Business
Floods to famine: how 2025 could trigger economic crisis | The Express Tribune
LAHORE:
Pakistan is staring down the barrel of a food security emergency that could ripple through every layer of its economy. The catastrophic monsoon floods of 2025 have submerged vast swathes of the country, from Punjab’s wheat belt to Sindh’s rice-growing districts and parts of Khyber-Pakhtunkhwa.
Over 2,000 villages have been inundated, displacing millions, wrecking farmland, and wiping out critical infrastructure just as the summer harvest reached its peak.
The destruction is staggering. Entire standing crops of wheat, cotton, rice, maize, and sugarcane have been destroyed. In Punjab alone, 80% of the country’s wheat production is now at risk. Sindh’s rice fields and fodder supplies are underwater, while Khyber-Pakhtunkhwa has lost tens of thousands of acres of maize and vegetables.
Livestock losses are mounting, with fodder destroyed and surviving cattle starving. Farmers are reporting personal losses in the millions, collectively wheat farmers alone have seen over Rs2.2 trillion wiped out since last year.
The ripple effects are already visible in markets nationwide. In Lahore, Karachi, and Peshawar, staple food prices have spiked 30% to 70%, with shortages of vegetables, milk, and meat now commonplace.
For urban consumers, the pinch is immediate and painful. For rural producers, the pain is existential, as fields, homes, livestock, and seed stores have been swept away.
Tens of thousands of families now live in makeshift camps, with their livelihoods gone and no clear path to recovery. If left unsupported, millions risk falling below the poverty line, a repeat of the 2022 floods which pushed nine million Pakistanis into poverty, according to World Bank estimates.
The economic stakes are immense. Agriculture contributes 24% of Pakistan’s GDP and employs 40% of the workforce. The loss of this year’s harvest will not just hurt farmers; it will force Pakistan to import vast quantities of wheat, vegetables, and cotton, straining foreign exchange reserves and driving up the import bill.
At the same time, export earnings will collapse as rice and cotton surpluses disappear. This dangerous combination, higher imports and falling exports, threatens to widen the current account deficit and weaken the rupee.
Inflation, which had eased to 4.1% in July 2025 after painful reforms, is now set to surge again. Government officials are bracing for food inflation to return to double digits by October, with shortages of wheat and fresh produce driving price shocks. Urban and rural consumers alike will feel the squeeze, and political tensions are certain to rise as household budgets buckle under the pressure.
The floods also pose a fiscal nightmare. Relief and reconstruction costs will run into hundreds of billions of rupees, forcing the government to divert funds from other priorities or take on new debt. Under an IMF programme, fiscal space is already limited. Every rupee spent on relief is a rupee not spent on development, creating a vicious cycle of stagnation and instability.
Making matters worse, policy missteps have amplified the crisis. At the very moment when Pakistan needed stability and strategic reserves, the government moved to dismantle Passco, the only institution capable of safeguarding emergency wheat stocks and stabilising prices. Passco’s warehouses, which once held two million tons of grain, are being liquidated under IMF dictates.
Simultaneously, the abolition of the Utility Stores Corporation has stripped millions of poor households of access to subsidised food. This has left farmers at the mercy of profiteering cartels and consumers defenseless against runaway inflation.
The World Bank’s latest report warns that climate shocks are now the single biggest threat to Pakistan’s macroeconomic stability. Floods are no longer rare, one-off events, they are recurring economic shocks that depress growth, widen deficits, and push millions into poverty. The 2025 disaster is a textbook case – rising inflation, mounting imports, shrinking exports, and deepening social instability.
There are still steps that can prevent a slide into famine. Emergency imports of wheat and vegetables, temporary price controls, and targeted cash transfers to vulnerable families can stabilise the situation in the short term. Equally critical is direct support for farmers – seeds, fertiliser, and credit must be provided immediately so the upcoming Rabi winter wheat crop is not lost. Without this, Pakistan will face even deeper import dependency and food insecurity in 2026.
Longer term, Pakistan must finally invest in climate resilience. Flood defences, drainage systems, climate-smart seeds, and reliable strategic reserves are not luxuries; they are necessities for national security. As the World Bank notes, economic planning must now treat climate volatility as a core structural challenge, not a peripheral issue.
The 2025 floods are not just another disaster. They are a stark warning. If Pakistan does not act decisively, this year’s tragedy will not only wash away crops and homes, it will erode the very foundations of our economy and leave the nation vulnerable to the next inevitable shock.
The writer is a graduate of the University of British Columbia
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‘While some roles may be automated, others will see enhancement through AI augmentation, and other, entirely new roles will be created,’ the report says.
As AI adoption spreads across businesses, companies are expected to hire senior-level executives such as chief AI officers to oversee implementation across functions.
Amid rising concern that artificial intelligence (AI) could displace white-collar workers at scale, a report by Morgan Stanley offers a measured view, saying the technology is more likely to reshape work than eliminate it. Rather than triggering mass early retirement, the report notes that employees will need to reskill for roles that are still emerging, according to Fortune.
“While some roles may be automated, others will see enhancement through AI augmentation, and other, entirely new roles will be created,” the report highlighted.
The researchers draw on more than 150 years of technological change — from electrification to the internet — to argue that innovation historically transforms job profiles without fully replacing human labour. The report cites spreadsheets in the 1980s as an example: they reduced demand for some clerical tasks but enabled analysts to focus on complex work and led to new finance-sector professions.
As AI adoption spreads across businesses, companies are expected to hire senior-level executives such as chief AI officers to oversee implementation across functions. The report also projects a surge in governance-focused positions tied to data compliance, policy oversight and information security, especially in sensitive sectors like healthcare.
“There will also be a massive surge in AI governance roles focused on data compliance, policy oversight, and information security, particularly in sensitive sectors like health care,” the publication stated.
New job titles may also emerge across sectors. In consumer industries, roles such as AI personalisation strategists and AI supply-chain analysts could appear, while industrial firms may seek predictive maintenance engineers and smart-grid analysts. The rise of natural-language coding tools could also create hybrid IT roles, allowing product managers to directly prototype concepts before engineers complete technical execution.
Separate evidence suggests the short-term labour impact of AI remains limited. A National Bureau of Economic Research study surveying nearly 6,000 executives in the US, UK, Germany and Australia found that more than 90 per cent reported no change in employment levels over the past three years, and 89 per cent saw no productivity impact.
“On average, more than 90 per cent of business managers across the four countries estimate no impact of AI on their employment over the past three years. 89 per cent report no impact of AI on their labour productivity (measured as volume of sales per employee) over the last three years,” the study highlighted.
Even so, expectations for future gains remain strong. Executives surveyed expect AI to raise productivity by 1.4 per cent and output by 0.8 per cent over the next three years, while 75 per cent of firms anticipate using some form of AI technology within that period.
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February 28, 2026, 09:11 IST
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Warner Bros Discovery signed a SUD 11 billion deal with Paramount Skydance Friday morning, as revealed in a global town hall audio clip.
Warner Bros signs USD 110 billion deal with Paramount (Image for representation)
Warner Bros Discovery (WBD.O) signed a SUD 110 billion deal with Paramount Skydance (PSKY.O) Friday morning, the two companies announced, marking one of the most consequential media mergers in recent history.
“Netflix had the legal right to match the PSKY offer. As you all know, they ultimately decided not to do that. That then resulted in a signed agreement with PSKY as of this morning. So that’s where everything stands,” Bruce Campbell, Warner Bros’ chief revenue and strategy officer, said, as quoted by news agency Reuters.
The companies revealed that the deal is expected to close in the third quarter of 2026.
The deal was inked as Netflix declined to match Paramount’s latest USD 31-per-share offer, pulling out of the bidding war for Warner Bros. Discovery’s studio and streaming assets.
According to the Reuters report, citing sources, Warner Bros received the contracts from Paramount on Saturday and within the following two days, it announced that Paramount’s offer was superior.
The deal was immediately approved by board of directors of both media giants, said the companies in a joint statement.
The deal is “subject to customary closing conditions, including regulatory clearances and approval by WBD shareholders, with a vote expected in the early spring of 2026″, the statement read.
Interestingly, Paramount Skydance is headed by David Ellison, the son of Silicon Valley billionaire Larry Ellison, a close ally of President Donald Trump.
“By bringing together these world-class studios, our complementary streaming platforms, and the extraordinary talent behind them, we will create even greater value for audiences, partners and shareholders — and we couldn’t be more excited for what’s ahead,” David Ellison said in a statement.
NOT A ‘MUST HAVE’
In a stunning move hours later, Netflix announced it would not match Paramount Skydance’s latest offer to acquire Warner Bros Discovery. Netflix co-CEOs Ted Sarandos and Greg Peters asserted that “this transaction was always a nice to have at the right price, not a ‘must have’ at any price.”
TRUMP YET TO COMMENT
At one point, President Donald Trump said he might weigh in on the agreement. However, he told NBC News in early February that he would not be “involved” in the proceedings.
Then, last week, he issued a warning to Netflix, saying it would “pay the consequences” if it did not fire board member Susan Rice, an ex-official of the Biden administration.
During a podcast, Rice had said the entities that “take a knee” to the President would be “held accountable” when Democrats return to the office.
Meanwhile, the President is yet to comment on the deal.
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Washington D.C., United States of America (USA)
February 28, 2026, 07:48 IST
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Business
UAE makes history: Central Bank launches world’s first sovereign financial cloud with AI for secure digital finance – The Times of India
In a bold leap that could redefine how modern financial systems operate, the Central Bank of the United Arab Emirates (CBUAE) has announced the launch of what it calls the world’s first sovereign financial cloud services infrastructure, a secure and AI-powered digital backbone designed specifically for the nation’s financial sector. This initiative, developed in partnership with Core42 (a subsidiary of AI and technology group G42), aims to position the UAE at the forefront of secure, sovereign digital finance and bolster its reputation as a global hub for innovative financial services.The platform, known as the Sovereign Financial Cloud Services Infrastructure (SFCSI), is set apart from traditional cloud environments by its focus on data sovereignty, integrated cybersecurity and unified multi-cloud management, all underpinned by advanced artificial intelligence and real-time analytics. In practical terms, this means the UAE’s financial sector will be able to process, analyse and automate critical banking functions with unprecedented speed and regulatory control, securely within national borders.
What makes the UAE’s sovereign financial cloud revolutionary
Unlike most cloud services, which are operated by global providers and often host data far from the jurisdictions that regulate them, the SFCSI is built on a fully isolated and centralised infrastructure that ensures critical financial data remains within the UAE’s legal and security perimeter. Governments and regulators see this as key not just for privacy but for economic and strategic sovereignty in a world where data and finance increasingly intersect.This approach mirrors broader global trends toward digital sovereignty, where countries aim to protect sensitive infrastructure from foreign interference, whether from geopolitical tensions or shifting international data laws. By embedding regulatory controls and governance tools directly into the cloud platform itself, the CBUAE is seeking to reduce reliance on foreign systems and strengthen confidence in the nation’s financial resilience.Core42’s involvement is not just as a technical builder; the partnership brings integrated artificial intelligence and advanced analytics directly into the financial backbone. This allows licensed financial institutions and the CBUAE to automate operational processes intelligently, analyse real-time data for risk and performance insights, improve decision-making with predictive models and enhance customer service through automated, data-driven workflows.In a world where financial services are rapidly becoming more complex and interconnected, AI integration at the infrastructure level offers both competitive edge and stronger defences against threats like fraud, system failure or cyber-attacks. The new system also provides a single management framework for multiple cloud services, giving licensed financial institutions the flexibility to administer a range of cloud environments, including private and hybrid setups, seamlessly and securely. This capability is particularly valuable for institutions that need to balance agility and innovation with strict regulatory compliance.
Implications for the UAE and global financial landscape
For the UAE’s banks, insurers and fintech startups, the SFCSI represents a foundational piece of digital transformation. Regulatory oversight will be more immediate and nuanced, while institutions can scale new digital products, from personalised banking apps to smart payment systems, without compromising on security or compliance.Officials from the CBUAE emphasised that the platform will serve the entire licensed financial sector, reinforcing not just operational resilience but also long-term sustainable growth as financial services evolve. The central bank’s leadership views this as a pivotal step in strengthening the nation’s competitiveness on the world stage.The UAE’s move toward a sovereign financial cloud resonates with a broader global push for digital control over critical infrastructure. Various countries are debating how to balance openness to global technology with the need to protect sensitive financial and governmental data, a tension that’s only grown more pronounced as cyber threats increase and geopolitical competition around tech intensifies. By being among the first to embed sovereign control, AI capabilities and cloud innovation at this scale, the UAE is signalling that it intends to lead in secure, regulated digital finance, not just participate in it.While this cloud platform is targeted at the financial sector, its development aligns with the UAE’s wider strategy of integrating AI and digital infrastructure across governance, public services and enterprise systems. The inclusion of AI, real-time analytics and automation at a national infrastructure level could help catalyse further technological development in related fields such as central bank digital currencies (CBDCs), national payments innovation and cross-border financial integration.
What UAE’s sovereign financial cloud platform means for everyday users and institutions
For banks and financial firms, the SFCSI offers a more efficient way to innovate and comply with regulations, potentially making services faster, more secure and easier to tailor to customer needs. For consumers and businesses, the shift could translate into:
- More secure banking services with enhanced protections.
- Better digital experiences built on real-time insights.
- Faster product rollouts as institutions leverage automated, AI-powered infrastructure.
- Greater confidence in data privacy and national sovereignty
The rollout of such an infrastructure may also attract international finance players, tech investors and startups looking to base operations in a secure, innovation-friendly jurisdiction. The Central Bank of the UAE (CBUAE) has unveiled what it calls the world’s first sovereign financial cloud services infrastructure, developed with technology partner Core42.The Sovereign Financial Cloud Services Infrastructure (SFCSI) is designed to ensure data sovereignty, robust cybersecurity, AI integration, and unified multi-cloud management for the UAE’s financial sector. Built with advanced AI and analytics, it will enhance automation, real-time decision-making and innovation within licensed financial institutions. The move reinforces the UAE’s ambitions to be a global leader in secure, digital finance, aligning with broader global trends toward sovereign digital infrastructure.
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