Provincial court delivers Pakistan’s first-ever conviction for insider trading

Provincial court delivers Pakistan’s first-ever conviction for insider trading
Stock brokers monitor share prices displayed on a digital screen during a trading session at the Pakistan Stock Exchange (PSX) in Karachi on February 12, 2024. (AFP)
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Updated 17 June 2025
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Provincial court delivers Pakistan’s first-ever conviction for insider trading

Provincial court delivers Pakistan’s first-ever conviction for insider trading
  • SECP says bank official misused insider information related to investment, disinvestment decisions for “personal gain“
  • Financial regulator says court slaps $30,380 penalty on convict, with the amount to be deposited within seven days

KARACHI: A Pakistani court recently handed its first-ever conviction for insider trading, the Securities and Exchange Commission of Pakistan (SECP) said on Tuesday, hailing the judgment as one which will boost investors’ confidence in the country’s capital markets. 

Insider trading refers to the practice of buying or selling a publicly traded company’s securities while in possession of material information that is not yet public information. The SECP said it had filed a case against Zakir Hussain Somji, assistant vice president of investments at Habib Metropolitan Bank (HMB) Limited, after inspecting suspicious trading activity from Jan. 1, 2014, to Feb. 2, 2016.

The regulator said it was suspected that the accused, through his position at HMB, misused insider information related to the bank’s investment and disinvestment decisions for personal gain. The SECP said a probe revealed Somji bought 11,795,100 shares of various companies, including 1,230,900 shares (10.43 percent) acquired from HMB. He sold 11,836,600 shares — 4,915,200 (41.52 percent) of which were sold back to HMB, earning an “unlawful profit” of Rs2,866,646 [$10,116.39]. 

“Sindh Special Court (Offences in Banks) handed out first ever conviction for insider trading in the history of Pakistan in a case filed by The Securities and Exchange Commission of Pakistan (SECP),” the regulator said. 

It said Somji had been convicted by the court on June 14 for violating provisions of Section 128 of the Securities Act, 2015, which related to insider trading. 

The regulator said the court slapped Somji with a penalty of Rs 8,599,938 [$30,380] which was three times the “unlawful gain.”

“The amount is to be deposited within seven days, failing which the convict will be remanded to jail until full payment is made,” the SECP said. 

The regulator said the judgment reaffirms SECP’s mandate to ensure market integrity and investor protection.

“It sets a strong precedent for future enforcement actions and sends a clear message that market abuse and regulatory violations shall not be tolerated,” it added. 
 


Pakistan, Russia discuss steel mills revival, industrial cooperation at INNOPROM forum

Pakistan, Russia discuss steel mills revival, industrial cooperation at INNOPROM forum
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Pakistan, Russia discuss steel mills revival, industrial cooperation at INNOPROM forum

Pakistan, Russia discuss steel mills revival, industrial cooperation at INNOPROM forum


ISLAMABAD: Russia and Pakistan discussed plans to modernize a major steel complex and expand industrial cooperation during a high-level meeting on the sidelines of the INNOPROM Annual Industrial Forum in Yekaterinburg, state media reported on Tuesday.

The meeting between Haroon Akhtar Khan, Special Assistant to the Pakistani Prime Minister on Industries and Production, and Russian Trade and Industry Minister Anton Alikhanov focused on reviving Pakistan’s dormant steel industry and enhancing bilateral trade.

INNOPROM is Russia’s largest annual industrial trade fair, bringing together government delegations, business leaders and technology firms from over 30 countries to explore partnerships in manufacturing, engineering and high-tech industries.

“Both sides reviewed technical aspects of modernizing the Pakistan Steel Mills to establish a cutting-edge metallurgical facility,” Pakistan Television (PTV) reported. “The discussions also explored ways to enhance trade ties and promote industrial collaboration between the two countries.”

Earlier this month, Russian Consul-General Andrey B. Fedorov told Arab News Moscow expected to finalize an agreement with Islamabad this summer to construct a new steel mill in Karachi.

The original Pakistan Steel Mills, once the country’s flagship industrial complex, was built in the 1970s with Soviet assistance. While it symbolized national self-sufficiency, the mill has been non-operational since 2015 due to years of financial mismanagement, political interference and mounting losses.

Technical experts from Russia have already inspected the proposed site for the new facility, and another delegation is expected soon to draft a detailed roadmap.

Russia has a long history of industrial cooperation with Pakistan, having previously built key infrastructure projects such as the Guddu Power Station in Sindh in the 1980s, one of the country’s major electricity producers.

Moscow and Islamabad have expanded cooperation in recent years despite global tensions over the war in Ukraine.


US reaffirms Trump’s role in India-Pakistan ceasefire, contradicting New Delhi’s denials

US reaffirms Trump’s role in India-Pakistan ceasefire, contradicting New Delhi’s denials
Updated 09 July 2025
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US reaffirms Trump’s role in India-Pakistan ceasefire, contradicting New Delhi’s denials

US reaffirms Trump’s role in India-Pakistan ceasefire, contradicting New Delhi’s denials
  • Tammy Bruce says people today can see events unfold for themselves and don’t need official statements to know what really happened
  • New Delhi has denied any US role in the ceasefire with Pakistan, while Islamabad has acknowledged and praised American involvement

ISLAMABAD: A US State Department official reaffirmed on Tuesday President Donald Trump and his top administration officials were involved in negotiations that led to a ceasefire between India and Pakistan earlier this year, contradicting repeated statements from Indian officials denying any American role.

Speaking at a State Department media briefing in Washington, spokesperson Tammy Bruce responded to a question about New Delhi’s rejection of Trump’s involvement in the truce.

Indian Prime Minister Narendra Modi and members of his cabinet have insisted that the ceasefire was achieved bilaterally, without third-party mediation.

“So many comments speak for themselves,” she said. “That’s one of the good-news aspects of our modern world — people can see what’s really occurring. You’re not reliant on a comment to know what has really happened.”

She maintained “Secretary [of State] Marco Rubio ... the Vice President of the United States [JD Vance were] also involved in the negotiations with Pakistan and India,” which was announced by President Donald Trump on May 10.

Bruce’s comments came amid continued tension between Indian and American narratives about the circumstances that led to the ceasefire after four days of intense military conflict between the two South Asian nuclear rivals.

The Trump administration announced the two countries had agreed to halt hostilities and engage in talks at a neutral venue.

While the Trump administration publicly claimed credit for defusing the crisis, New Delhi maintained silence initially. In recent weeks, however, Indian officials have pushed back against suggestions of US mediation.

Suggestions of foreign involvement in Indian foreign policy engagements in the region, particularly with Pakistan, are often politically sensitive.

The Ministry of External Affairs in New Delhi announced in a statement after last month’s G7 meeting in Canada that Modi had challenged the American perspective, saying there was no US mediation in the Pakistan truce.

Subsequently, India’s Foreign Minister Subrahmanyam Jaishankar made similar remarks to clarify India’s position on the issue.

Pakistan, in contrast, has openly acknowledged and praised US involvement, with the government even nominating Trump for a Nobel Peace Prize following the ceasefire announcement.


Punjab braces for more rain as monsoon spell expected to continue until July 13

Punjab braces for more rain as monsoon spell expected to continue until July 13
Updated 09 July 2025
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Punjab braces for more rain as monsoon spell expected to continue until July 13

Punjab braces for more rain as monsoon spell expected to continue until July 13
  • Provincial Disaster Management Authority advises citizens to avoid swimming in rivers, canals and streams
  • It asks people to stay in safe areas as intense rainfall is expected in several regions during the next 24 hours

ISLAMABAD: The ongoing spell of monsoon rains is expected to continue across most districts of Pakistan’s Punjab province until July 13, the Provincial Disaster Management Authority (PDMA) said on Wednesday, urging residents to take precautionary measures amid forecasts of intense downpours in the next 24 hours.

In the last 24 hours, significant rainfall was recorded in several cities, including Khanewal (51mm), Rawalpindi (42mm), Sahiwal (44mm) and Murree (41mm), according to the PDMA spokesperson. Lahore received 23mm of rain, while Okara recorded 30mm, Mandi Bahauddin 27mm, Mangla 24mm and Toba Tek Singh 13mm.

“The monsoon spell is likely to persist across the province until July 13,” said Irfan Ali Kathia, Director General of Punjab PDMA, in a statement.

“Severe rainfall is expected in several regions during the next 24 hours,” he added.

Kathia advised citizens to avoid swimming in rivers, canals and streams, warning that Punjab’s government has imposed Section 144 to restrict public access to water bodies due to the risk of flooding and drowning.

“People should stay in safe areas during thunderstorms and avoid taking shelter in mud houses or dilapidated buildings,” he said. “Drivers are urged to reduce speed during rainfall and maintain safe distances to avoid accidents.”


Turkish ministers arrive in Pakistan for talks on defense cooperation, counterterrorism

Turkish ministers arrive in Pakistan for talks on defense cooperation, counterterrorism
Updated 09 July 2025
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Turkish ministers arrive in Pakistan for talks on defense cooperation, counterterrorism

Turkish ministers arrive in Pakistan for talks on defense cooperation, counterterrorism
  • Turkish Foreign Minister Hakan Fidan and Defense Minister Yaşar Güler reached Pakistan late Tuesday night
  • The visit follows Türkiye’s public condemnation of Indian strikes in Pakistan during a brief military conflict in May

ISLAMABAD: Türkiye’s defense and foreign ministers arrived in Pakistan on late Tuesday night for a series of high-level meetings expected to focus on counterterrorism, defense cooperation and broader strategic ties, according to the foreign office in Islamabad.

The visit comes amid deepening relations between the two countries and follows Türkiye’s public condemnation of Indian cross-border strikes in Pakistan during a brief conflict between the two South Asian neighbors in May.

The Pakistani administration announced the arrival of Foreign Minister Hakan Fidan and Defense Minister Yaşar Güler in two separate official statements.

“During [their] official visit to Pakistan, key matters of mutual interest will be discussed,” the foreign office said. “The visit highlights the close brotherly ties between Pakistan and Türkiye, founded on shared values, mutual respect, and a long history of friendship.”

The Turkish state broadcaster TRT International said the visit “is expected to advance bilateral cooperation in the fields of security and counter-terrorism,” adding the “delegation is also expected to discuss measures to strengthen bilateral defense cooperation.”

Pakistan and Türkiye have maintained close military ties in recent years.

Under a 2018 agreement, Türkiye is delivering four MILGEM-class corvettes to the Pakistan Navy, with two built in Istanbul and two at Karachi Shipyard under a technology transfer arrangement.

The first vessel, PNS Babur, was delivered in 2023.
 


IMF’s $2.5 billion inflows this fiscal year to back Pakistan’s return to global bonds — analysts

IMF’s $2.5 billion inflows this fiscal year to back Pakistan’s return to global bonds — analysts
Updated 09 July 2025
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IMF’s $2.5 billion inflows this fiscal year to back Pakistan’s return to global bonds — analysts

IMF’s $2.5 billion inflows this fiscal year to back Pakistan’s return to global bonds — analysts
  • The IMF country representative to Pakistan says the government’s program implementation remains strong
  • Analysts say IMF support was crucial during default scare and will remain vital until economic stabilization

KARACHI: Pakistan is expected to receive about $2.5 billion in financing from the International Monetary Fund (IMF) during the current fiscal year (FY26), which analysts say will support the country’s bid to re-enter the international bonds market through instruments such as sukuk or Panda bonds.

The funding will be part of the IMF’s $7 billion commitment to Pakistan over the next two years, comprising $5.2 billion under the Extended Fund Facility (EFF) and $1.4 billion through the Resilience and Sustainability Facility (RSF), aimed at strengthening the country’s foreign exchange reserves, according to the IMF’s latest country report.

“The first review under the RSF, if on schedule, would go to the Executive Board for approval sometime in late 2025, along with the second EFF review,” IMF’s resident representative Mahir Binici told Arab News in a text message.

The Fund’s second review of Pakistan’s economy and end-June 2025 performance criteria is scheduled for September 15. If completed successfully, it would lead to the release of approximately $1.04 billion under the EFF and $211 million through the RSF. A third review is scheduled for March 2026 and would entitle Pakistan to the same amount of funding, if cleared.

“This would be the earliest time at which Pakistan could access RSF-related financing,” said Mahir, referring to the $1.4 billion climate resilience loan the lender approved earlier this year in May. The RSF will be disbursed in equal tranches of about $211 million over the next 28 months.

Pakistan is consistently ranked among the nations most vulnerable to climate change. The country suffered its worst floods in 2022, which killed over 1,700 people, displaced millions and caused infrastructure damage worth an estimated $30 billion. Even this monsoon season, flash floods have already killed more than 60 people, mostly in the country’s northwest and central regions.

The climate funding will be disbursed “with each joint EFF and RSF review,” Mahir said.

“The first EFF review and RSF request were recently concluded, and the program implementation has been strong,” he said in response to a question about Pakistan’s performance in terms of compliance with the loan’s conditions.

Sana Tawfik, a Karachi-based economist and head of research at Arif Habib Ltd., said the IMF’s financial support was a key factor behind Pakistan’s improving macroeconomic indicators and would keep the government on track to secure funding from both bilateral and commercial lenders.

“The bilateral lenders like China, Saudi Arabia and other countries, as well as Pakistan’s commercial lenders closely observe whether or not the IMF is onboard,” she said.

Tawfik maintained Pakistan was aiming to return to the international bonds market, potentially through a sukuk issue or Panda bonds.

In March, Finance Minister Muhammad Aurangzeb said his government aimed to raise about $200 million through Panda bonds by December 2025 to diversify funding sources, reduce dependence on Western markets, and boost foreign exchange reserves.

The move came after an improvement in Pakistan’s sovereign credit rating by three major agencies, with the government targeting a “single-B” rating to regain access to global debt markets.

“The IMF staying on board is very important for this,” Tawfik said, adding that continued dollar inflows were also critical to repaying Pakistan’s external debt.

In FY26 alone, the country is expected to repay around $17 billion in foreign loans, excluding the current account deficit, according to IMF data.

“The significance of this 37-month loan program is that it came as a medium-term support for Pakistan and that’s why we are seeing improvement in our macroeconomic indicators,” she told Arab News.

Muhammad Waqas Ghani, head of research at JS Global Capital Ltd., said participation in the IMF program served as a crucial policy anchor, supporting structural reforms aimed at stabilizing Pakistan’s fragile economy.

While the country looks to tap global capital markets, Ghani said “association with the Fund is essential for enhancing confidence among both local and international investors.”

He added that continued IMF backing was key to unlocking further multilateral and bilateral support.

Tawfik agreed.

“The IMF support was important for Pakistan at the time [it came close to] default [in 2023] and it will remain important until we properly stabilize as an economy,” she said.