The State Bank of Pakistan (SBP) said the payment had been made, adding that a further $1 billion is due on April 23.

Despite the large outflow, the central bank said the repayment would not impact the country’s foreign exchange reserves.

“Arrangements for external payments are in place,” SBP sources said, stressing that reserves would remain stable and obligations are being met on time.

The latest payment is part of a three-stage schedule approved by Pakistan’s leadership to repay the full $3.5 billion debt to the UAE this month.

Under the plan, $450 million was paid on April 11, followed by $2 billion on April 17, while the final $1 billion instalment is scheduled for April 23.

The loan, originally extended in 2019, was aimed at supporting Pakistan’s balance of payments during a period of economic stress. The decision to repay the full amount comes after months of uncertainty, as Abu Dhabi had shifted from annual to monthly loan rollovers.

External sector support strengthens

The repayments come alongside measures aimed at reinforcing Pakistan’s external financial position.

Earlier, Pakistan secured a $3 billion deposit extension agreement with the Saudi Fund for Development, providing continued support to foreign exchange reserves.

The agreement, signed in Washington during the World Bank-IMF Spring Meetings 2026, was witnessed by Finance Minister Muhammad Aurangzeb.

The extension of the Saudi deposit reflects ongoing economic cooperation between the two countries and is expected to support Pakistan’s external sector stability.

Separately, the central bank, earlier this week, had said it received $2 billion from the kingdom “in the value date of April 15, 2026“.

In a separate development, Pakistan also raised $500 million through a Eurobond issuance a day earlier, further strengthening its liquidity position.

The SBP maintained that despite significant repayments, Pakistan’s external account remains manageable, with sufficient inflows and financing arrangements in place.

The developments signal Islamabad’s effort to meet its financial commitments while maintaining stability in foreign exchange reserves amid ongoing economic challenges.

In the local bullion market, the price of gold per tola jumped by Rs4,500 to reach Rs506,062, according to data released by the All-Pakistan Gems and Jewellers Sarafa Association.

Similarly, the price of 10 grams of gold increased by Rs3,858, settling at Rs433,866.

The rise follows a decline in the previous session, when gold per tola had fallen by Rs3,300 to close at Rs501,562.

In the international market, gold prices climbed by $45 per ounce, reaching $4,837, including a premium of $20.

Silver prices also moved higher in the domestic market, gaining Rs118 to reach Rs8,562 per tola.

The increase reflects continued volatility in global bullion markets, with local prices closely mirroring international trends.

Iranian Foreign Minister Abbas Araqchi said on Friday the Strait of Hormuz was open following a ceasefire accord agreed in Lebanon, while US President Donald Trump said he believed a deal to end the ​Iran war would come “soon“, though the timing remains unclear.

Since the crisis began at the end of February, more than 500 million ​barrels of crude and condensate have been knocked out of the global market, according to Kpler data — the ⁠largest energy supply disruption in modern history.

Put differently, 500 million barrels of oil lost to the market is equivalent to:

• Curtailing aviation demand ​globally for 10 weeks; no road travel by any vehicle globally for 11 days; or no oil for the global economy for five days, ​said Iain Mowat, principal analyst at Wood Mackenzie.
• Nearly a month of oil demand in the United States, or more than a month of oil for all of Europe, according to Reuters estimates.
• Roughly six years of fuel consumption for the US military, based on annual usage of about 80 million barrels from fiscal ​year 2021.
• Enough fuel to run the world’s international shipping industry for around four months.

Key facts:

• Gulf Arab countries lost about 8 million barrels per ​day of crude production in March, nearly equivalent to the combined production of Exxon Mobil and Chevron, two of the biggest oil companies in the ‌world.
• Jet fuel ⁠exports from Saudi Arabia, Qatar, the United Arab Emirates, Kuwait, Bahrain and Oman fell from about 19.6 million barrels in February to just 4.1 million barrels for March and April so far combined, according to Kpler data. The loss in exports would have been enough for around 20,000 round-trip flights between New York’s JFK airport and London Heathrow, according to Reuters estimates.
• With crude prices averaging around $100 a barrel since ​the conflict began, those missing volumes ​represent roughly $50 billion in lost ⁠revenues, said Johannes Rauball, a senior crude analyst at Kpler. That equates to a 1% cut in Germany’s annual gross domestic product, or roughly the entire GDP of smaller countries such as Latvia or Estonia.

Full restoration could take years

Even as Iranian Foreign Minister Araqchi said the Strait of Hormuz was open, ​recovery of output ⁠and flows is expected to be slow.

Global onshore crude inventories have fallen by about 45 million barrels so far in April, according to Kpler. Since late March, production outages have reached roughly 12 million bpd.

Heavier crude fields in Kuwait and Iraq could take four to five months to return to ⁠normal operating ​levels, extending stock draws through the summer, Rauball said.

Damage to refining capacity ​and Qatar’s Ras Laffan LNG complex means full restoration of regional energy infrastructure could take years.

- Commercial launches now account ​for over 60% of all space launches ⁠and a number of companies are ​rushing to go public, Beijing Daily ​said.

- Gao Yibin, head of the Strategic Research Department at Future Aerospace, said with the acceleration ​of launch approvals, the localisation of ​components and the continued injection of capital by ‌industrial ⁠funds, China’s trillion-yuan commercial space market is moving towards standardisation and scale

- “The accelerated implementation of scenarios such as low-Earth ​orbit constellation ​networking, satellite ⁠internet, space computing power, and 6G air-space-ground integration suggests sustained ​growth is expected in 2026,” ​said ⁠Gao.

- The Beijing Satellite Town will provide support to develop the aerospace ⁠industry ​by fostering industrial clustering ​and enabling talent, capital and technology to flow efficiently.

According to an official notification, the price of diesel has been reduced by Rs32.12, bringing it down from Rs385.54 to Rs353.43 per litre.

The decision was approved on Friday as part of the government’s efforts to ease the financial burden on the public amid rising living costs.

In a statement, the prime minister said providing relief to citizens remains a top priority, adding that the benefits of reduced fuel prices should be passed on to the public as quickly as possible.

Officials confirmed that the revised prices have come into effect immediately.

The issuance attracted strong investor interest despite ongoing global economic and geopolitical uncertainties, signalling a revival in investor confidence in Pakistan’s economic outlook, Schehzad wrote on X.

According to him, the bond was priced at competitive terms, reflecting improving macroeconomic indicators and stabilising financial conditions.

The transaction is expected to enhance Pakistan’s sovereign yield curve and provide a fresh pricing benchmark for future international issuances.

He said the successful return to global markets marks a key milestone in the government’s broader strategy to diversify external financing sources and reduce reliance on short-term funding.

 “The strong demand underscores renewed investor trust and reflects the government’s disciplined debt management approach,” Schehzad said.

The proceeds from the Eurobond will support external financing needs and contribute to strengthening foreign exchange buffers.

Schehzad noted that Pakistan plans to further deepen its engagement with international investors. Preparations are underway for the appointment of financial advisors for the upcoming GMTN and international Sukuk programmes, while progress on the Panda Bond initiative is also continuing.

Pakistan’s return to the Eurobond market comes amid easing energy prices and gradual macroeconomic stabilisation, factors that have helped improve the country’s risk perception among global investors.

The move is expected to reinforce Pakistan’s credibility in international debt markets and pave the way for future fundraising at more favourable terms.

In the local market, the price of gold per tola dropped by Rs3,300 to settle at Rs501,562, according to data released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).

Similarly, the price of 10-gram gold declined by Rs2,829 to reach Rs430,008.

The drop follows a gain a day earlier, when gold per tola had risen to Rs504,862 after an increase of Rs1,400.

In the international market, gold prices decreased by around $34 to trade near $4,790 per ounce, contributing to the downward trend in domestic rates.

Meanwhile, silver prices also recorded a decline in the local market.

The per tola rate of silver fell by Rs70 to settle at Rs8,444.

The departure of Hastings, 65, comes at an inopportune time. The company is ‌searching for new avenues of growth as sales slow due to competition, and after a potentially transformative merger with Warner Bros Discovery fell through in February.

Netflix on Thursday forecast earnings per share in the current quarter below analysts’ expectations and quarterly revenue growth that is the slowest in a year, according to LSEG.

The company’s stock plunged around 9% on the news of Hastings’ departure.

Netflix doubled down on its existing strategy to entertain the world, providing movies and series for many tastes, cultures, and languages, in a 14-page shareholder letter released on Thursday.

The company’s full-year outlook remained unchanged.

The company’s co-chief executive, Greg Peters, said that Netflix ended last year ⁠with more than 325 million paid members and is entertaining an audience approaching a billion people.

“But even given that number, we still have plenty of room ​to grow into our addressable market,” he said.

In the letter to investors, Netflix said Hastings will not stand for re-election at its annual meeting in June and plans ​to focus on philanthropy and other pursuits.

FROM DVD RENTALS TO STREAMING GIANT

Hastings transformed Netflix from a DVDs-by-mail business to a global streaming goliath that revolutionised the distribution of movies and television series.

He led the company through missteps like the short-lived decision, in 2011, to spin off the DVD business into a service called Qwikster.

He also steered it through a pandemic, ​which led to a surge of growth at Netflix even as other entertainment companies struggled.

The entrepreneur forged Netflix’s unique performance culture in a moment of crisis, ​when funding for internet startups had dried up, and Hastings was forced to lay off one-third of his employees.

This culling of everyone but the “keepers” led to a surge of ‌productivity that laid ⁠the foundation for the Netflix Way, Hastings wrote in his book, “No Rules Rules.”

“My real contribution at Netflix wasn’t a single decision,” Hastings wrote on Thursday, but rather, “building a company that others could inherit and improve.”

Netflix Co-CEO Ted Sarandos lauded Hastings’ leadership and his desire to build a company that would survive him.

“He built a company of risk-takers and a culture where character matters, and nobody rests in the pursuit of excellence,” said Sarandos.

“I have loved working with and for Reed through amazing ​twists and turns in our business, and ​he has modelled what it is ⁠to be a leader and a friend.”

LightShed Partners media analyst Richard Greenfield said: “The departure of Reed Hastings has spooked investors.”

WARNER BROS TERMINATION FEE BOOST

The company did not say how it plans to spend the $2.8 billion termination fee it received after losing ​the Warner Bros movie studio and HBO, and lifted its earnings per share to $1.23 in the first quarter compared ​with 66 cents per ⁠share in the same quarter last year.

Revenue rose to $12.25 billion, an increase of 16% from the year-ago period, modestly exceeding analyst forecasts of $12.18 billion.

Netflix, which long told investors that a Warner Bros acquisition was a “nice to have, not need to have” proposition, highlighted areas of future growth.

The company said its investment in expanding its entertainment offerings with ⁠video podcasts and ​live entertainment - such as the World Baseball Classic in Japan - is fuelling engagement.

It plans to ​use technology to enhance the user experience and improve monetisation, as advertising revenue remains on track to reach $3 billion in 2026 - a twofold increase from a year ago.

By ‌0603GMT, ⁠the streaming service’s Frankfurt-listed shares were ​down ​8.7%. ⁠

Netflix shares in ​New York ​have ⁠risen about 15% this ⁠year.

This takes the 9MFY26 current account to a surplus of $174 million against the 8MFY26 deficit of $896 million.

The central bank revised the current account data for February to a surplus of $231 million from previously reported $427 million.

“The current account surplus on a MoM basis increased due to lower goods and services deficit and higher remittances,” Topline Research said.

Pakistan’s Real Effective Exchange Rate (REER), a measure of the value of a currency against a weighted average of several foreign currencies, clocked in at 105.17 in March 2026, up from 103.11 in February 2026.

This takes the REER index to a 7.5-year high.

The REER last crossed the 105 mark in September 2018, when it stood at 106.63.

The central bank received funds of $2 billion from the Ministry of Finance, Kingdom of Saudi Arabia, on Thursday.

On Wednesday, Finance Minister Muhammad Aurangzeb informed that Saudi Arabia had committed $3 billion in additional deposits, with disbursement expected soon.

He further stated that the existing $5 billion Saudi deposit would no longer remain subject to the earlier annual rollover arrangement and would instead be extended for three years.

In the local market, gold per tola increased by Rs1,400 to reach Rs504,862, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).

Similarly, the price of 10 grams of gold rose by Rs1,200 to Rs432,837.

A day earlier, gold per tola had climbed by Rs3,500 to settle at Rs503,462, reflecting sustained volatility in the bullion market.

In the international market, gold prices rose by $14 to $4,825 per ounce, including a $20 premium.

Meanwhile, silver prices also posted gains, rising by Rs110 to reach Rs8,514 per tola.

The discussions were held on the sidelines of the IMF-World Bank spring meetings 2026 in Washington.

According to a statement, Georgieva acknowledged that Pakistan’s effective implementation of its reform programme has helped maintain macroeconomic stability and strengthen investor confidence.

She emphasised that prudent economic policies, coupled with sustained structural reforms, would be essential for ensuring long-term growth and improving living standards in the country.

The remarks showed increasing international recognition of Pakistan’s reform initiative and its efforts to stabilise the economy through disciplined policymaking.

The verdict is a public rebuke of the biggest US concert ticket seller, which has been criticised by fans and artists, including Taylor Swift.

The court has not yet determined penalties, but shares of ticket rivals ​jumped on the prospect that they would receive more room to compete.

Live Nation has several legal challenges pending that ​could undermine the verdict.

If it stands, the company would face further court proceedings where states ⁠are expected to seek to force a sale of Ticketmaster and seek damages after the jury found Live Nation’s conduct ​resulted in fans being overcharged.

“A jury found what we have long known to be true: Live Nation and Ticketmaster are ​breaking the law and costing consumers millions of dollars in the process,” New York Attorney General Letitia James said in a statement.

StubHub shares jump

Live Nation shares closed down 6.3% following the verdict, while shares of competitors Vivid Seats and StubHub rose 9.3% and 3.5%, respectively.

Live ​Nation estimates the damages it would owe in the case are less than $350 million, and said in a statement it ​believes the ultimate outcome “will not be materially different” than the settlement it entered with the US Department of Justice mid-trial.

The company ‌set aside $280 ⁠million to settle with the states, it said.

Fans and politicians had intensified calls to examine Live Nation’s 2010 acquisition of Ticketmaster, after the company subjected Swift fans to hours-long online queues for tickets to her 2022 Eras tour.

The DOJ and a coalition of states sued the company in 2024.

US District Judge Arun Subramanian trimmed some claims from the case before ​trial.

The jury found on Wednesday that ​Live Nation holds illegal ⁠monopolies in the market for ticketing services to more than 200 major concert venues, and the market for dozens of large concert amphitheatres booked by artists.

The company unlawfully made use ​of its amphitheatres conditional on artists using its promotion services, the jury found.

The DOJ settled ​last month in ⁠an agreement that requires Ticketmaster to open ticketing to other vendors at 13 amphitheatres and bars it from retaliating against venues that decline to use Ticketmaster.

Some companies and groups in the entertainment industry criticised the deal as not going far enough.

The verdict ⁠is a ​major win for the states, which have signalled they will amp up ​their antitrust enforcement in cases where the DOJ has pulled back.

The US Federal Trade Commission has filed a separate case against Ticketmaster, alleging deceptive ticket resale ​practices.

The blockade could prevent roughly 2 million barrels per day (bpd) of Iranian crude from reaching its main buyer China.

Any Iranian production shutdowns would add ​to more than 12 million bpd of supply already disrupted by the regional war, tightening markets ​further and lifting oil prices.

With its exports blocked, Iran faces having to divert crude ⁠into onshore storage tanks.

Once those tanks are filled, the OPEC member would be required to curb ​upstream output.

Consultancy FGE NextantECA estimates Iran has about 90 million barrels of available onshore crude storage capacity, ​out of total capacity of roughly 122 million barrels.

“Iran can sustain current production of around 3.5 million bpd for roughly two months without exports, extendable to around three months with a modest 500,000 bpd production cut,” FGE NextantECA said in ​a note.

Iranian domestic refineries process about 2 million bpd of oil, they added.

The relevant Iranian authorities were ​not immediately available for comment.

Energy Aspects assumes significantly lower available onshore storage of about 30 million barrels, based on ‌data from ⁠Kayrros.

Under that scenario, Iran could maintain current export levels for about 16 days before storage capacity runs out, based on export levels of 1.8 million bpd.

“The blockade may not have a significant impact on Iranian production in April, but if it continues into May then output would need to be reduced substantially,” ​said Richard Bronze, co-founder ​of Energy Aspects.

He said ⁠the consultancy assumes Iran cannot utilise its full nameplate storage capacity, adding that historic data show stocks peaked at 92 million barrels in May 2020, which ​likely marks a realistic ceiling.

Bronze also said Iran will likely deploy available oil ​tankers in ⁠ports as floating storage, delaying production cuts.

The US military said more vessels were being turned back under the blockade, including the Chinese-owned tanker Rich Starry, which is under US sanctions and which was seen heading back through the ⁠Strait ​of Hormuz on Wednesday.

Eight Iran-linked oil tankers have been intercepted since ​the blockade began on Monday, the Wall Street Journal reported.

A US destroyer stopped two tankers attempting to leave Iran’s Chabahar ​port on the Gulf of Oman on Tuesday, a US official said.

According to the official announcement, the first prize of Rs1,500,000 each went to bond number 560977.

The second prize, worth Rs500,000 each, was won by bond numbers 012592, 152138, and 924818.

The draw was conducted at the National Savings Division office in Quetta under the supervision of authorised officials.

Third Prize of Rs 9,300 each:

The development enables Pakistan to access Central Asian markets via Iran, bypassing the traditional Afghan route, which has faced repeated disruptions. Officials describe the new route as shorter, safer, and more efficient under current regional conditions.

The first consignment — containers of meat — has already departed from Karachi for Tashkent, Uzbekistan, after completing customs clearance. The shipment is moving under the TIR framework through Iran.

The corridor has been activated by the National Logistics Corporation (NLC), which has previously developed multiple trade routes connecting Pakistan with China, Iran, and Central Asian states.

The move comes amid growing urgency to diversify trade routes. Since October last year, border tensions and intermittent closures along the Afghan frontier have severely disrupted exports to Central Asia, forcing Islamabad to seek alternatives.

Pakistan shares a 900-kilometre border with Iran, where informal trade has long existed. The new corridor aims to formalise and scale this exchange.

To facilitate exports, the government has also temporarily relaxed banking requirements.

Exporters sending certain goods — including food, medicines, and tents — to Iran and Central Asia are exempted from mandatory banking documentation for payments until June 2026, easing procedural bottlenecks.

Uzbekistan has emerged as a key destination for Pakistani meat exports, accounting for 39% of total shipments in fiscal year 2025, surpassing the United Arab Emirates at 26%, according to official data.

Experts say the corridor could become a major economic opportunity, particularly if international sanctions on Iran are eased.

The Gabd terminal, located about 70 kilometres from Gwadar and 120 kilometres from Iran’s Chabahar port, is expected to evolve into a regional trade hub. While challenges around informal trade and transparency remain, the government is focusing on barter trade and alternative routes to boost exports and generate foreign exchange.

The ​move follows the enactment of the Virtual Assets Act, ​2026, and marks Pakistan’s first formal step toward bringing ⁠crypto-related businesses into the banking system under strict anti-money-laundering ​and compliance rules.

“This is a foundational step in bringing virtual assets ​into the formal financial system of Pakistan,“ Bilal bin Saqib, the Chairman of the Pakistan Virtual Assets Regulatory Authority, said in the statement ​on Wednesday.

Banks must verify licences issued by the newly established ​Pakistan Virtual Assets Regulatory Authority before onboarding firms and maintain segregated, non-interest-bearing ‌client ⁠accounts in rupees, the State Bank of Pakistan said.

Banks will remain responsible for due diligence, risk profiling and reporting suspicious transactions, the central bank said, adding that lenders cannot invest ​in or hold ​virtual assets using ⁠their own or customer funds.

Pakistan has already moved to bring in global crypto players, signing ​a memorandum of understanding with Binance in December ​to ⁠explore tokenising up to $2 billion in assets and granting initial clearances to Binance and HTX to begin licensing.

It also struck a ⁠deal ​with an affiliate of World Liberty ​Financial in January to explore stablecoin-based, cross-border payments.

Similarly, 10-gram gold was sold at Rs431,637 after it increased by Rs3,001, according to rates shared by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).

On Tuesday, the gold price per tola reached Rs499,962 after a gain of Rs4,600 during the day.

The international rate of gold was up by $35 to reach $4,811 per ounce (with a premium of $20).

Meanwhile, the price of silver increased by Rs144 to reach Rs8,404 per tola.

Brent crude futures were down 16 cents, or 0.2%, to $94.63 a barrel at 0635 GMT, after falling 4.6% in the previous session. US West Texas Intermediate crude was down 70 ​cents, or 0.8%, to $90.58. The contract dropped 7.9% the session before.

The war has mostly shut the Strait of Hormuz, a key waterway for crude ​and refined product flows out of the Gulf to global buyers, particularly in Asia and Europe.

US ⁠President Donald Trump said talks with Tehran on ending the war could resume this week after ending over the weekend without ​any agreement. But the US has also enacted a blockade of shipping leaving Iranian ports that its military said on Wednesday ​has completely halted trade going in and out of the country by sea.

Despite a two-week ceasefire, transit through the strait remains uncertain, with traffic at only a fraction of the 130 or so vessels that moved through the waterway before the war, sources said on Tuesday.

“The trajectory of oil prices will ​likely hinge less on battlefield developments and more on diplomatic momentum. Markets are increasingly reacting to headlines around negotiations rather ​than troop deployments,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.

“Each signal of renewed dialogue has been met with price declines, suggesting that ‌traders ⁠are systematically unwinding the ‘war premium’ embedded into crude earlier this month.”

Refiners are desperately seeking alternative crude supply, pushing the premiums they are willing to pay for oil from areas such as the US Gulf Coast and North Sea. A cargo of WTI Midland for delivery to Rotterdam traded at a record premium of $22.80 a barrel above benchmark European prices on Tuesday.

A US destroyer stopped two ​oil tankers from leaving Iran on ​Tuesday, a US official said.

“While ⁠diplomatic headlines suggest the possibility of renewed US-Iran talks and even a temporary easing of transit restrictions, the physical reality remains fragmented,” the Schork Group said in a note.

The market stands to ​lose some access to further supply after two US administration officials told Reuters on Tuesday the ​US will not ⁠renew a 30-day waiver of sanctions on Iranian oil at sea that expires this week, and quietly let a similar waiver on sanctions on Russian oil expire over the weekend.

Later in the day, markets will be watching for official US inventory data from the Energy ⁠Information Administration ​due at 10:30 am ET (1430 GMT).

US crude oil stockpiles were expected to ​have risen slightly last week, while distillate and gasoline inventories likely fell, a Reuters poll showed.

Market sources familiar with American Petroleum Institute figures said on Tuesday US crude ​oil inventories jumped for the third straight week.

Speaking at the Pakistani Embassy in Washington, he said he had detailed discussions with Saudi Arabia’s finance minister earlier, adding that a similar meeting had also taken place in Islamabad last Friday.

Aurangzeb said the Saudi finance minister had clearly confirmed that the $3 billion support would be provided in the form of additional deposits.

He also noted that Pakistan had made $1.4 billion in payments over the past week, adding that all external obligations would be met on time.

The finance minister stated that a $5 billion Saudi deposit facility would be extended from an annual rollover arrangement to a three-year term, pushing its maturity to 2028 instead of requiring yearly renewal.

Aurangzeb expressed gratitude to the Saudi government, as well as Crown Prince Mohammed bin Salman and the Saudi finance minister, for their continued support.

Quoting government data, the Jakarta Globe said in a report that under the country’s local currency transaction (LCT) framework, total transactions reached $8.45 billion in January-February 2026, a 163% increase compared to $3.21 billion in the same period a year earlier.

The number of users also went up significantly, averaging 16,030 per month in early 2026, up from 9,720 in 2025.

According to officials, the adoption reflects broader integration of the system across sectors, including manufacturing, energy, transport, trade, and services.

Ferry Irawan, deputy for coordination of state-owned enterprise management and development at the Coordinating Ministry for Economic Affairs, said the framework has steadily expanded since its launch in 2018, adding that it now plays a role in strengthening the rupiah and supporting real-sector activity.

In 2025, Indonesia expanded LCT arrangements to Malaysia, Thailand, Japan, China, South Korea, and the United Arab Emirates as part of measures to deepen regional financial cooperation and encourage local currency use in trade and business activities.

Officials are of the view that Indonesia’s trade structure supports further expansion of the system, with major trading partners operating outside the dollar zone.

The country recorded a trade surplus of $1.27 billion in February 2026, supported mainly by non-oil exports including coal, palm oil and metals.

Bank Indonesia and the government are making joint efforts to advance the initiative to diversify cross-border payment systems, improve market efficiency, deepen financial markets, and help reduce exchange-rate volatility.

In a bid to accelerate LCT implementation, Jakarta has formed a National LCT Task Force involving ministries and agencies to promote wider use of local currencies in international trade.

“Through LCT, the government is committed to providing facilities, incentives, and simplified processes for businesses to improve efficiency, reduce transaction costs, and expand the use of local currencies in international trade,” Ferry said.

The latest cut was made by the Ministry of Finance as part of efforts to maintain fiscal stability amid ongoing regional tensions in the wake of the Iran war.

It marks the second downward revision of the development budget in recent months.

Earlier in March, the PSDP was reduced by Rs100 billion, bringing the total cumulative cuts to Rs163 billion from the originally allocated Rs1 trillion.

Sources said the latest reduction was implemented across multiple ministries and divisions, affecting development allocations in sectors, including water resources, education, health, railways, housing, information technology, and telecommunications.

Development funds for parliamentarians have reportedly been revised to Rs63.2 billion, while the Water Resources Division has been allocated Rs106.6 billion under the revised plan.

Allocations for other sectors have also been revised. Now, Rs34.9 billion have been allocated for the Higher Education Commission, Rs18.4 billion for the information technology sector, Rs18.5 billion for railways, and Rs11.6 billion for the Ministry of Health.

The merged districts have been allocated around Rs54 billion, while Azad Jammu and Kashmir and Gilgit-Baltistan have received over Rs67 billion in revised funding.

The defence division’s development budget has been revised to over Rs9 billion.

Officials said the decision to further trim the PSDP was taken in consultation with the Planning Division to support broader financial discipline amid continued economic pressure in the region.

A recent report by Japanese investment bank Nomura said Asian economies — excluding China — are the most exposed to escalating tensions in the Persian Gulf, followed by Europe, as the region remains the primary destination for oil and LNG shipments through the strait.

Among the most vulnerable are Thailand, India, Indonesia, the Philippines, Germany, Italy, and the United Kingdom, the South China Morning Post said in a report.

In contrast, the United States, China, Canada, Norway, Spain, South Korea, Malaysia and Singapore are expected to face comparatively limited direct exposure.

However, Energy World Mag noted that Singapore remains highly dependent on fossil fuels, warning that “over 97 per cent of Singapore’s energy comes from fossil fuels,” leaving it particularly vulnerable to any disruption in oil or gas imports.

Nomura data shows that Japan and the Philippines import more than 90 per cent of their crude oil from the Middle East, while around 60 per cent of India’s liquefied natural gas (LNG) also originates from the region, underscoring their high exposure to supply risks.

In Europe, reliance on Middle Eastern energy is also considerable.

Italy sources about 12 per cent of its crude oil from the region, while Qatari LNG accounts for roughly 10 per cent of its total gas consumption.

Nearly 45 per cent of Italy’s LNG imports also come from Qatar, according to the US International Trade Administration.

Nomura estimates that a 10 per cent rise in energy prices could reduce eurozone GDP by 0.2 percentage points over two years.

China sources around 65 per cent of its seaborne crude from the Middle East, but analysts say its diversified energy mix, coal reserves and strategic oil stockpiles would help cushion supply shocks.

The United States, a major oil producer, imports only about 8 per cent of its crude from the Persian Gulf.

Oil markets have already reacted to rising tensions, with Brent crude climbing to nearly $99 per barrel, up from around $75 on April 7 when a ceasefire between the US and Iran was announced.

Analysts warn prices could surge to $140-$150 per barrel if supply disruptions deepen following the blockade.

Jorge Montepeque of Onyx Capital Group told Bloomberg Television that the situation could escalate a regional conflict into a global energy crisis, potentially removing up to 12 million barrels of oil per day from global markets.

The global economy is set to grow by 3.1 per cent this year, said the International Monetary Fund in its World Economic Outlook report, released during its spring meetings in Washington.

This is down from 3.3 per cent forecast in January before hostilities erupted February 28 with US-Israeli strikes against Iran that prompted Tehran’s retaliation and sparked a broader conflict in the region.

“We were planning to upgrade growth for 2026 to 3.4 per cent” if not for the war, IMF chief economist Pierre-Olivier Gourinchas told AFP.

Prices of oil, gas and fertilisers have surged, as Iran virtually blocked traffic through the Strait of Hormuz, a key shipping waterway. US President Donald Trump has also ordered a naval blockade around Iran’s ports.

The IMF expects higher inflation this year at 4.4 per cent, 0.6 percentage points above its January forecast.

Still, the impact of oil shortages could be worse.

Compared to the oil shocks of the 1970s, “the global economy is much less oil dependent now than it was back then,” Gourinchas said at a Tuesday press conference.

“There are many other sources of energy, renewables, nuclear and other things, and also the global economy has become much more efficient in terms of how much it needs oil to produce GDP,” he said. “That’s a source of resilience.”

After this, the “disinflation path” of recent years should reassert itself, Gourinchas said.

But these projections assume a relatively short-lived conflict with temporary energy market disruptions.

In more adverse scenarios where energy prices remain steep, global growth could slow to 2.5 per cent or even around 2.0 per cent.

“This latest shock comes less than a year since the shift in US trade policies, and the transition to a new international trade system is still ongoing,” the IMF said.

A year ago, Trump unleashed sweeping tariffs on US trading partners, rocking financial markets and snarling supply chains.

Some of the tariffs have been struck down by the Supreme Court, but uncertainty lingers as Trump moves to reimpose duties via other means.

Uneven impact

Although overall revisions to global growth and inflation appear modest, the IMF cautioned that the war has taken a bigger toll on the Middle East and “vulnerable economies” elsewhere.

“The impact on emerging market and developing economies would be almost twice that on advanced economies,” the fund said.

Higher energy and fertiliser costs could bring steeper food prices, mainly hitting low-income energy importers, Gourinchas said.

Growth projections this year for the Middle East and central Asia were cut by around half to 1.9 per cent.

Saudi Arabia, the Middle East’s biggest economy, is set to see 3.1 per cent growth this year, down 1.4 percentage points from January’s expectation.

Among the world’s two biggest economies, US growth is still set to accelerate to 2.3 per cent this year, although the pace of growth was revised slightly lower.

“The US at the margin is benefiting from higher energy prices,” Gourinchas said. But gasoline prices have also jumped for consumers.

China’s growth is anticipated to cool to 4.4 per cent, a touch below the January forecast, too.

The IMF flagged an underlying “unevenness” in both economies.

Domestic activity lags behind exports in China, while a strong showing in the United States has been accompanied by low employment growth.

Euro area growth was revised 0.2 points down to 1.1 per cent for 2026.

While the IMF does not expect inflation expectations to go off-track, there is concern they may not be as well-anchored as before.

Past inflation episodes remain fresh in the public’s minds, and firms might act to restore margins more quickly than before.

“If that happens, then you can get much more persistent inflation going on, that would be reflected in higher inflation expectations,” Gourinchas said.

Central banks might then need to step in and raise interest rates to cool the economy, despite ongoing negative supply shocks.

The war has upended routes between Asia and Europe that relied on Gulf hubs, while a doubling of jet fuel prices and tightening of supplies are hitting airlines hard. Since the US-Israeli strikes on Iran began on February 28, carriers have hiked air fares, introduced ​fuel surcharges and cut routes.

Underscoring efforts to preserve cash, Qantas has delayed a planned share buyback, citing higher and volatile fuel prices, one of the first ​major carriers to stall shareholder returns.

Meanwhile, Lufthansa CEO Carsten Spohr warned that jet fuel supplies will remain constrained, driving up costs.

“Kerosene will remain ⁠in short supply and therefore more expensive for the rest of the year,” Spohr told German newspaper Frankfurter Allgemeine Zeitung.

Lufthansa has not yet grounded planes due to shortages ​but this “may be unavoidable” as kerosene availability is already critical at some airports, particularly in Asia, he said.

In South Korea, low-cost carrier T’way Air plans to furlough some cabin crew without ​pay in May and June, a local report said, among the first carriers to reduce staffing.

A two-week ceasefire has provided little relief with the Strait of Hormuz still shut, removing roughly a fifth of global oil and liquefied natural gas supplies from the market and refineries will take time to repair damage inflicted on them.

“Despite the pause in the conflict we remain concerned about jet kerosene supply and price ​increase,” UBS analyst Jarrod Castle said in a note on Tuesday, adding that December jet kerosene futures prices are still up more than 50% year-on-year.

Fuel, typically airlines’ second-largest cost after ​labour, accounts for about 27% of operating expenses. Prices have more than doubled since the conflict began, far outpacing a roughly 50% rise in crude prices before the ceasefire.

The turmoil may spur ‌consolidation, with ⁠stronger airlines gaining share from weaker rivals, analysts and executives said.

Reuters reported on Monday that United Airlines CEO Scott Kirby pitched the potential for merging with American Airlines days before the U.S.-Israeli strikes on Iran.

EU AIRLINES URGE BRUSSELS TO STEP IN

Flight capacity, in particular from the Middle East but also into Europe, has shrunk and is not projected to recover to pre-conflict levels anytime soon, analysts said.

Virgin Atlantic CEO Corneel Koster said in an interview with the Financial Times that the airline has about six weeks of secure jet fuel supplies ​before the outlook gets more uncertain.

And European airlines ​on Tuesday urged Brussels to step in ⁠with emergency measures to cushion the impact, including EU-level kerosene purchasing, a temporary suspension of the bloc’s carbon market for aviation and scrapping certain aviation taxes.

Industry group Airports Council International Europe (ACI) warned last week that Europe could face a systemic jet fuel shortage in three ​weeks.

Several carriers, including SAS, are not hedged, leaving them fully exposed to soaring fuel costs. Delta Air Lines last week said ​its jet fuel bill ⁠this quarter would be some $2 billion more than last year.

While Qantas has hedged much of its crude exposure, it remains significantly exposed to the spike in jet fuel spreads.

To offset rising costs, the Australian flag carrier is raising fares and shifting capacity toward stronger routes such as Europe, where demand remains firm, while trimming domestic capacity by about 5 percentage points in the June ⁠quarter.

Lufthansa’s Spohr said ​record revenues on Asian routes were also helping offset the impact of rising kerosene costs.

But the airline ​has prepared contingency plans, including cutting its capacity by 2.5% or 5% and grounding 20 to 40 older, less fuel-efficient aircraft earmarked for early retirement.

In the local market, the price of gold per tola rose by Rs4,600 to reach Rs499,962.

Similarly, the rate for 10 grams increased by Rs3,943 to Rs428,636, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).

The increase follows a decline a day earlier, when gold had fallen by Rs1,600 per tola to settle at Rs495,362.

Globally, gold prices climbed by $46 to $4,776 per ounce, including a $20 premium, supporting the upward trend in domestic rates.

Meanwhile, silver prices also recorded a notable increase, rising by Rs326 to Rs8,260 per tola.

Brent futures declined by $1.86, or 1.87%, to $97.50, while US West Texas Intermediate (WTI) crude fell $2.25, or 2.27%, to $96.83.

Both benchmarks had risen in the previous session, with Brent ​climbing more than 4% and WTI nearly 3%, after the US military began a blockade of Iran’s ports.

The US ​military said on Monday that its blockade of the Strait of Hormuz would extend ⁠east to the Gulf of Oman and Arabian Sea, while ship-tracking data showed two ships turned around in ​the strait as the blockade went into effect.

Iran, in response, threatened to target ports in Gulf-bordering nations following the ​collapse of weekend talks in Islamabad aimed at resolving the crisis.

“Despite the breakdown of peace talks in Pakistan over the weekend, Trump has managed to take some steam out of the oil price again, dangling the carrot of a possible deal,” said Tim ​Waterer, chief market analyst at KCM Trade.

Sources familiar with the negotiations said dialogue between Iran and the US was ​still alive, while Pakistani Prime Minister Shehbaz Sharif affirmed ongoing efforts to de-escalate tensions.

Trump said on Monday that Iran “wants to ‌make a ⁠deal”.

ANZ analysts estimate that about 10 million barrels per day of crude supply have been effectively removed from the market, adding that a prolonged US blockade could curb an additional 3 million to 4 million bpd of crude shipments.

“The oil market no longer needs a worst-case escalation to justify higher pricing levels.

Tight balances alone are sufficient ​to sustain the price of ​Brent near or above ⁠recent threshold levels,“ ANZ said in a client note.

NATO allies, including Britain and France, refrained from joining the blockade, advocating instead for reopening the vital waterway.

US Energy Secretary Chris ​Wright suggested oil prices could peak in “the next few weeks” once shipping resumes through the ​Strait of ⁠Hormuz.

The International Monetary Fund, the World Bank, and the International Energy Agency urged countries to avoid hoarding energy supplies or imposing export curbs amid what they described as the most significant shock ever to the global energy market.

IEA chief Fatih ⁠Birol said on ​Monday that while further strategic oil releases might not yet be ​necessary, the agency remains prepared to act if needed.

Meanwhile, the Organisation of the Petroleum Exporting Countries scaled back its second-quarter global demand forecast by ​500,000 bpd in its latest monthly report.

A combination of two of the largest US network carriers would mark the biggest consolidation move in more than a decade, further tightening a domestic market already dominated by four similarly sized players.

Including international flights, United and American were already the world’s two largest airlines by available capacity in 2025, according to OAG data.

The meeting with Trump took place on February 25 toward the end of a scheduled White House meeting on the future of ​Dulles airport, said the sources with knowledge of the matter.

That was three days before the start of the US-Israeli war with Iran that sent jet fuel prices soaring and has led ​airlines to raise fares and fees to offset higher costs.

Kirby has argued to administration officials that a combined airline would be a stronger competitor in ⁠international markets and noted the Trump administration has focused on US trade deficits around the globe, the sources said.

The United CEO said at a forum in September that two-thirds of long-haul seats ​to and from the United States are on foreign carriers, but 60% of passengers are US citizens.

Industry officials said the chances of the deal’s approval would be slim, citing likely opposition from unions, rival ​airlines, lawmakers and airports, as well as concerns about route overlap and job losses.

One person close to the White House said there was scepticism about such a tie-up, given its potential impact on competition and ticket prices at a time when the administration is already focused on rising costs for consumers ahead of midterm elections in November.

Antitrust lawyer Seth Bloom said the deal would be unlikely to clear regulatory hurdles, even under a Trump administration ​that has taken a more relaxed approach to enforcement.

“The administration has said it really cares about the issues that affect the consumer’s pocketbook, and this would give the airlines more pricing power,” Bloom ​said.

It was not clear whether United has made any formal approach to American or whether a process was underway.

The sources spoke on condition of anonymity because the talks were not public.

United and American declined to ‌comment. The ⁠White House did not respond to requests for comment.

American shares rose more than 5% in after-hours trading following the report, while United shares were little changed.

Highly concentrated market

The US airline industry is already highly concentrated, with American, Delta Air Lines, United and Southwest Airlines controlling the bulk of domestic traffic, each with a share of roughly 17%, according to Department of Transportation data.

US Transportation Secretary Sean Duffy said this month that there was room for consolidation in the US airline industry, but warned any deal would face close scrutiny for its impact on consumers.

Ganesh Sitaraman, director of the Vanderbilt Policy Accelerator and ​author of Why Flying Is Miserable, said a United-American merger ​would reduce competition.

“Fewer choices mean higher ticket ⁠prices, more fees, and fewer options for anyone who wants to get from point A to point B,” he said.

American under pressure

American has been under pressure to improve profitability and close the gap with Delta and United, after unions earlier this year criticised management over lagging returns.

The airline has pointed to ​strong premium demand and corporate travel to drive a recovery in 2026.

The Texas-based carrier also carries about $25 billion in long-term debt, more than its ​larger rivals, leaving it ⁠with less financial flexibility as it works through a turnaround at a time of high fuel costs.

American is the smallest of the big four US airlines by market value, at about $7 billion, compared with roughly $31 billion for United, $19 billion for Southwest and $44 billion for Delta.

“We have been very open about our concerns regarding American’s financial, operational and customer service underperformance,” said Dennis Tajer, a spokesman for American’s pilots’ union.

United has struck ⁠a more ​confident tone as high fuel prices test the industry, with Kirby saying last month that a prolonged cost shock could create ​opportunities for stronger airlines to gain share as weaker rivals struggle.

Kirby previously served as American’s president from 2013 to 2016, but in the past, he has played down the appeal of large acquisitions.

Before recent developments, 10 million Iranian rials were reportedly valued at around PKR 2,500, but the same amount is now being traded at nearly PKR 10,000, marking a significant rise in its local market value.

Market participants say the surge is being driven by two main groups — traders engaged in growing cross-border commerce and investors speculating on future gains.

According to the Exchange Companies Association of Pakistan Chairman Malik Bostan, many investors are buying rials in anticipation that easing tensions or possible US-Iran negotiations could strengthen the currency further.

He added that increased trade activity, particularly in petroleum products and food items between Pakistan and Iran, has also boosted demand for the currency, with exporters and importers increasingly using rials for settlements.

Reports also suggest Iran’s oil exports have risen in recent months, strengthening market confidence that its economy could improve if geopolitical conditions stabilise.

While official Pak-Iran trade figures remain unclear, estimates place it at around $3 billion, with both countries aiming to increase it to $10 billion by 2028.

Deputy Prime Minister Ishaq Dar has recently reiterated Pakistan’s commitment to expanding economic cooperation with Iran across key sectors.

However, analysts caution that the rally in the rial is largely driven by speculation rather than strong economic fundamentals, warning that volatility remains high due to ongoing regional uncertainty.

Experts also advise caution to retail buyers, noting risks of sharp price fluctuations and potential issues related to counterfeit currency in informal markets.

On Tuesday, April 14, 2026, one Pakistani rupee was trading at around 5,680 Iranian rials, slightly down from 5,720 rials a day earlier, reflecting continued volatility in the exchange rate.

The world’s second-largest economy surged into 2026 on red-hot ‌AI-fuelled electronics demand, raising expectations it could eclipse last year’s $1.2 trillion record trade surplus.

But the conflict has disrupted global growth, leaving China especially vulnerable as it has relied on foreign demand to offset a prolonged inability to revive consumption at home.

Outbound shipments grew by just 2.5% in March, customs data showed on Tuesday, a five-month low, and far below the 21.8% surge seen over the January-February period. Economists had forecast ​growth of 8.3% in a Reuters poll.

“Export growth to major destinations slowed across the board,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management, attributing the drop to ​global uncertainty over the Iran war.

“I think China’s trade surplus will shrink this year, as China cannot pass through the higher energy prices ⁠completely to foreign consumers,” he added.

The signs are already evident: China’s March trade surplus came in at just $51.13 billion, far below expectations of $108 billion.

A sharp 27.8% surge in imports — the ​strongest since November 2021 — weighed on the balance. That compared with a 19.8% increase in January-February and forecasts for 11.2% growth.

China’s status as the world’s largest manufacturer and energy importer leaves ​it acutely exposed to a global energy shock.

Diversified supplies and large oil reserves offer some protection, but uncertainty over the conflict’s duration risks undermining artificial intelligence-fuelled demand for chips and servers, blurring the growth picture.

Even China, long criticised by trading partners for subsidy-backed, cut-price manufacturing, is not insulated from the hit to buyers’ purchasing power as fuel and transport costs rise.

Separate GDP data due on Thursday is expected to show ​the $19 trillion economy regaining some momentum in the first quarter, but full-year growth is set to slow to 4.6% from last year’s 5.0%, broadly in line with the official target ​of 4.5%–5.0%.

Chinese goods more competitive?

Chinese goods will be “even more competitive” as the energy shock “pushes up the price in most of the countries” more than in China, said Chen Bo, senior research fellow at the ‌National University ⁠of Singapore’s East Asian Institute.

Chen expects global demand for Chinese-made electric vehicles to increase.

Fred Neumann, HSBC’s chief Asia economist, said China could stand to benefit from taking the decision in the early 2000s to stockpile commodities as it could help blunt the impact of raw-material shocks on factory gate prices.

China’s exports of refined oil products rose 20.5% month-on-month, totalling 4.6 million metric tons.

Disruptions to global energy supply lines will be felt in China, even if it’s not yet showing up in the data.

Natural gas imports for March dropped an annual 10.7%, the lowest level ​since October 2022, with Chinese ships diverting between ​eight and 10 cargoes over the ⁠course of the month to sell where prices are higher, according to ICIS, Kpler and Vortexa data.

Crude oil imports also fell 2.8% year-on-year, but this was predominantly due to a high base effect, with March arrivals having been loaded onto ships before the war began.

The figures were ​further muddied by the seasonal effects of a late Lunar New Year national holiday, said Xu Tianchen, senior economist at the ​Economist Intelligence Unit, during which ⁠factories shut as workers down tools to celebrate.

“This explains the decline across the low-value-added sectors, textiles, garments, bags, toys, furniture, as they are reliant on migrant workers,” Xu said.

A high base is also a drag, after Chinese factories rushed shipments a year earlier to beat US President Donald Trump’s April 2 “Liberation Day” tariff deadline.

March factory activity data out of China showed goods exports continued to support ⁠growth, but the ​war in Iran weighed on sentiment as commodity prices rose sharply, lifting input costs.

Some analysts expect sustained tech ​demand to underpin Chinese exports.

“For Q1 as a whole, export growth rose to its highest level in four years,” said Zichun Huang, China economist at Capital Economics.

“Despite the energy price shock, exports should stay solid in the coming ​quarters, thanks to strong demand for semiconductors and green technologies.”