Pakistan Opens Doors To Global Crypto Firms

Samantha Luan

Economic

Cryptocurrency

Forex

Summary:

● Pakistan launches a national licensing framework for crypto firms

● Aims to attract global crypto companies to operate legally

● Step signals growing acceptance of digital assets in Pakistan

Pakistan has officially invited global cryptocurrency firms to operate legally under its new national licensing regime. This move marks a significant shift in the country’s approach to digital assets, signaling a more open and regulated environment for blockchain and crypto-related businesses.The new framework, introduced by the Pakistani government, aims to bring structure and legal clarity to the crypto space. By offering licenses to global players, Pakistan is looking to position itself as a friendly destination for innovation in financial technology. The initiative could pave the way for greater investment, job creation, and access to global markets.

This approach contrasts sharply with the earlier stance of regulatory uncertainty and partial bans on crypto trading platforms in the country. Now, with a formal system in place, firms will be able to register, operate, and comply with local regulations — just like any other financial institution.

A Strategic Move Towards Fintech Growth

The decision to introduce crypto licensing is part of a broader strategy to boost Pakistan’s digital economy. Officials see regulated crypto activity as a way to attract foreign investment and tap into the global financial tech wave.The new policy also aims to curb illegal activity by encouraging companies to operate within a legal framework. Licensing is expected to improve transparency and customer protection while giving the state greater oversight over digital asset transactions.Industry experts believe this could put Pakistan on the crypto map, alongside countries like the UAE, Singapore, and Switzerland that have already embraced regulated crypto operations.

What This Means for Global Crypto Players

For international crypto companies, this is an open invitation to explore a fast-growing market of over 240 million people. Startups and established firms alike can now apply for licenses and operate within the bounds of Pakistani law — reducing risk and opening doors to new users.In the coming months, the government is expected to release more detailed guidelines, including compliance requirements, tax obligations, and consumer protection measures.

Source: CryptoSlate

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Daniel Carter

Economic

Political

Key points:

● Britain hopes royal welcome will appeal to Trump.

● Tariff rates for steel and aluminium still to be finalised.

● Tech partnership and nuclear energy deal to be announced.

● Despite differences, Starmer and Trump have good relationship.

Trump and his wife, Melania, will be treated to a display of British royal pageantry during their visit on Wednesday, including a carriage tour, a state banquet, a flypast by military aircraft and a gun salute.

The British government hopes the soft power of the royals will appeal to Trump as it seeks tighter defence, security and energy ties with Washington, having already secured a favourable tariff deal.

Prime Minister Keir Starmer will host Trump at his Chequers country residence on Thursday to discuss working more closely together, on issues like Ukraine, and with the aim of finalising promised lower tariffs for steel and aluminium.

A spokesperson for Starmer said the leaders would sign "a world-leading tech partnership" and "a major civil nuclear deal" during the trip.

"The UK-U.S. relationship is the strongest in the world," Starmer's spokesperson told reporters. "This week we are delivering a step change in that relationship."

The British leader, a technocrat and a self-proclaimed socialist, and Trump, a proudly unpredictable politician who has pushed the Republican Party further to the right, have overcome their differences to develop a good working relationship.

Starmer was the first world leader to agree an economic deal with Trump on reducing his global tariffs.

Under that agreement, the United States said it planned to reduce tariffs on imports of cars and aluminum and steel. While details on car tariffs were agreed in June, the deal for steel and aluminium is yet to be finalised.

"When it comes to steel, we will make sure that we have an announcement as soon as possible," British business minister Peter Kyle told the BBC on Sunday.

Before Trump's arrival, Britain on Saturday announced over 1.25 billion pounds ($1.69 billion) of U.S. investment from PayPal, Bank of America and others, while Nvidia and OpenAI are expected to announce investment deals as part of the technology agreement, according to sources, who asked not to be named.

CoreWeave, a U.S. cloud computing provider, also said it would announce investments in Britain this week.

A delegation of British officials will be in the United States on Monday to finalise the details of Trump's visit, Starmer's spokesperson said.

Those talks will be complicated by Starmer's decision last week to fire Peter Mandelson, his ambassador to the United States, over his ties with the late convicted U.S. sex offender Jeffrey Epstein.

The sacking is deeply embarrassing for Starmer, who appointed him to Britain's most desirable diplomatic post less than a year ago.

This will be Trump's second visit to Britain in the last two months after he spent time in Scotland at his golf courses at the end of July.

During this week's visit, Starmer's spokesperson said there would also be announcements on deepening cultural ties, including promoting basketball in Britain and developing partnerships between heritage and art institutions.

Source: Reuters

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Daniel Carter

Political

Trump last week asked the Washington-based appeals court to temporarily pause a lower court's Sept. 9 injunction blocking him from firing Cook while her lawsuit challenging her dismissal proceeds. A ruling from the three-judge appellate panel could come as soon as later Sunday or Monday.

If the appeals court denies the Justice Department's request for a so-called stay order, the president is likely to immediately ask the Supreme Court to intervene, setting up a series of last-ditch arguments with the justices by both sides before a highly anticipated Fed policy meeting Sept. 16-17.

Trump moved to fire Cook last month after Federal Housing Finance Agency Director Bill Pulte, one of the president's most outspoken supporters, accused her of committing mortgage fraud. He alleged that she declared two homes in Georgia and Michigan as her primary residence in order to get better loan terms. The real estate transactions predated her time on the Fed.

Cook "has provided no explanation for the contradictory representations apparent on the face of her mortgage agreements, and that alone is grounds to stay the extraordinary" preliminary injunction, the Justice Department said in a filing Sunday afternoon.

Yet Trump's new filing comes just days after revelations that Cook described the disputed Georgia property as a "vacation home," according to documents viewed by Bloomberg News. The May 2021 loan estimate was issued by a credit union weeks before Cook purchased the home. The document shows she told the lender that the property wouldn't be her primary residence.

The Justice Department's filing did not address those revelations.

Cook's lawyer Abbe Lowell made his final arguments against Trump's stay request in a filing on Saturday, repeatedly contending that the Fed's independence would be shattered if the court allowed the economist to be fired over unproven allegations with questionable motives.

"A stay by this court would therefore be the first signal from the courts that our system of government is no longer able to guarantee the independence of the Federal Reserve," Lowell said. "Nothing would then stop the president from firing other members of the Board on similarly flimsy pretexts. The era of Fed independence would be over."

Source: Yahoo Finance

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Gerik

Economic

Buffett Defies Trend with Billion-Dollar Stake in Steel

Warren Buffett’s name is not typically associated with high-tech bets. Known for conservative, value-driven investment strategies, the legendary investor has spent years reducing Berkshire Hathaway’s exposure to U.S. equities. Yet in a surprising reversal, filings revealed that Buffett invested $953 million across two consecutive quarters into Nucor Corp. a company not traditionally linked to the artificial intelligence (AI) wave but now standing at the intersection of industrial production and digital transformation.

The timing of this investment has raised questions. Why would Buffett allocate fresh capital to an American steelmaker in 2025 after 11 straight quarters of net selling in U.S. markets? The answer appears to lie in the evolving relationship between AI and physical infrastructure.

AI Growth and the Hidden Role of Steel

At first glance, Nucor appears misaligned with the AI boom. Its core business is steel production, with a modest forward P/E ratio of just 12.6, far removed from the elevated valuations of AI software and semiconductor firms. But on closer inspection, the strategic logic becomes evident.

Nucor operates the largest network of electric arc furnaces in the United States, making it a leader in cost-effective domestic steel manufacturing. In a year where imported steel faces a 50 percent tariff, Nucor's position as a domestic supplier becomes a key competitive advantage. This is particularly relevant as the U.S. undergoes a surge in digital infrastructure spending, spurred by AI’s relentless growth.

AI data centers, with their immense physical and electrical demands, are being constructed across the U.S. at an unprecedented rate. Steel serves as the foundational material for structural frames, power conduits, cooling systems, and protective enclosures. Nucor has already secured contracts for several major data center projects, positioning itself not just as a commodity producer, but as a critical enabler of the AI ecosystem.

In this context, Buffett’s investment appears more calculated than speculative. It is a reflection of how AI’s rise is not limited to cloud software or chip design but requires large-scale, tangible infrastructure exactly the domain where Nucor thrives.

Long-Term Performance and Market Confidence

Nucor’s long-term performance reinforces Buffett’s confidence. Since its IPO in 1972, the company’s stock has surged by 7,450%. Over the last five years, shares climbed nearly 215%, and they are up approximately 21% year-to-date in 2025. These figures suggest that Nucor is not merely riding a short-term wave but has demonstrated durable value creation over multiple cycles.

Buffett’s two-quarter accumulation further signals conviction. While Berkshire’s filing revealed the investment only recently, the phased buying approach indicates strategic entry and confidence in medium- to long-term growth.

Risks and Competitive Pressure Remain

Despite the optimism, investors must remain alert to key risks. Steel, by nature, is a cyclical industry. During economic downturns, construction and manufacturing slow, compressing margins. If AI infrastructure expansion loses steam or capital expenditures tighten, demand for steel could retreat sharply. In such a scenario, Nucor’s recent production expansions could turn into liabilities, increasing debt burden and operational inefficiencies.

Moreover, Nucor is not alone in targeting AI-fueled demand. Other steelmakers are ramping up capacity and capabilities to compete for the same contracts. Over time, heightened competition could erode Nucor’s cost advantages, especially if rivals receive similar regulatory tailwinds or enter partnerships with tech firms.

It is important to distinguish between short-term correlation and long-term causality. While AI data centers are driving current demand for steel, it remains uncertain whether this demand will sustain the sector’s margins once supply catches up or economic cycles shift.

Strategic Implications for Investors

Buffett’s bet on Nucor reveals a nuanced investment thesis: that the real value in the AI revolution may lie not only in algorithms or GPUs but in the concrete, physical expansion of the digital world. This logic aligns with his historical preference for essential, infrastructure-heavy businesses that exhibit pricing power and scalability.

For other investors, the message is clear. The AI story is broader than big tech it also involves upstream industries like energy, utilities, and materials. Nucor’s role as a backbone provider to this digital shift makes it a compelling case study in how traditional sectors can benefit from modern innovation trends.

Warren Buffett’s near-billion-dollar investment in Nucor underscores a rare pivot in his portfolio strategy away from retreat and toward selective re-engagement with U.S. equities. Driven by AI’s infrastructure needs and reinforced by tariffs favoring domestic producers, Nucor stands as a bridge between old-industry manufacturing and new-age technology. While risks of competition and cyclical downturns persist, Buffett’s move invites investors to reconsider where real growth may emerge in a digital-first economy.

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Gerik

Economic

U.S. Sanctions Trigger Strategic Realignment in Latin America

In an attempt to influence Brazil’s judicial proceedings, former U.S. President Donald Trump’s administration imposed punitive tariffs and sanctions on the South American giant, demanding the dismissal of charges against ex-president Jair Bolsonaro. Rather than yielding, Brazil responded with firm resistance, enforcing a 27-year prison sentence on Bolsonaro and rejecting what many in Brazil saw as foreign interference in a sovereign legal process.

The result has been a diplomatic setback for the United States and a geopolitical opening for China. As tensions with Washington rise, Brazil is moving closer to Beijing, both economically and politically, with deepened collaboration under the BRICS alliance.

Escalating U.S. Pressure and Brazil’s Defiance

Trump’s approach included a 50 percent tariff on Brazilian exports, the revocation of visas for several Brazilian officials, and targeted sanctions against Supreme Court Justice Alexandre de Moraes, who presided over the Bolsonaro case. This was accompanied by a trade investigation and public criticism of Brazil’s judiciary.

Nonetheless, Brazil’s institutions remained unified. Justice de Moraes received public backing, President Luiz Inácio Lula da Silva gained political momentum by challenging Washington’s rhetoric, and the judiciary collectively dismissed the notion that foreign leaders could sway legal decisions via political pressure.

The logic of causality here is clear: punitive U.S. economic measures, instead of inducing legal leniency, reinforced Brazilian resolve to uphold domestic legal processes and pushed the country to diversify international alliances.

The Economic Boomerang: China Steps In

While the U.S. tariffs took effect, Brazil’s exports to China surged by 31 percent in August, compensating for an 18.5 percent drop in exports to the U.S. Brazil’s total export revenue still rose 4 percent, largely driven by heightened Chinese demand for commodities like beef, coffee, and sugar goods directly impacted by the new U.S. tariffs.

This outcome indicates a strong correlation between U.S. sanctions and Brazil’s accelerated economic pivot toward China. The causal link becomes more compelling when viewed in light of Brazil’s increased diplomatic exchanges with China, including two direct conversations between President Lula and President Xi Jinping since the U.S. tariffs were enforced, with no such contact between Lula and Trump.

Public Sentiment Shifts and Institutional Fractures

The diplomatic rift has extended into public perception. A national survey showed Brazilian public favorability toward the U.S. declined from 58 percent in February 2024 to 44 percent by August. Conversely, positive views of China rose from 38 percent to 49 percent in the same period. These shifts underscore the reputational cost of coercive diplomacy and the soft power vacuum being filled by Beijing.

Moreover, while American officials accused Justice de Moraes of infringing on free speech for requiring social media platforms to block extremist content, the judge defended these actions as necessary to preserve democratic order, especially amid credible threats against his life. The internal Brazilian debate remains polarized, but the external pressure from Washington has largely been rejected as illegitimate.

Geopolitical Consequences and the BRICS Factor

Brazil’s deepening ties with China do not occur in isolation. As a rotating chair of BRICS a bloc that includes Brazil, Russia, India, China, and South Africa Brazil is now positioned to help lead a multipolar rebalancing of global power. The recent deterioration in U.S.-Brazil relations has only heightened the symbolic and strategic importance of the BRICS framework as an alternative to Western-dominated institutions.

The shift reflects a broader recalibration of Brazil’s foreign policy, which increasingly centers on non-aligned partnerships and South-South cooperation. The more Washington resorts to economic instruments to force political outcomes, the more it undermines its influence in regions like Latin America, where historical memory and sovereignty remain powerful narratives.

Trump’s hardline strategy toward Brazil has backfired. Rather than achieving a favorable political resolution, it has strained bilateral relations, reduced U.S. economic influence, and encouraged Brazil to double down on its partnership with China. The imposition of punitive trade measures and overt political demands has not only failed to sway Brazil’s judiciary but has also weakened the U.S. image in the region.

If current trends persist, the U.S. risks losing strategic ground in Latin America, while China continues to consolidate its role as Brazil’s primary partner in trade and diplomacy. In the emerging global order, coercion may yield diminishing returns, and Brazil’s stance signals a growing preference for multipolarism and autonomy over external pressure.

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Gerik

Economic

Russia’s Strategic Leap in the Anti-Drone Market

In a surprising turn of geopolitical and technological developments, Russia has secured the second position worldwide in terms of revenue generated from anti-drone systems in 2024. This rise comes despite the country facing tens of thousands of international sanctions and ongoing conflict in Ukraine. With revenues reaching 42 billion rubles (approximately 460 million USD), Russia now commands 23 percent of the global anti-drone market, trailing only the United States at 35 percent and surpassing China, which holds an 8 percent share.

The war in Ukraine has been a primary catalyst for Russia’s rapid advancement in this field. Repeated drone attacks by Ukrainian forces targeting Russia’s refineries, industrial infrastructure, and military assets have compelled a sweeping deployment of counter-UAV technology. By spring 2025, roughly 80 percent of civilian industrial enterprises in Russia had installed anti-drone defense systems, a figure highlighting the magnitude of perceived threat and the urgency of response. These installations are not isolated military investments but are now part of civil defense across the economic spectrum.

This conflict-driven demand suggests a causative relationship between the intensity of modern drone warfare and the accelerated domestic adoption of counter-technologies. The sheer frequency and unpredictability of aerial incursions have reshaped the risk calculus for both public and private entities, shifting drone defense from a niche service into a core operational safeguard.

Forecasted Market Growth and Industrial Expansion

SK Capital projects a steep growth curve for Russia’s anti-drone sector. The market, valued at 42 billion rubles in 2024, is expected to surge to between 30 and 90 billion rubles in 2025, and further to 146 billion rubles (1.58 billion USD) by 2030. This reflects a projected compound annual growth rate of 23 percent. The accelerated growth is not purely a response to domestic security demands but also reflects industrial capacity-building for potential export activities.

Notably, the market’s internal composition is diverse. Around 130 companies operate in Russia’s anti-drone sector, with the top 10 providers controlling nearly half of the domestic market. These firms span a wide range of origins from military contractors and IT integrators to new entrants from the civilian drone manufacturing space. Approximately half of the market participants are newcomers, having entered only within the past two years, suggesting that the war has also functioned as an economic incubator for this niche.

Technological Capabilities and Strategic Constraints

The dominant technologies employed in Russia’s anti-drone systems revolve around radio-frequency jamming and GPS spoofing, many of which incorporate Chinese components. These methods are well-suited for creating disruption in drone command systems and navigation. However, experts have noted that many end-users still lack the technical knowledge required to select and deploy the most appropriate defensive systems. This implies a strong correlation between reactive purchasing behavior and the persistence of technical skill gaps in the commercial landscape.

The practical impact of drone threats on Russia’s economy is increasingly visible in its insurance sector. More than 10 billion rubles (110 million USD) in insurance claims were filed in 2024 alone, tied directly to UAV attacks. Major insurers like SOGAZ and AlfaStrakhovanie have witnessed spikes in both claim volumes and payouts. In response, private enterprises are lobbying the government to consider tax exemptions for investments in anti-drone infrastructure, signaling a broader push to institutionalize these technologies within economic policy.

Global Outlook and Export Potential

Despite ongoing geopolitical constraints, Russia is poised to leverage its battlefield-tested experience to enter the international anti-drone market. According to SK Capital, these wartime learnings offer Russia a valuable export proposition non-traditional yet effective counter-drone technologies. While the U.S. remains the global leader, Russia's position as a high-experience, high-capacity player could reshape market competition.

MarketsandMarkets projects global anti-drone market revenues will increase from 3.75 billion USD in 2024 to 14.51 billion USD by 2031, a 26.5 percent annual growth rate. The most dynamic growth is expected in Asia, particularly in countries like China, India, Japan, and South Korea, where border security and commercial drone use are intensifying. These emerging markets present fertile ground for technologically aggressive entrants, and Russia may capitalize on its wartime R&D to secure a share.

Russia’s unexpected rise in the global anti-drone market is a case study in how geopolitical adversity can drive rapid technological development and market positioning. The causative link between the war in Ukraine and Russia’s anti-drone innovation is evident not only in revenue growth but also in the diversification of players and the maturation of an entire defense sub-industry. However, to sustain momentum and convert domestic strength into global competitiveness, Russia will need to address its dependence on foreign components, close expertise gaps among users, and navigate a complex web of export restrictions. In a world where drone warfare and security are becoming central to national and economic policy, Russia’s position as a formidable player is no longer in question.

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Gerik

Economic

Iran’s Sanction Resistance Strategy: Oil Flows Unabated to China

Against the backdrop of Washington’s renewed "maximum pressure" campaign, Iran has demonstrated a calculated and effective workaround. According to Kpler data, Iranian oil deliveries to Chinese ports surged by 23% in August 2025 compared to July, reaching 1.68 million barrels per day. This marks the highest level since Donald Trump returned to the White House and reinstated a more aggressive sanctions regime.

The spike in exports has had immediate logistical consequences: Iran’s floating oil storage off the Asian coast largely near Malaysia fell from 30 million barrels in early August to just 15 million barrels by September 7. This drain, equivalent to half of Iran’s offshore reserves, highlights the effectiveness of Tehran’s strategy to keep oil revenues flowing despite sanctions.

Persistent Flows Despite U.S. Crackdown

The Biden-era relaxation of enforcement gave way in 2025 to a tougher posture. Since January, the U.S. has sanctioned 127 tankers along with various companies and individuals involved in transporting Iranian oil. Yet, these punitive measures have failed to slow the flow of crude to China, which imported an average of 1.45 million barrels per day from Iran during the first eight months of 2025 an increase from the previous year.

This divergence between sanctions intent and actual trade flows reveals a key limitation: the absence of Chinese cooperation. Without Beijing’s support, Washington’s capacity to isolate Iran’s energy exports appears significantly diminished. This reveals a causative gap between unilateral sanctions and enforcement efficacy when global buyers act in defiance.

Strategic Incentives Behind China’s Oil Purchases

China’s motivation is not driven solely by economics, though the pricing advantage is notable. Iranian crude is typically discounted by $4–6 per barrel compared to global benchmarks, making it financially attractive for Chinese refiners.

However, the timing of the surge in imports suggests broader geopolitical alignment. In parallel with oil trade, President Xi Jinping hosted a high-profile summit that included Iranian President Massoud Pezeshkian, Russian and North Korean leaders, and other nations at odds with U.S. foreign policy. The oil trade, therefore, also serves as a strategic lever both as a symbol of resistance and a means of maintaining influence in the energy-dominated corridors of the Middle East.

China’s role in sustaining Iran’s economy is underscored by the structure of the bilateral trade model. Through mechanisms resembling oil-for-goods bartering, Iran secures critical imports while China consolidates its influence in Tehran’s economic machinery.

The Role of Oil and Gas in Sustaining a $400 Billion Economy

Iran’s total economic output, estimated at over $400 billion by the IMF, remains heavily dependent on hydrocarbons. In addition to crude oil, Iran’s liquefied petroleum gas (LPG) exports are also rising. Despite the U.S. blacklisting nine LPG carriers, Iran exported 1.1 million tonnes of LPG in August, with China accounting for roughly 80% of that volume.

This mutually reinforcing relationship ensures that China now represents more than a quarter of Iran’s total export revenues. The economic linkage goes far beyond energy: it extends into manufacturing, electronics, machinery, and a range of dual-use goods that support Iran’s industrial base.

Geopolitical Implications of Resilient Oil Trade

The surge in oil flows also signals a failure of Washington’s core sanctions objective: to reduce Iranian oil exports to zero. That goal remains unmet, and may in fact be growing increasingly unrealistic given the rise of an alternative economic axis centered around China and non-aligned powers.

The strategic consequence is a growing bifurcation in the global trade system. As U.S. sanctions aim to isolate adversaries, countries like Iran find alternative economic patrons. For Tehran, Beijing is not merely a buyer it is a partner enabling economic survival, infrastructure development, and strategic leverage.

This creates a correlation, if not yet a full causal transformation, in how nations respond to U.S.-led economic pressure. The more aggressive the enforcement, the stronger the alignment among sanctioned states and their supporters, accelerating the erosion of dollar-centric trade dominance.

Iran’s ability to sell nearly 1.7 million barrels of oil per day to China amid severe sanctions is a vivid example of geopolitical and economic realignment. The rapid depletion of offshore storage and sustained export momentum show that, absent coordinated global enforcement, even the most sophisticated sanctions regimes can be circumvented.

More critically, the growing partnership between Tehran and Beijing rooted in discounted energy, mutual defiance of U.S. pressure, and strategic alignment has positioned China as the lifeline of Iran’s $400 billion economy. This evolution not only challenges the effectiveness of American sanctions policy but also reshapes the power dynamics of global energy markets.

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