*MORNING NEWS* *Friday, 21 February 2025* *Oil extends gains on strong US demand hopes, Russia supply concerns* | Oil prices extended gains on Friday, headed for a weekly increase, as falling inventories of U.S. gasoline and distillate raised expectations of solid demand while concerns over supply disruptions in Russia lent support. Brent futures climbed 16 cents, or 0.2%, to $76.64 a barrel by 0123 GMT. U.S. West Texas Intermediate crude edged up 17 cents, or 0.2%, to $72.65. Both benchmarks were set for a weekly gain of about 3%. https://tinyurl.com/29sbafmt *Aurangzeb for urgent economic reforms to restore credibility* | Federal Minister for Finance Muhammad Aurangzeb said on Thursday that the “country has lost its credibility,” emphasising that urgent economic reforms are necessary to restore trust. During a meeting of the Senate Standing Committee on Climate Change, headed by Senator Sherry Rehman, the top financial czar briefed lawmakers on the country’s climate financing challenges and its negotiations with international lenders. https://tinyurl.com/2b636e8c *$1bn climate finance talks next week* | An International Monetary Fund mission will arrive in Islamabad next week to discuss around $1 billion in climate financing for Pakistan, an adviser to the country’s finance minister said on Thursday. Khurram Schehzad told Reuters that the mission would visit from February 24 to 28 for a “review and discussion” of climate resilience funding. https://tinyurl.com/26xxdjh5 *Pakistan’s industry slows: LSM shrinks 1.87% in first half of FY25* | Pakistan’s large-scale manufacturing (LSM) sector contracted by 1.87 percent in the first half (July-December) of the current fiscal 2024-25 compared to the same period last year, as key industries reported lower output. Production rose in tobacco, textiles, wearing apparel, automobiles and other transport equipment in the first half of fiscal year 2024-25 compared to the same period in 2023-24, while it declined in food, coke and petroleum, chemical products, non-metallic mineral, iron and steel products, electrical equipment, machinery and equipment, and furniture. https://tinyurl.com/2yqlu356 *Rate of return for NPCs revised downward* | The federal government has revised the rate of return downward for Conventional Naya Pakistan Certificates (NPCs), primarily due to a sharp decline in the key policy rate over the past six months. This marks the first reduction in NPC returns since the State Bank of Pakistan (SBP) adopted a monetary easing stance in June 2024. https://tinyurl.com/282lrkpl *SBP forex reserves up $35m to $11.2bn amid external debt pressures* | The State Bank of Pakistan's (SBP) foreign exchange reserves edged up $35 million during the week ending February 14, to stand at $11.20 billion, the central bank reported on Thursday, amid continued pressure on the country’s external financing needs. The country's total liquid foreign reserves stood at $15.95 billion in the period under review. The central bank, however, did not specify the source of these inflows. Meanwhile, commercial banks' dollar reserves amounted to $4.75 billion. https://tinyurl.com/2blj4pcx *Crackdown on unregulated sectors to intensify: Aurangzeb* | Finance Minister Muhammad Aurangzeb Thursday said the enforcement will be done in a big way against informal sectors and those undocumented sectors contributing nothing to the national exchequer. Addressing PRBC Conference 2025 (Retail Re-imagined: Innovate, Collaborate and Thrive) organised by Pakistan Retail Business Council (PRBC) here, the finance minister referred to tobacco and beverage sectors where formal sectors are paying all taxes as compared nothing by informal sectors. https://tinyurl.com/259s5kfa *India-style ‘electricity exchange’ on the cards* | The Power Division is reportedly working on establishment of electricity exchange in the country on the pattern of India, well-informed sources told Business Recorder. At a recent meeting, Prime Minister, Shehbaz Sharif, directed the Minister for Power, Sardar Awais Khan Leghari, who is also Chairman Task Force on power sector reforms, to prepare electricity exchange plan and submit it to the Prime Minister for review and approval. https://tinyurl.com/253e65yq *Power generation declines by 2% YoY to 8,152 GWh in January 2025* | The total power generation in the country decreased by 2% YoY to 8,152 GWh during January 2025 compared to 8,314 GWh in the same month last year. According to the monthly electricity generation data released by the National Electric Power Regulatory Authority (NEPRA), power generation saw a 4% MoM increase compared to 7,801 GWh in December 2024. On a cumulative basis, in 7MFY25, electricity generation stood at 74,794 GWh, down 3% YoY compared to 77,296 GWh in 7MFY24. https://tinyurl.com/2yncvkzj _Regards_ _Ismail Iqbal Securities_