Arif Habib expects super tax cut in upcoming budget
Talking to media persons at the Pakistan Stock Exchange (PSX) on Monday, Arif Habib shared that Prime Minister Shehbaz Sharif, in a recent meeting held just a few days ago, has indicated that in the upcoming budget, further relief will be provided to various industries as well as the salaried class.
'I think we can also expect a reduction in the super tax in particular,' said Habib.
The federal government will present the next fiscal year's budget on June 2.
Commenting on the ongoing cross-border tensions, Arif Habib maintained that India 'wrongly accused' Pakistan and misled its people.
'As a result, it is not only facing backlash from its public but is also under severe criticism in its parliament. On the other hand, Pakistan has emerged as a hero,' he said.
The chief executive said the Pakistan stock market reacted 'very positively' amid a series of favourable developments for the country.
'Pakistan has received several good news items one after another — including the approval of the International Monetary Fund (IMF) programme, a reduction in the policy rate,' the business magnate said.
The PSX staged a strong comeback on Monday, driven by a convergence of positive developments, including a ceasefire agreement between India and Pakistan, as well as the IMF's approval of crucial funding. The benchmark KSE-100 Index surged nearly 10,000 points during the trading session.
Habib added that Pakistan is progressing on the economic front and has shown the world that it is a strong and capable country.
In a surprise and much-awaited move, Pakistan and India have agreed to a temporary ceasefire on Saturday.
US President Donald Trump confirmed that India and Pakistan agreed to a 'full and immediate ceasefire,' amid both countries launching strikes and counter-strikes against each other's military installations.
He also expressed willingness to work with both countries to find a solution concerning Indian Illegally Occupied Kashmir.
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Express Tribune
14 hours ago
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South Punjab, at God's mercy
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There were just unlucky to be born in the desert, where there's nothing to profit from, so no one cares. The people of Cholistan may face the harshest neglect in South Punjab, but the outlook isn't much better for farmers in Rahim Yar Khan. Syed Mahmood ul Haq Bukhari, Chairman of the All Pakistan Farmers' Foundation, is visibly frustrated with the state of agriculture in Punjab. 'There has been severe damage to mangoes due to the extreme heat,' he says. 'Other crops, like cotton, have also suffered because of climate change.' If the public cannot rally around the plight of farmers, Bukhari argues, perhaps they'll take notice when mangoes begin disappearing from the markets. If losing mangoes or cotton may not seem life-threatening, when wheat and rice begin to vanish, the consequences could be catastrophic. 'The 'Bhel' crop once produced 15 million units. That number has now fallen to four million because of climate change,' Bukhari shares. He warns that 'there is no bigger issue in the world today than the changing climate,' but is quick to point out that poor governance is what makes its impact even deadlier for Pakistan's farmers. 'The government has no control over sugarcane crops. As a result, sugarcane farmers are completely exploited,' he adds. 'The sugar mill mafia sets prices as they please.' For Bukhari, poor governance compounds the devastation of climate change. He argues that countries like Pakistan must move beyond the habit of simply asking for international aid. 'We need to fix our corrupt systems first if we want to deal with the consequences of climate change and to deserve any aid,' he says. He points to a recent admission in parliament: 'the finance minister has openly stated that our five major crops are in decline.' What troubles him even more is the way this crisis is being framed. 'It amazes me that in my country, securing a large IMF loan is treated as good news,' he says bitterly. 'The government feeds the bureaucracy with that money and in turn, the bureaucracy crushes the people.' It's a grievance echoed by many in Pakistan. Water mismanagement Poor planning in Pakistan isn't limited to economic policy or agricultural regulation. It extends deeply into irrigation infrastructure. In May, a river breach in a canal near Rahim Yar Khan led to the flooding of 50,000 acres of farmland, according to a report published earlier by The Express Tribune. This isn't an isolated incident. An in-depth Vox explainer highlights how Pakistan's irrigation system, inherited and expanded from colonial-era designs, is inherently vulnerable to flooding. Traditionally, floodwaters would have drained naturally back into rivers through existing channels. But the British-era engineering — continued uncritically by Pakistan — introduced embankments that trap water at the brink. These reinforced structures may prevent minor flooding, but when a breach occurs — as seen during the devastating floods three years ago — the water collects in low-lying areas and has no natural route to flow back. The result is prolonged devastation, stagnant water, and ruined farmland. Inefficient resource allocation It is no secret now. Pakistan's population boom is out of control. Our population is growing at an alarming rate, estimated to cross 400 million in the span of a couple decades. Resources, at the same time, remain scarce. Increasing temperatures and unpredictable weather patterns will make farming near impossible, significantly damaging a huge source of income for much of the population, and triggering food insecurity. Arif Ghufoor, a researcher at the Punjab government's Water and Soil Research Laboratory in Rahim Yar Khan, says that overuse of water and inefficient farming practices are two huge sources of waste. '[To this end] our department has launched an application called 'Khad Hisaab'(fertiliser accounting), to help farmers calculate their fertiliser requirements,' he shares. According to Ghufoor, farmers will often 'blindly' use large quantities of fertiliser. To tackle that challenge, the app helps farmers calculate the exact amount of fertiliser and water needed for specific crops based on soil conditions, crop type and their budget. The issue of over-fertilisation is alarming in itself. According to the Institute for Environmental Research and Education, excessive use of fertilisers can degrade soil quality, reduce biodiversity and release nitrous oxide, a dangerous greenhouse gas. It also contributes to widespread water pollution. One of the most damaging outcomes is 'eutrophication', a process where excess nutrients enter water bodies, depleting oxygen levels and creating 'dead zones' where aquatic life cannot survive. But according to Ghufoor, one of the biggest hurdles to reform isn't just policy, it's mindset. Despite efforts like the Khad Hisaab app, very few farmers in South Punjab are actually using it. 'There's a culture of arrogance among some farmers,' he says. 'Many believe they know best and don't need scientific advice.' He shares a personal example: some of the farmers in the area have known him since he was a child. They occasionally visit his lab, not to test their soil or water, but to seek help accessing government schemes like the Punjab chief minister's Kissan Card. 'They'll come for bureaucratic help, but never to ask for guidance on improving their farming,' he says. 'In their eyes, I'm still the kid who used to play in their laps, so what could I possibly know?' Arresting population growth One of the most effective ways for Pakistan to confront the twin crises of climate change and resource scarcity is by ensuring reproductive rights for women. 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What's striking is that Bangladesh, too, is a Muslim-majority country yet it chose to prioritise national wellbeing over appeasing hardline voices. There is no possible pathway to solving these fundamental problems without prioritising scientific education in rural areas, promoting population control through mass media and door-to-door campaigning, and building more resilient infrastructure in the face of a deteriorating climate. Smartphone applications, and tweets about climate change by government officials, will not do the trick. The root problems—cultural arrogance and scientific illiteracy—continue to undermine well-intentioned interventions. Without a respect for the scientific method, even the best-designed tools are rendered ineffective. There is one major problem here: cultural arrogance, and scientific illiteracy. Although apps of this kind sound good in principle, they are wasted if there is little scientific literacy and a respect for the scientific method. As for the Cholistanis, there seems to be no long-term solution other than migration. Droughts will only worsen with time, killing their animals before killing them, and the chronic lack of compassion within the elites may not change without a spiritual reformation. Zain Haq is a freelance contributor All facts and information are the sole responsibility of the author
Express Tribune
17 hours ago
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PSX closes week up on optimism
Listen to article The Pakistan Stock Exchange (PSX) closed the week on July 25, 2025 with a steady upward trajectory as the benchmark KSE-100 index gained 610 points, or 0.4% week-on-week (WoW), to settle at 139,207. Market sentiment remained cautiously optimistic amid corporate earnings' announcements, expectations of a 50-basis-point rate cut in the upcoming monetary policy committee (MPC) meeting and a major confidence boost following S&P Global's upgrade of Pakistan's credit rating to 'B-' with a stable outlook. On a day-on-day basis, the PSX commenced the futures rollover week on a negative note on Monday as the KSE-100 index ended at 138,218, down 380 points, or 0.27%. Investors resorted to profit-taking and also remained cautious ahead of policy rate decision. The market had a positive day on Tuesday, when the index posted a gain of 1,202 points, or 0.87%, to a new all-time high at 139,420, driven by assurances of support by the army chief to business leaders. Continuing its consolidation near 140,000, a key psychological level, the bourse closed on Wednesday at 139,254, translating into a loss of 165 points owing mainly to profit-booking. The PSX had a negative day on Thursday, where the index shed 562 points amid investor caution over futures rollover. On the last day of the week on Friday, the market gained 515 points and settled at 139,207 over enthusiasm sparked by Pakistan's rating upgrade and hopes of monetary easing. Arif Habib Limited (AHL) noted in its review that the market witnessed mixed sentiment during the outgoing week, rallying on Tuesday amid ongoing June 2025 quarterly corporate results and expectations of a potential rate cut in the upcoming MPC meeting. However, profit-taking the following day capped gains. Boosting investor sentiment further, S&P Global upgraded Pakistan's credit rating to 'B-' with a stable outlook, citing macroeconomic stabilisation and reform progress, it said. In treasury bills' auction, the State Bank raised Rs424.4 billion against the target of Rs200 billion, with yields dropping 10-39 basis points across all tenors. In June 2025, repatriated profits and dividends plunged 72.4% year-on-year (YoY) and 56.7% month-on-month (MoM) to $114.2 million; though FY25 saw a marginal 0.2% rise to $2.2 billion. In June, AHL mentioned, Pakistan's power generation rose 2.1% YoY to 13,744 gigawatt hours (GWh) from 13,459 GWh in June 2024, and increased 8% MoM. Oil and gas production fell 12% and 7% YoY, respectively, in FY25, driven by output pressures from key fields amid forced curtailments and weaker gas demand. Among other economic news, the State Bank's foreign exchange reserves fell $69 million to $14.46 billion. However, the Pakistani rupee appreciated marginally by 0.5%, closing at 283.45 against the dollar, AHL said. Sectors that contributed positively were investment banks (408 points), exploration & production (213 points), fast moving consumer goods (124 points), auto assemblers (59 points) and power (52 points). Meanwhile, sector-wise negative contributions came from miscellaneous (149 points), banks (71 points), leather (54 points), pharma (35 points) and textile composite (31 points), it added. Syed Danyal Hussain of JS Global noted that the KSE-100 index remained range bound during the week but ended on a positive note at 139,207, reflecting a 0.4% WoW gain. On the flip side, the average daily turnover dropped 17% to 635 million shares. In a major development, he said, the S&P Global upgraded Pakistan's sovereign credit rating to 'B-' from 'CCC+', triggering a rally in long-dated dollar bonds to three-year highs and improving investor confidence. Meanwhile, the government was aiming to address the Rs2.8 trillion worth of circular debt in the gas sector without burdening consumers, with multiple plans under consideration. During the week, the central bank released the advance calendar for MPC meetings scheduled for FY26 and the next meeting is set for July 30. In other developments, Pakistan secured $12.4 billion in foreign loans during FY25, up $2.6 billion from FY24. Repatriation of profits and dividends totalled $2.2 billion in FY25, remaining flat YoY. Notably, the power sector saw the largest outflow of $399 million, marking a 62% YoY increase. In the latest T-bill auction, the SBP raised Rs424 billion against the target of Rs200 billion, with yields falling 10 to 39 basis points across various tenors. Finally, the SBP's foreign reserves declined $69 million WoW to $14.45 billion, primarily due to external debt repayments.
