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PSX jumps 3,748 points as easing inflation fuels rate-cut hopes

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ISLAMABAD – The Pakistan Stock Exchange (PSX) extended its gains on Wednesday, with the benchmark KSE-100 Index surging more than 3,700 points as lower-than-expected inflation data strengthened expectations of monetary easing.

The KSE-100 Index gained 3,748.40 points, or 2.08 per cent, to close at 184,050.10 on the first trading day of the new fiscal year.

The benchmark remained in positive territory throughout the session after opening higher, climbing steadily from an intraday low of 180,565.83 recorded shortly after the market opened.

The rally followed Tuesday’s strong recovery, which pushed the index above the 180,000-point mark and helped the market end FY2025-26 on a robust note.

Awais Ashraf, director of research at AKD Securities, attributed the renewed buying interest to June’s inflation reading, which came in below market expectations.

According to data released by the Pakistan Bureau of Statistics, the consumer price index (CPI) rose 11.1pc year-on-year in June, easing from 11.7pc in May and remaining within the government’s projected range of 11pc to 12pc.

On a month-on-month basis, CPI declined 0.3pc in June, compared with a 0.5pc increase in May.

Ashraf said the latest inflation figures reinforced expectations that price pressures were continuing to ease, improving the outlook for interest rate cuts.

He added that investor sentiment had also been supported by expectations that inflation would remain within the State Bank of Pakistan’s target range during FY2026-27, aided by lower international oil prices following the temporary easing of tensions between the United States and Iran.

The gains came after the market had fallen more than 1,100 points on Monday amid heightened geopolitical tensions following the exchange of military strikes between the United States and Iran.

The outgoing fiscal year marked a strong performance for the PSX, with the KSE-100 Index posting a 44pc return in rupee terms and 46pc in dollar terms, rising from 125,627 points at the end of FY2024-25 to 180,302.

Market analysts expect the benchmark index to continue its upward trajectory towards the 189,000-point level, supported by easing inflation, lower oil prices and expectations of further monetary easing, although inflation trends, monetary policy decisions and geopolitical developments are likely to remain key drivers of investor sentiment.

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HIV cases among children in Karachi’s Orangi Town rise to 107

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KARACHI – A three-year-old girl from Orangi Town has tested positive for the Human Immunodeficiency Virus (HIV), raising the total number of infected children in the area to 107, health authorities and the child’s family said.

According to the family, the diagnosis was confirmed through three separate laboratory tests: Rapid Detect, Uni-Gold, and HIV Combo (Ag/Ab), all of which returned positive results.

The girl’s parents said she had received treatment at the government-run Kulsum Bai Valika Social Security SITE Hospital, commonly known as Valika Hospital. They alleged that her health began to deteriorate after the treatment, prompting them to have her tested for HIV.

The latest case comes amid an ongoing investigation into an HIV outbreak involving children who reportedly received treatment at Valika Hospital in Karachi’s SITE Town.

Health officials have confirmed that 107 children from Orangi Town have so far tested positive for HIV. The death toll among infected children in Zia Colony has reached nine.

Several affected families have alleged that contaminated syringes were reused on multiple patients at the hospital, leading to the spread of the virus.

In February, Federal Minister for National Health Services Syed Mustafa Kamal said the outbreak had been caused by the reuse of contaminated syringes at Valika Hospital.

Addressing the National Assembly on June 10, the minister said the federal government had banned five types of syringes following a rise in HIV cases across the country. He added that increasing numbers of infections had also been reported in Islamabad and Taunsa.

The Sindh Health Department has also reported an increase in HIV cases across the province during 2026.

According to the minister, around 366,000 people in Pakistan are living with HIV/AIDS. He said the disease is treatable if diagnosed early and managed appropriately.

He added that Prime Minister Shehbaz Sharif had constituted a special committee to help contain the spread of HIV, while the federal government was coordinating with provincial authorities to strengthen prevention and control measures.

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Lahore launches women-only scooty driving school at Liberty Market

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LAHORE – The Lahore Traffic Police has established a women-only scooty driving school at Liberty Market under the Punjab government’s Women on Wheels initiative, aimed at improving women’s mobility and promoting their economic empowerment.

Chief Traffic Officer (CTO) Syed Abdul Raheem Shirazi said the centre will operate on a women-to-women service model, with female instructors providing scooty and car driving lessons in a safe and supportive environment.

According to the CTO, the Lahore Traffic Police has so far trained more than 7,000 women in scooty riding and car driving through its training centres across the city. With the inauguration of the Liberty Market facility, the total number of women’s driving schools in Lahore has increased to 12.

Shirazi said the training programme extends beyond practical driving lessons and also includes basic electrical and mechanical knowledge to help participants carry out routine vehicle maintenance and deal with minor mechanical issues.

He added that all driving schools are equipped with modern facilities to ensure quality training while maintaining a secure learning environment for women.

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FBR says Rs30m bank account recovery carried out under tax law

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ISLAMABAD – The Federal Board of Revenue (FBR) has defended its recovery of Rs30 million from a taxpayer’s bank account, saying the action was taken in accordance with the Income Tax Ordinance, 2001, after the individual failed to clear outstanding tax liabilities.

In a statement, the FBR alleged that the taxpayer attempted to stop the recovery by submitting forged appellate orders to his bank. It said the documents were not issued by the department, carried no official barcode, did not exist in its Inland Revenue System (IRS), and were therefore fake.

According to the FBR, the individual had publicly described himself as a non-resident Pakistani but declared himself a resident in income tax returns filed for the tax years 2017 and 2018. Under Pakistan’s tax laws, resident individuals are generally liable to pay tax on their worldwide income.

The tax authority said the individual declared foreign income of Rs23.52 million as exempt in each of the two tax years, exceeding the applicable exemption threshold of Rs5 million.

It added that notices were issued under Section 122(9) of the Income Tax Ordinance, providing the taxpayer with opportunities to submit documentary evidence in support of the claimed exemption. However, the FBR alleged that no supporting evidence was provided.

Following the amendment of the tax assessment, the FBR raised a demand of Rs30 million. It said recovery proceedings were initiated only after the amount remained unpaid, with the funds recovered directly from the taxpayer’s bank account under the relevant provisions of the law.

Tax expert Amer Sharif said the Income Tax Ordinance allows the FBR to recover outstanding tax directly from a taxpayer’s bank account, but only after completing the prescribed legal process.

He explained that Section 122(9) empowers the tax authority to amend an assessment after issuing notice and providing the taxpayer an opportunity to respond. Once the amended assessment is finalised, Sections 137 and 138 govern the payment of tax and issuance of a recovery notice.

According to Sharif, Section 140 authorises the FBR to direct a bank to transfer funds from a taxpayer’s account to recover unpaid taxes, provided the assessment and recovery procedures have already been completed.

He added that while Section 111 of the Income Tax Ordinance deals with unexplained income or assets, the FBR’s statement does not indicate that the provision was invoked in this case. Instead, the dispute relates to the taxpayer’s claim for exemption on foreign income and the alleged failure to provide documentary evidence supporting that claim.

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