameters expected within days, Khan said.

KGTL is upgrading its bulk terminal to cut handling time for a 60,000-ton vessel to about 2.5 to 3 days from 12 to 15 days, while building silos with annual capacity of 8.5 million tons for clean bulk cargo to secure national food security, bulk-export warehouses and systems for fertilizer imports.

But sustaining the gains will depend on better road and rail links, Khan said.

Brent crude futures declined $1.18, or around 1.2%, to $76.72 a barrel while U.S. West Texas Intermediate fell $1.18, or 1.6%, to $72.68 a barrel by 10:06 a.m. ET (1406 GMT), after earlier dropping to a near four-month low of $72.48.

Prices fell more than 3% on Monday after the United States granted Iran a 60-day sanctions waiver following initial peace talks, and as officials reported a lull in hostilities in Lebanon under a broader agreement.

Oman and Iran agreed on Tuesday to press on with discussions about the future administration of navigation in the Strait of Hormuz, including maritime services in the strategic waterway and the costs associated with them.

A limited number of vessels are being allowed to pass through the strait each day under coordination with Iran’s Revolutionary Guards Navy, an Iranian military source told Fars news agency on Tuesday.

Two stranded supertankers passed through the strait on Tuesday, while seven empty Qatar-linked liquefied natural gas tankers have entered in recent weeks in an early sign Gulf gas shipping may be resuming, ship-tracking data showed.

U.S. President Donald Trump said 19 million barrels of oil flowed out of the strait on Monday, and pointed to falling oil prices in a social media post on Tuesday.

Still, in the short term, the easing of sanctions wouldn’t weigh on prices much, said Ole Hvalbye, market analyst at SEB Research, as the U.S.-Iranian memorandum of understanding was still new and fragile.

The world has lost millions of barrels of oil and gas supply since the war closed the strait, a chokepoint for about a fifth of the world’s oil and LNG supplies, for more than three months.

“Ship owners and operators will require assurances that the threats posed by mines have been fully eliminated. Damaged ports, debris in the water, and congestion present additional obstacles to an unconditional ramp-up in traffic,” said Tamas Varga, an analyst at PVM Oil Associates.

Iraq further increased output from its southern oilfields to around 2.1 million barrels per day as more tankers line up to load crude from its Gulf export terminals, two Iraqi oil officials told Reuters.

Rabobank cut its oil price forecasts, citing eased disruption risks in the Gulf, and now sees Brent at $79 a barrel in the third quarter and $78 in the fourth quarter.

Geopolitical risk persisted as Lebanon’s Hezbollah said Israeli forces opened fire on civilians in southern Lebanon on Tuesday and that the incident violated the ceasefire agreement between the two sides.

In the United States, crude oil, gasoline and diesel stockpiles were expected to have fallen last week, a preliminary Reuters poll showed on Monday.

Four analysts polled by Reuters estimated, on average, that crude inventories fell by about 5 million barrels in the week ended June 19.

The market opened on a relatively firm footing, with the index briefly climbing to the intra-day high of 179,405.55 during early trade.

However, profit-taking emerged soon afterwards, triggering a gradual decline.

The selling pressure intensified in the afternoon session, dragging the index below the 178,000-point mark and pushing it to an intra-day low of 177,674.37 points. Although some value-hunting helped the market recover marginally, the benchmark remained firmly in the red by the end.

At close, the benchmark index settled at 177,692.92, down by 778.94 points or 0.44%.

“The local bourse witnessed a weak and volatile session as rollover-related pressure and fiscal year-end considerations weighed on investor sentiment,” brokerage house Topline Securities said in its post-market report.

“Overall participation remained cautious, with investors largely on the sidelines amid portfolio repositioning and profit-taking ahead of the fiscal year-end, resulting in a lackluster close across the broader market.”

On the index contribution front, index heavyweights UBL, BAHL, ENGROH, FFC, and BAFL emerged as the major laggards, collectively dragging the benchmark by 595 points. On the flipside, OGDC, MLCF, PPL, SNGP, and COLG provided some support, collectively contributing 217 points to the index, Topline said.

On Monday, the PSX ended lower as investors resorted to profit-taking after the market’s strong rally in recent sessions. The benchmark KSE-100 Index declined by 450.89 points, or 0.25%, to close at 178,471.87 points.

Internationally, Asian stocks mostly eased, and ​oil prices regained strength early on Tuesday after the US waived sanctions on Iran, while traders grappled ‌with rising expectations that the Federal Reserve may take more aggressive action to tackle inflation later this year.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.5%, while S&P 500 e-mini futures slipped 0.2%.

The Nikkei 225 was off ​0.6%, retracing some losses after data showed Japan’s manufacturing sector sustained robust growth in June, with new orders ​surging to their fastest pace in more than four years.

South Korean shares fluctuated between gains and ⁠losses and were last 2% lower, while Taiwanese stocks opened 0.9% higher, setting a new high.

Stocks on Wall Street moved lower overnight, with the S&P 500 down 0.4%, and the Nasdaq Composite slipped 1.3%, dragged by ​declines in megacap technology stocks including Alphabet and SpaceX.

Traders ⁠are grappling with expectations of an accelerated schedule of rate hikes by a more aggressive Federal Reserve under the leadership of new Chair Kevin Warsh.

Fed funds futures are pricing an implied 54% probability of at least two 25-basis-point hikes before the ⁠end of ​the year, compared with a 15.2% chance a week ago, according ​to the CME Group’s FedWatch tool.

Meanwhile, the Pakistani rupee posted marginal gain against the US dollar in the inter-bank market on Tuesday. At close, the local currency settled at 278.21, a gain of Re0.01 against the greenback.

Volume on the all-share index decreased to 765.14 million from 807.48 million recorded in the previous close.

The value of shares decreased to Rs35.44 billion from Rs36.17 billion in the previous session.

K-Electric Ltd was the volume leader with 83.43 million shares, followed by WorldCall Telecom with 71.24 million shares, and Sui South Gas with 32.35 million shares.

Shares of 493 companies were traded on Tuesday, of which 146 registered an increase, 308 recorded a fall, and 39 remained unchanged.

Addressing the National Assembly, the prime minister described the day as historic and significant, citing the substantial progress made in negotiations between the two countries.

He said important technical-level talks had taken place between Washington and Tehran, during which both sides held detailed discussions on a range of issues. “The negotiations resulted in a historic breakthrough that would be beneficial not only for the two countries but for the entire region,” he stated.

The development comes hours after Iran’s state media confirmed that technical talks between Iran and the United States in Switzerland have concluded, with negotiating groups to be set up on nuclear issues and sanctions.

The negotiators “decided that four working groups would be established: Sanctions Termination, Nuclear Affairs, Reconstruction and Economic Development, and Monitoring and Implementation,” said IRNA state news agency, quoting Deputy Foreign Minister Kazem Gharibabadi.

Meanwhile, PM Shehbaz said Pakistan had consistently promoted peace, dialogue and diplomacy in the region and had played a positive and constructive role in facilitating the resumption of talks between Washington and Tehran.

He added that the negotiations were made possible through Pakistan’s mediation and diplomatic efforts.

The prime minister said the Memorandum of Understanding reached in Islamabad between the United States and Iran was of great significance and would help improve bilateral relations and build mutual trust in the future.

“The next 60 days would pave the way for a comprehensive peace agreement, which would contribute to reducing global tensions and promoting peace and stability,” he further said.

Shehbaz also noted that a ceasefire had been reached between Iran and the US, describing it as a positive development that would further strengthen the negotiation process. He expressed hope that both countries would be able to resolve their differences through dialogue and diplomacy.

During his speech, the premier also touched on the domestic political situation and criticised the Pakistan Tehreek-e-Insaf (PTI). He said the day was not meant for raising divisive political issues but rather for demonstrating unity on matters of national and international importance.

Pointing towards the opposition party’s calling the government “illegitimate” and blaming it of rigging the 2024 general elections, he added that if the PTI was genuinely interested in investigations, then any such inquiry should begin from 2018 so that all matters could be brought before the nation.

In an interview with Al Arabiya, DPM Dar confirmed that no fees would be imposed on ships passing through the Strait of Hormuz during the current 60-day period.

He noted that maritime traffic was continuing uninterrupted, with ships moving in both directions.

“The ships are moving both ways, with six vessels from one Gulf country passing in 24 hours,” he stated.

Highlighting Pakistan’s role in facilitating the US-Iran agreement, Dar said Islamabad remained engaged even when negotiations appeared close to collapse. He credited the collective efforts of Prime Minister Shehbaz Sharif, Chief of Defence Forces Field Marshal Asim Munir, and the country’s foreign and interior ministries for helping sustain the diplomatic process.

Dar also said that attempts were made to derail the agreement, alleging that Israeli strikes in Lebanon coincided with the signing of the accord and risked disrupting negotiations. He urged the international community to encourage restraint and support diplomatic efforts.

“There are spoilers who never wanted the US-Iran deal to happen. As it was signed, we saw Israeli bombing in Lebanon to provoke the parties and pause the process. Wisdom must prevail. The world must persuade Israel to stop,” he stressed.

The foreign minister further said Pakistan had benefited from the support of regional partners, including Saudi Arabia, Qatar, the UAE, Bahrain, Egypt and Jordan, as well as backing from China and the United States. He revealed that he had held around 150 diplomatic calls since February 28, describing dialogue as the only viable path to resolving the crisis.

About the mediatory role played by Pakistan between the United States and Iran, Dar said Pakistan played a key role in facilitating dialogue between Washington and Tehran, which helped bringing the two sides together for the first time during forty-seven years.

The deputy prime minister said Pakistan worked with regional and international partners to support mediation efforts and helped ensure the success of the talks.

He said nobody should doubt on the intentions of the signing parties. “Negotiators have been given 30 days to conclude work on certain issues, while the broader agreement is expected to be finalised within 60 days, which can be mutually extendable,” he maintained.

Trump threatens to strike Iran over support for Hezbollah

The negotiators “decided that four working groups would be established: Sanctions Termination, Nuclear Affairs, Reconstruction and Economic Development, and Monitoring and Implementation,” said IRNA state news agency, quoting Deputy Foreign Minister Kazem Gharibabadi.

The Pakistani rupee posted marginal gain against the US dollar in the inter-bank market on Tuesday.

At close, the local currency settled at 278.21, a gain of Re0.01 against the greenback.

On Monday, the local unit closed at 278.22.

Meanwhile, the US dollar held firm on Tuesday as traders positioned for a more hawkish Federal Reserve and oil prices ​rebounded following steep losses, while the yen flirted with a four-decade low.

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, was ​a shade higher at 101.01, not far from the one-year high of 101.13 hit late last week.

“The dollar is ​holding firm on rising yields and hawkish Fed bets,” with limited guidance from the Fed fuelling ⁠volatility,” said Sim Moh Siong, FX strategist at OCBC.

The bank now expects a modestly stronger dollar amid rising risks for ​tighter US monetary policy, revising a previous call for the currency to be rangebound, he added.

Oil prices fell more than a $1 on Tuesday as investors monitored crude flows through the Strait of Hormuz amid signs of progress in US-Iran peace talks.

Brent crude futures declined $1.18, or around 1.2%, to $76.72 a barrel while US West Texas Intermediate fell $1.18, or 1.6%, to $72.68 a barrel by 10:06 a.m. ​ET (1406 GMT), after earlier dropping to a near four-month low of $72.48.

Inter-bank market rates for dollar on Tuesday

BID Rs 278.21

OFFER Rs 278.41

Open-market movement

In the open market, the PKR gained 4 paise for buying and remained unchanged for selling against USD, closing at 278.63 and 279.46, respectively.

Against Euro, the PKR gained 85 paise for buying and 55 paise for selling, closing at 318.52 and 322.33, respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 75.92 and 76.55, respectively.

Against Saudi Riyal, the PKR gained 4 paise for buying and lost 1 paisa for selling, closing at 74.24 and 74.87, respectively.

Open-market rates for dollar on Tuesday

BID Rs 278.63

OFFER Rs 279.46

SIFC said that the pipeline has remained on its priority agenda, with the Memorandum of Understanding signed under SIFC’s platform, highlighting its role in promoting international collaboration and facilitating investment in Pakistan’s critical energy sector.

Through proactive engagement and coordination among relevant stakeholders, SIFC said it has helped address key challenges and facilitated the necessary approvals, enabling progress on this strategically important project.

The White Oil Pipeline will establish a vital south-to-north corridor for white oil transportation across Pakistan. Upon completion, the project will improve fuel supply efficiency, reduce reliance on road-based transportation, lower logistics costs, minimise fuel losses, and enhance the overall reliability of the country’s energy supply chain.

 “The successful facilitation of the White Oil Pipeline reflects SIFC’s continued role in strengthening Pakistan’s business ecosystem, unlocking investment opportunities, and accelerating key infrastructure projects that support sustainable economic growth and national development,” read the statement.

The Machike-Thallian-Tarru Jabba White Oil Pipeline (MTT-WOP) is a strategic energy infrastructure project aimed at extending Pakistan’s oil pipeline network from Karachi to Khyber.

The pipeline is designed to facilitate the energy-efficient movement of petroleum products, primarily Motor Gasoline and High Speed Diesel, throughout the country. It is intended to complete the existing pipeline network from Karachi to Machike, reducing the reliance on oil tankers for transportation towards northern Pakistan, which is considered dangerous.

The MTT-WOP extends the existing White Oil Pipeline network from Machike, near Lahore, to Tarujabba, near Peshawar. It consists of two main segments: Machike-Thallian and Thallian-Tarujabba, which run along the Motorway. The 477-kilometre-long pipeline will also offer connectivity options with Attock refinery, Chakpirana, and Faqirabad.

The project is spearheaded by the Frontier Works Organisation (FWO). A consortium for the project was formed with the signing of an MoU involving the FWO, Pakistan State Oil (PSO), and Inter-State Gas Systems (Pvt) Ltd (ISGS). The project company is Frontier Oil Company (FOC), also known as Frontier Oil Company-I (FOC-I). Azerbaijan’s state-owned company SOCAR holds a 25% share in FOC.

The central bank has also decided to increase the frequency of post-MPC press conferences from two to four times a year. The press conferences by SBP’s Governor will be conducted following the MPC meetings in July, October, January and April.

At the same time, SBP has decided to publish the presentation prepared by the staff for the post-MPC analyst briefing.

The presentation will be published on SBP’s official website one day after the MPC meeting.

“This decision is aimed at bringing greater transparency into the MPC’s reaction function and to increase stakeholders’ confidence about the thorough and data-driven monetary policy formulation process at the SBP,” read the statement.

“Lastly, the SBP has decided to streamline the process for the publication of the minutes of the MPC meetings.

“The minutes will now be published by the end of the 4th week of the corresponding MPC meeting on SBP’s website,” it added.

It said that the continuous improvements in SBP’s monetary policy-related communications are guided by the SBP’s Strategic Plan – Vision 2028 – which aims to enhance the effectiveness of monetary policy transmission by anchoring inflation expectations and facilitating the formal adoption of an inflation targeting regime.

Last week, the Monetary Policy Committee (MPC) of the SBP decided to keep the policy rate unchanged at 11.5%.

“The committee noted that global oil prices have eased following the recent positive geopolitical developments, yet they remain elevated as compared to pre-conflict levels. Nonetheless, as anticipated in the last MPC meeting, the impact of the conflict is now reflecting in recent economic indicators,” read the statement.

Similarly, 10-gram gold was sold at Rs368,985 after it fell by Rs9,360, according to rates shared by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).

On Monday, gold price per tola reached Rs442,636 after a gain of Rs4,643 during the day.

The international rate of gold declined by $104 to reach $4,098 per ounce (with a premium of $20).

Meanwhile, the price of silver also decreased by Rs487 to reach Rs6,664 per tola.