ISLAMABAD (AP) — Pakistan’s government has provided fuel subsidies to more than 9 million low-income people as the U.S.-Iran war drives up energy prices, officials said Tuesday.
Information Technology Minister Shaza Fatima Khawaja said the program was designed to ease the burden on millions of people as regional geopolitical tensions drove up global fuel prices.
“We have ensured the process remains seamless and agile for citizens,” Khawaja said, describing it as Pakistan’s first nationwide use of technology to deliver targeted fuel subsidies.
Rising petrol and diesel prices have added pressure on a cash-strapped nation already grappling with high inflation, pushing up transportation, food and other living costs and raising fears of anti-government protests.
The program, approved by Prime Minister Shehbaz Sharif last month, offers fuel discounts to eligible motorcycle riders, rickshaw operators and owners of small cars, many of whom depend on their vehicles for work and daily travel.
The subsidies were announced after Jamaat-e-Islami, Pakistan’s major Islamist political party, threatened to march on Islamabad to pressure the government to cut taxes on petrol and diesel.
Fuel prices in Pakistan have risen by more than 50% since the war between the United States and Iran began earlier this year, adding to pressure on households already struggling with the cost of living. Sharif’s government says the subsidies are intended to help low-income motorists buy gasoline at prewar prices.
Petroleum Minister Ali Pervaiz Malik said more than 9 million people are benefiting from the program, in which eligible motorists receive a token by text message and present it at a participating gas station, where staff verify their eligibility before applying the discount.
According to the Ministry of Information Technology and Telecommunication, the amount and frequency of assistance vary by vehicle type. Motorcycle and three-wheeler users qualify for a discount of 500 rupees ($1.79) a week, with a limit of four tokens a month. That brings their maximum monthly assistance to 2,000 rupees ($7.14).
Owners of cars with engines of up to 800 cubic centimeters are eligible for a discount of 100 rupees (36 cents) per liter on up to 10 liters of gasoline (2.6 gallons) every 10 days. They can receive three tokens a month, saving up to 3,000 rupees ($10.71).
Amir Shahzad, an Islamabad resident, said the subsidy was enough to cover his commute between home and work. However, he added, "if I need to travel to another city, I will have to purchase petrol at the prevailing market price.”
Pakistan relies heavily on loans from the International Monetary Fund, which wants Islamabad to slash subsidies on wheat and other items.
Motorcyclists receives a token for fuel at subsidized rates under a recently introduced government scheme for low-income people at a fuel station, in Lahore, Pakistan, Tuesday, Oct. 6, 2026. (AP Photo/K.M. Chaudary)
A motorcyclist gets fuel on subsidised rates in a recently government scheme for low income people, at a fuel station, in Lahore, Pakistan, Tuesday, Oct. 6, 2026. (AP Photo/K.M. Chaudary)
NEW YORK (AP) — The U.S. stock market is closing in on an all-time high on Tuesday.
The S&P 500 climbed 0.7% and is on track to finish the day above its record closing level set in August. Even with worries about war, high inflation and pressure from the bond market continuing to weigh on it, the backbone of many 401(k) accounts has soared 23% since hitting a bottom in late March.
The Dow Jones Industrial Average was up 283 points, or 0.6%, with roughly an hour remaining in trading, while the Nasdaq composite was adding 0.6% to its own all-time high set the day before. The spurts for stock prices are helping investors feel better about their finances, or at least less bad, when Americans are generally feeling more discouraged about keeping up with the fast-rising cost of living.
Many of the fears that sent the U.S. stock market to its bottom in March, sparked by the war with Iran, have indeed come true. Oil prices have jumped, which has made inflation worse. That has helped crank yields higher in the bond market, which is threatening to slow the economy by making it more expensive for everyone to borrow money.
But despite all those challenges, one vital source of support has remained resolute for the U.S. stock market: the relentless ability for U.S. companies to make bigger profits.
Lamb Weston, which sells frozen fries and other potato products, said on Tuesday that its profit and revenue during its latest quarter topped its projections, for example. The results also beat analysts’ expectations, and its stock rallied 8.2%.
CEO Mike Smith said the company continues to deal with unexpected increases in freight and other expenses as inflation remains high. But the company nevertheless raised its forecast for an underlying measure of profit for its full fiscal year.
It's not just potato products proving to be more profitable. All kinds of companies are lining up to report soon how much profit they made from July through September, and expectations are high for strong growth. Delta Air Lines will report its third-quarter results on Friday, with several of the country’s biggest banks headlining the following week.
Analysts expect companies in the S&P 500 to deliver overall growth of nearly 30% in earnings per share from a year earlier, according to FactSet. If they’re correct, it would be the third straight quarter of growth better than 25%.
That's crucial because corporate profits are one of the big levers that help set prices for stocks, along with interest rates. At the moment, high bond yields are pushing downward on stock prices because they make investors less willing to pay high prices for investments that aren't bonds. But earnings are rising at the same time “to win the tug-of-war against yields” and keep the market high, according to strategists at Barclays Capital.
Bond yields worldwide offered some slack on Tuesday after falling back from their highest levels in years or even decades. The yield on the 10-year Treasury, which is the focal point of the U.S. bond market, eased to 5.26% from 5.31% late Monday.
It fell after oil prices steadied themselves somewhat. The price for a barrel of Brent crude oil, the international standard, fell as low as $97.06 in the morning before pulling back to settle at $100.58. While that was up 0.3% from Monday's settlement price, it's still below the nearly $110 it was at a few weeks ago, and the easing removes some of the pressure from inflation.
On Wall Street, stocks involved in the artificial-intelligence frenzy have been behind much of the market's record-setting run, and Constellation Energy jumped 11.7% on Tuesday.
It announced a long-term deal to supply Google with about as much electricity as a new nuclear reactor makes. The boom in AI data centers has made not just electricity more in demand but also construction crews and materials throughout the economy.
Elsewhere on Wall Street, Option Care Health soared 32.9% after CD&R and McKesson said they’re buying the provider of infusion services. The two are paying $32.05 for each Option Care Health share, valuing it at roughly $5.8 billion.
CDR is a private investment firm. Shares of McKesson, the healthcare services company, added 1.2%.
They helped offset a drop for Stryker, which fell 2.2% after the medical technologies company said Kevin Lobo will step down as its chief executive at the end of the year. He's held the position since 2012 and will become Stryker's executive chairman. The company said its current chief operating officer, Spencer Stiles, will replace Lobo.
In stock markets abroad, indexes ticked higher in Europe as yields continue to swing in their bond markets amid concerns about high government debts and tight budgets.
In France, tens of thousands of demonstrators marched in support of protests by students demanding more funding for schools.
In Asia, Japan’s Nikkei 225 jumped 1.1%, and Hong Kong’s Hang Seng climbed 1%, but South Korea’s Kospi dropped 0.9%.
AP Business Writers Chan Ho-him and Matt Ott contributed to this report.
An earlier version of this story incorrectly identified Constellation Energy.
FILE - Options trader Anthony Spina, center, works on the floor of the New York Stock Exchange on June 16, 2026. (AP Photo/Richard Drew, File)
FILE - Commuters emerge from a Wall Street subway station in New York's Financial District on Wednesday, Oct. 30, 2024. (AP Photo/Peter Morgan, File)
FILE - The New York Stock Exchange is shown in New York's Financial District on Dec. 23, 2024. (AP Photo/Peter Morgan, File)
A currency trader reacts near a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Tuesday, Oct. 6, 2026. (AP Photo/Ahn Young-joon)
A currency trader passes by screens showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Tuesday, Oct. 6, 2026. (AP Photo/Ahn Young-joon)
A currency trader passes by a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Tuesday, Oct. 6, 2026. (AP Photo/Ahn Young-joon)
