United States being labelled untrustworthy

Donald Trump, after assuming charge of president of United States has issued many administrative orders. Though, many of these have been suspended for a predefined period, the super power and the largest democracy is being labelled "untrustworthy". It is also being said that the perception can vary depending on who is saying it, their political stance, and the context. Here are some of the narratives, it is left at the reader to have his/ her own view.

Shifting Foreign Policy

The US has had a tendency to change its foreign policy dramatically between administrations. What one president supports, another might reverse. For allies and international partners, this unpredictability creates a sense of instability and mistrust. The example often cited is that of the US joining and then withdrawing from the Iran nuclear deal, Paris Climate Agreement, and even the Trans-Pacific Partnership.

Military Interventions

The US has a long history of military involvement in other countries—some could be justified, but many remains controversial i.e. Iraq, Afghanistan, Libya. These interventions often came with promises of democracy or stability but often result in prolonged conflict or power vacuums. This forces the people in those regions, and globally, to question US intentions.

Economic Sanctions and Trade Wars

The US commonly uses economic sanctions as a foreign policy tool, which annoys people of these as well as other countries. Though US says, sanctions target governments, but people are the ultimate sufferers. The recent trade war with China and even allies cements the perceptions of unpredictability and economic aggression.

Domestic Issues Tarnish Global Reputation

Events like the Capitol riot, racial tensions, mass shootings, and political polarization have impacted how other countries view the governance and values of the US administration. Not only the image of US administration is tarnished, but its moral authority to dictate other countries is questioned.

Intelligence and Surveillance Concerns

Revelations like the Snowden leaks showed that the US was spying not just on adversaries but on allies also, even leaders of friendly nations like Germany. That definitely dents the trust.

Broken Promises/ Inconsistent Support

Countries/ groups that relied on US support—like the Kurds in Syria or Afghan have often felt abandoned when political priorities changed. That history leads others to question whether American support will endure when it is needed the most.

Way Forward

It must be kept in mind that despite all these broken promises, last minute ditches and sudden and abrupt change in policies, many people still see the United States a global leader in innovation, freedom, and human rights. The “untrustworthy” label is becoming universal and once an alternative currency to the Greenback becomes a reality the United States would be left alone.

 

 

 

 

PSX benchmark index up 2.14%WoW

Pakistan Stock Exchange (PSX) regained momentum amid easing concerns over tariff tensions and stability in global crude oil prices. This recovery was further supported by improved corporate earnings. The KSE-100 index closed the week on Friday April 18, 2025 at 117,315 points, marking a gain of 2,462 points, up 2.14%WoW.

Average daily traded volume remained low, down by 18.2%WoW, to 455.8 million shares as compared to 557.3 million shares traded a week ago. Commercial banks were key contributors to the market’s rally, driven by stronger-than-expected earnings from UBL.

Moreover, Fitch upgraded Pakistan’s rating to ‘B-’ from ‘CCC+’, amid expectations that continuation of stable economic policies will persist in supporting accumulation of foreign exchange reserves and contain external funding needs.

Alongside, news that the government and commercial banks have signed a term sheet for PKR1.2 trillion, as part of efforts to eliminate circular debt.

On the macroeconomic front, remittances by overseas Pakistanis for March 2025 touched a record high of US$4.1 billion, taking the current account surplus to US$1.2 billion —the highest monthly surplus on record.

Power generation in March 2025 was reported at 8,411GWh, up 5%YoY.

Other major news flow during the week included: 1) Pak-IMF technical-level talks to commence next week, 2) Budget to offer relief for salaried class, 3) IT exports surge to US$2.8 billion in 9MFY25, 4) Kuwait extends oil credit facility for two years, and 5) Urea and DAP sales drop by 54%YoY each during March 2025.

Vanaspati & Allied Industries, Leasing Companies, and Jute were amongst the top performing sectors, while, Woollen, Synthetic & Rayon, and Tobacco were amongst the laggards.

Major selling was recorded by Insurance Companies with a net sell of US$35.9 million. Individuals and Other Organizations absorbed most of the selling with a net buy of US$30.9 million.

Top performing scrips of the week were: PGLC, UBL, ATLH, SAZEW, and KTML, while laggards included EPCL, AGL, BNWM, IBFL, and HALEON.

Lower oil prices and favorable standing among exporting peers amid reciprocal tariffs are likely to support the economy and strengthen the outlook for a return to single-digit interest rates in CY25.

According to AKD Securities, the KSE-100 index is anticipated to sustain its upward trajectory, with a target of over 165,000 points by end December 2025. This expectation is primarily based of strong earnings in Fertilizers, sustained ROEs in Banks, and improving cash flows of E&Ps and OMCs, benefiting from falling interest rates and structural reforms.

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

 

 

Iran India to expand agricultural trade

Iran and India are poised to enhance their agricultural trade volume beyond the current US$1.0 billion, it was announced by Iran’s Agriculture Minister Gholamreza Nouri Ghezeljeh following a meeting with India's Agriculture Minister Shivraj Singh Chouhan during the BRICS agriculture ministers’ summit in Brazil.

The ministers reviewed previous agreements and reaffirmed their countries’ longstanding cultural, historical, and economic ties. Nouri Ghezeljeh expressed appreciation for India’s support in facilitating Iran’s membership in BRICS and noted that bilateral cooperation is entering a new phase.​

In addition to these developments, Iran and India have agreed to establish a joint agricultural cooperation committee within the next three months. This committee aims to facilitate exports of agricultural products and address issues such as quarantine requirements and customs barriers. The agreement was reached during a meeting between Iran's Deputy Agriculture Minister Mohammad Mehdi Borumandi and Secretary of India's Agriculture and Farmers Welfare Ministry Manoj Ahuja in New Delhi. The officials also agreed to hold the first joint working group on agricultural cooperation between the two countries in the near future. ​

Furthermore, Iran's Deputy Minister of Agriculture Alireza Mohajer has voiced the country's readiness to cooperate with BRICS member countries in the agricultural sector. Speaking at the 14th meeting of the BRICS ministers of agriculture in Russia, Mohajer highlighted Iran's strategic geographical position, being situated at the intersection of the North-South and East-West transit corridors. He noted that Iran can help expand regional and international trade networks in agriculture and is an effective partner in bilateral and multilateral cooperation. ​

These initiatives are expected to streamline future collaborations through BRICS mechanisms, particularly financial instruments designed to bypass conventional barriers and facilitate smoother transactions among member states. Both ministers expressed optimism that deeper engagement between Iran and India—within the BRICS framework and bilaterally—will lead to meaningful developments in agricultural and economic relations.

 

Can US sanctions on Iran and OPEC production cuts save oil prices from falling?

According to Reuters, oil prices extended gains on Thursday on the prospect of tighter supply after Washington imposed further sanctions to curb Iranian oil trade and as some OPEC producers pledged more output cuts to compensate for pumping above agreed quotas.

Brent crude futures rose to US$66.40 a barrel by 0321 GMT, and WTI traded at US$63.13 a barrel. Both benchmarks settled 2% higher on Wednesday at their highest levels since April 3 and are on track for their first weekly rise in three. Thursday is the last settlement day of the week ahead of the Good Friday and Easter holidays

"I think the rally has a couple of factors behind it - shorts covering, the weaker Greenback which makes crude oil cheaper to buy, and the US pressure on Iran," IG market analyst Tony Sycamore said.

He added that WTI could rise back to US$67 a barrel but may struggle with further gains.

"If we assume that US growth is going to be flat at best for the next two quarters and Chinese GDP is set to slow to somewhere between the 3%-4% band, it's not good for crude oil," Sycamore said.

President Donald Trump's administration issued new sanctions targeting Iran's oil exports on Wednesday, including against a China-based "teapot" oil refinery, ramping up pressure on Tehran amid talks on the country's escalating nuclear program.

Adding to supply concerns, the Organization of the Petroleum Exporting Countries (OPEC) said on Wednesday it had received updated plans for Iraq, Kazakhstan and other countries to make further output cuts to compensate for pumping above quotas.

"These factors certainly could have affected sentiment – would argue that Iranian production (is) not significant and that OPEC quotas more often breached than observed, but both factors fed into the more bullish tone," said Michael McCarthy, CEO of online investment platform Moomoo.

Big draws on US gasoline and distillates stocks and a smaller-than-expected gain in weekly crude inventories also bolstered markets, he said.

"Much of the recent selling pressure in global crude markets related to fears of an imminent flood of US oil, but the drop in refining suggests that bottlenecks to supply may be emerging," McCarthy said.

Still, OPEC, the International Energy Agency and several banks, including Goldman Sachs and JP Morgan, cut forecasts on oil prices and demand growth this week as US tariffs and retaliation from other countries threw global trade into disarray.

 

China urges Vietnam to resist bullying

Chinese President Xi Jinping has called on Vietnam to oppose "unilateral bullying" to upkeep a global system of free trade — though he stopped short of naming the United States, reports Saudi Gazette.

It comes as Xi is on a so-called "charm offensive" trip across South East Asia, which will also see him visit Malaysia and Cambodia.

Though, the trip was long-planned, it has taken on heightened significance in the wake of a mounting trade war between the US and China. Vietnam was facing US tariffs of up to 46% before the Trump administration issued a 90-day pause last week.

US President Donald Trump called Xi's meeting with Vietnamese leaders a ploy to figure out how to "screw the United States of America".

According to state media outlet Xinhua, Xi told Vietnam's Communist Party Secretary-General To Lam to "jointly oppose unilateral bullying".

"We must strengthen strategic resolve... and uphold the stability of the global free trade system as well as industrial and supply chains," he said.

Stephen Olson, a former US trade negotiator, said Xi's comments were "a very shrewd tactical move".

"While Trump seems determined to blow up the trade system, Xi is positioning China as the defender of rules-based trade, while painting the US as a reckless rogue nation," he added.

Speaking to reporters in the Oval office on Monday, Trump said he does not "blame" China or Vietnam but alleged that they were focused on how to harm the US.

"That's a lovely meeting. Meeting like, trying to figure out, how do we screw the United States of America?" said Trump.

The world's two largest economies are locked in an escalating trade battle, with the Trump administration putting tariffs of 145% on most Chinese imports earlier this month. Beijing later responded with its own 125% tariffs on American products coming into China.

On Saturday, a US customs notice revealed smartphones, computers and some other electronic devices would be excluded from the 125% tariff on goods entering the country from China. But Trump later chimed in on social media saying there was no exemption for these products and called such reports about this notice false. Instead, he said that "they are just moving to a different tariff 'bucket'".

Xi arrived in Hanoi on Monday, where he was welcomed by well wishes waving Chinese and Vietnamese flags. He then met top Vietnamese officials including the country's Secretary-General and Prime Minister Pham Minh Chinh.

Earlier on Tuesday, Xi visited the Ho Chi Minh Mausoleum to take part in a wreath laying ceremony at the resting place of the former Vietnamese founder and Communist leader.

Despite Xi's visit, Vietnam will be careful to "manage the perception that it is colluding with China against the United States, as the US is too important a partner to put aside," said Susannah Patton, Director of the Southeast Asia Program at the Lowy Institute think-tank.

"In many ways, China is an economic competitor as well as an economic partner for South East Asian economies," she added.

Xi arrived in Malaysia on Tuesday. He is expected to meet the country's King, as well as its Prime Minister Anwar Ibrahim.

It comes as Malaysian mobile data service company, U Mobile said it will roll out the country's second 5G network by using infrastructure technology from China's Huawei and ZTE.

Ms Patton expects Xi to continue portraying the US as "a partner which is unreliable and protectionist".

Meanwhile, he is likely to "portray China in stark contrast as a partner that is there", she added.

"Now is really a golden opportunity for China to score that narrative win. I think this is how Xi's visit to Vietnam, Cambodia and Malaysia will be seen."

 

How high could gold price go?

Gold prices have been on an upward trajectory in 2025, recently reaching a record high of US$3,244.60 per ounce. Now a question is being asked, how high could gold price go. Several key factors are contributing to this surge, these include:

Geopolitical Tensions

The introduction of sweeping tariffs by President Donald Trump, especially those targeting China with rates up to 145%, created upheaval in global financial markets. These policies have led investors to question the reliability of traditional safe assets like US Treasuries and the dollar, prompting a shift towards gold as a more stable alternative.

Economic Uncertainty

Concerns about a potential US recession have intensified, with Goldman Sachs estimating a 45% probability of such an event within the next year. This economic uncertainty enhances gold’s appeal as a hedge against downturns, contributing to its rising demand and price.

Purchases by Central Banks

Central banks worldwide are increasing their gold reserves, partly as a strategy to reduce reliance on the US dollar. This trend of de-dollarization supports higher gold prices, as nations seek to diversify their holdings amid shifting global economic dynamics.

Currency Depreciation

Persistent inflation is eroding the value of paper currencies, prompting investors to turn to gold as a means of preserving purchasing power. As the US dollar weakens, gold's role as a hedge against inflation becomes increasingly significant.

Safe-Haven Demand

The volatility in global markets, exacerbated by trade tensions and economic uncertainties, has led investors to seek refuge in gold. Its status as a safe-haven asset during turbulent times further drives its demand and price upward.

Way Forward

Analysts remain bullish on gold prospects, with forecasts suggesting prices could touch US$3,500 by June end 2025, US$ 4,000 by end December 2025 and US$5,000 by end December 2026. However, a point to remember is that if the trade war intensifies, the price may rise at a faster pace.

A more disturbing fact is that confidence of people around the world in the US administration – as a trustworthy friend and US$ as a dependable currency is eroding. The talk about an alternate currency to replace US dollar is getting louder.

Turkey to host Black Sea security meeting

A high-level meeting focused on Black Sea security is being held on Tuesday and Wednesday at the Naval Forces Command headquarters in Ankara, the Turkish Defense Ministry said on Sunday, Xinhua reported.

The meeting aims at discussing military planning measures to preserve peace in the region, particularly in the event of a potential ceasefire between Russia and Ukraine, the ministry said in a statement.

Military representatives from various countries are expected to attend, with discussions centered on the maritime dimension of maintaining stability in the Black Sea. The list of participating countries was not disclosed.

The meeting builds on earlier cooperation efforts, including the establishment of the Mine Countermeasures Black Sea Task Group in July 2024.

The initiative, led by Turkey in coordination with Romania and Bulgaria, was launched to address the threat of drifting sea mines that emerged following the outbreak of the Russia-Ukraine conflict.

On Saturday, Turkish Foreign Minister Hakan Fidan met with his Russian counterpart, Sergey Lavrov, and discussed a range of issues, including the Ukraine conflict and the safety of navigation in the Black Sea.