Category: Business

The most important business news, explained in a young, easy to understand way. News that affects young career professionals.

  • Elon Musk will step down as Twitter CEO once he finds a ‘foolish enough’ replacement

    Elon Musk will step down as Twitter CEO once he finds a ‘foolish enough’ replacement

    The billionaire Elon Musk announced on Tuesday that he will step down as Twitter’s CEO once he finds a replacement, although he will continue to oversee some crucial departments of the social media network.

    “I will resign as CEO as soon as I find someone foolish enough to take the job! After that, I will just run the software & servers teams,” Musk wrote on Twitter.

    Some investors have questioned if Musk is too preoccupied to properly operate his electric vehicle automaker Tesla, in which he is actively involved in production and engineering. Musk’s $44 billion buyout of Twitter in October has been defined by upheaval and controversy.

    After Twitter users chose for him to stand down in a poll that the billionaire started on Sunday night, Musk has now publicly acknowledged leaving his position as the social media platform’s CEO for the first time.

    17.5 million individuals participated in the poll, and 57.5 per cent of them chose “yes.” Musk declared on Sunday that he will follow the outcomes. He has not specified a date for his resignation, and no replacement has been named.

    The survey findings brought to a close a hectic week that saw modifications to Twitter’s privacy policy and the suspension and reactivation of journalist accounts, all of which garnered criticism from news outlets, advocacy groups, and government officials across Europe.

    Musk stated in a Twitter Spaces session that Twitter’s cash flow will achieve break-even in 2023, according to a tweet from Bloomberg on Wednesday.

    Bloomberg claimed that Musk explained the forecast as a result of recent cost-cutting initiatives he has implemented on the social media site.

    Wall Street has been calling on Musk to leave for weeks, and more recently even Tesla supporters have questioned his focus on social media and whether it would be a distraction from operating the EV manufacturer.

    Musk has acknowledged that he has too much on his plate and that he will search for a new CEO of Twitter. But he claimed on Sunday that there was no one in place to take his place and that “no one wants the job who can actually keep Twitter alive.”

  • World Bank approves $1.69 billion financing for flood-hit Sindh

    World Bank approves $1.69 billion financing for flood-hit Sindh

    The Board of Executive Directors of the World Bank approved funding for five projects totaling $1.692 billion on Tuesday in order to support those residing in Sindh, Pakistan’s flood-affected areas.

    According to Geo, out of the five initiatives, three support rehabilitation, home reconstruction, and the restoration of crop production for vulnerable populations, according to a statement released by the World Bank. Two of the three projects have a combined value of $500 million, while the third is worth $292 million.

    “Sindh was the province worst affected by the 2022 floods. There were huge damages to the housing, health, and agriculture sectors and people lost their livelihoods. Beyond the rehabilitation and reconstruction of damaged houses and infrastructure, our engagement in the flood response effort is an opportunity to strengthen resilience, and reform institutions and governance structures”, said Najy Benhassine, World Bank Country Director for Pakistan.

    The “Sindh Flood Emergency Rehabilitation Project,” which will cost $500 million, will prioritize creating short-term livelihood opportunities and enhancing the province’s ability to respond to emergencies.

    “The project will help restore and improve critical irrigation and flood protection infrastructure, water supply schemes, roads, and related infrastructure. At least 2 million people—approximately 50 per cent of whom are women—in the most flood-affected districts will benefit from the restoration and the resilient reconstruction of critical infrastructure”.

    About 100,000 households will get short-term financial support through a community-level cash-for-work program.

    “The $500 million Sindh Floods Emergency Housing Reconstruction Project will support owner-driven and multi-hazard resilient reconstruction of core housing units. A housing subsidy will provide reconstruction and restoration grants for 350,000 housing units (almost 20 per cent of the total housing rehabilitation needs for Sindh). Cash grants will be provided for houses with structural damage to partially finance reconstruction or restoration. “

    To increase access to water and sanitation, twin pit latrines and simple rainwater collection systems will also be provided.

    Furthermore, the $292 million approved for the “Sindh Water and Agriculture Transformation Project” will enhance integrated water resource management, boost agricultural water productivity, and enable farmers who were impacted by the flood to resume crop production.

    “More than 385,000 households (approximately 1.9 million people) are expected to benefit from the project. As an immediate response to the floods, the project will provide cash transfers to approximately 300,000 flood-affected farming households to help restore crop production through the purchase of seeds, fertilizer, and other critical inputs. In the medium term around 70,000 households will benefit from improved irrigation services and agricultural support that will help boost farming income. An estimated 14,000 households will receive direct financial benefits from the pilot smart subsidy schemes targeting small- and medium-sized farmers,” the WB said.

    By improving access to and use of mother and child health services, the Sindh Strengthening Social Protection Delivery System Project ($200 million) will also boost the province’s social protection delivery system. As part of the project, the Federal National Database Registration Authority will be aligned and connected, and conditional cash transfers (CCTs) will be given to 1.3 million mothers and their kids to support better maternal and child health outcomes, particularly in the wake of service disruption caused by the floods.

    The CCTs will be made available to Sindh’s bottom 15 districts, selected depending on the Multidimensional Poverty Index (MPI), and will cover 65 per cent of the province’s total flood-affected areas. They are intended to help lessen the effects of the floods, particularly food insecurity, and to maintain access to maternal and child health services open.

    The Sindh Integrated Health and Population Project have been granted $200 million by the lender. The project will assist in raising the standard and uptake of fundamental nutrition, and maternal, neonatal, child, and adolescent health care. Additionally, it will aid in the repair and reconstruction of health infrastructure that was harmed during the floods and impeded the provision of these services.

    The initiative would enhance the population’s access to high-quality healthcare services in Sindh’s flood-affected settlements as well as in distant and peri-urban areas, particularly for women, girls, and children.

    “The World Bank will continue to support the Government and people of Pakistan to recover from the recent flood emergency and strengthen long-term resilience to such climate-related shocks,” the statement concluded.

  • Pakistan stocks lose more than 1,400 points due to political uncertainty

    Pakistan stocks lose more than 1,400 points due to political uncertainty

    Political unrest caused significant selling pressure on the Pakistan Stock Exchange (PSX), which saw the benchmark KSE-100 Index lose more than 1,400 points on Tuesday during trading.

    The KSE-100 Index was down 1,432.25 points, or 3.5 per cent, at 39,538.57 around 3 o’clock, below the 40,000-mark, according to the PSX website.

    Investors were under pressure to sell their shares across the board due to Pakistan’s escalating political unpredictability and economic uncertainties.

    For a while now, there has been pressure on the market. Just last week, the benchmark KSE-100 Index dropped nearly 550 points due to domestic and global events, and the PSX experienced intense selling pressure. On Friday, it increased to close higher, but this week started off negatively once more.

    Experts claim that market pressure is resulting from the Pakistan Tehreek-e-(PTI) Insaf’s announcement that it will dissolve the Punjab and Khyber Pakhtunkhwa assemblies, according to Brecorder.

    In particular, the pressure has intensified since Monday’s event.

    A worsening economic crisis is accompanied by louder political clamour as foreign exchange reserves drop to dangerously low levels and negotiations with the International Monetary Fund (IMF) keep getting postponed.

    Analysts have also stated that although the World Bank’s approval of $1.692 billion for flood relief efforts in Sindh should have had a positive effect, political commotion is also obscuring this good news.

    Pakistan’s stock market is expected to remain under pressure till Friday until clarity is achieved on the political front.

  • Govt to buy more than 500 hybrid buses for Lahore

    Govt to buy more than 500 hybrid buses for Lahore

    According to Chief Minister Chaudhry Parvez Elahi, 300 hybrid buses would be bought for Lahore in the first phase of the government’s plan to run environment-friendly hybrid buses in the city.

    About 200 new bus stops would be set up to facilitate the citizens, according to the chief minister. The 20th meeting of the Punjab Masstransit Authority (PMA), which was presided over by Parvez Elahi, decided to purchase hybrid buses that are environmentally friendly.

    Parvez Elahi informed the participants that a total of 513 hybrid buses would be operating in the city and that the Punjab Masstransit Authority would use private companies to run new hybrid buses.

    The chief minister mandated that seats be set aside in the new buses for women, special individuals with disabilities, and people who are blind or visually impaired, adding that these seats should be positioned close to the bus door. The chief minister gave the go-ahead to build new bus stops in Lahore and added that the routes of the new buses should be planned with women’s educational institutions’ schedules in mind.

    Parvez Elahi criticised the fact that previous attempts at creating a government-level transportation system spectacularly failed due to egregious incompetence in the creation of a long-lasting transportation system in the province.

    The chief minister gave his approval for the Punjab Masstransit Authority to open offices in Dera Gujran and for the authority to conduct auctions. Iftikhar Gondal, Khadija Umar, Shamim Aftab, Muhammad Khan Bhatti’s principal secretary, the secretaries of finance and transportation, along with other members of the Punjab Assembly, attended the meeting.

  • Pakistan to get 20,000 tonnes of additional gas from Azerbaijan

    Pakistan to get 20,000 tonnes of additional gas from Azerbaijan

    In order to meet domestic demand, Pakistan will import an additional 20,000 tonnes of gas from Azerbaijan in the next two months, according to Minister of State for Petroleum Musadik Malik.

    The Russian Petroleum Minister will visit Pakistan next month to strike a deal for the purchase of Russian crude oil, the minister said in a statement. The state minister was confident that Russia will deliver discounted crude oil to Pakistan.

    According to him, the government is working on the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project to import 1,300 billion MF of gas from Azerbaijan per year to address the country’s gas shortfall.

    Malik had before claimed that Russia will give Pakistan a discount on the purchase of its crude oil.

    Musadiq Malik stated during a news briefing in Islamabad on Friday that Russian authorities had made it clear they will offer Pakistan cheap crude oil.

    The State for Petroleum Musadik Malik stated, “We are taking talks [with Russia on crude oil] forward,” noting that two of Russia’s eight sorts of crude oil might be utilised in Pakistani refineries.

    He continued by saying that Pakistan was also developing a framework for an LNG cargo arrangement with Azerbaijan.

  • Gas supply to industrial sites suspended for two days

    Gas supply to industrial sites suspended for two days

    The gas crisis has grown worse in the economic hub of Pakistan as the duration of gas load-shedding in Karachi industries was extended for up to two days.

    The industrial sites in Karachi will be facing two-day gas load-shedding instead of one.

    According to the information obtained, all industrial facilities and captive power plants in Karachi will not be supplied gas for two days.

    From December 17 to December 19, seven industrial zones and captive power plants were instructed to refrain from using Sui Southern Gas Company’s (SSGC) gas supplies on Saturday and Sunday.

    In addition to conducting unannounced raids on all industrial sites, the SSGC surveillance teams will also take legal action against those who violate the rules.

    Imtiaz Shaikh, the energy minister for Sindh, criticised the gas load-shedding on December 13 and claimed that although the province is generating more natural gas than it needs, it is still being denied its legitimate right.

    Imtiaz Shaikh, the energy minister, demanded that Sindh be given preference over other parts of the country in the provision of natural gas.

    “We will take the matter to court if required,” Sindh’s energy minister said. “We are also considering raising the issue in the Council on Common Interest (CCI),” he said.

    He said that the chief minister had discussed Sindh’s case regarding the gas issue during discussions between the state and federal governments. He expressed hope that the prime minister will pay attention to the situation.

    The provincial minister stated that when additional petrol is provided to the province, Karachi’s industry will resume operation.

    The most natural gas-producing province in Pakistan, Sindh, is now experiencing a severe natural gas shortage for home, industrial, and commercial customers.

  • Russia to sell cheap crude oil to Pakistan, Musadik Malik reiterates

    Russia to sell cheap crude oil to Pakistan, Musadik Malik reiterates

    State Minister for Petroleum Musadik Malik on Friday reiterated that Russia will provide Pakistan with crude oil at discounted rates.

    Speaking at a press conference, Malik claimed that Russia will offer Pakistan crude at a discount, just like the energy giant does for other nations across the globe.

    “It (the discount) could be greater than what others receive,” he added. 

    The remarks come a day after PBS Newshour journalist Amna Nawaz interviewed Foreign Minister Bilawal Bhutto-Zardari, who said: “As far as Russia is concerned, we aren’t pursuing or receiving any discounted energy, but we are facing an extremely difficult economic situation.”

    In response to a question on the $60 per barrel limit on Russian seaborne oil imposed by the Group of Seven and the EU in connection to Russia’s war in Ukraine, Bilawal said, “Up until now we actually haven’t received nor are we getting any oil from Russia.”

    “As far as discounted rates, no one is giving discounted rates for oil these days,” Bilawal also told reporters at the United Nations. “That’s not a reality. It is true that we’re actively pursuing ways and means to address the energy shortfalls and difficulties we’re facing in Pakistan.”

    Malik, who had earlier in the month claimed that Russia will supply cheaper oil, revealed on Friday that Pakistani refineries could process Russian crude, namely Siberian Light and Ural Light. Islamabad’s inability to obtain oil from Moscow is attributed to Pakistan’s refineries’ capacity to handle Russian crude.

    “Pakistan Refinery Limited (PRL), owned by Pakistan State Oil (PSO), told us that they could utilise up to 50 per cent light crude of Russian origin. Similarly, PARCO has told us that they could utilise up to 30 per cent of Russian crude.”

    “Whereas, Cnergyico, the third largest oil refinery in the country, could not only process these two (Siberian Light and Ural Light) crudes but also heavy crudes as well.”

    “We will get these light crudes from Russia on a discount,” added Malik.

    Discounts on finished goods, such as gasoline and petrol, will also be discussed, the state minister added. The Russian delegation is expected to visit Pakistan in 2023.

    According to DAWN, in the second week of January, there will be an Inter-Governmental Commission (IGC) meeting between Pakistan and Russia. During the conference, the Russian energy minister is likely to visit.

    In connection to the TAPI project, which “may offer us with 1.3bcf of gas,” Malik continued, the administration has also reestablished contacts with Turkmenistan.

    “A special strategic cell has been established in the Ministry to follow up these projects,” he said.

    On liquid natural gas (LNG), Malik said the government is working with Azerbaijan on a gas purchase framework agreement, which is being drafted. “Under this framework, we would have a government-to-government level agreement with the State Oil Company of Azerbaijan Republic, largely known as SOCAR,” he said.

    “SOCAR will provide us with distressed cargoes on a monthly basis, and the Government of Pakistan would have the option to purchase these cargoes at given rates or not. “This will help us increase our gas supply,” he said.

    The minister said that SOCAR has already offered Pakistan LNG cargo for December 14. “However, we were unable to purchase it as both our terminals were not available,” he said.

    Additionally, the government is still working to come to an arrangement with the UAE that would allow for the purchase of diesel and petrol cargoes.

    “I want to reiterate that the policies of the current government are meant to alleviate hardships of poverty-ridden masses,” said Malik.

    He said that despite a 10 per cent yearly loss in gas reserves, the government is giving its people more gas this year than it did the year before. ”We will have an additional cargo of gas in the coming months of January and February, in comparison to the same period in 2022,” he said.

    “We are also bringing in 20,000 tons LPG in addition to facilitate our consumers.”

  • Pakistan is not ‘pursuing or receiving’ any discounted energy from Russia: FM Bilawal Bhutto

    Pakistan is not ‘pursuing or receiving’ any discounted energy from Russia: FM Bilawal Bhutto

    Pakistan is not “pursuing or receiving” any discounted energy from Russia, according to Foreign Minister Bilawal Bhutto Zardari, who is in the US for a seven-day visit.

    Earlier, State Minister for Petroleum Musadik Malik had announced that Russia had decided to provide crude oil, petrol, and diesel to Pakistan at lesser rates.

    He had stated that specific terms and conditions of the discounted oil commodities will be decided upon during the upcoming visit of the Russian energy minister to Islamabad by mid-January, but that prices would be on par with or even lower than those being offered to other nations, according to Geo.

    Before that meeting, Malik had stated, the two parties would refine their ideas to the point at which an executive summary or an agreement could be signed and supplies would begin to flow.

    As winter approaches, Pakistan struggles to meet domestic gas supply needs while also trying to control a current account deficit that has been swollen by energy purchases, largely for oil.

    Because spot prices are still out of reach for the nation and shipments under long-term contracts are still insufficient to meet the expanding demand, the nation has been unable to purchase liquefied natural gas from the international market.

    In an interview, the PPP chairman said: “As far as Russia is concerned, we aren’t pursuing or receiving any discounted energy, but we are facing an extremely difficult economic situation, inflation, pump prices.”

    However, he acknowledged Pakistan’s energy insecurity. “We are exploring various avenues to expand our areas where we can get our energy from,” FM Bilawal said, adding that “any energy from Russia will take a long time for us to develop.”

  • New Zealand passes world’s first tobacco law to prevent future generations from smoking

    New Zealand passes world’s first tobacco law to prevent future generations from smoking

    As part of its attempts to become smoke-free by 2025, New Zealand has passed new regulations. The newest legislation prohibits anyone under the age of 14 from ever being able to legally purchase cigarettes. The decision to ban smoking for the next generation would be a first in the world.

    According to associate health minister Ayesha Verrall, “Thousands of people will live longer, healthier lives and the health system will be $5bn better off from not needing to treat the illnesses caused by smoking, such as numerous types of cancer, heart attacks, strokes, amputations.”

    The laws passed their final reading on Tuesday evening and will come into force in 2023. The number of stores legally allowed to sell cigarettes will be reduced to a tenth of their existing levels – from 6,000 to just 600 countrywide.

    Tobacco will not be sold to anyone who was born on or after January 1, 2009, in New Zealand, which will be the first country in the world to specify the age for smoking that increases every year.

    The amount of nicotine that is legally allowed to be present in tobacco products will be drastically reduced, and instead of being sold in corner stores and supermarkets, they will have to only be sold through specific tobacco stores, according to The Guardian.

    These laws will also be accompanied by a number of other initiatives to make smoking more expensive and less accessible.

  • IMF expected to reach staff-level agreement with Pakistan soon

    IMF expected to reach staff-level agreement with Pakistan soon

    The country representative for the International Monetary Fund (IMF), Ester Perez, has called the conversations with the Pakistani government regarding the ninth review “productive.”

    “Discussions have enabled a revision to the macroeconomic outlook post floods as well as an in-depth evaluation of fiscal, monetary, exchange rate, and energy policies adopted since the completion of the combined seventh and eighth reviews,” said Perez.

    The chief of the IMF in Pakistan stated that the international lender is eager to continue discussions about policies that effectively address the requirements for assistance and recovery after the floods while also maintaining external and fiscal sustainability based on the available resources.

    Furthermore, a senior member of the Pakistani administration told The News that the IMF negotiations were doing well and that a staff-level agreement will likely be reached soon.

    The ninth review was scheduled for November 3, 2022, according to the IMF seventh and eighth review documents, which were published on the website at the end of September 2022.

    After discussions with Pakistani officials that ended on November 18, 2021, the executive board approved the sixth review on February 2, 2022. This delay was brought on by the inability to meet the ‘prior’ conditions.

    The proposed dates for the seventh and eighth reviews were set for March 4 and June 3, respectively, in the staff report that was made public following the approval of the sixth review. However, after talks that ended on May 25, 2022, the IMF executive board accepted the seventh and eighth reviews under the EFF on August 29. This delay was once again caused by the failure to meet the ‘prior’ standards.