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Pakistan’s oil industry faces collapse amid liquidity crunch

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Pakistan’s oil companies have warned that the industry is on the “brink of collapse” as the dollar liquidity crisis persists and their cost of doing balloons due to the Pakistani rupees (PKR) devaluation.

To meet the International Monetary Fund’s (IMF) demand, the government removed the dollar cap, resulting in the rupee falling to a historic low of 276.58 PKR in the interbank market, Geo News reported.

In a letter to the Oil and Gas Regulatory Authority (OGRA) and Energy Ministry, the Oil Companies Advisory Council (OCAC) said that the “sudden depreciation” of the local rupee has caused losses worth billions of rupees to the industry as their letters of credit (LCs) are expected to be settled on the new rates, “whereas the related product has already been sold”.

The government has also restricted LCs due to dwindling foreign exchange reserves, which fell to $3,086.2 million as of January 27, and are enough for just 18.5 days, Geo News reported.

Pakistan is facing a balance of payments crisis and the plummeting value of the rupee is pushing up the price of imported goods.

Energy comprises a large chunk of Pakistan’s import bill.

Pakistan typically meets more than a third of its annual power demand, using imported natural gas, prices for which shot up following Russia’s invasion of Ukraine.

These losses, the OCAC said, not only have an impact on the profitability of the sector, which is already under severe pressure, but also on its viability since these setbacks in some cases might exceed the “entire year’s profit for the sector”, Geo News reported.

“It is requested to urgently revise this mechanism and ensure that exchange losses of the sector are fully reimbursed if the viability of the industry and supplies to retail outlets are to be ensured,” the OCAC told the authorities.

The letter mentioned that OGRA has adopted the practice of not fully passing on the impact of the rupee depreciation and instead putting an immense burden on the sector.

Due to the challenges still being faced by the sector of previous exchange rate adjustments and the enormous impact of the current depreciation, the OCAC said it is crucial that OGRA passes the impact of the exchange rates in one go and not stagger this compensation, Geo News reported.

The council added that due to an increase in oil prices and successive depreciation of the Pakistani rupee over the last 18 months, the trade finance limits available from the banking sector to the industry have become inadequate.

As a result of the recent devaluation alone, the LC limits have overnight shrunk by 15-20 per cent, the OCAC said.

Crime

Wanted fugitive Ganesh Balaso Kale deported from Thailand, arrested at Mumbai Airport

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Mumbai, June 11: The Central Bureau of Investigation (CBI) on Thursday said that it has successfully secured the deportation of Red Notice subject Ganesh Balaso Kale from Thailand to India.

The deportation process was carried out in coordination with the Ministry of External Affairs (MEA), the Ministry of Home Affairs (MHA), and the Embassy of India in Bangkok.

According to the officials, Kale is wanted in connection with cybercrime fraud, in which victims were lured by the offer of online part-time jobs. They were asked to make certain deposits as monetary investments and were later defrauded.

Investigators said that the accused used to operate a network of cyber financial criminals by involving various unsuspecting persons in the scam. “He used to lure individuals by promising interest/commission in exchange for allowing the use of their bank accounts for the transfer of illicit funds and subsequently utilised such accounts to cheat multiple innocent victims,” the officials said.

“The subject also allegedly instructed co-accused persons to arrange mobile phones and procure fake SIM cards to facilitate the commission of offences,” the CBI officials added.

Based on the Interpol Red Notice, the accused was located in Thailand. He was detained by the Thai Authorities on May 24 in Bangkok. Following due legal proceedings and close coordination between Indian and Thai authorities, the accused was successfully deported to India.

Officials announced that a Red Corner Notice for Kale was issued in May. He was successfully located, apprehended, and returned to India within about 20 days of the notice.

On Thursday, the accused arrived at Mumbai Airport, where he was taken into custody by the Maharashtra Police’s Cyber Cell.

“The CBI, as the National Central Bureau for INTERPOL in India, coordinates with all Law Enforcement Agencies in India through BHARATPOL for assistance via INTERPOL channels,” officials said.

Investigators said that over 160 wanted criminals have been successfully brought back to India in the last few years through coordination between different agencies.

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International News

Japan sees rising bear attacks, 27 injured or killed across 9 prefectures: Report

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Tokyo, June 11: Bear attacks have left at least 27 people injured or dead across nine prefectures in Japan during the current fiscal year as of Wednesday noon, according to a tally by a public broadcaster.

According to the Ministry of the Environment, four of the victims were confirmed to have died after being attacked by bears.

By prefecture, Fukushima recorded the highest number of casualties with eight, followed by Akita with five, Iwate with four, Yamagata and Toyama with three each, and Tokyo, Niigata, Hokkaido, and Miyagi with one each, reports Xinhua news agency, quoting public broadcaster NHK.

Based on available information, at least 11 of the 27 victims were attacked within human living areas, including urban districts, farmland, and areas near their homes.

On June 2, four people were injured in a series of bear attacks in a neighbourhood of Fukushima City where businesses and residences are located.

On Tuesday, an elderly woman in her 80s in Yurihonjo City, Akita Prefecture, fell and suffered injuries to her arm and other areas after coming face-to-face with a bear in front of her home. The same day, a woman was attacked by a bear at a shrine parking lot in a mountainous area of Hanamaki City, Iwate Prefecture, sustaining injuries to her face and shoulder.

In addition, at least nine people, including three of those who died, are believed to have been attacked while visiting forests or mountainous areas to gather wild edible plants.

Meanwhile, more bear sightings have been recorded in urban areas, raising public concern. On Tuesday, a roughly 100 kg bear was cornered and tranquilised following four days of repeated sightings in Utsunomiya City, Tochigi Prefecture, north of Tokyo, prompting the temporary closure of all 94 municipal elementary and junior high schools. Another bear was captured Wednesday night near Amanohashidate, a famous scenic spot in Kyoto Prefecture, according to Kyodo News.

To help prevent bear attacks, the Ministry of the Environment urges people to carry radios or bear bells, travel in groups rather than alone, deliberately make loud noises in areas with poor visibility, avoid leaving food waste or other attractants that may draw bears, and check the latest bear sighting information issued by local governments.

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International News

Trump claims Iran ready for nuclear deal

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Washington, June 9: US President Donald Trump said that Iran was willing to abandon its pursuit of nuclear weapons and sign an agreement with the United States, as he claimed American military operations had severely weakened Tehran’s military capabilities.

Speaking during a virtual tele-rally for South Carolina Senator Lindsey Graham ahead of Tuesday’s Republican primary, Trump devoted much of his remarks to Iran, ongoing negotiations and the broader security situation in the Middle East.

“We’re negotiating now and they wanna make a very good deal. They’re willing to give us everything. They’re willing to give us no nuclear weapon,” Trump said. “Iran cannot have a nuclear weapon and it’s as simple as that.”

Trump claimed US military action had inflicted extensive damage on Iran’s military infrastructure.

“We’ve decimated their military. We’ve decimated their, everything there is to decimate, including their leadership,” he said. “Their navy is totally gone. They had 159 ships. Every ship is underwater right now.”

The President predicted a favourable outcome from negotiations and said a formal declaration of victory could come soon.

“I think we are winning that battle, but you’re really gonna win it over the next two weeks when we declare total victory,” Trump said. “It’ll be a total victory. It’ll happen very soon and oil prices will come tumbling down.”

The remarks came as Trump urged Republican voters in South Carolina to support Graham, a longtime ally who has been one of the Senate’s most vocal advocates of a hard line towards Iran.

“And Lindsey has been fighting with me all the way, all the way for that,” Trump said. “We’ve been a very tough team.”

Trump also praised Graham’s role on border security, military spending and conservative judicial appointments.

“I’ve known Senator Lindsey Graham for many years and he’s always been a tireless advocate for the people of South Carolina,” Trump said.

The President described Graham as having his “complete and total endorsement” and urged voters to support him in Tuesday’s Republican primary.

Trump also endorsed South Carolina Lieutenant Governor Pamela Evette, calling her “an America first patriot” and predicting she would become a successful governor.

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