Pakistan eyes major boost in date palm exports with UAE’s assistance

ISLAMABAD: Despite oil trading low at $60, the Organization of the Petroleum Exporting Countries and their allies — collectively known as OPEC+ — is expected this week to continue to further open the taps, a development that analysts believe is “broadly positive” for Pakistan’s macroeconomic outlook and the equity market.

In past months, Saudi Arabia, Russia and six other OPEC+ members have surprised markets by announcing a sharp increase in oil production for May and June despite the low prices. 

This week the cartel will hold two meetings, one online on Wednesday with all OPEC+ members to discuss the group’s common strategy, and one on Sunday with just the eight member states, known as the “V8,” that have made the largest cuts in recent years.

“During the group’s upcoming meeting on June 1, members are likely to approve a production increase that is three times larger than the previously planned hike of 137k barrels per day,” Pakistani brokerage house Topline Securities said in an analysis, saying the “aggressive” output hike had put Pakistan in a “sweet spot.”

“We believe this development is broadly positive for Pakistan’s macroeconomic outlook, with positive spillover for equity market, which is trading below historical valuation multiples.”

Topline said companies reliant on Re-gasified Liquefied Natural Gas such as Tariq Glass Industries, Ghani Glass Limited, and Descon Oxychem Limited were set to gain from declining feedstock prices and poised for margin expansion in the coming quarters. 

“On the other hand, exploration and production companies may face earnings pressure due to weaker oil prices but improved cash recoveries and enhanced liquidity could support their cash flow generation,” Topline said. 

“Overall, we maintain a bullish stance on the equity market, supported by improving macro fundamentals. However, a key risk remains the upcoming federal budget, particularly the possibility of adverse tax measures on capital gains or corporate profits, could temper investor sentiment.”

Analysts expect the V8 to up production by 411,000 barrels a day for July — the same as in May and June — whereas the initial plan called for an increase of just 137,000 barrels.

This could further weigh down prices already slumping to lows last seen during the pandemic, which hit global demand.

OPEC+ have justified their change in strategy by citing “current healthy market fundamentals, as reflected in the low oil inventories.”

With inputs from AFP

NEW DELHI, India: India’s counter-terrorism agency said Monday it arrested a paramilitary police officer for allegedly spying for arch-rival Pakistan, following their most serious conflict in decades.

At least 70 people died in fighting this month triggered by an April 22 attack on tourists in Indian-administered Kashmir that New Delhi accused Pakistan of backing — a charge Islamabad denies.

Muslim-majority Kashmir is claimed in full by both countries, which have fought multiple wars over the Himalayan territory since their 1947 independence from Britain.

The National Investigation Agency (NIA) said a Central Reserve Police Force officer was arrested in Delhi “for sharing sensitive information” with Pakistani agents.

“The accused, Moti Ram Jat, was actively involved in espionage activity and had been sharing classified information related to national security with Pakistan Intelligence Officers (PIOs) since 2023,” the NIA said.

Jat has been remanded into custody until June 6 by a special court, the agency said, as investigators question him.

Indian authorities have arrested at least 10 other people on espionage charges this month, according to local media.

A travel blogger was arrested in Haryana state on similar charges.

Police said the accused woman traveled to Pakistan at least twice and had been in contact with an official from the country’s embassy, local media reported.

Other arrests include a student, a security guard and a businessman.

The spate of arrests comes after the worst flare-up in violence between the nuclear-armed rivals since their last open conflict in 1999. A ceasefire was agreed after four days of missile, drone and artillery attacks.