PSX surges as tensions with India ease
In an electrifying turn of events, the Pakistan Stock Exchange (PSX) on Monday staged its highest single-day rally, driven by a host of positive developments, most significant of which included the surprise ceasefire with India and President Trump's offer to mediate in the Kashmir dispute. Additionally, Trump's encouragement towards increased trade and the IMF's approval of $2.4 billion in disbursements, with $1 billion coming from its Extended Fund Facility (EFF) and $1.4 billion from the Resilience and Sustainability Facility (RSF), played a key role in the unprecedented bull run.
Market momentum was further amplified by a surge in global equities and crude oil prices post-trade deal between the US and China as well as policy easing by the State Bank of Pakistan (SBP). There was widespread enthusiasm as investors engaged in a buying spree, triggering a halt to trading moments after the opening bell. The KSE-30 index surged over 5% for five straight minutes.
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Express Tribune
36 minutes ago
- Express Tribune
US Marines deployed to LA
A man is detained by US Marines and members of the National Guard at the Wilshire Federal Building in Los Angeles. Photo: AFP US Marines were deployed to Los Angeles on Friday, the military said, in a rare domestic use of its forces after days of protests over immigration raids and as nationwide demonstrations were expected on Saturday, in the biggest backlash since President Donald Trump returned to power. About 200 Marines will protect a federal building in Los Angeles, Army Major General Scott Sherman said on Friday. The administration has authorized a total of 700 Marines to be deployed in the city. Neither the Marines nor National Guard troops in the city have temporarily detained anyone, he added. "I would like to emphasize that the soldiers will not participate in law enforcement activities," he said during a briefing. It is uncommon for active-duty troops to be used domestically during civil disturbances. The last time the military was used for direct police action was in 1992, when the California governor at the time asked then President George HW Bush to invoke the Insurrection Act to help respond to Los Angeles riots over the acquittal of police officers who beat Black motorist Rodney King. A court decided on Thursday that Trump can keep his deployment of National Guard troops in Los Angeles for now. The 9th US Circuit Court of Appeals' decision temporarily paused a lower court ruling that blocked the mobilization, although it does not mean the court will ultimately side with him. "We saved LA. Thank you for the Decision!!!" Trump wrote on his Truth Social platform. The Trump administration "far overreached its authority," the California Attorney General's office said, adding that it remained confident in its case ahead of making arguments to court on Tuesday.
Express Tribune
an hour ago
- Express Tribune
Salaried class to pay Rs535b despite minor relief
Listen to article A National Assembly panel on Friday termed a nominal reduction in the salaried class income tax rates a "joke", as discussions revealed that the salaried individuals would still pay around Rs535 billion in next fiscal year due to a paltry relief of Rs56 billion. According to details shared by Federal Board of Revenue Chairman Rashid Langrial with the National Assembly Standing Committee on Finance, 981,051 individuals would get a direct benefit of 2% to 4% reduction in their tax rates. This translated into Rs56 billion in relief against the estimated Rs540 billion income tax collection in this fiscal year. However, due to the proposed 10% increase in salaries and nominal economic growth, the FBR has estimated again receiving over Rs535 billion from the salaried class in the next fiscal year, according to the tax authorities. "The proposed reduction in the income tax rates is a joke with the salaried persons," remarked Syed Naveed Qamar, chairman of the standing committee and former finance minister. The FBR chairman agreed that the reduction was lower than desired but repeated that the government did not have much fiscal space to give any major relief. In the last budget, the government disproportionately increased the salaried class burden, which pushed their contributions from Rs368 billion of the previous year to around Rs540 billion this year. From Prime Minister to the Finance Minister everyone had acknowledged the undue burden put on the salaried persons but they did very little. However, the height of insensitivity was that despite agreeing with the IMF to reduce the income tax rate on up to Rs1.2 million annual incomes from 5% to 1%, the federal cabinet set the rate at 2.5% to pay higher salaries to the federal government employees. In the slab of up to Rs1.2 million annual earnings, there are 431,206 individuals who have been forced to pay 1.5% income tax over and above the threshold agreed with the IMF to pay higher salaries to the government employees. To a question, the newly appointed Minister of State for Finance Bilal Azhar Kayani said that due to the federal cabinet's decision to increase the proposed salaries from 6% to 10%, the income tax rates were also increased. However, Bilal remarked that the standing committee may suggest reducing the proposed increase in salaries. Hardly one million individuals will get direct benefit of Rs56 billion reductions. Out of the five slabs, the government reduced the rates for the first three slabs while leaving it unchanged for the last two slabs of 30% and 35% income tax rates. About 387,345 individuals earning up to Rs2.2 million annually have been offered a 4% reduction in their income tax rates compared to the current 15% rate. Another 162,000 persons earning up to Rs3.2 million would receive a mere 2% reduction in the rates. Langrial said that individuals falling in the two higher slabs of 30% and 35% will also get indirect benefit of reduction in the lower slab rates due to reduction in their effective income tax rates. According to the presentation, there are about 235,391 individuals falling in these two higher slabs. The government also marginally reduced the income tax surcharge rate from 10% to 9% due to lack of fiscal space. Langrial said that the super tax rate for the medium sized firms is reduced by half percentage, admitting it was just aimed at giving signals rather than any relief. The estimated benefit is mere Rs2 billion. The FBR chairman finally admitted that imposing 3% federal excise duty on immovable property in the last fiscal year was a "theoretical mistake and unjust". The government has proposed to abolish the duty in the budget. But those who proposed it and defended it till recently were still sitting in the same room with him. In a meeting of the Senate Standing Committee on Finance that is also discussing the budget, Finance Minister Muhammad Aurangzeb backed a proposal to increase the retirement age of the federal government employees. Senator Farooq H Naek advocated raising the retirement age of bureaucrats to save pension costs and said that a bureaucrat is fit and experienced at 60; instead of benefiting from experience, we retire them prematurely. Senator Anusha Rahman pointed out that retired officers instantly join semi-government institutions and increasing the retirement age makes practical sense. The Finance Minister said that in the HBL the retirement age was 65 years and after the budget, he will evaluate this proposal seriously. The finance minister made a surprising claim that the government has not imposed any new tax in the budget. However, contrary to the Finance Minister's claim that the government has slapped 5% new income tax on pensioners, Rs2.5 per liter carbon levy on petroleum products and car engine levy. The finance minister said that the government proposed new tax measures worth Rs312 billion through compliance and enforcement. The National Assembly Standing Committee on Finance also showed its dissatisfaction over the government's budget proposal to slap taxes on the digital economy, particularly cash on delivery. "Our youth is already angry with us and you have put more burden on them", said Syed Naveed Qamar. The Member Policy FBR Dr Najeeb Ahmad claimed that the 2% withholding tax on cash on delivery will be part of the cost of the product ordered online a stance that does not appear true. To which Naveed Qamar said that if the claim was true, the committee would not object to the proposal. The committee members were of the view that the 2% cost would be paid by the purchaser, not by the seller. The standing committee also asked the FBR to increase the cash withdrawal limit for collecting 0.8% tax from Rs50,000 to above Rs75,000. The Chairman FBR promised to look into the proposal. The committee also suggested that instead of charging an increased 20% income tax on interest earned on banking deposits, the FBR should introduce a new slab to charge 15% rate from the pensioners and small-income earners. The FBR did not oppose the proposal.
Express Tribune
an hour ago
- Express Tribune
Trump tells Iran to make deal or face 'more brutal' attacks
US President Donald Trump speaks during a swearing-in ceremony for the new US ambassador to China, former US Senator David Perdue, at the White House in Washington, DC, US on May 7, 2025. Photo: REUTERS US President Donald Trump urged Iran Friday to make a deal or face "even more brutal" attacks by Israel, as Washington said it was helping its key ally defend itself against Iranian retaliation. But Trump also kept the door open for negotiations on Tehran's nuclear program, as the president who boasted he had "no wars" in his first term tries to avoid getting dragged into one in his second. Trump and Israeli Prime Minister Benjamin Netanyahu spoke on Friday, a White House official told AFP. He said earlier that Israel had let him know in advance about its strikes on Iran's military top brass and nuclear facilities. After Iran launched barrages of ballistic missiles on Friday, the United States was "assisting in shooting down missiles targeting Israel," two US officials told AFP, without giving detail on the extent of Washington's role. The US president also spoke to French President Emmanuel Macron and British Prime Minister Keir Starmer, who both stressed the need for dialogue. He also reportedly spoke to Saudi and Qatari leaders. Trump attended a National Security Council meeting in the White House Situation Room as his team worked on the crisis. An aide posted a black and white picture of a grim-faced, purse-lipped Trump striding through the West Wing. But the flurry of meetings and diplomatic calls came as Trump trod a tightrope between backing Israel and seeking the nuclear deal he promised he could reach with Iran. Israel struck Iran just hours after Trump publicly urged Netanyahu to hold off on an attack, with the first missiles landing as the US president hosted a picnic for lawmakers on the White House South Lawn. "There has already been great death and destruction, but there is still time to make this slaughter, with the next already planned attacks being even more brutal, come to an end," Trump said on his Truth Social platform on Friday. "Iran must make a deal, before there is nothing left... JUST DO IT, BEFORE IT IS TOO LATE," he said. Trump said that he "gave Iran chance after chance to make a deal." But in a series of calls with US media later, he wavered between backing Israel's "excellent" strikes and calling for a return to the negotiating table.
