The World Bank has approved $700 million in fresh financing for Pakistan as part of a longer-term programme aimed at supporting macroeconomic stability and improving public service delivery.As per Reuters, the funding has been cleared under the Public Resources for Inclusive Development – Multiphase Programmatic Approach (PRID-MPA), a framework through which Pakistan could receive up to $1.35 billion over multiple phases. The lender said the latest approval represents a major tranche under this broader initiative.Out of the $700 million, $600 million will be directed towards federal-level programmes, while the remaining $100 million will support a provincial initiative in Sindh, Pakistan’s southern province. The focus of the financing is to strengthen public resources and improve the delivery of essential services at both national and provincial levels.The approval comes months after the World Bank extended a $47.9 million grant in August to support primary education reforms in Punjab, the country’s most populous province. Together, the funding decisions signal continued engagement by multilateral lenders with Pakistan as it works to stabilise its economy and manage long-standing structural challenges.However, concerns over governance and institutional weaknesses remain. An IMF–World Bank report uploaded by Pakistan’s finance ministry in November flagged serious issues, including fragmented regulation, opaque budgeting practices and political capture of public resources. According to the report, these factors continue to deter investment and weaken the country’s revenue base, limiting the effectiveness of economic reforms.The latest World Bank financing also comes at a time when Pakistan remains heavily dependent on external funding to support its economy. Public debt has continued to rise, driven by slower economic growth and sustained borrowing from multilateral institutions. Recent inflows from bodies such as the IMF and other lenders have helped shore up external reserves and support fiscal consolidation efforts, but debt pressures remain elevated.Despite these challenges, Pakistan’s economy has shown signs of gradual recovery following two years of volatility. Growth has picked up modestly, the current account has moved into surplus, and foreign exchange reserves have improved, helped by multilateral disbursements and higher remittance inflows.The World Bank’s phased financing approach allows it to retain leverage over future funding while continuing to support Pakistan’s economic stabilisation efforts. How effectively the new funds translate into lasting reforms and improved service delivery will likely determine the pace and scale of further disbursements under the $1.35 billion programme, as per Reuters.

US-listed shares of Infosys shot up as much as 40% within minutes of the market opening on Friday, briefly adding tens of billions of dollars to the Indian IT major’s market value. The sudden surge pushed the American Depositary Receipts (ADRs) to a 52-week high of $30 and forced the New York Stock Exchange to halt trading due to extreme volatility, according to ET. The sharp move took place during a low-liquidity holiday session and was not linked to any new announcement from the company.Why did the rally raise eyebrows?The speed and scale of the rise caught traders off guard because there was no obvious trigger. Analysts pointed out that such extreme swings are unusual for a large, widely tracked stock like Infosys. The trading halt itself highlighted how fragile markets can become when liquidity is thin and automated systems dominate activity.Was a short squeeze involved?One of the main explanations doing the rounds was a possible short squeeze. This happens when investors betting against a stock are forced to buy it back quickly as prices rise, pushing the stock even higher. Traders quoted by Moneycontrol said a major lender may have recalled 45–50 million Infosys ADR shares that had been lent out. That number is far higher than the usual daily trading volume of about seven to eight million shares. In a thin market, such a recall could have forced short sellers to rush for shares, accelerating the spike.Did a technical glitch play a role?Another theory is centred on a data error. According to The Chronicle Journal, several market data platforms mislabelled the Infosys ticker ‘INFY’ as ‘American Noble Gas Inc’. While the company name was wrong, the financial data and news attached to the ticker still referred to Infosys, including details about its AI investments and $75 billion market value. This mismatch may have confused algorithmic trading systems, triggering automated buying and adding fuel to the rally.Did the sector backdrop help?Indian IT stocks had received some support after Accenture posted better-than-expected results. However, analysts said this alone could not explain such a dramatic move in Infosys ADRs, as per ET.Infosys clarified that there was no material reason behind the volatility. In an exchange filing, the company said the ADRs saw sharp price movements on December 19, triggering two volatility trading pauses on the NYSE, but added that there were “no material events that require disclosure” under listing regulations.Whether driven by short covering, a technical glitch or both, the episode underlines how quickly markets can spiral when low liquidity, automated trading and data errors collide — even for blue-chip stocks.

NEW DELHI: The Government of India is seeking suggestions for the upcoming Budget 2026 from the general public to help make new rules and plans for the country. According to a post on X by MyGovIndia, the government encouraged people to participate in this important task. The government stated on X, “Building the Budget with Public Insight. Share your suggestions for Union Budget 2026-27 and contribute to the policies that promote inclusive growth and National development.” The message invites everyone to visit the MyGov website to submit their views on what the new budget should focus on for the next year.Earlier in the previous month, Union Minister for Finance and Corporate Affairs Nirmala Sitharaman completed multiple rounds of Pre-Budget Consultations in New Delhi as part of the preparations for the forthcoming Union Budget 2026-27. The series began with consultations with leading economists, followed by representatives from farmer associations and agriculture economists. Subsequent sessions engaged stakeholders from MSMEs, capital markets, startups, manufacturing, BFSI (Banking, Financial Services and Insurance), information technology, tourism and hospitality, and finally trade unions and labour organisations.Earlier this month, various industry bodies also gave their suggestions for the pre-budget. Industry body PHD Chamber of Commerce and Industry (PHDCCI) presented a set of pre-budget suggestions for the micro, small and medium enterprises (MSME) sector to the Finance Minister Nirmala Sitharaman, seeking easier taxes, cheaper credit and simpler rules for small businesses.The proposals focused on changes in income tax, bank loans, export support and equity funding so that MSMEs could run their businesses with less cost and delay. The chamber said these steps could help small units grow, pay back loans on time and compete better with firms in other countries.This upcoming Budget comes in the backdrop of strong GDP numbers and moderate inflation in the economy. As always, the annual Budget document is presented in the Parliament on February 1 each year. In the run-up to it, a series of mandatory pre-Budget meetings is held between the Finance Minister, secretaries and various stakeholders to make the budget-making process all-inclusive.

India’s telecom sector ended 2025 on a strong footing, with the department of telecommunications (DoT) recording major gains in digital connectivity, infrastructure expansion and technology self-reliance, according to a year-end review released by the ministry of communications.A key development during the year was the launch of the National Broadband Mission (NBM) 2.0 in January. The initiative aims to speed up digital inclusion by expanding high-speed broadband access to villages, schools, health centres and other critical institutions, supporting the government’s long-term vision of a “Viksit Bharat” by 2047.The review highlighted a sharp rise in internet and mobile usage. Total internet connections crossed the 100-crore mark, nearly four times higher than in 2014. Broadband subscriptions also touched close to 100 crore, while average monthly data consumption per wireless user jumped to 24 GB, placing India among the highest data-consuming nations globally. Median mobile broadband speeds rose sharply as well, reaching over 130 Mbps by October 2025.The nationwide rollout of 5G stood out as one of the year’s defining achievements. 5G services are now available across all states and Union Territories, covering 99.9 per cent of districts and reaching around 85 per cent of the population. Telecom operators have installed more than 5.08 lakh 5G base stations, supported by a doubling of optical fibre cable length since 2019.Rural connectivity also expanded rapidly, with rural telephone connections rising nearly 43 per cent since 2014, almost twice the growth rate seen in urban areas. Overall tele-density reached 86.65 per cent by September.The year also marked a technological milestone, with India becoming the world’s fifth country to develop an indigenous 4G technology stack. Built by C-DOT, Tejas Networks and TCS and deployed by BSNL, the system is fully software-driven and upgradeable to 5G, news agency ANI reported. Progress was also recorded under the Bharat 6G Mission.On the citizen services front, platforms such as Sanchar Saathi gained wide adoption. The portal logged 22 crore visits, while its mobile app saw over 1.5 crore downloads. The Financial Fraud Risk Indicator helped prevent losses of about Rs 450 crore by flagging more than 70 lakh suspicious transactions.Manufacturing also showed strong momentum, with the telecom PLI scheme generating cumulative sales of over Rs 96,000 crore and exports exceeding Rs 19,000 crore, reinforcing India’s shift towards becoming a global digital and innovation hub.

After years of predictions that global oil demand was about to reach its peak due to a rapid move towards renewable energy, 2025 saw a clear reversal of that narrative, with oil and gas regaining importance and India emerging as a key engine of global consumption.Major energy outlooks from BP, McKinsey and the International Energy Agency pushed expectations of peak oil demand into the 2030s, while also revising projected demand for 2050 upwards, according to news agency PTI.Across these forecasts, India was consistently identified as the centre of future growth, with its increase in energy demand expected to exceed that of China and Southeast Asia combined.

Policy delays and geopolitics revive fossil fuels

In 2025, oil regained strength due to a combination of delayed clean-energy policies, limited infrastructure, and geopolitical tensions. European countries, even though they are leaders in clean energy, relied more on fossil fuels because of ongoing supply shortages and high prices during the Russia-Ukraine war. In the United States, President Donald Trump supported fossil fuels, which helped bring oil back to the centre of the global energy mix.

India’s shifting import patterns

India’s oil and gas sector is changing due to global trends, with shifts in how it imports oil, new policies, and increasing demand. The country still relies heavily on crude oil imports, and Russian oil remains a key player despite international pressure.The US has urged India to cut back on Russian oil purchases and has even placed a 50 percent tariff on Indian goods.However, Russian crude oil made up more than one-third of India’s imports for most of the year. It supplied domestic refineries that produce petrol, diesel, and other fuels. Imports from Russia started to decline after sanctions were placed on major exporters Rosneft and Lukoil in late November. According to PTI, average imports dropped from about 1.7 to 1.8 million barrels per day to below 1 million barrels per day. Since Russian oil itself was not sanctioned, it was unlikely that imports would completely stop. Refiners found ways to shift to non-sanctioned Russian suppliers to continue getting discounted crude.

Supply diversification and policy reforms

India has increased its oil imports from various sources to avoid relying too much on one country. It has bought more crude oil from the US, especially after new tariffs were announced. Additionally, trade in liquefied natural gas (LNG) and liquefied petroleum gas (LPG) has grown.The government has introduced new rules for the oil and gas industry, called the Petroleum and Natural Gas Rules, 2025. These rules create a new regulatory framework to make it easier to get licenses and to encourage new investments in exploring and producing oil and gas.

Rising demand and refining expansion

Demand remained strong through the year. India’s oil consumption was projected to grow faster than China’s in 2025, with forecasts showing the country accounting for a large share of global demand growth in the coming decade.India’s refining capacity is growing, which strengthens its role as a global refining centre. However, the production of crude oil and gas is struggling due to old oil fields. To fix this issue, the state-owned company ONGC partnered with the major company BP to help boost production at its key Mumbai High fields. The use of natural gas is also rising due to improvements in pipelines and the expansion of city gas distribution networks. This aligns with government efforts to promote cleaner fuels.

Calm oil prices offer fiscal relief

In 2025, oil prices were surprisingly stable despite ongoing wars, sanctions, and trade issues. Brent crude mostly stayed between $60 and $70 per barrel, dropping to about $59–60 by mid-December, according to PTI.This stability came from higher oil production in countries outside OPEC, like the US, Brazil, Guyana, and Canada. OPEC+ managed their supply well, and demand in China and Europe grew slowly. There was also an increase in floating storage.For big oil importers like India, these steady prices were a relief. Similar to the Covid period, the government raised taxes on petrol and diesel but did not increase retail prices. They used the drop in crude prices to manage the tax hike and boost revenue.As 2025 ends, the oil and gas sector faces a complex outlook. While geopolitical risks and demand growth continue to shape supply dynamics, climate pressures and strategic shifts by global energy companies point to an industry still in transition as it heads into 2026, according to PTI.

File photo: Elon Musk (Picture credit: ANI)

Elon Musk secured a major legal victory on Friday after the Delaware Supreme Court cleared the way for him to receive a long-disputed Tesla pay package worth about $55–56 billion, reversing an earlier ruling that had stripped him of the compensation. The decision likely marks the end of a years-long shareholder lawsuit over what was once described as the largest executive pay deal in corporate history.The top court overturned a January 2024 judgment by Delaware Chancery Court judge Kathaleen St. Jude McCormick, who had rescinded the 2018 pay package after finding that Tesla’s board was too close to Musk and failed to follow a fair approval process.

McCormick had called the process “deeply flawed” and ruled that Musk effectively controlled the company at the time, according to CNBC.In its 49-page ruling, the Delaware Supreme Court said the lower court went too far by cancelling the pay package outright.“It is undisputed that Musk fully performed under the 2018 grant, and Tesla and its stockholders were rewarded for his work,” the judges said, according to AFP. The court restored the package and awarded Tesla $1 in nominal damages.The ruling adds to Musk’s already vast wealth, estimated at around $679 billion, as per CNBC. It also supports Musk’s long-held criticism of Delaware’s legal system. Following the 2024 ruling, Musk publicly attacked the judge, encouraged other entrepreneurs to leave Delaware and led Tesla to reincorporate in Texas, AP reported.The original 2018 pay deal was tied entirely to performance milestones. At the time, Tesla was valued between $50 billion and $75 billion and was struggling with production challenges. The package set ambitious targets linked to market value and operations. Over the following years, Tesla’s manufacturing improved, sales surged and its market capitalisation crossed the thresholds needed for Musk to earn the payout, AP noted.Despite shareholder approval of the plan in 2018, Tesla investor Richard Tornetta challenged it in court, arguing it was excessive. While Tesla shareholders later voted again in 2024 to reaffirm the package, McCormick maintained her decision to cancel it. That stance has now been overturned.Tesla’s board has consistently backed Musk. In recent years, it approved an interim compensation award worth about $29 billion and later unveiled an even larger long-term pay plan, AFP reported. Shareholders approved that new package last month. The plan could be worth up to $1 trillion if Musk leads Tesla to raise its market value from about $1.6 trillion to $8.5 trillion over the next decade.Legal experts noted that while the Supreme Court restored the pay package, it did not overturn all of McCormick’s findings. “None of that was reversed in this decision,” Columbia Law School professor Dorothy Lund was quoted as saying by CNBC, referring to conclusions about Musk’s influence over Tesla.Lawyers representing the shareholder who brought the case said they were considering their next steps, reported AFP.