Saturday, 9 August 2025

Iran completes overhaul of South Pars refinery

Overhaul of the fifth refinery of Iran’s South Pars gas field has been successfully completed, said Kambiz Sefati, manager of the refinery. The work was successfully completed without any incidents, thanks to the round the clock efforts of the staff and strict adherence to safety standards.

He added, "This remarkable achievement reflects the deep commitment of the refinery’s personnel to upholding the highest safety and operational standards."

The manager of the fifth refinery at the South Pars Gas Complex stated that "the issuance of over 5,700 work permits during the maintenance period reflects the extensive scope of activities and our strict adherence to safety procedures in authorizing necessary operations." 

He added, "Thanks to the round-the-clock efforts of all colleagues, particularly the HSE (Health, Safety, and Environment) team, we successfully navigated this critical period without a single incident."

Emphasizing the key factors behind this achievement, the manager said, "Conducting high-quality safety training for specialized maintenance personnel, holding briefing sessions to learn from past incidents in the oil industry, enforcing 24/7 monitoring at the site entrance to prevent unauthorized items, and continuous verification of all issued permits—especially hot work permits by the HSE team—were among our key measures."

Safati noted, "This major maintenance overhaul was meticulously planned and executed to ensure the refinery's full readiness for safe and stable production during the winter season." 

He emphasized, "In this regard, we leveraged the expertise of specialized maintenance teams and utilized the products and technical knowledge of Iranian knowledge-based companies."

Expressing gratitude for the relentless efforts of operational and support teams in maintaining maximum safety and efficiency, he described this achievement as "the result of solidarity and synergy among all personnel, reflecting the paramount importance of safety at this refinery."

South Pars gas field, which Iran shares with Qatar in the Persian Gulf water, is divided into 24 standard phases of development in the first stage. Most of the phases are fully operational at the moment.

The huge offshore field covers an area of 9,700 square kilometers, 3,700 square kilometers of which are in Iran’s territorial waters in the Persian Gulf. The remaining 6,000 square kilometers, called North Dome, are situated in Qatar’s territorial waters.

The field is estimated to contain a significant amount of natural gas, accounting for about eight percent of the world’s reserves, and approximately 18 billion barrels of condensate.

 

Friday, 8 August 2025

World leaders criticize Gaza takeover by Israel

World leaders have criticized Israel’s decision to seize control of Gaza City, warning the move risks exacerbating the already catastrophic humanitarian crisis in the Gaza Strip.

The Israeli security cabinet approved the controversial plan early Friday, marking a new escalation in the country’s nearly two-year-long war against Hamas.

The announcement from Israeli Prime Minister Benjamin Netanyahu’s office came after hours of debate among senior security officials.

The decision to move into Gaza City was made in light of Netanyahu’s earlier suggestions that the military would "take control of all Gaza," but also his claim that Israel had no intention of occupying the Strip permanently.

Saudi Arabia has strongly condemned, in the strongest terms, the Israeli occupation of the Gaza Strip, denouncing what it described as deliberate acts of starvation, brutality, and ethnic cleansing against the Palestinian people. In a statement on Friday, the Ministry of Foreign Affairs said, “The inhumane ideas and decisions adopted by the Israeli occupation authorities without deterrence once again confirm their disregard for the deep emotional, historical, and legal connection of the Palestinian people to this land, and for their rightful claim to it in accordance with international laws and humanitarian principles.”

British Prime Minister Keir Starmer condemned the move in strong terms, stating, “Israel’s decision to further escalate its offensive in Gaza is wrong and we urge it to reconsider immediately.”

“This action will do nothing to bring an end to this conflict or to help secure the release of the hostages. It will only bring more bloodshed,” Starmer said in a statement.

“What we need is a ceasefire, a surge in humanitarian aid, the release of all hostages by Hamas and a negotiated solution.”

Starmer added that Hamas can play no part in the future of Gaza and must leave as well as disarm. The Britain, he said, is working with allies on a long-term strategy to establish peace in the region as part of a two-state solution.

Finland’s Foreign Minister Elina Valtonen echoed those concerns, stating she was extremely worried about the worsening humanitarian conditions in Gaza. “We hope for an immediate Gaza ceasefire and the immediate release of Israeli hostages,” she said.

Australian Foreign Minister Penny Wong called on Israel to back down, warning that permanent forced displacement is a violation of international law.

US President Donald Trump commented earlier this week that the decision was really up to Israel and blamed Hamas for stalling negotiations.

"They didn’t really want to make a deal," he said.

UN High Commissioner for Human Rights Volker Türk slammed the move saying, “The Israeli government’s plan for a complete military takeover of the occupied Gaza Strip must be immediately halted.”

“It runs contrary to the ruling of the International Court of Justice that Israel must bring its occupation to an end as soon as possible, to the realization of the agreed two-state solution and to the right of Palestinians to self-determination,” he added.

Reactions within Israel were divided. Opposition leader Yair Lapid denounced the government’s plan, saying it went against the advice of military leadership.

"The plan is completely contrary to the position of the military and the defence establishment, without taking into consideration the burnout and the exhaustion of the combat troops," he said.

Chief of the General Staff Lieutenant General Eyal Zamir warned earlier on Thursday that the plan would endanger the lives of the hostages and further stretch the military.

Zamir has repeatedly clashed with the security cabinet in recent days, notably over the Gaza proposal.

Prior to the security cabinet session on Thursday, Netanyahu denied Israel had any intentions of permanently controlling Gaza in its entirety.

"We don't want to keep it. We want to have a security perimeter," the Israeli leader told Fox News. "We don't want to govern it. We don't want to be there as a governing body."

He said that Israel intends to hand over the Strip to a coalition of Arab forces that would govern it.

The announcement comes as humanitarian organizations continue to warn of severe conditions in Gaza, where widespread hunger and displacement are mounting daily.

The ongoing Israel-Hamas war in Gaza has displaced nearly the entire population of Gaza, destroyed over 60% of the enclave’s buildings and infrastructure, and brought most of its 2 million residents to the brink of famine.



PSX benchmark index up 3.08%WoW

Pakistan Stock Exchange (PSX) sustained its bullish momentum throughout the week on anticipation of strong earnings during the ongoing results season. The benchmark index touched its all-time high closing at 145,647 points on Thursday, but closed the week at 145,383 points, up 4,348 points, up 3.08%WoW, with meager decline in the last trading session.

Market participation improved with average daily traded volume increasing by 16.3%WoW to 653 million shares, up from 561 million shares a week ago.

Trade deficit for the month of July 2025 rose to US$2.8 billion, up 44%YoY.

Workers’ remittances for July 2025 also rose to US$3.2 billion, up 7%YoY.

Foreign exchange reserves held by State Bank of Pakistan (SBP) decreased by US$72 million to US$14.2 billion as of August 01, 2025.

Key sectoral developments included robust 30%YoY growth in cement dispatches for July 2025, while OMC offtakes reached 1.2 million tons, up 2% YoY.

On the international front, the Trump administration imposed an additional 25% tariff on India, raising reciprocal tariffs to 50%.

Other major news flow during the week included: 1) Pakistan gets 19% tariff after US drives a hard bargain, 2) SBP enhances housing finance limit for microfinance borrowers to PKR5 million, 3) ExxonMobil likely to come back for offshore venture, 4) Pakistan set to initiate dialogue with Qatar on LNG supplies, and 5) Budget deficit drops to 5.4% in FY25 from 6.8% for the same period last year.

Woollen, Jute, insurance, Tobacco, and Food & Personal Care were amongst the top performing sectors, while Synthetic & Rayon, Close-end Mutual Funds, Chemical, Sugar & Allied Industries, and Textile Weaving were amongst the laggards.

Major selling was recorded by Banks/ DFI with a net sell of US$18.8 million. On the other hand, Mutual Funds absorbed most of the selling with a net buy of US$22.9 million.

Top performing scrips the week were: AGL, NESTLE, UNITY, HBL, and BNWM, while the laggards included: GADT, PKGP, FABL, LCI, and IBFL.

According to AKD Securities, the market is expected to remain positive in the coming weeks, with further developments over circular debt expected to drive the market along with upcoming corporate results remaining in the limelight.

The benchmark index is anticipated to sustain its upward trajectory, with a target of 165,215 points by end December 2025, primarily driven by strong earnings in Fertilizers, sustained ROEs in Banks, and improving cash flows of E&Ps and OMCs, benefiting from falling interest rates and economic stability.

The top picks of the brokerage house include OGDC, PPL, PSO, FFC, ENGROH, MCB, FCCL, KOHC, INDU, and SYS.

Thursday, 7 August 2025

Pleasing Trump may annoy Saudi Arabia

Energy diversification is smart, but foreign policy tact is essential.

Importing US crude oil may please US President Donald Trump, but it could also annoy Saudi Arabia, especially given the special relationship between Pakistan and the Kingdom, which includes:

Long standing energy ties
Saudi Arabia is Pakistan’s largest crude oil supplier, often providing oil on deferred payment (US$3 billion oil credit facility renewed multiple times).

Financial assistance
Saudi Arabia has provided billions in loans, deposits, and grants to support Pakistan’s economy, particularly during IMF negotiations.

Strategic alignment
The Saudi-Pakistan relationship is not just economic but also political and military, including defense cooperation and labor remittances.

Though, to begin with import of crude oil from United will be small, the move could strain ties between Pakistan and Saudi Arabia.

Geopolitical optics
Importing US crude might be seen as Pakistan pivoting westward, especially if framed as part of a larger US trade deal.

Loss of market share

Even a 10% reduction in demand from a long-time buyer like Pakistan might raise commercial and symbolic concerns.

Trust and alignment issues

If the decision isn't communicated diplomatically, Riyadh may perceive it as ungrateful, especially if deferred payment oil continues.

Not necessarily a rupture

Scale is limited
Pakistan is not replacing Saudi oil. The pilot phase is just 10% of imports. It's a diversification move, not a shift in allegiance.

Economic logic
The US crude provides lighter grades and higher gasoline yield, improving domestic refining output. If positioned as a technical decision, it’s easier to justify.

Diplomatic communication
Pakistan can explain this as part of energy diversification—a common practice by many countries—and reaffirm its strategic ties with Riyadh.

Pakistan should do:

Step

Why it matters

Engage Saudi leadership in advance

Avoid surprises and reassure that US crude is a supplement, not a replacement

Reaffirm oil diplomacy

Continue or even expand the deferred payment arrangement with Saudi Arabia

Highlight refining needs

Explain that lighter crude grades improve fuel mix, not reduce strategic ties

Balance optics

Avoid appearing to pivot entirely toward US or using this purely as a bargaining chip in US trade diplomacy

 

Bottom Line

Importing US crude could cause diplomatic unease in Saudi Arabia—especially if it's perceived as Pakistan drifting from its long-standing partner. But the impact can be minimized through: 1) Transparent diplomacy, 2) Economic rationale, and 3) Strategic reassurance

 

Israel using US munitions to attack Gaza schools

The Israeli military has “illegally and indiscriminately” used US munitions to attack school shelters in Gaza, killing hundreds of people, Human Rights Watch (HRW) says, reports CNN.

The US-based campaigners’ report, “Gaza: Israeli School Strikes Magnify Civilian Peril,” was published Thursday.

Israel’s campaign following the Hamas-led attacks of October 07, 2023 has made the vast majority of Gaza’s 2.1 million people homeless – forcing many to flee their neighborhoods in search of civilian infrastructure.

Israel has frequently said its strikes on school facilities in Gaza target embedded Hamas fighters. But HRW said it only found seven instances where the military published details of alleged militants killed – and highlighted two strikes, which killed nearly 50 people, where they found no evidence of any military target.

Such attacks would violate international law because schools and other educational facilities are civilian objects and protected from attack, HRW said. They lose that protection when used for military purposes or are occupied by military forces. But the use of schools to house civilians does not alter their legal status.

HRW called on the US and other governments to halt arms sales to Israel, given the “clear risk” that weapons might be used to commit or facilitate “serious violations” of international humanitarian law.” Washington’s supply of arms to Israel has made the US “complicit” in their lawful use, the group said.

“Israeli strikes on schools sheltering displaced families provide a window into the widespread carnage that Israeli forces have carried out in Gaza,” Gerry Simpson, associate crisis, conflict and arms director at HRW, said in the report. “Other governments should not tolerate this horrendous slaughter of Palestinians merely seeking safety,” added Simpson.

The Israel Defense Forces (IDF) said it “operates exclusively on the grounds of military necessity and in strict accordance with international law.”

“It must be emphasized that the report blatantly ignores Hamas’ systematic pattern of unlawfully embedding its’ military assets, including weapons and ammunition in, beneath, and in proximity to densely populated civilian areas, and cynically exploits civilian infrastructure for terror purposes,” the IDF added.

“Specifically, it has been well documented that Hamas exploits schools and UNRWA facilities for its military activities by building military networks beneath and within schools; establishing command-and-control centers within them, launching attacks toward IDF forces from them, and imprisoning hostages in them.”

The military said it takes “feasible precautions” to mitigate harm to civilians as much as possible and “regrets any harm caused to uninvolved civilians.”

Israeli attacks on school shelters in Gaza have killed at least 836 Palestinians and injured another 2,527 people, as of July 18, HRW reported, citing the UN’s Office for the Coordination of Humanitarian Affairs (OCHA).

HRW investigated two such attacks where it identified the use of US munitions. The agency said it reviewed satellite imagery, photos, and videos of the attacks and their aftermath, as well as social media and interviews with eyewitnesses.

CNN has previously reported on the use of US weaponry in deadly strikes and has reached out to the State Department for comment on the HRW report.

On July 27, 2024, the Israeli military launched at least three strikes on the Khadija girls’ school in Deir Al-Balah, central Gaza. At least 15 people were killed.

Then on September 21, Israel struck Al-Zeitoun school, northern Gaza. At least 34 people were killed.

“Can you imagine, a building full of displaced people leveled in the blink of an eye?” a journalist cited in the HRW report said. “I saw people with serious and more minor injuries, and then saw human remains on the ground.”

The allegations chimed with repeated human rights warnings that Israel’s 22-month bombing and siege has rendered much of the enclave uninhabitable.

HRW said attacks on school shelters have diminished access to refuge, exacerbated reconstruction challenges, and disrupted education among a pre-war population of more than 2.2 million people – where half of those are under the age of 18.

At least 97% of schools in Gaza have sustained damage, the UNICEF-led Education Cluster reported in August. Efforts to rebuild destroyed homes in Gaza could take until 2040, the UN said in May. The level of destruction is so extensive that it would require external assistance on a scale not seen since 1948, the agency added.

At least 61,158 Palestinians have been killed in Gaza, the Ministry of Health there reported on Wednesday. At least 193 people have starved to death, including 96 children, the ministry added.

One Palestinian student told CNN that days spent going to university have been replaced by a brutal struggle for survival repeated displacement, and severe hunger.

“The war came and destroyed everything,” Raghad Ezzat Hamouda, 20, told CNN on Wednesday.

“I lost my ambitions and dreams,” added Hamouda, who is displaced with nine family members in Tal Al-Hawa, central Gaza. “Gaza has become uninhabitable. (There are) no homes, no schools, no universities, no infrastructure... Just ashes.”

 

 

 

Wednesday, 6 August 2025

Israeli command centers come under attack in Gaza

According to Tehran Times, the Al-Qassam Brigades, the armed wing of Hamas, announced they have shelled an Israeli command and control site near Dar al-Arqam School in the al-Tuffah neighborhood, eastern Gaza City, using multiple mortar shells.

In southern Gaza, near Khan Younis, the al-Qassam Brigades targeted another occupation regime’s command site in the Morag axis, using heavy-caliber mortar shells.

The resistance continues to confront Israeli occupation forces (IOF) that have invaded various parts of Gaza, launching strategic operations that have resulted in both human and material losses for the regime. 

In the al-Zannah area northeast of Khan Younis, al-Qassam forces attacked an IOF armored personnel carrier with a powerful barrel bomb, reportedly killing and injuring its crew.

The IOF has acknowledged injuries to soldiers including one in serious condition. 

Al-Qassam stated that, in coordination with the al-Quds Brigades, (the armed wing of Palestinian Islamic Jihad) and al-Nasser Salah al-Din Brigades (the armed wing of the Popular Resistance Committees), they jointly shelled a gathering of IOF soldiers and military vehicles north of Khan Younis, using heavy mortar fire.

The al-Quds Brigades, in collaboration with the Abu Ali Mustafa Brigades (armed wing of the Popular Front for the Liberation of Palestine), released footage of a joint operation that destroyed an IOF military vehicle. 

They also shared video of an attack targeting IOF soldiers with mortar fire, carried out in cooperation with the Ansar Brigades in the eastern Shujaiya neighborhood near Gaza City.

In a separate announcement, the Abu Ali Mustafa Brigades confirmed that one of their units successfully destroyed an IOF military vehicle using a pre-planted anti-armor explosive device. The operation took place in eastern Shujaiya and reportedly caused casualties among the IOF crew.

Meanwhile, the al-Aqsa Martyrs Brigades claimed responsibility for targeting a group of IOF soldiers and military vehicles with mortar shells east of al-Qarara, northeast of Khan Younis.

In response to these developments, the Israeli military confirmed that one of its officers was also wounded in southern Gaza.

This escalation comes amid reports of an impending IOF military plan for a full-scale invasion of Gaza again. The proposal is expected to be discussed in a cabinet session on Thursday, although the Israeli military has reportedly expressed opposition to the plan, warning of the significant risks involved.

The Hebrew newspaper Yedioth Ahronoth has reported that the Israeli government’s rehabilitation department is currently treating around 80,000 wounded soldiers.

Among them, approximately 26,000 are suffering from psychological disorders. The report highlights a growing mental health crisis within the Israeli military, noting a noticeable rise in suicide cases among soldiers.

 

Should Pakistan Import US Crude Oil?

Deciding whether Pakistan should import crude oil from the United States depends on multiple strategic, economic, and diplomatic factors. Here’s a balanced assessment based on the latest data and projections:

Pakistan is slated to take delivery of its first-ever US crude oil, one million barrel cargo of light WTI crude from Vitol, expected to arrive in October 2025 at Cnergyico’s refinery in Karachi. This marks a pilot spot cargo—if successful, Cnergyico may import one cargo per month thereafter

The move is part of a broader US–Pakistan trade agreement focused on oil and energy cooperation, and to mitigate threatened 29% tariffs on Pakistani exports.

Advantages of US Crude Imports

Energy source diversification
Breaking reliance on Middle Eastern suppliers - Saudi Arabia and UAE)—who currently account for nearly all of Pakistan’s crude oil imports—enhances energy security and geopolitical flexibility.

Refinery compatibility
Pakistan's largest refinery can process WTI Midland and cactus grades without blending adjustments and may boost gasoline/ middle distillate production, easing import reliance on refined products.

Trade diplomacy tool
Importing US crude may be used strategically in tariff negotiation, potentially lowering or avoiding the 29% US duty on Pakistani exports by helping balance trade flows.

Challenges and Risks

Higher logistics cost
Freight, insurance, and handling add around US$3 per barrel compared to regional supplies. This higher cost may strain forex reserves unless oil price spreads narrow.

Foreign exchange pressure and inflation

Larger import bill could put pressure on currency reserves and stoke inflation, especially if fuel prices are subsidized domestically.

Limited climate if not managed well
US imports should be a strategic supplement rather than a primary sourcing route, since over-dependence on long-distance crude can worsen trade and fiscal balances.

Key Considerations

Factor

Rationale

Volume

Target of 10% of total crude imports, around US$ one billion annually

Pricing Arbitrage

WTI's lighter quality and higher gasoline yield might offset additional logistics cost, assuming favourable price spreads

Refinery Capacity

Cnergyico’s SPM-equipped 156,000 bpd plant is record-compatible; no major technical hurdles noted

Strategic Diplomacy

The imports offer Pakistan leverage in US tariff negotiations and broader market access

The logical reply is that as part of a broader strategy Pakistan should import US crude oil. Use it to boost export negotiation leverage with the US. Diversify sources to improve energy resilience. Leverage light US crude to enhance domestic fuel yields.

Tread carefully

Limiting imports to a test/ pilot phase to assess cost, logistics, and yield economics. Monitoring global price differentials—if WTI premiums shrink relative to Gulf crude, US imports may become more viable long-term. Avoiding overreliance—continue importing most crude from Gulf suppliers with more favorable logistics and financing terms.

Moral of the story

Pakistan is entering a strategic test phase, set to receive one million barrels of US WTI oil in October 2025. If successful, limited monthly imports (10%) can support export negotiations, diversify supply, and potentially improve gasoline yields—even at some added logistical cost. However, unless price arbitrage improves, US crude should remain a tactical supplement, not replace traditional Gulf suppliers.