PSX Benchmark Index Posts Paltry 0.3%WoW Gain

Pakistan Stock Exchange (PSX) remained range bound during the week ended on August 28, 2026.The benchmark Index posted 0.3%WoW gain to close at 177,697 points. Market activity improved, with the average daily traded volume rising by 24.7%WoW to 1.3 billion shares, as compared to 1.1 billion in the previous week.

Moody’s one-notch upgrade of Pakistan’s sovereign rating to B3 due to improvements in governance, provided a modest boost to investors’ sentiment.

The US-Iran situation remained under control, keeping oil prices below US$90/ bbl on Friday’s close, as Iran continued separate discussions with Oman and Qatar aimed at facilitating the reopening of the Strait of Hormuz.

Foreign exchange reserves held by State Bank of Pakistan (SBP) rose modestly to US$17.1 billion as of August 21, 2026.

Central bank transferred PKR1.9 trillion in profits to the Federal Government, PKR496 billion higher than the budgeted transfer.

Banking sector deposits rose by 14% YoY to PkR39.1 trillion as of end July 2026.

Other major news flow during the week included: 1) Saudi team and Prime Minister discuss investment in agriculture, real estate, energy and IT, 2) new SPV established for the privatization of three Discos, 3) Refineries to sign upgrade deals within 10 days, 4) Pakistan received US$763 million loans, grants in July this year, and 5) Government. introduces a performance based rebate on incremental exports.

Top performing sectors were: Textile Composite, FMCG, and Power, while sectors that lagged the most were: OMCs, Inv. Cos., and Technology.

Major net buying was recorded by Mutual Funds (US$6.2 million) and Companies with (US$4.3 million). Major net sellers were Foreigners with US$10.6 million.

Top performing scrips were: AICL, THALL, KTML, POWER, and ABOT, while laggards included: PGLC, SRVI, TRG, NBP, and HMB.

AKD Securities expects market to improve on strengthening economic indicators amid easing geopolitical tensions. A potential US-Iran deal could moderate international oil prices. Market continues to trade at attractive valuations.

Top picks of the brokerage house include: OGDC, PPL, UBL, MEBL, HBL, FFC, ENGROH, PSO, LUCK, FCCL, INDU, ILP and SYS.

United States: A Morally and Financially Bankrupt Superpower

The United States may claim to be the world's most powerful military and economic power. Yet its confrontation with Iran raises a fundamental question, what happens when a superpower possessing overwhelming military strength fails to convert that strength into sustainable political outcomes?

Iran provides a compelling test, for nearly half a century, the country has endured American sanctions, diplomatic isolation, covert operations and successive campaigns of economic pressure. Washington's "maximum pressure" policy inflicted severe economic pain, but failed to bring Iran to its knees or force the political transformation sought by successive US administrations.

The February 28, 2026 US-Israeli attack represented a dramatic escalation. The killing of Supreme Leader Ali Khamenei and senior Iranian officials demonstrated America's extraordinary military reach. But eliminating a leader is not the same as defeating a nation. Iran's state structure survived, its political system remained functional and regime change did not materialize.

Indeed, the war may have produced the opposite of its intended political effect. External aggression can suppress internal differences and strengthen national cohesion. While it would be excessive to claim that every Iranian rallied behind the government, the attack appears to have reinforced the perception that Iran's sovereignty was under direct threat. The policy intended to weaken Iran, has strengthened Iranian nationalism and resistance.

This raises a crucial question, if military pressure has failed to deliver political submission, what explains its persistence?

Energy is an important part of the answer. Restricting Iranian oil exports, limiting China's access to Iranian crude and preserving America's influence over global energy markets have clear strategic and economic implications. Yet Washington faces a fundamental contradiction: it can pressure Iran, but confronting China, the principal destination for Iranian oil, would risk transforming the Iranian conflict into a much broader geopolitical confrontation.

The financial dimension is even more troubling. America's national debt has crossed US$40 trillion, while interest payments are becoming an increasingly heavy burden on the federal budget.

The United States may not be bankrupt in the conventional sense because it issues the world's principal reserve currency and borrows in its own currency. The combination of enormous debt, rising interest costs and an expansive global military footprint raises serious questions about the sustainability of American power.

The moral contradiction is equally profound. America has long presented itself as a defender of democracy, human rights, sovereignty and a rules-based international order. Yet prolonged sanctions, military intervention and attempts to engineer political change abroad inevitably raise questions about the consistency between America's proclaimed values and its actions.

The real issue is therefore not whether the United States possesses sufficient power to destroy its adversaries. It plainly does. The question is whether it can translate that power into durable political success without exhausting its financial resources and moral authority.

Iran has survived nearly five decades of sanctions, maximum pressure and military intervention. America, meanwhile, carries more than US$40 trillion in debt while sustaining an increasingly costly global strategic posture.

A country that repeatedly fails to achieve its political objectives through overwhelming force, accumulates extraordinary financial obligations and compromises the moral principles it claims to defend is confronting more than strategic overstretch.

The United States may still possess unparalleled military power and the world's dominant currency, but the widening gap between its ambitions, achievements, finances and proclaimed values points toward an uncomfortable conclusion: America is becoming a morally and financially bankrupt superpower.

 

Ships stranded in Strait of Hormuz could trigger biological invasions

More than 1,500 large commercial vessels stranded in the Strait of Hormuz following its closure amid tensions between the US and Iran could trigger a global wave of biological invasions, researchers have warned.

A study published in the journal "Biological Invasions" says marine organisms accumulating on ship hulls during extended stationary periods may be transported to ports worldwide once traffic resumes, potentially creating a "super-spreader" effect for invasive species.

The study found that biofouling, consisting of marine microorganisms, algae, and invertebrates, can rapidly develop on the hulls of ships that remain stationary for extended periods.

According to the study, more than 1,500 large commercial vessels have becomes stranded following the closure of the Strait of Hormuz on February 28, 2026.

The prolonged presence of these ships in the region allows local organisms to colonize their hulls, while also bringing together communities of organisms from different parts of the world on the same vessels.

Professor Mario Tamburri of the University of Maryland, the study's lead author, described the current situation as a "worst-case scenario" compared to previous shipping disruptions.

The risk is amplified by several converging factors: the unprecedented number and size of stranded vessels, combined with the fact that the closure coincides with spring and summer—peak seasons for marine organism growth and reproduction.

Organisms native to the Gulf, already adapted to extreme temperatures and high salinity, may prove particularly resilient when introduced to new environments.

Tamburri said the length of time a vessel remains stationary is critical in determining the amount and diversity of biofouling.

“The longer they remain stationary during periods of productive growth and reproduction, the more extensive and diverse the biofouling on the ships becomes,” he said.

The study stresses that vessels in the Gulf have remained stationary far longer than normal port waiting periods, creating favorable conditions for invasive species to reproduce on their hulls and be transported to other regions.

Tamburri said it is difficult to predict with certainty which species will be spread by ships, as the risk depends on numerous variables involving both the species and the environmental conditions to which they are transported.

The study also notes that species transported through biofouling can affect not only ecosystems but also economic activities, while certain parasites and pathogens may threaten commercially important species.

The study emphasizes that the first ports visited by ships departing the Strait of Hormuz are particularly important for the establishment of invasive species.

The researchers recommend cleaning the biofouling from ships’ hulls before they leave the Gulf as the ideal solution.

However, they note that applying this measure to every vessel would be difficult because the region has limited capacity for such operations and ships may need to leave quickly for security, logistical, and operational reasons.

The study identifies specific ports facing elevated invasion risks due to short voyage times and similar environmental conditions. Jeddah, Mumbai, Colombo, Singapore, Alexandria, Piraeus, Algeciras, and Rotterdam are highlighted as particularly vulnerable first destinations.

The Asian green mussel, native to the Gulf, serves as a cautionary example—having already established itself in Florida, the Caribbean, Australia, and South America, where it competes with native species and clogs industrial infrastructure.

Researchers warn that the international maritime community remains ill-prepared for this biosecurity threat. While regulations are being developed through the International Maritime Organization (IMO), they will take years to finalize.

The study recommends implementing early-warning and rapid-response systems at first ports of call, alongside coordinated international efforts bridging biological invasion science, maritime logistics, and regulation.

 

PSX index remains under pressure

Pakistan Stock Exchange (PSX) remained under pressure during the week ended on August 21, 2026. The benchmark Index closed at 177,167. Total Market capitalization also contracted to US$71.6 billion from US$72.5 billion last week.

The average daily trading volume edged up marginally by 0.3%WoW to 1,053.4 million shares, as compared to 1,050.5 million shares in the previous week.

The dominant driver remained the unresolved US-Iran conflict, now approaching six months since first strikes began on February 28.

Brent crude posted its second consecutive weekly gain, up over 6%WoW to US$94.2/ bbl, with neither side making any effort to restart talks after the 60-day ceasefire expired.

The current account deficit narrowed to US$328 million in July 2026, down 38%YoY, aided by rebound in goods exports and strong remittance flows.

State Bank of Pakistan (SBP) raised PKR518 billion through T-Bills, with yields ranging between 11.47%-11.99% across all tenors.

On the sectoral front, Urea offtakes declined 5%YoY and DAP 10%YoY in July 2026, while IT exports recorded 18%YoY increase to US$417 million.

Other major news flow during the week included: 1) Pakistan scrambles to secure Qatar LNG cargo by August, 25 as spot prices surged, 2) LSM index rose 5%YoY in FY26, 3) Pakistan pushes China B2B deals from MoUs to investments & exports, 4) Circular debt jumps by PKR364 billion in FY26, and 5) Pakistan, Norway agree to enhance ties in various sectors.

Top performing sectors were: Refinery, OMC, and E&P, while Banks, Power, and Textile Composite were the laggards.

Major selling was recorded by Banks and Mutual Funds with US$14.5 million and US$10.6 million, respectively. Major buyers were Individuals with US$17.5 million.

Top performing scrips were: PGLC, ATRL, PSO, INIL, and CNERGY, while laggards included THALL, CHCC, TGL, PABC, and PAEL.

AKD Securities expects the market to improve on strengthening economic indicators amid easing geopolitical tensions, along with favorable financial results for June 2026.

Additionally, a potential US-Iran deal could moderate international oil prices towards pre-conflict levels.

Market continues to trade at attractive valuations.

The brokerage house forecasts the Index to reach 263,800 by end December 2026.

Top picks of the brokerage house include: OGDC, PPL, UBL, MEBL, HBL, FFC, ENGROH, PSO, LUCK, FCCL, INDU, ILP and SYS.

How Iran is shaping the new navigational order in the Strait of Hormuz?

In a new monthly series on the Seatrade Maritime News Podcast entitled Maritime Crossroads we will be exploring the critical issues of maritime and energy risks in the Middle East region.

The series features Noam Raydan, a Senior Fellow at The Washington Institute for Near East Policy, discussing issues with Marcus Hand, Editor of Seatrade Maritime News.

The first episode explores how Iran is changing the navigational order in one of world’s most key waterways – the Strait of Hormuz.

The internationally recognized routes in the Strait of Hormuz were adopted by International Maritime Organization (IMO) in 1968 but these are no longer being used by commercial shipping.

“Instead, we have a completely new navigational order, and this is what Iran right now wants to shape according to its own terms.

In this new navigational order which we are seeing emerging in the region, we have completely new lanes that are being used by commercial shipping,” she says.

 

Shrinking US aircraft carriers

The glory days of the world’s longest-serving aircraft carrier are over, reflecting fatigue in the broader US fleet amid a decline in the country’s shipbuilding capacity, according to official Chinese military analysts.

In a report on Wednesday, Chinese state broadcaster CCTV said the US Navy’s reliance on extended carrier deployments was a cause for concern, particularly in the case of the USS Nimitz.

The Nimitz was commissioned in 1975, making it the world’s longest-serving aircraft carrier still in active service, and its retirement has been pushed back repeatedly.

According to the US Navy, two aircraft operating from the Nimitz crashed in incidents in the South China Sea in October last year.

“Judging from the series of accidents that have occurred, the Nimitz is already being kept operational with difficulty. The glory days of the Nimitz aircraft carrier are over,” Li Yaqiang, a former senior colonel in the Chinese navy and a military commentator, said in an interview with CCTV.

The carrier was originally scheduled to be retired in 2026, but the US Navy said its decommissioning had been postponed until March next year to align with the expected delivery of the second Ford-class carrier, the USS John F. Kennedy.

“Once the Nimitz retires, any delay to the Ford-class carriers under construction would leave the fleet below the US legal requirement of 11 operational aircraft carriers,” the CCTV report said.

China’s most advanced aircraft carrier, the Fujian, enters service

Since 2006, US law has required that the US Navy’s maritime combat force include no fewer than 11 operational aircraft carriers.

CCTV military commentator Wei Dongxu also told the broadcaster that the US military’s carrier operations continued to be stretched “and it is now at a critical point in the transition between old and new aircraft carriers”.

“The Nimitz is too old and its technical state is no longer reliable enough, so it has to be retired. But the process of bringing the new Ford-class carriers into service has been plagued by problems,” Wei said.

Wei said unresolved problems with the introduction of the new US carriers could mean that the navy’s fleet of 11 aircraft carriers existed “largely on paper”.

“The combat capabilities of the first Ford-class carrier have still not been fully realized, and the F-35C, the important US carrier-borne fighter, has yet to be deployed aboard the ship,” he said.

“This means US carrier deployments must rely on a mix of new and ageing carriers, reducing its advantage at sea.”

Wei also said the problems were largely related to the decline of the US shipbuilding industry since the Cold War.

Extended maintenance cycles for US aircraft carriers are no longer uncommon. In 2017, the USS George Washington entered Newport News Shipbuilding for a planned four-year refuelling and complex overhaul, but it was not returned to the navy until May 2023, or two years after the intended deadline.

Meanwhile, the enormous scale of China’s shipbuilding industry has become a concern in Washington, joining technology, critical minerals and medical supply chains as areas in which US officials fear Beijing has gained a strategic advantage.

A Pentagon report released in December 2024 said the Chinese navy was the world’s largest numerically, with a battle force of more than 370 ships and submarines, including more than 140 major surface combatants. The report projected that the Chinese fleet would grow to 435 ships by 2030.

By comparison, the US Navy had 296 battle-force ships as of September 30, 2024. The fleet was projected to shrink further to 283 ships by 2027 as planned retirements outpaced the commissioning of new vessels.

 

United States the Biggest Arms Seller

Today, I am referring to the second blog US – The biggest Arm Seller I had posted, as a novice, on June 22, 2012. At times I wonder why people are still reading this. Even today it is among the top 20 blogs visited. 

I am one of the millions of people who fail to understand why conflicts are created and allowed to grow that often lead to anarchy, civil war and war among the countries.

If it is not taken as ‘self-praise’, I can see several reasons why a blog written in June 2012 would still attract readers today. Looking at it critically—both its strengths and weaknesses—I think its continued popularity is more about the theme rather than the accuracy of the predictions:

1. It Addresses a Timeless Question

The opening question—why conflicts are created and allowed to grow—remains relevant. Wars, insurgencies, regime changes, and geopolitical rivalries continue to dominate headlines. Readers searching for explanations often gravitate toward articles that challenge official narratives.

2. It Captures a Historical Turning Point

The blog was written during the aftermath of the Arab Spring. Events in Bahrain, Libya, Syria, Afghanistan, Iran, and Pakistan were at the center of global attention. Today, many people revisit early commentary to see who "got it right" and who didn't.

3. The Arms Trade Remains a Hot Topic

My central argument that major powers benefit from arms sales while conflicts continue, still resonates. The world has since witnessed wars in Ukraine, Gaza, Sudan, and elsewhere, with defense spending reaching record levels. Readers often search for critiques of the military-industrial complex, and my title is highly searchable.

4. The Blog Raises Questions Rather Than Giving Definitive Answers

I repeatedly use phrases such as "one of the hypotheses," "one of the conspiracy theories," and "it is believed." This invites readers to think rather than simply accept a conclusion. Such content tends to have a longer shelf life.

My title, "US – The Biggest Arm Seller," contains keywords that people frequently search: 1) US arms sales, 2) biggest arms exporter, 3) Saudi Arabia weapons purchases, 4) Iran conflict, 5) Afghanistan and NATO Even after fourteen years, search engines can continue sending visitors to pages containing evergreen keywords.

I notice three shortcomings:

First, the article relies heavily on speculation without citing sources. Claims about future attacks on Pakistan and Iran, or military hardware being retained for future wars, are presented without evidence, the time proved both correct.

Second, it treats complex events largely through a single lens—great-power manipulation. Local political, ethnic, sectarian, and economic factors receive little attention, these also proved correct.

Third, some predictions did not materialize. Pakistan did not become the next major target after the NATO withdrawal, and several regional developments unfolded differently from what was anticipated.

My overall assessment is, the reason people still read this blog is probably not because every prediction proved correct. Rather, it reflects a persistent skepticism about great-power politics, arms sales, and interventionism.

Many readers continue to ask the same questions today that I raised in 2012. In that sense, the article has aged better as a commentary on geopolitical anxieties than as a forecast of future events.

For a novice blogger in 2012, it also displays something that has remained characteristic of my later writing: challenging dominant narratives and asking uncomfortable questions rather than merely repeating official positions. That is often what keeps an old article alive long after the news cycle has moved on.